Seller glossary

Absorption Rate

• Ratio of the number of properties in an area that have been sold against the number available; used to show the volatility of a market

Accessory Building

• A building separate from the main structure on a property; often used for a specific purpose such as a workshop or shed

Accretion

• The natural growth of a piece of land resulting from forces of nature

Addendum

• A supplement to the Contract of Purchase and Sale that contains additional information pertinent to the property

Amenity

• Any feature of a property that increases its value or desirability

Appraisal

• A carefully documented opinion of value; most commonly derived using recent sales of comparable properties by a licensed professional appraiser

Appraised Value

• The estimated fair market value of a property as developed by a licensed, certified appraiser following accepted appraisal principals

Appreciation

• The natural rise in property value due to market forces

Arms Length Transaction

• Any transaction in which the 2 parties are independent and have no obvious common interests

Assessed Value

• The value of a property according to jurisdictional tax assessment

Bona Fide

• Any genuine offer, made without intent to defraud or deceive

Bridge Financing

• An interim loan made to facilitate the purchase of a new home before the buyer’s current residence sells and its equity is available to fund the new purchase

Brokerage

• Is the real estate company under which the individual is licensed

Building Code

• Regulations that ensure the safety and material compliance of new construction within a municipality

Bungalow

• A 1 storey home-style, dating back to the early 20th century; often characterized by a low-pitched roof

Cape Cod Colonial

• A home-style made popular in New England, often characterized by a steep roof with gables

Caveat Emptor

• “Buyer beware”; the buyer is responsible for verifying any and all claims by the seller of the property

Certificate of Occupancy

• Issued by an appropriate jurisdictional entity, typically for a new home, it certifies that a building complies with all building codes and is safe for use

Certificate of Title

• A document designating the legal owner of a parcel of real estate

Chain of Title

• The complete history of ownership of a piece of property

Chattel

• A moveable article of property, any article of tangible property other than land, buildings, and other things annexed to land

Clear Title

• Ownership of property that is not encumbered by any counter-claim or lien

Closing

• The sale of a property is consummated with the buyer completing all applicable documentation, including signing the mortgage obligation and paying all appropriate costs associated with the sale

Commission

• A fee negotiated by an agent to compensate for the effort expended to sell or purchase a property

Concessions

• Additional value granted by a buyer or seller to entice another party to complete a deal

Contract

• A legally binding agreement between 2 parties

Deposit

• Cash given along with an offer to purchase property

Depreciation

• The natural decline in value of the improvement due to market forces or deterioration of the improvement

Distressed Property

• A mortgaged property which has been foreclosed on

Double End

• When you are the listing agent and also the selling agent as well. You are dealing with both the listing and selling side

Down Payment

• An amount paid in cash for a property with the intent to mortgage the remaining amount due

Easement

• The right of a non-owner of property to exert control over a portion or all of the property

Effective Age

• The subjective, estimated age of a property based on its condition, rather than the actual time since it was built

Encroachment

• A building or other improvement on one property which invades another property or restricts its usage

Encumbrance

• A claim against a property, such as mortgages, liens, easements, and rights of way

Exclusive Listing

• An agreement between the owner of a property and a real estate agent giving the agent the exclusive right to sell the property

FAQ

• Frequently Asked Question

Feature Sheet

• Information sheet for the home for sale showing all pertinent information that a buyer would need to know

Fee Simple

• A complete unencumbered ownership right in a piece of property

Fixture

• Any piece of personal property which becomes permanently affixed to a piece of real property

FSBO

• For sale by owner

Gable Roof

• A steeply angled, triangular roof

Gambrel Roof

• A "barn-like” roof, where the upper portion of the roof is less steeply angled than the lower part

Georgian

• A classic English style house characterized by simple rectangular shape and multiple stories

Grade

• The slope of land around a building

Grantee

• Any person who is given ownership of a piece of property

Grantor

• Any person who gives away ownership of a piece of property

GST

• Goods and services tax

Home Inspection

• A complete examination of a building to determine its structural integrity and uncover any defects in materials or workmanship which may adversely affect the property or decrease its value

Homeowner’s Warranty

• An insurance policy covering the repair of systems and appliances within the home for the coverage period

Latent Defects

• Any defect in a piece of property which is not readily apparent but which has an impact on the value (e.g. dry rot)

Legal Description

• The description of a piece of property identifying its specific location in terms established by the municipality or other jurisdiction in which the property resides

Licensee

• Is the managing broker, associate broker and/or representative of a Brokerage

Lien

• Any claim against a piece of property resulting from a debt or other obligation

Multiple Listing Service (MLS)

• A computerized database of real estate listings and sales; it is operated by the Boards in conjunction with other real estate boards and The Canadian Real Estate Association

New England Colonial

• A home-style dating from early American history typified by a 2 storey building with clapboard siding

Non-Conforming Use

• The use of land for purposes contrary to the applicable municipal zoning specifications

PDS (Property Disclosure Statement)

• A form that the seller completes disclosing general and structural details; the seller is responsible for the accuracy of the answers on the form as it constitutes a representation under any Contract of Purchase and Sale if so agreed, in writing, by the seller and the buyer

Plat

• A plan or a chart of a piece of land which lays out existing or planned streets, lots, or other improvements

Pre-Qualification

• Less formal than pre-approval, is usually a written statement from a loan officer indicating an opinion that the borrower will be able to become approved for a mortgage loan

PTT (Property Transfer Tax)

• A Provincial Government Tax which applies on all transfers of Real Estate and is payable on the completion date; the rate of tax is 1% on the first $200,000 of the purchase price and 2% on the balance of the purchase price over $200,000; payable at completion at the lawyer’s office and payable with a separate cheque to the Minister of Finance

Purchase Agreement

• A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold

Rancher

• Home style typified by a single storey, low roof construction

Raw Land

• Any land which has not been developed

Realtylink

• Master database of MLS listings in Greater Vancouver

Right of First Refusal

• An agreement giving a person the first opportunity to buy or lease a property before the owner offers it for sale to others

Survey

• A specific map of a piece of property which includes the legal boundaries and any improvements or features of the land; also depict rights of way, easements, and encroachments

Sweat Equity

• Method where the owner creates equity in a property by personally constructing improvements rather than paying to have them constructed

Title

• A document which serves as proof of ownership

Title Search

• Research on a property’s title history to ensure no outstanding claims exist

Transfer of ownership

• Any means by which the ownership of a property changes hands

Tudor

• Home-style typified by exposed stone, wood and brick construction;

Unencumbered Property

• Any property which has no outstanding claims or liens against it

Useful Life

• The span of time over which a property can be used or can provide benefits to its owner

Webforms

• Accessed through Realtorlink, where realtors can create and save a personalized form toolkit for buyers and sellers

Working With a Realtor

• A form that is used to provide an explanation of the relationship between you and a realtor and of the collection, use and disclosure of personal information