Real Estate Glossary

A written history of the title to a parcel of real estate as recorded in a land registry or land titles office.

A residential unit, other that the primary residential unit, located within the main structure.

A measurement of area/land equaling 4,840 square yards, 43,560 square feet, or .4 hectares.

When an individual, not the owner, takes possession of the property, hostile to, and without the consent of the owner and remains in exclusive possession using the land like an owner and ignoring the claims of other persons including the actual owner.

AGENCY

The relationship between Principal and Agent which arises out of a contract, written or oral wherein the agent is employed and authorized by the Principal to represent him/her in business transactions with a third party.

AGENT

One who is authorized by a Principal to represent him/her in business transactions with a third party, In the real estate profession in Ontario it refers to a licensed brokerage.

AMORTIZATION PERIOD

The time period required to completely reire the debt/mortgage through scheduled payments of principal and interest.

APPRAISAL

An opinion of value. Most commonly derived using recent sales of comparable properties by a licensed, professional appraiser.

APPRAISED VALUE

The estimated fair market value of a property as developed by a licensed, certified appraiser following accepted appraisal principals.

ARREARS

The circumstance of being behind in payments. The term is commonly used in respect to delinquent payments under a mortgage document.

ASSESSED VALUE

A valuation placed upon property as a basis for municipal taxation.

ASSIGNMENT

The transfer of rights in a contract, usually in writing, to another party

BALANCE DUE ON COMPLETION OR CLOSING

The amount of money the purchaser will be required to pay to the vendor to complete the purchase, after all adjustments have been made and trust deposits have been deducted.

BREACH OF CONTRACT

Failure to fulfill an obligation under a contract and may result in a legal action by the party "injured" by the breach.

BUYER AGENCY AGREEMENT / BUYER REPRESENTATION AGREEMENT

An agreement in which the Buyer typically appoints a Real Estate Brokerage for a designated time period to locate property meeting certain general criteria, for which the Broker receives a commission either fro the Listing Brokerage or the Buyer

CANADA MORTGAGE AND HOUSING CORPORATION (CMHC)

A public mortgage default insurer.

CHARGE

An encumbrance on land by way of a mortgage which has been registered in the land titles system.

CHATTEL

Personal property which is tangible and moveable, such as appliances or furniture.

CLOSING COSTS

The expenses that are incurred by the Buyer that are necessary to complete the purchase but are outside of the purchase price for the property, ie: legal expenses, adjustments for realty taxes or fuel, mortgage expenses.

CLOUD ON TITLE

Any encumbrance or claim that affects title to real property.

CONDOMINIUM

A system of land ownership where each individual owner holds title to a specific unit as well as owning a share of common property.

DAMAGES

Compensation or indemnity for loss owing to breach of contract.

DEPOSIT

Payment of money as a pledge for fulfillment of a contract. If failure of performance occurs, the deposit is usually forfeited unless the parties to the contract agree to mutually release each other from the agreement.

DUPLEX

A residential structure consisiting of two self-contained residential units.

EASEMENT

A right enjoyed by one land owner over the land of another, usually granted for a special purpose rather than for the general use and occupation of the land. An easement is an interest that runs with the land. Typical easements include: a right-if-way for pedestrians or vehicles or a utility agreement granting a utility company the right to place and maintain utility poles, lines, pipes or equipment

ENCROACHMENT

The unauthorized intrusion of the boundaries of land. A typical encroachment could be a land owners fence that has been erected and placed on or on part of a neighbour's property.

EVICTION

The forced removal, by legal means, of a tenant from the leased premises.

EXCLUSIVE LISTING

An exclusive listing gives one brokerage the authority to offer a property for sale, lease during a specified time period with some form of compensation to the brokerage. Exclusive listings do not show up on the Multiple Listing Service (MLS).

EXPROPRIATION

The taking of private property by the Government for public use, with fair compensation to the owner.

FIDUCIARY DUTIES

An agent owes his/her principal various fiduciary duties including: accountability, confidentiality, competence, good faith/full disclosure, loyalty and obedience.

FIXTURES

An improvement or item of personal property on the real property becomes a fixture when it is so attached to the property or building that it becomes part of it

FOURPLEX

A residential structure consisiting of four self-contained residential units

GENWORTH FINANCIAL CANADA

A private mortgage default insurer.

GOOD FAITH

Honesty of intention abstention from taking unconscionable advantage of another including appropriate disclos

GRANDFATHER CLAUSE

The term "Grandfather" or "Grandfathered" is often associated with changes to zoning requirements where existing owners are permitted to continue a practice, such as a non-conforming use, that has been effectively ended through new zoning by-laws

GREEN ROOF

A roof structure having a waterproofing membrane and a drainage system covered with landscape cloth that serves as the base for soil and or specialized growing medium and plants.

GROSS LEASE

An agreement in which the tenant pays a fixed rental and the owner pays all operating expenses such as insurance and taxes associated with the property.

IN-LAW SUITE

The occupancy of an accessory apartment by a direct relative.

LAND TITLES

A system of land registration in which the government certifies the accuracy of title as show o the record.

LATENT DEFECT

A hidden defect not readily seen by a reasonable inspection.

LOFT

A type of condominium usually created through the renovation of existing warehousing and factory building in downtown core areas of large urban centres.

MLS® LISTING

An MLS® listing is an exclusive listing with an added marketing feature. Multiple Listing Services are operated by real estate boards/associations. A signed listing contains an authority from the seller permitting the listing brokerage to employ the services of co-operating brokerages who are members of the real estate board/association.

MORTGAGE

A charge on land as security for the payment of a debt with certain remedies for nonpayment.

MORTGAGE INSURANCE

This insurance is not for the protection of the borrower, but rather for the lender. The mortgage balance must e insured at a cost to the borrower where the loan to value ratio is greater than 80%, ie: usually, where your down-payment is less than 80% of the purchase price.

MULTIPLE REPRESENTATION

Representation of two principals, usually seller and buyer, by the same agent/brokerage in the same transaction.

MUTUAL RELEASE

A release, in writing, by the appropriate parties to an agreement, acknowledging that an agreement no longer binds them.

NET LEASE

A lease in which the the tenant pays a portion if expenses associated with the leased premises. NET LEASE: Tenant pays the rent and certain expenses. NET/NET LEASE: The tenant pays all maintenance and operating expenses, plus property taxes. NET/NET/NET LEASE: The tenant pays maintenance and operating expenses, property taxes and insurance.

PATENT DEFECT

A defect that is readily discernible to the untrained eye.

PIPEDA

The "Personal Information Protection and Electronic Documents Act (PIPEDA) is a federal stature focused on privacy matters involving business purposes. The Act provides that personal information cannot be collected, used or disclosed in Canadian commercial activities without the informed consent of individuals providing such information.

RADON

An invisible, odourless, tasteless gas produced by the decay of uranium that occurs naturally i the earth's crust. Outdoors, radon is diluted, however indoor levels of concentration can be problematic and reach hazardous levels.

REALTOR®

A registered word which refers to real estate professionals in Canada who are members of The Canadian Real Estate Association (CREA) and to members of the National Association of REALTORS (NAR) in the United States.

REGISTRY SYSTEM

A system of land registration relying on a historical chain of conveyances to prove that a property has good and marketable title.

RENT

Compensation paid for the temporary use/occupancy of real estate by a tenant.

SURVEY

The accurate mathematical measurements of land and improvements thereon made with the aid of instruments

TERM

A fixed period of time normally associated wit mortgages and tenancy agremments

TRIPLEX

A residential structure consisiting of three self-contained residential units.