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| A |
| Abstract:
A written history of the title to a parcel of real
estate as recorded in a Land Registry Office.
Acre:
A measure of land equaling 10 square chains, 160
square rods, or 4,840 square yards, 43,560 square
feet, or .4 hectares.
Adverse
Possession:
When an individual not the owner, takes actual
possession of the property, hostile to, and
without the consent of the owner.
Agency:
The relationship between principal and agent
written or oral, wherein an agent is employed and
authorized by the principal to represent the
principal in business transactions with a third
party.
Agent:
One who is authorized by a principal to represent
the principal in business transactions with a
third party. In the real estate profession it
refers to a broker.
Agreement
for Sale:
An agreement for the purchase of real property
wherein the purchase price is paid in installments
and title is not conveyed to the purchaser until
the purchase price is paid in full.
Agreement
of Purchase and Sale: A contract by which one
party agrees to sell and another agrees to
purchase.
Agreement
to Lease: A
contract by which one party agrees to rent real
estate to another party for a rental fee or other
compensation.
Amortization:
The gradual retirement of a debt by means of
partial payments of the principal at regular
intervals.
Appraisal:
The act or process of estimating value.
Appurtenance:
Something which is outside the real property
itself, but belongs to the land and is joined
thereto. It adds to greater enjoyment of the land.
A right-of-way is an appurtenance.
Assessed
Value: A
valuation placed upon property as a basis for
municipal taxation.
Assessor:
An official who has the responsibility of
determining assessed value for tax purposes.
Assumption
of Mortgage:
The taking of title to property by a grantee,
wherein he assumes liability for an existing
mortgage against a property and becomes personally
liable for the payment of such mortgage debt.
Authority:
The legal power or right given by a principal and
accepted by the agent to act on the principal’s
behalf in business transactions with a third
party.
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| B |
| Balance
Due on Completion: The
amount of money the purchaser will be required to
pay to the vendor to complete the purchase, after
all adjustments have been made.
Breach
of Contract: Failure to fulfil an obligation
under a contract. Breach confers a right of action
on the offended party.
Broker:
See Real Estate Broker.
Building
Codes: Regulations established by local
governments pro- viding for structural
requirements for building.
Building
Line: A line fixed at a certain distance from
the front and/or sides of a lot, beyond which no
building can project.
Building
Permit: A document issued by the municipal
authority certifying the blueprints for
construction and allowing work to commence.
Bundle
of Rights: A concept in which rights of
possession, use, enjoyment, and disposition
comprise the rights of ownership.
Business:
Any undertaking for the purpose of profit,
including any interest in any such undertaking.
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| C |
| Caveat
Emptor: " Let the buyer beware." The
buyer must examine the goods or property he is
buying and he, therefore, buys at his own risk.
Charge:
The name given to a mortgage document when
title is registered under the Land Titles Act.
Chattel:
Personal property which is tangible and
moveable.
Closing:
See Date of Completion.
Cloud
on Title: Any encumbrance or claim that
affects title to real property.
Commission:
Remuneration paid to an agent on sale or lease
of property, usually as a percentage of the amount
involved.
Commitment:
See Mortgage Commitment.
Common
Law: That part of the law formulated,
developed and administered by the common law
courts, based originally on common customs and
mostly unwritten.
Compensation:
Payment or reward for performance of service.
Compound
Interest: Interest on both the original
principal and on interest accrued.
Condition
Precedent: A condition in a contract which
calls for the happening of some event, or
performance of some act, before the agreement
becomes binding on the parties.
Condition
Subsequent: A condition referring to a future
event upon the happening of which the contract
becomes no longer binding on the parties.
Condominium:
The fee ownership of a specified amount of
space (the unit) in a multiple dwelling or other
multi-occupancy building with tenancy-in-common
ownership of portions used jointly with other
owners (the common elements).
Consideration:
Something of value given by a promisee to a
promisor to make the promise binding.
