Compact,
early twentieth-century single-storey house.
One-storey house, in a post-Second-World-War
style, known for its ground hugging design and low, pitched
roof.
A lender's right to demand payment
of the outstanding balance of the loan at a time specified
in the loan agreement.
Provision in a contract that gives
one or more parties the right to terminate the contract if
a specific event occurs.
A limit. In variable rate mortgages,
a limit as to how high periodic payments may go or how much
the interest may change within a given time period or over
the life of the mortgage.
Short form for capitalization rate.
Legal competence to sign and be bound
by a contract. One might lack capacity as a result of being
a minor, being mentally challenged or not being of right mind.
A contract signed by an incapable person is not binding.
A one-storey house, compact in design
and in an early-American-style. Symmetrical layout with a
central entrance. Steep, gable-type roof, usually shingled,
with a low central chimney.
A property to which certain tax rules
(capital gains and capital losses) apply.
Money spent to improve a property and
enhance its value over an extended period of time (as opposed
to a repair). May be added to the adjusted cost base of the
property improved or depreciated over the useful life of the
improvement.
increase in value of a capital property
(a property other than a principal residence) upon which tax
is payable, either upon disposition of the property or the
deemed disposition of the property under tax rules.
Value enhancing work carried out on
a capital property.
Decrease in value of a capital property
(a property other than a principal residence). May be set
off against capital gains or against regular income according
to the tax rules.
The working money in a business venture.
A comparison of the sales or leasing
rate of a particular real estate development to the sales
or leasing rate of all developments in the same market.
The expense required to maintain a
property over a given period of time, including property taxes,
maintenance, insurance payments, interest charges on financing,
etc.
The amount a vendor would have realized
on the sale of a property had she not accepted unfavourable
(or favourable) financing of the purchaser but received cash
instead.
Description of the net income from
a property after all expenses of holding and carrying the
property are paid.
An accounting method, based on actual
cash moving in and out of the company over a given period.
See accrual method.
An amount of money that the purchaser
of a property still has after the transaction closes. Some
lenders require a certain level of cash reserve (equal to
two payments) before granting a mortgage.
See cash flow.
When an owner renegotiates or negotiates
a new mortgage and the proceeds of the new financing exceed
the money required to pay out the old mortgage and any other
costs, liens or expenses, leaving money for the borrower.
Latin, meaning "Let the Buyer
beware". Maxim which applies to real estate transactions
where the onus is on the Purchaser to satisfy herself as to
the suitability and condition of the property she is considering
for purchase. Vendor is not responsible to the Purchaser for
the condition of the property and, unless he is specifically
asked, does not generally have an obligation to reveal problems
to the Purchaser (except where the defect is hidden, serious
and could not be discovered by the Purchaser after reasonably
prudent inquiries and investigations).
Short form for "covenants, conditions,
and restrictions", which are the rules of general application
governing the relations between land owners in a specific
subdivision, development, condominium development or cooperative
housing facility. May be registered on title.
The limit over which the interest rate
on a variable rate mortgage may not rise over the life of
the loan.
The business and commercial "core"
of a municipality (also known as "Downtown").
Document issued by the Department of
Veteran's Affairs to qualifying veterans which entitles them
to apply for subsidized or guaranteed loans.
A document, issued by the insurance
company, setting out the particulars of the insurance coverage
for a particular property.
Document which sets out a certain
set of facts which the issuer is agreeing to be bound by.
Same as estoppel certificate.
Document issued by the local municipality
indicating that a new dwelling is suitable for occupation.
Generally confirms that the dwelling complies with local building,
safety and health by-laws.
Document issued by the Department of
Veterans Affairs (VA). Based on an appraisal, sets out market
value of a particular property for the purposes of establishing
maximum principal amount available for a VA mortgage on the
property.
Document registered on title which
provides evidence from the lender that a loan instrument (deed
of trust, mortgage, other lien) has been paid out and released.
A written opinion of the quality of
a person's ownership of property, issued by a lawyer or a
title insurance company after a search of the title records
has been conducted. May contain qualifications to the certification
regarding defects found or potential defects not investigated.
Document issued by Department of Veteran's
Affairs confirming that the person named in the Certificate
has served at least 90 days of continuous active duty (including
training time) and is eligible for certain VA benefits (such
as a VA mortgage).
A copy of a document which bears some
form of declaration (usually by the holder of the original
document) that it is a true copy of the original.
A person who has met the requirements
to be licensed to appraise the value of property. Qualification
requirements may vary from one jurisdiction to the next.
A person who has met the requirements
to be "certified" to inspect the physical condition
of homes. Qualification requirements may vary from one jurisdiction
to the next.
