A sum of money paid by a potential purchaser
as proof of her intention to complete the purchase transaction.
Held in trust, usually by the Listing Agent, and credited to Purchaser
off purchase price. May be forfeited if Purchaser fails to complete
transaction.
The right of the owner of one parcel of land
to use all or part of the land of another for a specific purpose.
Runs with the land. Requires one property to be in dominant position
(enjoys the benefit of the easement) and one property to be in servient
position (is subject to the right).
A land owner's right to make use of the property
of another (or a portion of it) for a specific purpose, when such
use is required to allow the land owner to enjoy his own land.
The continuing, unchallenged use of all or
part of a property by the owner of a neighboring or nearby property
for a specific period of time (20 years in many jurisdictions) such
that, by law, the using owner gains a legal right to continue that
use.
A house which is remarkable for its three-dimensional
ornamentation following a nineteenth-century style.
The commercial or industrial foundation of
a community which provides opportunities for employment.
The decline in value of a property which
is caused by reasons outside of the property itself.
The length of time an improvement to real
estate can be expected to provide more value than its operating
or upkeep costs.
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An appraisal term for the age of improvements
to a property based on an assessment of their current condition
(i.e. a well-maintained 100-year-old house could have an effective
age of 10 years while a ramshackle, unmaintained 20-year-old house
could have an effective age of 50 years). Opposite of "actual
age".
1. For borrowers, the actual amount of money
earned from stable sources over a set period (i.e. a month) before
taxes and expenses are deducted.
2. For rental properties, the amount of income the property will
produce if leased at market value before costs, taxes, upkeep and
discounts for vacancy are deducted.
The actual rate (or interest or return) once
all factors are accounted for (factors include compounding of interest
or costs of earning the return).
A comparison of the space in a building available
for lease to the total space of the building.
A term for a small dwelling unit in which
kitchen and sometimes bath areas are combined with the living area.
Also known as "bachelor apartment" or "studio apartment".
Means of exit from a room, building or property
(often to a road).
Legal proceeding to evict a tenant without
a lease.
A two-storey or two-and-a-half storey, English-style
house which has the upper storey overhanging the first, often with
stone and stucco walls and half-timber beams.
The right of a body of government (often
a state) to expropriate private property, while paying appropriate
compensation to the owner.
Middle-aged or older couples whose children
have grown up and "left the nest" to live on their own.
Often looking to sell a larger house and buy a smaller one.
The intrusion across the property line and
into one property of an improvement to a neighboring property. May
result in a claim for adverse possession if the encroachment is
unchallenged for a long period of time.
Any right, interest or other claim against
land which is registered on title and affects the owner's ability
to sell the property.
The person who signs a document to represent
the transfer of property to another.
A description of a property which has special
features aimed at reducing use of electrical or heating power (i.e.
insulation, double-insulated windows, high-efficiency furnace, etc.).
A tax break given to property owners who
took steps to save energy in their property such as installing insulation.
1. The legal right to a benefit or program.
2. Name for the VA home loan benefit.
A report on the anticipated effect of a development
on the local environment. May be required for federal funding for
the development.
U.S. government agency for the protection
of the environment.
U.S. federal law aimed at affording people
of all races, genders, religions, ages etc. an equal chance to borrow
money.
Agency with a mandate to ensure fairness
in property tax assessments.
A common law doctrine which treats a Vendor
under an Agreement for the sale of property as holding the property
in trust for the Purchaser even before the transaction has been
completed such that the Vendor is liable to the Purchaser for any
damage negligently caused to the property.
The common law interest of the Purchaser
in the property for which she has entered an Agreement to Purchase
prior to the completion of the transaction.
The difference, in dollars, between the market
value of a property and the principal owing on debts secured against
the property. The amount of money the owner will be able to keep
from a sale transaction once the mortgages are paid out. Also known
as "owner's interest".
The increase over time of the owner's interest
in a property, the difference between the value of the property
and the amount owed on the mortgage.
A loan to a home owner secured against the
equity the owner enjoys in the property.
The right a borrower has to pay out in full
a mortgage against a property that has gone into foreclosure or
power of sale proceedings, thus redeeming the property.
The gradual diminishing of land or soil as
a result of the action of water, wind, rain, etc.
Professional protection from liability for
mistakes, negligence, etc.