Construction
Lien: See Mechanics’ Lien.
Contract:
A contract is a legally binding agreement
between two or more capable persons for
consideration or value, to do or not to do some
lawful and genuinely intended act. If for the sale
of real estate it must be in writing.
Conveyance:
The transfer of an interest in property from
one person to another.
Covenant:
An agreement contained in a deed and creating
an obligation. It may be positive, stipulating the
performance of some act. It may be negative or
restrictive, forbidding the commission of some
act.
Creditor:
A person to whom a debt is owed by another
person termed the debtor.
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| D |
| Damages:
Compensation or indemnity for loss owing for
breach of contract, or a tort (civil wrong).
Date
of Completion: The date specified in the
agreement of purchase and sale, when the purchaser
is to deliver the balance of money due and the
vendor to deliver a duly executed deed and vacant
possession of the property (unless otherwise
agreed).
Deed:
An instrument in writing, duly executed and
delivered, that conveys title or an interest in
real property.
Deed
Restriction: An imposed restriction in a deed
for the purpose of limiting the use of the land.
Default:
Failure to fulfil an obligation.
Deposit:
Payment of money or other valuable consideration
as pledge for fulfillment of contract.
Depreciation:
A loss in value due to any cause.
Description:
A legal identification of land or premises.
Developer:
One who engages in the subdivision or improvement
of land.
Dominant
Tenement: The estate (i.e. property) which
derives benefit from an easement over a servient
tenement, as in a Right-of-way.
Duplex:
A two-family dwelling or house.
Dwelling:
Residence.
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| E |
| Easement:
A right enjoyed by one landowner over the land of
another.
Economics:
The study of how men and society choose resources
which have alternative uses, to produce various
commodities over time and distribute them for
consumption, now and in the future, among various
people and groups in society.
Encroachment:
The unauthorized extension of the boundaries of
land.
Encumbrance:
Outstanding claim or lien recorded against
property or any legal right to the use of the
property by another person who is not the owner.
Equity:
The interest an owner of real property has in its
total assets after allowing for encumbrances and
creditors’ claims.
Equity
of Redemption: The right of the mortgagor to
reclaim clear title to the property upon full
repayment of the debt.
Escheat:
The reversion of property to the state in the
event the owner thereof dies leaving no will and
having no legally qualified heir to whom the
property may pass by lawful descent.
Estate:
An interest in land.
Estoppel:
A bar to alleging or denying a fact because of
one’s own previous actions or words to the
contrary.
Ethics:
Rules of behavior made and accepted by business to
provide fair and moral practice.
Exclusive
Listing: The giving of the sole right to offer
the described property for sale according to the
terms of the agency agreement.
Express
Authority: Authority delegated by the
principal which clearly sets forth in exact,
plain, direct and well-defined limits those acts
and duties which the agent is empowered to perform
on behalf of the principal, e.g. an exclusive
listing.
Expropriation:
Taking of private property by the state for public
use, with fair compensation to the owner, through
the exercise of the right of eminent domain.
Extras:
Chattels included in the sale.
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| F |
| Fee
Simple: The highest estate or absolute right
in real property.
Fixtures:
Permanent improvements to property that may not be
removed at the expiration of the term of lease or
tenure.
Flashing:
Sheet metal or other material used in roof and
wall construction to shed water.
Footing:
The widened section, usually concrete, at the base
or bottom of a foundation wall, pier or column.
Foreclosure:
Remedial court action taken by a mortgagee, when
default occurs on a mortgage, to cause forfeiture
of the equity of redemption of the mortgagor.
Framing:
The rough timber work of a house, including the
flooring, roofing, partitioning, ceiling and
beams.
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| G |
| Grant:
A technical term used in deeds of conveyance to
indicate a transfer of an interest or estate in
land.
Grantee:
The party to whom an interest in real property is
conveyed.
Grantor:
The party who conveys an interest in real property
by deed.