A person who has met the requirements
of the Institute of Real-Estate Management.
A person who has met the requirements
to be licensed to appraise the value of residential properties
of no more than four units.
A person who has met the requirements
of the Realtors National Marketing Institute.
A person who has met the requirements
of the Realtors National Marketing Institute.
The beneficiary of a trust, the person
who is the beneficial/equitable owner of the property held
in trust for which the trustee holds legal title.
A part of a title search. A listing,
in chronological order, of successive legal owners of a property,
often listing as well the registration particulars of the
document by which title is transferred from each owner to
his successor in title.
An old unit of measurement of land,
measuring 66 feet in length. A chain equals 100 links, each
0.66 feet in length.
Term describing the period of time
between changes in the interest rate and/or payments of a
variable rate (adjustable rate) mortgage or loan (i.e. one
week, one month etc.).
An item of personal property which
is not affixed to the land or building (as opposed to a fixture,
an item which is a part of the land or building). Chattels
are generally not included in the sale of property unless
specifically included in the Agreement of Purchase and Sale.
A debt secured against items of personal
property rather than against land, buildings and fixtures.
Ownership of land which is marketable
and free of competing claims, liens, mortgages or other encumbrances.
A right asserted against another party.
One might register a claim on title to the property to which
the claim applies, file a claim under an insurance policy
or file a Statement of Claim in court to assert one's rights.
A legal proceeding which presents the
related or similar claims of an identifiable group against
a single or group of defendants, usually by using one representative
claimant to assert the claims on behalf of the group.
Customer. The person who hires a professional
(broker, banker, lawyer, investment counsellor, etc.)
A land loan that cannot be prepaid
or re-negotiated before the end of its term without the payment
of an interest penalty.
A mortgage with a set principal amount
which cannot be increased or extended during the life of the
mortgage.
The culmination of any transaction
in which the interested parties (or their representatives)
meet to exchange documents, funds, and property and, if necessary,
to register the transfer of title.
Moneys expended by a party in completing
a transaction, over and above the purchase price, including:
legal fees, taxes, mortgage application charges, interest
adjustments, registration fees, appraisal fees, etc.
Also known a Completion Date. The date
set in the Agreement of Purchase and Sale upon which the transaction
is to be completed, the purchase price paid and the transfer
of title registered.
Also known as HUD-1 statement. A document
which sets out the financial agreement between the parties,
the costs each must pay, and all other similar information
regarding a transaction (may be joint or separate for each
party).
Any unresolved claim against ownership
of all or part of a property, affecting the owner's title
to the property and marketability of that title.
Development design which places attached
dwelling in close proximity to each other, with nearby open
spaces set out for common use of the dwelling owners.
A set of rules governing the behavior
of members of the organization that has established the Code.
Lawyers and real estate brokers/agents both have their own
Codes.
A technique used to share the risk
of a larger development between several insurance companies,
each company covering a certain percentage of the total value
of the insured property. Each policy may include a clause
setting a minimum percentage of the total value of the insured
property which the owner must keep insured in order to be
eligible for payment under the policy.
Also known as "Cold Call".
Contacting home owners out of the blue to solicit business
or, in the case of a real estate broker or agent, listings.
Property (real or personal) which is
pledged to secure a loan or mortgage. If the debt is not paid,
the lender has the right to sell the collateral to recoup
the outstanding principal and interest on the loan.
A loan which is secured by some sort
of written note of indebtedness (such as a Promissory Note)
which is secondarily secured by a mortgage registered against
a property.
The act of pursuing a debtor who is
delinquent on his loan payments.
Also known a "Guarantor".
Someone who signs a loan document along with the principal
borrower, pledging to be responsible for the loan should the
borrower fail to pay it.
:
A real estate professional who deals
in properties with commercial (business, retail, etc.) uses.
As opposed to residential or industrial
property. Property zoned, designed or intended for use retail,
office, or similar users.
To allow to mix, as in money belonging
to two or more people deposited to the same account and used
by each person regardless of the amount they have deposited.
Payment to a salesperson (a listing
real estate agent or broker) for her efforts
in marketing and selling a property, usually expressed as
a percentage of the purchase price.
The division of the payment made to
the listing agent between that agent and her broker, or between
the listing agent and agent representing the Purchaser (the
selling agent).
A promise, usually in writing, to provide
a mortgage or other loan. May also be used in insurance field.
Sets out details of mortgage, insurance. Often referred to
as Commitment Letter or Binder.
The fee charged by the lender to commit
itself to a mortgage or loan on specific terms.
Also known as Common Element Fees.
