Real Estate Glossary

Buying or selling a home, can be a little confusing. This glossary of common real estate terms will help you better understand the language of real estate. We are more than happy to further explain any of these terms to you.

 


Brokerage

 

The real estate company under which the individual is licensed.
 

 

Licensee

 

The managing broker, associate broker and/or representative of a Brokerage.
 

 

REALTOR®

 

REALTOR® is often used interchangeably with licensee, real estate agent or representative and, in BC, is licensed under the Real Estate Services Act. A Licensee can use the term REALTOR® if he/she belongs to a local real estate board or association that enforces a strict Code of Ethics.
 

 

Boards

 

The real estate boards and associations in whose jurisdiction the property is located and/or of which the Brokerage or the REALTOR® is a member. They are boards and associations which assist REALTORS® to market, sell or lease real estate. The Boards also provide on-going training for their members, enforce ethical standards and help resolve disputes between members and the public.
 

 

Personal Information

Any personal information about you, including your name, address, phone number, financial information and may include information about your property (such as listing and selling price, lease rate, listing term, etc.).

 


Buyer

 

 

Often referred to as the purchaser.

 

Seller/Landlord

 

Often referred to as the vendor.
 

 

Principal

Someone who has engaged a Brokerage to act for and on his or her behalf either to buy, sell or lease real estate.

 


Adjustment Date

 

 

The day from which all calculations of interest, tax adjustments, utility bill adjustments (if applicable) are made to the credit of either the buyer of the seller. This is usually (but not always) the same as the possession date.
 

 

Appraised Value

 

An estimate of a property’s market value, used by lenders in determining the amount of the mortgage.
 

 

Assessed Value

 

The value the property, set by the B.C Assessment Authority, and used by the local municipality for the purposes of calculating property tax.
 

 

Completion Date

 

The real estate transaction’s completion, when the parties involved agree that all legal and financial obligations have been met and the deed to the property is transferred from the seller to the buyer.
 

 

Conveyance

 

The term used to describe the process of transferring the seller’s title to the buyer and indicates all necessary steps to complete the transfer. A conveyance lawyer is a lawyer (or notary) responsible for the conveyance process (this is normally the buyer’s lawyer).
 

 

Counter Offer

 

An offer made by the seller back to the buyer altering one or several terms and/or conditions of the offer as originally written.
 

 

Deed

 

A legal document that conveys (transfers) ownership of a property to a buyer.
 

 

Easement

 

A legal right to use or cross (right-of-way) another person’s land for limited purposes. A common example is a utility company’s right to run wires or lay pipe across a property.
 

 

Encroachment

 

An intrusion onto an adjoining property. Common examples are a neighbor’s fence, storage shed, or overhanging roof line that partially (or even fully) intrudes onto your property.
 

 

Foreclosure

 

A legal process by which the lender takes possession and ownership of a property when the borrower doesn’t meet the mortgage obligations.
 

 

Land Transfer Tax

 

Payment to the provincial government for transferring property from the seller to the buyer. See Property Transfer Tax.
 

 

Lien

 

Any legal claim against a property, filed to ensure payment of a debt.
 

 

The Multiple Listing Service®

 

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.
 

 

Property Disclosure Statement

 

This form enables sellers to disclose known defects. If the seller decides not to complete the form and does not disclose defects, he or she can still be held liable. The form also serves as a checklist for buyers enabling them to address concerns about the property’s condition on the spot.
 

 

Property Taxes

 

This levy is affected by location and the value of the property as determined by BC Assessment. The rate of taxation as determined by the local government. Property taxes are paid on an annual basis.
 

 

Property Transfer Tax

 

Payment to the provincial government for transferring property from the seller to the buyer. In the 1994 provincial government’s budget, the PTT was eliminated for first time buyers under certain circumstances.
 

 

Realty-Link

Located at www.realtylink.org , the site provide Realtors and consumers with up-to-date real estate listings, statistics, and community information.


Right of Way

 

Indicated on the title at the Land Title Office; often for use of utilities or city or municipality in order to make repairs to pipes, etc.; no permanent structure may be built on a right of way.
 

 

Statement of Adjustments

 

Closing statements in a real estate transaction that set out the source of funds that make up the purchase and the amount due to the seller. Lawyers will prepare a statement for the seller and the buyer.
 

 

State of Title Certificate

 

Copy of the title which lists charges against the property, e.g.: liens, mortgages, rights of way, etc.
 

 

“Subject-to” Clause

Statement of condition to be fulfilled by the benefiting part which must include a specific deadline for removal.


Title Search

 

Detailed examination of the ownership documents to ensure there are no liens or other encumbrances on the property, and no questions regarding the seller’s ownership claim.
 

 

Zoning Regulations

 

Strict guidelines set and enforced by municipal governments regulating how a property may or may not be used.