THE DOUBLE ADVANTAGE / TORONTO'S BEST MOVE

Real Estate Glossary

 Abstract
A summary or history written about the title to a parcel of real estate. It is normally recorded in a Land Registry Office.

Acre
.4 hectares, 160 square rods, 4,840 square yards or 43,560 square feet

Adverse Possession
A hostile possession of the property without the consent of the owner.

Agency
A written or oral contract between a principal and an agent. The principal authorizes the agent to represent him in business transactions

Agent
The broker that is authorized by the principal to represent him

Agreement of Purchase and Sale
One agrees to purchase and the other party agrees to sell and this is the contract to the parties.

Agreement to Lease
One agrees to rent and the other party agrees to a rental fee or other compensation.

Amortization Period
The time to completely retire a mortgage through scheduled repayments of the principal amount

Appurtenance
Something outside of the property but belongs to the property and is joined. A right-of-way is such an instance

Arrears
Tobe behind in the payments for a mortgage

Assessed Value
A value of the property as a basis for taxation

Blanket Mortgage
One mortgage in which several separate properties are secured for a loan

Blended Payments
Where periodic payments of principal and interest are made and the payments remain constant in an amount and the portions attributed to principal and interest vary with each payment

Building Codes
Regulations established by local governments providing for structural requirements for building.

Building Line
A lined 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
Rights are possession, use, enjoyment and disposition

Capitalization Rate
The rate of return expected by an investor, the rate of return available from alternative investments at the same time, and the annual depreciation of the building

Cessation of Charge
To discharge the mortgage

Charge
The mortgage document is known as a "Charge" when registered under the Land Titles Act

Chattel
Personal property

Cloud on Title
A lien, encumbrance or anything that would affect the title of the property

CMHC
Canada Mortgage and Housing Corporation which administers the National Housing Act

Commitment
A document from a mortgage lender to a borrower that the lender will submit the funds for the mortgage in a certain amount with certain conditions

Completion Loan
One disbursement of the total loan after satisfactory completion of the property

Compound Interest
Interest on the principal and accrued interest

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.

Consideration
Some of value given by a promisee to a primosor to the the promise binding.

Contract
A contract is a legalling binding agreement between two or more capable persons for consideration or value, to do or not to do some lawful and genuinely intended act.

Conventional Mortgage
A first mortgage by a lender to a purchaser that does not exceed 75% of the appraised lending value of the property

Conveyance
Transfer the interest in a property from one person to the other

Covenant
Something agreed to in a deed and it creats an obligation

Deed
A document in writing duly executed and delivered. It conveys title or an interest in real property.

Description
A legal identification of land or premises.

Developer
One who engages in the subdivision or improvement of land.

Dominant Tenement
A right away would be a Dominant Tenement having a benefit over a Servient Tenement

Easement
A benefit b y one owner over another

Effective Gross Income
An estimated gross income less vacancies and rent losses.

Encroachment
To extend the boundaries of land without authorization

Encumbrance
A claim or lien owed against the property by another person who is not the owner

Equity
After encumbrances are taken from the value of the property, the balance is the equity

Equity of Redemption
The owner's right to claim clear title to the property when the debt is fully paid

Escheat
When an owner dies without a will and there is no heir it may pass to the state

Estate
An interest in land.

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
The state takes private property for public use with compensation to the owner

Fee Simple
The absolute right or highest estate in the 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 i 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
The mortgagee may take court action against the mortgagor for non payment.

Framing
The rough timber work of a house, including the flooring, roofing, partitioning, ceiling and beams.

GDSR
Gross debt service ratio. Usually 30% to 35% or the gross income for calculating allowable mortgage, interest and tax payments. Frequently heating is also calculated into this figure.

Grant
A technical term used in deeds of conveyance to indicate a transfer of an interest or estate in land.

High Ratio Mortgage
A mortgage with a down payment which is less than 25% of the appraised value

Indenture
A document or deed, usually in duplicate expressing certain objects between the parties.

Instrument
A form of written legal document

Interest
The amount paid by a borrower to a lender for the use of money

Intestate
When so meone dies without a will, or one which is not acceptable and his estate descents to the heirs or next of kin.

Irrevocable
Unchangeable or unalterable. An Agreement of Purchase and Sale would have an Irrevocable date where a decision must be made before that date expires

Joint Tenancy
On the death of one owner, the surivor(s) receive the whole estate.