A periodic charge levied against all of the owners of units
in a condominium or planned unit development (PUD) project
which is used by the condominium corporation or homeowner's
association to pay for repair, maintenance and other expenses
of the common areas in the development.
Portions of the property and buildings
owned by a condominium corporation or planned unit development
(PUD) homeowners' association, or a cooperative development's
association that are available for the use of all unit owners.
Also used in rental properties to refer to those facilities
for the use of all tenants.
A common area in a condominium project
which is owned by the condominium corporation and for the
use of all unit owners.
As opposed to statute law. Laws or
legal principles that have been established by courts over
the years. May be codified into a statute or overruled by
a statute passed by the government.
Any organization established and run
by property owners in a particular area, often to represent
the common interests of the owners in dealings with government,
planning bodies, developers or other outside parties.
Program established to find creative
ways to finance home purchases for people with modest income.
The principle that property accumulated
by the joint efforts of a married couple should be considered
to be owned by both of them in equal shares, no matter who
has legal title to the property.
Used in assessing or establishing the
fair market value of a property, a property which has been
sold recently that is similar in size, condition, location
and amenities to the subject property.
People who are legally capable of entering
and being bound by a contract (i.e. of age, mentally capable).
See Closing Date.
For tax purposes, allocating a portion
of the total cost of renovation to each component of the renovation
(roof, plumbing, electrical, foundation, etc.) and then depreciating
the cost of each component separately.
As opposed to simple interest. The
accumulation of interest on a loan over time where interest
is charged not only on the principal of the loan but also
on all interest accrued against the principal to the end of
the last compound period.
Sacrifices made by a party to convince
another party to enter a contract.
1. The taking of private land for public
use by a municipal or other government body through a court
action under the principal of Eminent Domain. See also Expropriation.
2. An order made by a health or building department barring
the use of a dangerous or hazardous property.
Clauses in the Agreement which must
be fulfilled before the Agreement becomes firm and binding.
If the condition is not fulfilled, the Agreement will usually
become null and void and any deposit paid returned to the
Purchaser.
An offer to purchase a property which
is contingent on the fulfillment of certain conditions before
it becomes firm and binding. Also known as "Conditional
Sales Contract".
A development where individuals own
dwelling units but share common areas with the other unit
owners of the complex. The maintenance of the common areas
etc. is taken care of by the Condominium Corporation in which
every unit owner owns a share and has voting rights. The Condominium
Corporation is created by the registration of a Declaration
and by-laws on title to the property and all individual units.
An organization made up of unit owners
in a condominium development established to govern relations
between the owners and to administer the rules, by-laws and
covenants of the condominium
Complying with the requirements of
a certain statute, by-law or organization.
Also called a Committee, Personal Representative
or Guardian, a person appointed by the Court to administer
the property of a person who is not capable of managing his
own affairs.
The value, asset, service, information
etc. which is offered to another party in a contract in exchange
for that party's agreeing to enter the contract. A contract
is not binding if each party does not offer at least some
consideration to the other party(ies).
A type of loan which requires equal,
periodic payments over a certain term, at the end of which
the amount owing under the loan will be completely paid out.
A structured, short-term loan to a
builder or developer to allow for the development of land.
Funds are advanced at certain stages of the development project
to pay for specific expenses, fees or costs.
Actions of a landlord (or third party)
which interfere with a tenant's use and enjoyment of the rented
premises to such an extent that the tenant is, at law, considered
to have been improperly forced out of the premises.
The legal principle that deems that
a person has knowledge of a certain fact once that fact is
made a part of a public record. The registration of a lien
on title to a property represents constructive notice to all
persons interested in that property of that lien, whether
they have investigate the title records or not.
Also known as Credit Bureau. The source
to which the banks or other lenders turn for information on
the credit history of an applicant.
See also Abutting. Sharing a common
boundary, touching.
An event which may (or may not) happen
in the future, a condition that must be fulfilled before a
contract becomes firm and binding.
A legally binding agreement (oral or
written) between two or more persons regarding an exchange
of some sort. A legally binding contract must include consideration
passing between the parties, an intention on the part of all
parties to be bound to the contract, a meeting of the minds
of the parties as to the contents of the contract, and an
element of clarity such that the terms of the contract may
be interpreted, understood and enforced by a court.
Also known as a Land Contract or Land
Installment Contract. Transfer of a property where the title
remains in the Vendor's name until the Purchaser makes the
final payment to the Vendor of the Purchase Price.
Also known as Agreement of Purchase
and Sale, Offer to Purchase, Contract of Purchase. The written
agreement between the Vendor and Purchaser for the sale of
property which contains all of the terms, conditions and financial
details of the transaction.
