Technical jargon in any profession can create confusion and misunderstanding for those not well versed in the lingo. The real estate industry is no exception. The following are commonly used real estate industry terms, along with a plain English explanation.
A written history of the title to a parcel of real estate as recorded in a land registry office.
The relationship between an individual and sales person which arises out of a contract (written or oral) in which a sales person is employed to represent him in business transactions with a third party.
AGREEMENT FOR SALE
An agreement for the purchase of real estate property in which the purchase price is paid in installments and the title is not conveyed to the purchaser until the purchase price is paid in full.
The act or process of estimating value.
A valuation placed upon the property as a basis for municipal taxation.
ASSUMPTION OF MORTGAGE
The taking of title to property by an individual where he or she assumes liability for an existing mortgage against a property and they become personally liable for the payment of such mortgage debt.
BALANCE DUE ON COMPLETION
The amount of money the purchaser will be required to pay to the seller to complete the purchase, after all adjustments have been made.
A Latin expression meaning "Let the buyer beware". The buyer must examine the goods or property he or she is buying and he or she therefore, buys at his or her own risk.
Personal property which is tangible and movable.
Monies paid to a sales representative upon the sale or lease of property, usually as a percentage of the amount involved.
A contract is a legally binding agreement between two or more capable people. The agreement says that in return for a lawful and genuinely intended act, a certain value will be placed. The contract must be in writing.
An agreement contained in a deed and creating an obligation. It may be positive, stipulating the performance of some act or it may be negative or restrictive, forbidding other acts.
A person to whom a debt is owed by another person usually called a debtor.
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 seller delivers a duly executed deed and vacant possession of the property.
A document in writing, duly executed and delivered, that conveys title or an interest in real property.
The payment of money or other valuable consideration as pledge for fulfillment of the contract.
A document giving the sole right to offer a described piece of property for sale, according to the terms of the agency agreement.
Court actions taken by a mortgagee when default occurs on a mortgage, causing forfeiture of the property.
A person who dies without a will or leaves one which is defective in form.
A contract between landlord and tenant for the occupation or use of the landlord's property by the tenant for a specified consideration.
A right, given to a creditor and creating an interest in the real property until debt is discharged.
An oral or written agreement between a property owner and a broker authorizing the broker to offer the owner's real property for sale or lease.
The conveyance of property to a creditor as security for payment of a debt, with a right of redemption upon payment of that debt.
The one to whom the property is conveyed as security for the payment of a debt; ie. the lender or creditor.
The one who makes the mortgage; ie. the borrower or debtor.
An arrangement among brokers, usually real estate board members, whereby each broker presents his listing to the other members, who may negotiate the transactions.
POWER OF ATTORNEY
Delegated written authority to a person allowing that person to act on behalf of another.
The employer of a sales representative or broker, who gives the sales representative or broker authority to do some act for him or her. In real estate, usually the owner or the property.
REAL ESTATE BROKER
A person who represents a principal or owner in a real estate trade.
A registered word that may only be used by an active member of a real estate board affiliated with the Canadian Real Estate Association.
An employee of a broker authorized to trade in real estate.
COMPLIMENTS OF: Corinne ONeil
"The Service & Results You Deserve"