The
estimated monetary value of the injury a person suffers as a
result of an unlawful act or negligent act of another person.
Once proven, damages may be awarded by a Court.
The precise day, month and year upon
which an assessment of the value of a property has been given.
The specific day, month and year a
legal document was signed or prepared.
The specific day, month and year upon
which an instrument was registered on title to the property.
Also known as "Cul de Sac".
A street which is closed at one end so that traffic cannot
flow through it.
Similar to a car dealer, a person who
offers a collection of properties for sale to the public.
An entry on a financial statement which
reflects payments or disbursements made on behalf of a party
for which the party is responsible (opposite of "Credit").
1. An obligation to another person.
2. That obligation which is created by borrowing.
3. The total of all financial obligations of a person or corporation.
A comparison of the net income of a
property with the cost of payments (principal and interest)
on the mortgage on the property, used to assess the ability
of the property to generate enough income to pay for itself.
A comparison of the amount owing on
a property with the equity (value of property minus amount
owing).
Paying for the purchase of a property
with credit.
Also known as Debt-to-Income ratio.
A comparison of the total monthly payments of all of the borrower's
debts (including the mortgage) with the gross monthly income
of the borrower, used to assess borrower's ability to pay
mortgage.
The mortgage payment for a given period
of time.
:
A person who has borrowed and therefore
owes (opposite of Creditor).
A Statement made by a developer of a new subdivision which
sets out the restrictions of general application throughout
the new development.
A signed statement by a trustee acknowledging
that she holds legal title to property on behalf of someone
else (the beneficiary of the trust).
An order of the Court setting out the
amount outstanding on a delinquent mortgage and ordering the
sale of the property to pay the mortgagee.
Often required under subdivision or
development agreements, the donation of parcels of land to
the municipality for a public use, such as a street, a park
or a school.
The instrument by which title to property
is conveyed from one person to another.
The permanent record of deeds registered
in a particular jurisdiction. Also known as "libers".
A legal instrument in which a borrower
conveys property to a lender under a mortgage to save the
expense of foreclosure. See also quit-claim deed.
A legal instrument conveying legal
title to a property to a trustee, may contain statements as
to powers of trustee, duties of trustee etc.
A legal instrument which conveys title
from a trustee back to the borrower under a mortgage once
the mortgage has been paid out.
A legal instrument signed by lien claimants
or mortgagees which gives up their claim to the property.
See Discharge and Quit Claim Deed.
A legal instrument in which a person
with a life interest gives up that interest to the person
with underlying title.
A legal instrument which secures the
payment of a loan or mortgage, used in some states instead
of mortgages.
A legal instrument which conveys title
and is made by only one party.
A clause in a deed which limits the
use of the property in certain respects.
Failure. In mortgages, the failure
to make payments in full, on time or at all or to live up
to any other obligations placed on the borrower by the loan
agreement.
:
A decision rendered by a Court when
the defendant has failed to respond to the claim.
:
A clause in a mortgage which ensures
that, once the borrower has met all of her obligations under
the terms of the mortgage and paid out the entire principle
and interest borrowed, the lender's legal interest in the
property is extinguished.
Able to be revoked in the case of the
occurrence (or non-occurrence) of a certain event or the performance
(or failure) of a condition.
A registered claim on title which serves
to interfere with the marketability of the owner's title to
the property.
Ownership of property which is subject
to some competing claim.
The person against whom a claim is
asserted in a Court action.
Interest which is not paid as it accumulates
but which is added, instead, to the loan principle.
A technique for reducing the amount
of each periodic payment on a mortgage monthly by postponing
the payment of a portion of the interest until a certain date
in the future (or to when the property is sold), at which
time the interest postponed is added to the principle owing.
A nice way to say that the property
has not been kept up and is depreciating both physically and
in value.
A Court order against a borrower under
a mortgage to pay to the lender an amount sufficient to make
up for the difference between what the borrower owes under
the mortgage and the amount the lender sold the property for
under a mortgage remedy action.
One 360th of a circle. One 90th of
a right angle. Used in astronomic bearings in metes and bounds
descriptions of land.
The condition of being late on a payment
but not yet in default.
The act of turning over any legal document
(including a Deed) to another party
so as to make it legally operative and no longer revocable.
A type of loan where the lender may
require payment in full of the principal (and accumulated
interest) at any time.
A conveyance of an interest in property
for a set period of time (such as in a lease).
The portion of the entire property
which is leased to a particular tenant.
A measure of the number of a certain
thing within a defined space. Population density, for example,
measures the number of people in a given area (a square-mile,
an acre etc.)
A federal agency focusing on programs
regarding housing and renewal of city communities.
An independent federal agency which
oversees programs for military veterans, including loan and
mortgage programs.
1. The money paid up-front by a purchaser
as security for her completing the transaction. Also known
as "good faith money" or "earnest money".
2. An instrument which is not registered on title but placed
in the records for a given piece of land for information purposes.
When a lender requires ownership documents
to be left with it as further security for a loan.
The initial acquisition cost of an
improvement on land, used for income tax purposes. Land may
not be depreciated but the improvements (buildings, etc.)
may be.
An estimation of the useful, valuable
life of certain assets (such as buildings or production machinery).
1. The lessening of the value of a
property over time.
2. A tax adjustment accounting for the reduction in value
of an asset (a building or a piece of machinery) over time.
The gradual receding of water, leaving
more land than was there previously.
A transfer of property made to correct
or confirm an earlier conveyance.
The conveyance of property to those
heirs of a deceased person as dictated by the laws of the
jurisdiction when no will is left behind.
Also known as "Legal Description".
The manner in which a piece of land is identified. May involve
metes and bounds measurements using astronomic bearings or
may simply set out Lot and Plan numbers in a specific municipality.
