Glossary- HomeSellerPak

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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 160 square rods, or 4,840 square yards, 43,560 square feet, or .4 hectares.
ADVERSE POSSESSION	The open and exclusive occupation and use of someone else's real property without permission of the owner continuously for a period of years prescribed by law, thereafter giving title to the occupier-user.
AGENCY	The relationship between principal and agent which arises out of a contract, written or oral wherein an agent is employed and authorized by the principal to represent him/her in business transactions with a third party. The principal is legally responsible for all acts committed on their behalf by the agency.
AGENT	One who is authorized by a principal to represent him/her in business transactions with a third party.
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	A formal evaluation of property by an expert, used to establish its market value.
APPURTENANCE	Property (as an outbuilding or fixture) or a property right (as a right of way) that is incidental to a principal property and that passes with the principal property upon sale or transfer.
ASSESSED VALUE	Dollar value assigned to property for purposes of assessing taxes.
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 grantee 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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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 fulfill an obligation under a contract. Breach confers a right of action on the offended party.
BROKER	Middleman who charges a fee for being an intermediary between to parties, one selling, one buying. Note: Many industries are eliminating brokers to cut unnecessary costs and bring lower prices to consumers.
BROKERS AND AGENTS PROTECTED	A term used in the real estate industry to notify real estate agents that the seller is willing to pay a commission to a broker or agent who brings a buyer. It also implies to a broker or agent that the seller will not directly contact in any way perspective buyers brought to the property buy a cooperating agent or broker.
BUILDING CODES	Regulations established by local governments providing 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.
BUYERS AGENT	A real estate agent who acts on the behalf of a buyer in a real estate transaction and who usually receives half of the overall commission. In the case where a seller is paying a 6% commission, usually 3% will go to the buyer's agent and the seller's agent will retain the remaining 3%.
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CAVEAT EMPTOR	"Let the buyer beware." The buyer must examine the goods or property he/she is buying and he/she, therefore, buys at his/her own risk.
CHARGE	The name given to a mortgage document when title is registered under the Land Titles Act.
CHATTEL	Personal property that is tangible and moveable.
CLOSING	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.)
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. Common commissions run between 5-10 percent of final selling price, plus applicable taxes.
COMMITMENT	See Mortgage Commitment.
COMMON LAW	That part of the law formulated, developed and administered by the old 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 become 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 promised, given, or done (usually cash) that has the effect of making an agreement a legally enforceable contract.
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.
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 affecting 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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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 fulfill 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.
DOR	See Notice DOR.
DOUBLE-ENDING	Where a real estate agent represents both the buyer and the seller in the transaction and receives the full commission.
DUPLEX	A two-family dwelling or house.
DWELLING	Residence.
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EASEMENT	A right enjoyed by one landowner over the land of another.
ECONOMICS	The study of how persons and society choose resources that 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 behaviour 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 AUTHORTIY	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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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.
FOR SALE BY OWNER (ALSO KNOWN AS FSBO, FIZ-BO AND THE SMART ONE)	A home or property owner who sells their property independently or with the assistance of a FSBO company, such as Home SellerPak, but without the services of a Real Estate Broker or Agent saving the commission.
FORECLOSURE	A legal proceeding where the financer of mortgage (in most cases a bank or mortgage company) seeks to regain property because the borrower (usually home-owner) has defaulted on payments.
FRAMING	The rough timber work of a house, including the flooring, roofing, partitioning, ceiling and beams.
FSBO	See For Sale By Owner. Stands for For Sale By Owner (acronym).
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GDS RATIO	Gross Debt Service Ratio. Lender's allowable ratio of gross monthly payment to gross monthly income of mortgage applicant.
GRANT	A technical term used in deeds of conveyance to indicate a transfer of an interest or estate in land.
GRANTEE	The receiver of a grant
GRANTOR	A person or organization that makes a grant.
GUTTER	An eaves trough used to convey rainwater from the roof to the downspout.
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HOMESELLERPAK	Means "A home sellers package". A comprehensive package or kit to sell a home, cottage or property without paying real estate commission. See http://www.homesellerpak.com/
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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 judgment 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.
INSTRUMENT	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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JOINT TENANCY	Ownership of land by two or more people or entities, whereby on the death of one or more party, the survivor or survivors take the whole estate.
JOIST	One of a series of horizontal wood members used to support a floor, ceiling or roof.
JUDGEMENT	The decision of the Court.
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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	Where an owner of a property gives permission in writing to a third party to promote the existence of a property for sale, which may include legally binding responsibilities to both the seller and the third party to perform certain duties and provide certain compensation.
LISTING AGENT	The real estate agent who lists the sellers property for sale, usually by posting it on the MLS system and placing a sign on the sellers front yard in return for a half share of the overall commission. In the case where a seller is paying 6% commission the listing agent will receive 3% and the agent who brings the buyer will receive 3%. In the case where the listing agent is also the buyers agent, is known as double-ending, the listing agent can keep all 6% commission. This is very rare, less than 10% of the time.
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MARKET VALUE	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.
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.
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 that 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.