Part of a net lease. A provision that increases
the rent payable under a lease when certain costs of the building
increase (i.e. taxes, utility charges, etc.).
Any provision in a contract that allows one
or more parties to end the contract upon the occurrence of certain
events.
The reversion of title to a property to the
state. Can occur when an owner dies with no legal heirs or when
a corporate owner is dissolved by act of law or by voluntary act
while holding legal title to the property.
A state wherein consideration, benefits,
legal rights, money, documents or other valuables are transferred
to another party in advance of that party's legal entitlement to
them, on the basis that the legal entitlement will arise at a given
point in the future. A form of trust.
A form of trust account in which advance
payments are held on behalf of the payor until the contract allows
their use by the payee or a third party.
Any independent third party who receives
items to be held in escrow, holds such items until transfer is allowed,
and then delivers them.
The completion of a transaction whereby documents,
consideration etc. are held in trust (either by the parties and
their representatives or by an independent third party) pending
the completion of certain conditions, at which time the items held
in escrow are released and the transaction is completed.
Moneys taken in by the agent and set aside
for future payments as required by the contract (i.e., in a mortgage
situation, for taxes, insurance, etc. on the property). Also known
as "escrow deposits", "impounds" or "reserves".
Similar to "escrow collections",
the deposit of funds for the purpose of future payments required
under the contract.
The payment out of escrow funds of taxes,
insurance, etc. as required by the contract. Also known as "escrow
payments".
The return to the borrower of left over funds
held in escrow once the debt has been paid out.
1. The nature and extent of a person's interest
in real property.
2. The term used to described the collection of assets of a deceased
person.
:
The continued occupation of a premises by
a tenant after the lease has expired or after the landlord has taken
legal and appropriate steps to remove the tenant.
The occupation of a premises by a tenant
for an undefined period, which either party may terminate at will.
Also known as "Life Estate". A
legal interest in property which ends with the death of the person
who is entitled to the interest.
Entitlement to land which allows a person
to occupy, use and enjoy the land for a specified period of time.
The right of an owner to re-occupy land once
the estate he has granted to another person (such as an estate for
years or an estate for life) has come to an end.
A government levy against the property in
the estate of a deceased person, payable out of the estate.
A legal doctrine which blocks a person from
taking a position on any fact which is contrary to a position that
same person previously took on that same fact. Also blocks a party
from re-opening an issue that has previously been decided by a court.
A document issued by an interested party
setting out certain facts to which the issuer agrees to be bound.
May be issued by a Condominium Corporation (setting out the common
element fees for a particular unit, the amount in the corporation's
reserve account, any special assessments against unit owners, etc.),
by a mortgagor or mortgagee (setting out the terms, conditions,
interest rate and principal outstanding) or by a tenant in a building
to be purchased (setting out amount of rent, the amount of any rental
deposit, etc.).
Latin meaning "and others".
Latin meaning "and husband".
Latin meaning "and wife".
An analysis of a property regarding its potential
uses rather than its current value.
The forced removal of a tenant from occupation
of a property. Also known as "Actual eviction". See also
"constructive eviction".
Instruments or documents that provide any
proof or information regarding ownership of land.
Similar to a subsearch: a review of the current
title to a property for the purposes of establishing current apparent
owners and encumbrances.
An exclusion from coverage in a policy of
insurance, usually referring to a known risk or defect for which
the insurer assumes no responsibility.
A contract whereby the owner of a property
grants a single agent or broker the right to market the property
for sale.
The term of a mortgage giving the borrower
the right simply to surrender the property to the lender as payment
for the loan without personal liability to the borrower for any
shortfall.
1. A contract which has been completely carried
out by the parties.
2. A contract which has been signed by the parties.
1. The act of signing a legal document.
2. A writ filed with a Sheriff of a jurisdiction evidencing a legal
claim against the person named in the Writ. May attach to real property
owned by the person named in the writ.
The person or people appointed in a will
to give effect to the wishes of the testator (the maker of the will)
as set out in the will. A female executor may be called "Executrix".
A contract which has not yet been completely
fulfilled by one or more of the parties.
A comparison of the costs of owning and operating
something to its potential gross income.
A term used to describe the presence, through
advertising, of a property that is for sale in the marketplace.
:
The postponement of the completion date of
an Agreement, agreed to by the parties to the Agreement.
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