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69 Cards in this Set
- Front
- Back
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An index typically measuring the cost of home ownership in relation to required income to service mortgage payments, property taxes and utilities. |
Affordability Index |
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The gradual retirement of a debt by means of partial payments of the principal at regular intervals. |
Amortization |
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A current market value placed on a property as a basis for municipal taxation. |
Assessed Value |
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Standards of measurement methods and calculations widely used with commercial properties in Canada. |
BOMA Standard BOMA - Building Owners and Managers Association |
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Promotional or advertising mailings in mass. |
Bulk Mail |
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A series of economic events (i.e., prosperity, recession and recovery) that take place in the same approximate order and time interval. |
Business Cycle |
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Various expenses associated with the completion of a sale transaction e.g., real property taxes, legal expenses and insurance coverage. |
Closing Costs |
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Money distribution involving one or more brokerages and/or salespersons. |
Commission Sharing |
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Money distribution involving a salesperson and their brokerage. |
Commission Split |
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Interest charged at specific intervals during the loan term with earned interest being reinvested. |
Compound Interest |
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An indicator of price fluctuations, most commonly associated with comparisons of purchasing power and inflationary pressures. It tracks 600 items, but sub-indexes are also tracked for specific groupings; e.g., shelter. |
Consumer Price Index (CPI) |
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Skills, assets and techniques that form the basis of an organization’s or individual’s competitive capacity. |
Core Competencies |
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Three entities that may be permitted to act as a realestate brokerage. |
- Corporation - Partnership - Sole Proprietor |
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Marketing methods that convey messages focused on certain consumers and seek to communicate with those consumers. |
Direct Marketing |
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A rate representing the cost of a lost opportunity. In other words, an investor seeks a rate of return that represents what could have been obtained had another investment been selected. |
Discount Rate |
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Rate of interest on a loan which includes calculated compounding. |
Effective Rate |
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A term referring to frontage value, typically regarding recreational property. |
Front Foot |
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Linear distance along a public road or, in the case of waterfront recreational property, the linear distance on the lake side of the lot. |
Frontage |
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Lender’s allowable ratio of principal, interest and tax (PIT) payment to monthly income of the mortgage applicant. |
Gross Debt Service (GDS) Ratio |
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Measure of the size of an economy representing the market value of all goods and services produced within a given time period. |
Gross Domestic Product (GDP) |
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Date that the mortgage officially begins. |
Interest Adjustment Date |
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Closely associated with market value but also impacted by cash flows, investment objectives and investor-specific criteria. |
Investment Value |
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A sliding scale tax that applies to real estate ownership transfers including beneficial interests. |
Land Transfer Tax |
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The over expansion of a market due primarily to excessive buyer confidence resulting in inflated values. |
Market Bubble |
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The point where quantity supplied equals quantity demanded |
Market Equilibrium |
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A market readjustment, typically occurring following a period of recession or prosperity, but typically associated with a downturn in demand and increasing supply. |
Market Correction
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Price paid for an individual property. |
Market Price |
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Statistical tracking systems usually involving resource, business and consumer markets. In real estate, specific indicators vary for residential and commercial markets. |
Market Indicators |
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Broadly defined as the highest price in terms of money which the property will bring to a willing seller if exposed for sale on the open market allowing a reasonable time to find a willing buyer. |
Market Value |
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The combining of activity elements or tactics in various ways when marketing a particular product or service. |
Marketing Mix |
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The length of time taken to market a property beginning with the listing of the property and ending at the point of sale. |
Marketing Period |
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A proposition typically made to a commercial seller that sets out objectives, strategy and scope of activities for the marketing of a specific property. |
Marketing Proposal |
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A mathematical average representing the totaling of figures. |
Mean |
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The mid-point in an array of figures. |
Median |
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The most frequently appearing figure in an array of figures |
Mode |
