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Agency Relationship: This is the fiduciary relationship resulting when one person (or brokerage firm) called the agent represents the interests of another person, called the principal, in dealing with others. In a real estate transaction, an agency relationship is formed between the brokerage firm (including all its licensees) and the principal. Back to List of Terms Agreement of Purchase and Sale (Offer to Purchase): A contract by which one party agrees to sell and another agrees to purchase. A contract with no conditions attached is referred to as a firm offer. A contract with conditions is referred to as a conditional offer. Appraisal: The act or process of estimating value. (Appraisal, if done for mortgage lending purposes, may not necessarily match the sale price of the property.) 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 by the Province, as a basis for municipal taxation. Assessed value may or may not have any relationship to market value. Back to List of Terms Broker or Salesperson: An intermediary between the buyer and seller who is licensed to carry out such activities. 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. Canada Mortgage and Housing Corporation (CMHC): The federal CMHC is the Canadian Crown corporation which administers the National Housing Act. CMHC services include providing housing information and assistance to consumers and insuring home purchase loans for lenders. Chattels: Personal property which is tangible and moveable such as electrical appliances, blinds, light fixtures, etc. Back to List of Terms Client: A buyer or seller who forms an agency relationship with a real estate broker, usually through a Realtor, also called a principal. Closing Date: The date specified in the Agreement of Purchase and Sale when the purchaser delivers the balance of money due and the vendor delivers a deed and vacant possession of the property (unless otherwise agreed). Also referred to as Date of Completion. Condition: A condition in a contract which calls for the happening of some event, or performance of some act, within a stated period of time, before the agreement becomes firm and binding on all the parties. A condition could be a house inspection, the sale of an existing house, or the arrangement of a mortgage. Back to List of Terms 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. Deposit: Payment of money or other valuable consideration as pledge for fulfillment of contract. Easement: The right enjoyed by one landowner over the land of another. Encroachment: The unauthorized extension of boundaries of land.Back to List of Terms 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. Fiduciary Duties: The duties required by an agent (the brokerage firm and its representatives) acting for the principle in an agency relationship. They include loyalty, disclosure, confidentiality, diligence, accounting and obedience. Fixtures: Permanent improvements to property that may not be removed upon the sale of the property (such as built in cupboards, furnace, central air conditioning, pool, windows, etc.). Home Inspection Structural examination and inspection of a home by a qualified home inspector. Irrevocable: Incapable of being recalled or revoked. Unchangeable, unalterable. Back to List of Terms Lien: A right, given to a creditor, creating an interest in the real property until the debt is discharged. Listing: 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. Market Value: The highest price, in terms of money, that the property will bring to a willing seller if exposed for sale on the open market while allowing a reasonable time to find a willing purchaser, buying with the knowledge of all the uses, and with neither party acting under necessity, compulsion or peculiar and special circumstances. Back to List of Terms 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. Power of Sale: The right of a mortgagee to force the 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. Real Estate: Includes real property, lease-holds or a business whether with or without the building, fixtures, stock-in-trade, goods or chattels in connection with the operation of the business. Back to List of Terms 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. Salesperson or Broker: An intermediary between the buyer and seller who is licensed to carry out such activities. Survey: The accurate mathematical measurement of land and buildings thereon, made with the aid of instruments. Title: The means of evidence by which the owner of land has lawful ownership thereof. Back to List of Terms 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. Royal LePage RCR Realty |