Joist
One of a series of horizontal wood members, usually 2-inch norminal thickness, used to support a floor, ceiling or roof.

Lease
A contract made between the landlord and the tenant to use the landlord's property by the tenant over an agreed period of time for a specific consideration

Legal Description
A written description by which property can be located, definitely.

Lessee
The tenant

Lessor
The landlord or one who grants the use of the property under the lease

Lien
To create an interest in a property to a creditor until a 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 of proceeding is pending in the courts which affects the title to the designated property.

Market Value
It is probable price in the terms of money which a property will bring if exposed for sale on the open market allowing a reasonable time to find a Purchaser who buys with the knowledge of all the uses to which it is capable of being used. Frequently it is referred to as the highest price at which a willing buyer would buy, and the lowest price at which a willing seller would sell, with neither party being under undue pressure.

Metes and Bounds
Land description where all boundaries are terminal points and angles. Mete is a limit or limiting mark and bounds are the boundary lines.

Mill
One-tenth of one cent.

Mortgage
To convey property to a creditor as security with a right of redeption when payment of the debt is made

Mortgage Commitment
A document from a lender that it will grant a mortgage on a property within a certain time and on specified terms

Mortgagee
The lender or creditor

Mortgagor
The borrower or debtor.

NHA
National Housing Act (1954). Provides for insuring NHA loans by lenders for a mortgage under programmes by the Canada Mortgage and Housing Corporation (CMHC)

Notice DOR
Notice filed in court by the Mortgagor (borrower) that is under foreclosure that the borrower desires the opportunity to redeem.

Power of Sale
The mortgagee (lender) may force the sale of the property without court should the mortgagor (borrower) default on payments.

Principal
One that employs and agent or broker and gives them authority to act for them.

Principal Amount
The amount of the actual debt separate from the interest

Quit Claim Deed
To release all rights or claims to a parcel of land

Real Estate
Real property, business with or without premises, fixture, stock, goods or chattels, leasehold

Real Estate Broker
One who represents a principal in a trade in real estate

Real Property
Attributes of land and improvements which are the combination of tangible and intangible attributes. The real estate plus it's rights.

Rent
The amount paid for the temporary use of real estate

Restrictive Covenant
The deed contains a limitation placed on the use of the property.

Right
The interest in a piece of property

Right of Survivorship
Joint tenancies that provide that upon the death of any joint owner, the interest in the land pass to the surviving co-owner rather than to his estate.

Right-of-Way
To be able to pass over another's land according to an easement

Riparian Rights
Rights of owners of lands on watercourses to the use of the water on, under or adjacent to the land including acquire accretions, wharf slips and fish

Run with the Land
Extends beyond the agreement and binds all subsequent takers to liability to perform it or the right to take advantage of it.

Servient Tenement
An easement would exist on a Servient Tenement's land to the favour of the dominant tenement.

Set Back
Distance from a curb or other established line within which no buildings may be erected.

Special Assessment
An assessment which is not customarily levied and which is made against only those specific parcels of property deriving benefiting

Statement of Adjustments
Prepared by a lawyer for the vendor being a balance sheet of the credits to teh vendor and the balance due on closing.

Sub-agent
An agent the listing agent has authorized to assist in the transaction.

Survey
A measurement of the land and all the buildings on the land which is made with instruments

Tenancy-in-Common
Land owned by two or more persons and the interest of the deceased passes to the deceased's estate and not to the other parties in the ownership.

Tenant
The one that occupies the land under a landlord

Tenure
Holding of land for a temporary period of time

Term
The actual time, in a mortgage, for which the money is loaned at a particular rate of interest

Term Mortgage
A mortgage which the principal is not amortized, but is paid in its entirety on the maturity date.

Title
The evidence which the owner uses to prove lawful ownership

Transfer
To convey a property from one person(s) to another person(s)

Trust Account
A Bank account which is kept separate from all other accounts and usually deposits for land transactions are kept usually by a broker or lawyer pending completion or other termination of an agreement.

Vendor
The seller of real property

Vendor Take Back Mortgage
A mortgage which a vendor has taken from the purchaser as partial payment of the purchase price of the property

Yield
An Investment's return as a percentage per annum of the amount that was invested

Zoning By-Law
By-law passed by a municipality which has been approved by the Ontario Municipal Board to prohibit the use of certain land for any purposes other than the by-law.

 

 

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THE DOUBLE ADVANTAGE - TORONTO'S BEST MOVE

 

STEVEN & PINA