The periodic rental payment as set
out in the lease contract.
A tradesman who works in the construction
industry under a contract with the owner of the property.
See also "sub-contractor".
1. A loan or mortgage to which the
normal rules of such transactions apply without the inclusion
of a government program (i.e. VA or FHA insurance).
2. A loan or mortgage with a fixed interest rate, fixed payments
and a fixed term.
A provision in a variable rate mortgage
(adjustable rate mortgage) which allows the borrow to change
the mortgage to a fixed rate mortgage upon the occurrence
of certain events.
1. a change in the use of a property,
or in the way a property is owned (i.e. from private to condominium
ownership)
2. the improper taking of the property of another for one's
own use;
3. In Ontario, the transfer of a property from the Registry
System of land registration to the new Land Titles Conversion
Qualified (LTCQ) computerized system by the agents of the
Ontario government.
See "Conversion Clause".
To transfer title to (or any other
interest in) a property to someone else.
The act of transferring an interest
in property to someone else or the document which effects
the transfer.
Short for Cooperative, a mode of land
ownership where the occupiers of individual units in a building
own an interest in the Cooperative Corporation that owns the
whole property.
A Broker who is involved in a real
estate transaction and is, therefore, entitled to share in
the commission from the transaction.
See "Co-op".
The movement of an employee of a corporation
to a new city (or other location) as part of the normal business
of the corporation. The employee's moving expenses (including
the costs of selling and buying a home) may be paid by the
corporation and are tax deductible.
A legal entity created by the registration
of appropriate incorporating documents with the supervising
government office. May be private (ownership held by specific
individuals and not traded on a public stock exchange) or
public (shares traded on stock exchange). Shareholders are
protected from liability for the actions of the corporation.
Corporations may enter contracts and own property.
Tangible.
An appraisal method where a property's
value is estimated using the cost of the property plus cost
of all improvements, minus depreciation.
Predicting the total cost of a construction
project by estimating, in advance, the actual costs of all
elements in the project, including legal fees, labor, permits,
materials etc.
An agreement with a contractor or builder
which sets the contractor's compensation for the project as
a percentage of the total cost of all labor and materials.
When more than one person owns a piece
of property. Title will be held by the owners as Joint Tenants
(each owns the land equally and, in the event of the death
of one of the owners, the survivors continue to share title
equally by right of survivorship) or as Tenants in Common
(each owner has title to a specific percentage of the land
and may sell, mortgage, or bequeath her interest to a third
party without consent of the other owners).
An answer to an offer. If a prospective
Purchaser presents an offer to purchase a property to the
owner of the property, that owner may accept the offer as
it stands, reject it outright or respond with a "counteroffer"
which changes certain terms of the original offer. Making
a counteroffer, at law, entails rejection of the original
offer. The Purchaser may then counteroffer back, making changes
to the owner's counteroffer. Sometimes, the process of counteroffering
is referred to as "signing back" the offer.
A territorial division of land in a
geographic region (state or province). Similar to Regions
and Regional Municipality.
A promise contained in a contract or
agreement.
A covenant that is literally attached
to the land and binds present and future owners to the requirements
of the covenant. In new developments, such covenants may be
restrictive: the owner is not allowed to alter grading patterns
of the land, or erect new fences, or put up TV aerials, or
to change the color of the exterior of the house. Such restrictive
covenants may be enforced by a Homeowners' Association.
An arrangement for the financing of
the purchase of a property which is outside the normal practice
of residential financing.
1. The ability to access money, to
use money prior to earning it.
2. The accounting term for a liability or for equity, entered
on the right side of the ledger.
3. As a verb, to allot for the benefit of a person (i.e. You
must credit the Purchaser on closing for the deposit paid).
A statement of the debts and obligations,
whether current or past, of a person which helps a lender
to assess the risk of a loan to that person.
A form of insurance which is designed
specifically to pay out the debts of the insured person in
case of their death.
The maximum amount available to a person
under a loan, credit card or other borrowing arrangement.ack
to Top
Based on an analysis of a person's
credit history, an evaluation of that person's ability to
manage a new debt or debts overall.
The potential for a borrower to fail
to live up to her obligations under a loan arrangement.
Any person to whom money is owed. May
be secured (the debt has been registered against the property
of the debtor) or unsecured.
French term for a "dead-end street".
A street which meets another street at one end but is closed
at the other, such that little traffic will travel down it
and the property owners enjoy excellent privacy.
The total amount charged as interest
on a loan or mortgage to a certain date.
A builder or developer who specializes
in creating homes to the specifications and requirements of
individual land owners.
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