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
MORTGAGEE	The one to whom property is conveyed as security for the payment of a debt; the lender or creditor.
MORTGAGOR	The one who makes the mortgage; the borrower or debtor.
MULTIPLE LISTING SERVICE	A closed system operated by the real estate industry which gives members the exclusive right to post properties for sale, and allows other members to sell the properties, guaranteeing both parties a commission from the home seller. Also provides media with self -serving propaganda and information for the benefit of its members.
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NOTICE DOR	Notice filed in court by mortgagor under foreclosure proceedings that he desires an opportunity to redeem.
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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 agrees to the proposal, there is an acceptance and the contract will bind both parties to its terms.
OPEN LISTING (SIMILAR TO BROKER AND AGENTS PROTECTED)	A listing given to any number of brokerages 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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PERSONAL PROPERTY	A type of property which, in it's most general definition, can include any asset other than real estate. The distinguishing factor between personal property and real estate is that personal property is movable. That is, the asset is not fixed permanently to one location as with real property such as land or buildings. Examples of personal property include vehicles, furniture, boats, collectibles, etc.
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	A person who authorizes another, as an agent, to represent him or her.
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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QUIT CLAIM DEED	A general release of all claims or rights to a parcel of land.
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REAL ESTATE	Land, including all the natural resources and permanent buildings on it
REAL ESTATE BROKER	A person or a company who is permitted by a real estate board to act on behalf of a buyer or seller in return for a fee in the exchange of real property. Real Estate agents usually work for a broker.
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 favorable lease. The real estate and the rights that go with it.
REALTOR	A registered trademark which may only be used by an active member of a real estate board identifying a person who sells real estate.
RENT	The compensation paid for the temporary use, and/or occupation of real estate.
RESTRICTIVE COVENANT	A limitation placed upon the use of property, contained in the deed.
RIGHT	The interest one has in a piece of property.
RIGHT OF SURVIVORSHIP	The distinguishing feature of joint tenancies which provides that, where land is held in undivided portions by co-owners, upon the death of any joint owner, his/her interest in the land will pass to the surviving co-owner, rather that to his/her estate.
RIGHT OF WAY	The right to pass over another's land, more or less frequently, according to the nature of the easement.
RIPARIAN RIGHTS	The rights of the owners of lands on the banks of watercourses, to take advantageous use of the water on, under, or adjacent to his land, including the right to acquire accretions, wharf slips, and fish there from.
RUNNING WITH THE LAND	A covenant is said to run with the land when it extends beyond the original parties to the agreement and binds all subsequent takers to either liability to perform it or the right to take advantage of it.
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SALESPERSON	A person who sells something. In the real estate industry it usually refers to a real estate agent.
SEALED AND DELIVERED	A term indicating that a conveyor has received adequate consideration as evidenced by his/her voluntary delivery. The word"sealed" adds more strength since under old conveyancing law an official seal was used as a substitute for consideration.
SELLERPAK	Meaning "A Sellers Package" or a sellers kit or sales kit to sell a home or vehicle. See http://www.sellerpak.com/
SERVIENT TENEMENT	Land over which an easement exists in favor of the dominant tenement.
SET BACK	The distance from the curb or other established line within which no buildings may be erected.
SHINGLE	A relatively thin and small unit of roofing, partially laid in overlapping layers as a roof covering or as cladding on the sides of buildings.
SPECIAL ASSESSMENT	A tax levied by a local government on private property to pay the cost of local public improvements, as sidewalk construction or sewage disposal, that are of general benefit to the property taxed.
SPECIFIC PERFORMANCE	A remedy in a court of equity compelling a defendant to carry out the terms of an agreement or contract. It is available only where the remedy of damages cannot afford adequate relief to the plaintiff.
STATEMENT OF ADJUSTMENTS	A statement prepared by the solicitor for the vendor setting out, in balance sheet form the credits to the vendor (e.g. purchase price, prepaid taxes, prepaid insurance, etc.) and the credits to the purchaser (e.g. deposits, arrears in taxes prior to the date of closing) and the balance due on closing, so that both the purchaser and the vendor will have a record, at the date of closing of the financial breakdown of the transaction.
STATUTE	A law established by an act of the legislature.
STATUTE OF FRAUDS	A law which provides that certain contracts must be in writing in order to be enforceable at law. It includes real estate contracts.
STUCCO	Any cement-like material used as an exterior covering for walls and the like, put on wet and drying hard and durable.
STUDDING	One of the series of wood structural members used as supporting elements in walls and partitions. (Plural: studs or studdings)
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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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.
TERM MORTGAGE	A non-amortizing mortgage under which the principal is paid in its entirety upon the maturity date.
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 brokerage.
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VALUATION	Estimated worth or price. The act of ascertaining how much specific real property is worth.
VENDOR	A seller of real property.
VOID	Of no legal effect. A nullity.
VOIDABLE	Where one party to a contract is entitled to rescind the contract at his option.
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ZONING BY-LAW	A by-law passed by a municipality and approved by the Ontario Municipal Board, prohibiting the use of land in certain areas for any purpose other than as set out in the by-law. In the Planning Act, it is called a Restricted Area By-law.