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Describe the middle or center of a numeric distribution including the mean (average), median and mode. |
Measures of Central Tendency |
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An economy consisting of both private economic units, as well as government participation in the direction of economic activity and production of goods/services. |
Mixed Economy |
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A formal indication, by a lending institution that it will grant a mortgage loan on a property, for a certain amount and on other specified terms. |
Mortgage Commitment |
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Typically expressed as weekly, bi-weekly, semi-monthly or monthly, that is used to calculate mortgage payments. |
Mortgage Payment Factor |
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The stated rate on a loan. |
Nominal Interest Rate |
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The direct cost of creating, as distinct from the perceived value in the mind of the buyer or seller. |
Objective Value |
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A rate used to convert net operating income into an estimate of value. This rate consists of two components: - rate of return of the investment and - rate of return on the investment. |
Overall Capitalization Rate |
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A daily rate that banks charge each other for large cash transfers determined by the Bank of Canada. |
Overnight Rate |
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The client of a brokerage (the agent under common law), who gives the brokerage the authority to represent him or her. |
Principal |
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The debt owed less the interest. |
Principal Amount |
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Research concerning the study of consumer lifestyles based on interests, opinions, actions and activities. |
Psychographic |
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A less structured approach to research that seeks insights into information such as consumer motivation, behavior and attitudes. |
Qualitative Research |
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A formal research method using structured techniques to obtain specific, objective information usually reported in tabular or statistical format. |
Quantitative Research |
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Statute governing real estate brokerages, brokers and salespersons in Ontario. |
Real Estate and Business Brokers Act (REBBA), 2002 |
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A non-profit corporation established for the benefit of its members and forming one component of organized real estate, the others being provincial/territorial associations and The Canadian Real Estate Association. |
Real Estate Board |
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A series of economic events (i.e., prosperity, recession and recovery) similar to the business equivalent, but referring to real estate. |
Real Estate Cycle |
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The recovery of funds invested; i.e. the return of an investment as opposed to a return on an investment. Applies to capitalization rates and also tax considerations and capital cost allowance. |
Recapture |
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A brokerage, broker or salesperson registered under REBBA 2002. |
Registrant |
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An individual appointed by RECO to exercise powers and carry out duties imposed under the Real Estate and Business Brokers Act, 2002 and associated Regulations. |
Registrar |
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A process established under the Real Estate and Business Brokers Act, 2002 and associated Regulations for the handling of all complaints and concerns involving registrants. |
Registrar’s Complaints and Inquiries (RCI) Process |
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The usable area of a tenanted space plus an allocation for common areas; e.g., common lobby, maintenance rooms and washrooms. |
Rentable Area |
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Interest charged for a specific period with no compounding. |
Simple Interest |
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A statement prepared by the solicitor for the seller setting out, in balance sheet form, a record at the date of closing of the financial breakdown of the transaction. |
Statement of Adjustments |
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Value that exists in the mind of the buyer or seller. |
Subjective Value |
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Lender’s allowable ratio of principal, interest and tax (PIT) payment plus other personal debt to gross monthly income of the mortgage applicant. |
Total Debt Service (TDS) Ratio |
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Estimated worth or price. The act of estimating the worth of real property. |
Valuation |
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Additional features added to a basic product or service, initially sold at a premium. |
Value Added Services |
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The value of an economic good to the owner, typically over and above market value |
Value in Use |
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The conversion of a projected income stream into an estimate of value by analyzing forecasted operations and sale proceeds over a specified holding period. |
Yield Capitalization |
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Name the four P's of Marketing. |
- Product - Price - Promotion - Place |
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Name, in order, Maslow’s hierarchy of needs. |
- Physiological - Security - Social - Ego - Self-actualization |
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Principal stating the value of the poorer property will be affected positively by the presence of the property of higher value. |
Progression |
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Principal stating the value of the better property will be affected positively by the presence of the property of lower value. |
Regression |
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The probable price at which a commodity trades in a free, competitive and open market and is synonymous with market value. |
Value in Exchange |
