Real Estate Glossary
REAL ESTATE | LEGAL | FINANCIAL
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 equalling 160 square rods,
or 4,840 square yards, 43,560 square feet,
or .4 hectares.
AGENT
One who is authorized by a principal to
represent him/her in business transactions
with a third party, in the real estate
profession it refers to a licensed
brokerage.
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.
APPRAISAL
The act of process of estimating value.
APPRAISED VALUE
An estimate of the value of the property.
Conducted by a certified appraiser for the
purpose of mortgage lending.
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.
BROKER
See Real Estate 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.
CHARGE
The name given to a mortgage document when
title is registered under the Land Titles
Act.
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.
COMPENSATION
Payment or reward for performance of
service.
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.)
CONDOMINIUM FEE
A common payment made by owners that is
allocated to pay expenses.
CONSTRUCTION LIEN
See Mechanics Lien.
CONVEYANCE
The transfer of an interest in property from
one person to another.
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.)
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.
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.
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.
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.
FRAMING
The rough timber work of a house, including
the flooring, roofing, partitioning, ceiling
and beams.
GRANT
A technical term used in deeds of conveyance
to indicate a transfer of an interest or
estate in land.
GUTTER
An eaves trough used to convey rainwater from
the roof to the downspout.
JOIST
One of a series of horizontal wood members
used to support a floor, ceiling or roof.
LAND TRANSFER TAX , DEED TAX OR PROPERTY
PURCHASE TAX
A fee paid to the municipal and/or
provincial government for the transferring
of property from seller to buyer.
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).
LESSEE
Tenant under a lease.
LESSOR
The person who grants use of property under
lease to a tenant.
LINTEL
A horizontal structural member (beam) that
supports the load over an opening such as a
door or window.
LISTING
An oral or written agreement between a
property owner and a broker authorizing the
brokerage to offer the owner's real property
for sale or lease.
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.
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.
MULTIPLE LISTING
An arrangement among brokerages, usually
real estate board members, whereby each
brokerage presents its listings to the other
members, who may negotiate the transaction.
OPEN LISTING
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.
PERSONAL PROPERTY
All property, except land and the
improvements thereon.
PROSPECT
A potential buyer or customer.
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 as defined in the
Real Estate and Business Brokers Act of
Ontario.
REAL ESTATE BROKER
A brokerage that represents a principal in a
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.
RIGHT
The interest one has in a piece of property.
SALESPERSON
A licensee of a brokerage authorized to
trade in Real Estate (as defined within the
Real Estate and Business Brokers Act). Also
can be referred to as a Sales Representative
or an Associate Broker.
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
An assessment which is not customarily
levied and which is made against only those
specific parcels of property directly
benefiting therefrom.
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).
5u5TOFB\SURVEY
The accurate mathematical measurement of
land and buildings thereon, made with the
aid of instruments.
TENANT
One who occupies land or tenement under a
landlord.
TENURE
A system of land holdings for a temporary
time period.
VALUATION
Estimated worth or price. The act of
ascertaining how much specific real property
is worth.
VENDOR
A seller of real property.
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.
REAL ESTATE | FINANCIAL
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
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.
AGENT
One who is authorized by a principal to
represent him/her in business transactions
with a third party, In the real estate
profession it refers to a licensed
brokerage.
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.
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.
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.
BREACH OF CONTRACT
Failure to fulfill an obligation under a
contract. Breach confers a right of action
on the offended party.
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.
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 which is tangible and
moveable.
CLOUD ON TITLE
Any encumbrance or claim that affects title
to real property.
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.
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.
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
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 restictive, forbidding
the commission of some act.
DAMAGES
Compensation or indemnity for loss owing for
breach of contract, or a tort (civil wrong.)
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.
DESCRIPTION
A legal identification of land or premises.
DOR
See Notice DOR
DOMINANT TENEMENT
The estate (i.e. property) which derives
benefit from an easement over a servient
tenement, as in a Right-of-way.
EASEMENT
A right enjoyed by one landowner over the
land of another.
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.
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.
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.
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.
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.
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.
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.
JOINT TENANCY
Ownership of land by two or more persons
whereby, on the death of one, the survivor
or survivors take the whole estate.
JUDGEMENT
The decision of the Court.
LAND TRANSFER TAX , DEED TAX OR PROPERTY
PURCHASE TAX
A fee paid to the municipal and/or
provincial government for the transferring
of property from seller to buyer.
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.
LIS PENDENTS
A legal document giving notice that an
action or proceeding is pending in the
courts which affects the title to the
designated property.
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.
MECHANIC'S LIEN (CONSTRUCTION)
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.
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 inaccuracy.