GDS
Ratio: Gross Debt Service Ratio. Lender’s
allowable ratio of gross monthly payment to gross
monthly income of mortgage applicant.
Gutter:
An eavestrough used to convey rainwater from the
roof to the downspout.
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| H |
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| I |
| Indemnify:
To secure against hurt, loss or damage; to make
compensation to for incurred hurt, loss or damage.
Indenture:
A document or deed, usually in duplicate,
expressing certain objects between the parties.
Infant:
A person who is a minor; under the age of eighteen
and thus incapable of the independent judgement
necessary to undertake a legal obligation.
Injunction:
A judicial process or order requiring the person
to whom it is directed to do, or refrain from
doing, a particular thing.
lnstrument:
A form of written legal document.
Interest
Rate: The percentage which is charged for the
use of borrowed money.
Intestate:
A person who dies without a will, or leaves one
which is defective in form, in which case his
estate descends by operation of law to his heirs
or next of kin.
Irrevocable:
Incapable of being recalled or revoked;
unchangeable, unalterable.
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| J |
| Joint
Tenancy: Ownership of land by two or more
persons whereby, on the death of one, the survivor
or survivors take the whole estate.
Joist:
One of a series of horizontal wood members,
usually 2-inch nominal thickness, used to support
a floor, ceiling or roof.
Judgment:
The decision of the court.
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| K |
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| L |
| Landlord:
The person from whom another holds tenancy.
Lease:
Contract between landlord (lessor) and tenant
(lessee) for the occupation or use of the
landlord’s property by the tenant for a
specified time and for a specified consideration
(rental).
Legal
Description: A written description by which
property can be located, definitely.
Lessee:
Tenant under a lease.
Lessor:
The person who grants use of property under lease
to a tenant.
Lien:
A right, given to a creditor, creating an interest
in the real property until the debt is discharged.
Lintel:
A horizontal structural member (beam) that
supports the load over an opening such as a door
or window.
Lis
Pendens: A legal document giving notice that
an action or proceeding is pending in the courts
which affects the title to the designated
property.
Listing:
An oral or written agreement between a property
owner and a broker authorizing the broker to offer
the owner’s real property for sale or lease.
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| M |
| Marketable
Title: A title which a court of equity considers
to be so free from defect that it will enforce its
acceptance by a purchaser.
Market
Value: (Formal Definition) The highest price
in terms of money, which the property will bring
to a willing seller if exposed for sale on the
open market allowing a reasonable time to find a
willing purchaser, buying with the knowledge of
all the uses to which it is adapted and for which
it is legally capable of being used, and with
neither party acting under necessity, compulsion
or peculiar and special circumstances.
Mechanics’
Lien (Construction Lien): A claim filed in the
land registry office by an individual, or company,
for labour or material, or both, supplied for the
improvement of the property.
Metes
and Bounds: A system of land description
whereby all boundary lines are set forth by use of
terminal points and angles – mete referring to a
limit or limiting mark, and bounds referring to
boundary lines.
Metropolitan
Area: That area which includes not only the
entire chief urban core of a city (the central
city) but also the outlying suburbs which are
appended thereto.
Mill:
One-tenth of one cent, a measure used to indicate
the property tax rate, e.g. a tax rate of one mill
per dollar is the same as 0.10 per cent of the
assessed value.
Minor:
A person who is under the age of legal competence,
which is eighteen years in Ontario.
More
Or Less: Term often found in a property
description intended to cover slight, unimportant
or unsubstantial inaccuracies of which both
parties are willing to assume the risk.
Mortgage:
A conveyance of property to a creditor as security
for payment of a debt with a right of redemption
upon payment of the debt.
Mortgagee:
The one to whom property is conveyed as security
for the payment of a debt; the lender or creditor.
Mortgagor:
The one who gives the mortgage; the borrower or
debtor.
Mortgage
Commitment: A formal indication, by a lending
institution that it will grant a mortgage loan on
property, in a certain specified amount and on
certain specified terms.