Most jurisdictions require description of land to be included
in all instruments to be registered on title to that property.
Person designated by a corporation
to oversee all real estate activities of that corporation.
Must meet requirements for real estate broker's license.
Any person who has met the requirements
of the Real Estate Educators Association for this designation.
A free-standing dwelling that is designed
to house one family unit.
The impact of time and wear and tear
on a dwelling or other building which results in a decrease
in its value if nothing is done to counteract it.
A person or company who makes a business
of turning vacant or underused parcels of land into new housing
(or business, commercial or industrial) surveys.
A loan specifically designed to finance
the transformation of a vacant tract into a new survey. May
provide for money to be advanced as the stages of the development
are completed.
The legal ability to develop a parcel
of land, usually purchased from the owner of a vacant tract
of land by the developer. Title to the property does not change
hands until the new survey of properties is sold to third-party
purchasers.
The act of leaving a piece of land
to another person in a will.
The beneficiary under a will who receives
a gift of real estate under the will.
The deceased person under whose will
the beneficiary receives real estate. More commonly called
the "testator".
Short form for "Double Income,
No Kids". A description of a type of Purchaser in the
real estate market.
Those expenses in the improvement of
property which can be directly attributed to the improvement
itself (i.e. labor, material, taxes, etc.). Also known as
"hard costs".
A kind of mortgage where the principal
and interest to be paid are based on the principal remaining.
An amortized mortgage.
1. A document containing written instructions
to a person to do a certain thing in a certain way.
2. A point on a compass, used in legal descriptions.
A direction made by a party who is
entitled to money to the party who is obligated to pay the
money which sets out how the receiving party wishes the money
paid.
Also known as "Title Direction".
A direction made by the Purchaser to the Vendor of property
setting out how the Purchaser wishes to take title. May include
the full legal name, the birth date (if necessary), the address
for service of the Purchaser and, if there are more than one
Purchaser, the capacity in which they wish to share title
( i.e. as Joint Tenants or Tenants in Common).
A factor in the value of undeveloped
land, the direction in which an urban center tends to expand.
To refuse to accept a decision already
made, to revoke consent, assent or agreement already given.
An expenditure of money.
1. A document registered to
remove a mortgage from title to a property.
2. To payout out a debt.
3. To meet one's obligations.
A statement of refusal of responsibility
of a legal right etc.
The person on whose behalf an agent
is acting when that person's identity is made know to the
person with whom the agent is dealing.
Sometimes known as "Vendor's Disclosure",
a legal requirement in some jurisdictions in which the Vendor
of a property must provide a written statement to a prospective
purchaser setting out defects in the property known to the
Vendor.
A document issued by a lender to a
borrower in which the lender sets out the terms and conditions
of the loan. Often required under legislation.
A sum of money held back from a mortgage
advance as prepaid interest.
See point. Each point is equal to 1%
of the principal.Back to Top
A benchmark for interest rates, the
rate charged by the Federal Reserve System on loans to banks.
A licensed real estate broker who charges
a commission at a lower rate.
To remove a person from occupation
of a property by a legal action.
The legal action taken to dispossess
a person of property.
:
A landlord's action for recovering
arrears in rent by taking possession of and selling the tenant's
personal property.
The right of a party to sell the real
or personal property of another party to pay for arrears in
rent or loan payments.
A property which is to be sold in order
to pay arrears on a mortgage.
A terms used to classify neighborhoods
according to their use: residential, commercial, industrial,
etc.
1. Noun: a paper which establishes
certain facts or attempts to bring about a certain result.
2. Verb: to set out events, facts or beliefs in written form.
A levy paid to the local government
for registration of a document (a deed or mortgage) in the
public records, often calculated as a percentage of the purchase
price or the value of the mortgage.
A slang term for a property that, as
a result of factors such as poor condition, poor location
or poor design, is slow to sell.
The place where a person legally resides.
The property which enjoys the benefit
of an easement over another property (known as the servient
estate).
The person who receives a gift, bequest,
or who is named an attorney in a power of attorney.
The person who gives a gift, bequest,
gives power of attorney or who settles property in a trust
for another person (the beneficiary).
Ownership of land which is questionable
as a result of a possibly valid competing claim.
The interest enjoyed by a wife in real
property her husband acquired during his life time. The right
becomes exercisable upon the death of the husband. Dower still
exists in some jurisdictions but has been abandoned in most.
The amount of money provided by the
Purchaser toward the total price of the property (not including
legal fees or other acquisition costs). In general, down payment
plus mortgage equals purchase price.
The reduction of the density allowed
for a certain property under zoning by-laws, such as from
high density (high rise apartment) to medium density (low
rise or individual homes).
A term of a mortgage which establishes
the subject property as security for the present and for all
future debts of the owner to the lender.
A means, whether natural or otherwise,
by which water is allowed to flow off a property.
Also known as "non-recourse loan"
because the lender has no personal right of action against
the property owner in the event of default. The lender may
only sell the property to enforce the loan obligation.
A breach of agency rules which must
be disclosed to the parties. Where one agent (often a real
estate broker or agent) represents both sides in a contract
(i.e. the Vendor and the Purchaser) such that the agent has
a conflict of interest.
The date established in the loan agreement
upon which all moneys then outstanding on the loan become
due and payable in full.
A clause in a mortgage which requires
that the mortgage be paid out in full upon the sale of the
property against which it is secured. A mortgage with this
clause may not be assumed by a purchaser.
Slang term for the trustee in an undisclosed
trust situation where a nominee holds legal title of property
for an unnamed principal.
A building which houses two separate
dwelling units.
A state in which the improper, threatening
or coercive actions of another place a person in a disadvantage
psychological position. A person is not bound by a contract
she enters while under duress.
A house, home, living unit. Generally
refers to a building designed for use as a living space.
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