Multiple
Listing: An arrangement among brokers who are
real estate board members, whereby each broker
shares information regarding his listings with the
other members, who may negotiate the transaction.
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| N |
| Notice
ROR: Notice filed in court by mortgagor under
foreclosure proceedings that he requests an
opportunity to redeem.
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| O |
| Offer
and Acceptance: The basic requisite of any
contract is a proposal by one party, called the
offeror, to another party, called the offeree, to
accept the basic terms of the agreement. If the
offeree indicates his assent to the proposal,
there is an acceptance and the contract will bind
both parties to its terms.
Open
Listing: A listing given to any number of
brokers without liability to compensate any except
the one who first acquires a buyer ready, willing
and able to meet the terms of the listing, or
secures the acceptance by the seller of a
satisfactory offer; the sale of the property
automatically terminates the listing.
Option:
A right given by the owner of property to another
(for valuable consideration) to buy certain
property within a limited time at an agreed price.
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| P |
| Personal
Property: All property, except land and the
improvements thereon.
Power
of Attorney: Delegated written authority to a
person to legally act on behalf of another.
Power
of Sale: The right of a mortgagee to force
sale of the property without judicial proceedings
should default occur.
Prepayment
Clause: A clause inserted in a mortgage, which
gives the mortgagor the privilege of paying the
mortgage debt in advance of the maturity date, on
stipulated terms.
Principal:
The employer of an agent or broker, who gives the
agent or broker the authority to do some act for
him.
Principal
Amount: In mortgage law, this term refers to
the debt itself, as distinguished from interest.
Prospect:
A potential buyer or customer.
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| Q |
| Quit
Claim Deed: A general release of all claims or
rights to a parcel of land.
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| R |
| Real
Estate: "Real Estate" includes real
property, leasehold and business whether with or
without premises, fixtures, stock-in-trade, goods
or chattels in connection with the operation of
the business. (Real Estate and Business Brokers
Act)
Real
Estate Broker: A person who represents a
principal in real estate trade. (See more formal
definition in the Real Estate and Business Brokers
Act.)
Real
Property: The combination of the tangible and
intangible attributes of land and improvements.
Value-wise, it is the sum of the value of the real
estate, considered as land and structure and, for
example, the tangible value arising by reason of a
favourable lease. The real estate, plus the rights
that go with it.
Realtor:
A registered word which may only be used by an
active member of a real estate board affiliated
with the Canadian Real Estate Association.
Rent:
The compensation paid for the temporary use,
and/or occupation of real estate.
Restricted
Area By-law: See Zoning By-Iaw.
Restrictive
Covenant: A limitation placed upon the use of
property, contained in the deed.
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| S |
| Sub-agent:
An agent authorized by the listing agent to assist
in transacting the affairs of the principal (with
express or implied consent of principal).
Survey:
The accurate mathematical measurement of land and
buildings thereon, made with the aid of
instruments.
Syndicate:
An association of individuals formed for the
purpose of owning, operating and managing large
parcels of real property for the mutual benefit of
all, and organized as a corporation limited
partnership or joint venture.
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| T |
| Tenancy-In-Common:
Ownership of land by two or more persons; unlike
Joint tenancy in that interest of deceased does
not pass to the survivor, but is treated as an
asset of the deceased’s estate.
Tenant:
One who occupies land or tenement under a
landlord.
Tenure:
A system of land holdings for a temporary time
period.
Term:
In a mortgage "term" is the actual
length of time for which the money is loaned.
Time
is of the Essence: Requires punctual
performance of a contract on closing date and is
indicated by so stating as in an Agreement of
Purchase and Sale.
Title:
The means of evidence by which the owner of land
has lawful ownership thereof.
Transfer:
To convey from one person to another.
Trust
Account: An account separate and apart from
one’s personal monies, as required by law in the
case of a broker.
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| U |
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| V |
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| W |
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| X |
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| Y |
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| Z |
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