Land, Structures, And Real Estate Trading (Course 2) Terminology

Front 1

A medieval English term, involved the holding of land without ownership—a right to possess (not own) subject to payment.

Back 1

Tenure

Front 2

An interest in land.

i.e. the status or extent of rights associated with tenure.

Back 2

Estate

Front 3

Based on principals more than specific rules and has developed over the centuries using legal precedents as opposed to stationary provisions set out by parliamentary decree.

Back 3

Common Law

Front 4

The highest estate or absolute right in real property.

Back 4

Fee Simple

Front 5

An ownership right to an individual for a lifetime period.

Back 5

Life Estate

Front 6

An interest in land that arises at the end of a life estate.

Back 6

Future Estate

Front 7

An interest in land for a specified period of time.

Back 7

Leasehold Estate

Front 8

A right to cross or otherwise use someone else's land for a specified purpose.

Back 8

Easement

Front 9

Two or more persons having ownership at the same time.

Back 9

Concurrent Ownership

Front 10

Ownership of land by two or more persons whereby, on the death of one, the survivor or survivors take the whole estate.

Back 10

Joint Tenancy

Front 11

Ownership of land by two or more persons; whereby, the interest of deceased does not pass to the survivor, but is treated as an asset of the deceased’s estate.

Back 11

Tenancy in Common

Front 12

All joint tenants must derive this from the same instrument; e.g., deed or will.

Back 12

Unity of Title

Front 13

This condition states that the interest of each joint tenant must begin simultaneously.

Back 13

Unity of Time

Front 14

Each joint tenant is entitled to the entire property and none holds any part separately.

Back 14

Unity of Possession.

Front 15

Condition stating that share of land is identical in nature, extent and duration.

Back 15

Unity of Interest

Front 16

A joint ownership alternative in which a property is owned by a corporation and it's members have a lease on a specific unit.

Back 16

Co-operative Housing

Front 17

A contractual relationship between two or more parties.

Back 17

Partnership

Front 18

A relationship in an investment arrangement that binds the liability to the amount invested and also the profit he/she can make.

Back 18

Limited Parnership

Front 19

This investor typically prepares projections indicating the viability of the project and consequential benefits to be obtained by the limited partners

Back 19

General Partnership

Front 20

Rights associated with owners of land on the banks of watercourses to take advantageous use of water on, under or adjacent to their land.

Back 20

Ripairian Rights

Front 21

Immovable property.

Back 21

Real Property

Front 22

Movable property.

Back 22

Personal Property

Front 23

Restrictions that extend beyond Government intervention.

Back 23

Private Limitations

Front 24

A limitation placed upon the use of property, contained in the deed.

Back 24

Restrictive Covenant

Front 25

A government right to regulate property ownership.

Back 25

Police Power

Front 26

The estate or interest in land that derives benefit from an easement.

Back 26

Dominant Tenement

Front 27

Involves land over which an easement exists.

Back 27

Servient Tenement

Front 28

The taking of private property by the state for public use, with fair compensation to the owner, without the owners consent.

Back 28

Expropiation

Front 29

The Crown or any person authorized by statute to expropriate land.

Back 29

Expropriating Authority

Front 30

Upon owners death, the governments right to have ownership returned if no heir can be found.

Back 30

Escheat

Front 31

An easement that can be created whenever an owner decides to grant a privilege, (a right-of-way or easement), in favour of another owner.

Back 31

Express Grant

Front 32

An individual can obtain a right-of-way or easement by adverse possession.

Back 32

Prescription

Front 33

A system of written land description whereby all boundary lines are set forth by use of terminal points and angles.

Back 33

Metes and Bounds

Front 34

Refers to a limit or limiting mark (i.e. distance).

Back 34

Metes

Front 35

Refers to boundary lines (i.e. directions).

Back 35

Bounds

Front 36

Land reserved by the government to be used for public roads.

Back 36

Road Allowance

Front 37

Strips of land making up a township, each separated by a road allowance.

Back 37

Concession

Front 38

A principle under land titles which states that the register of title reflects the current facts about any specific property on that register.

Back 38

Mirror Principle

Front 39

A principle under land titles which states that the register is the sole, current source of information and individuals need not be concerned with prior recorded information.

Back 39

Curtain Principle

Front 40

A principle under land titles which states that the current information in the register is covered under the Land Titles Assurance Fund.

Back 40

Insurance Principle

Front 41

Recording of property ownership by its geographic location.

Back 41

Tract Indexing

Front 42

Each property under the Land Titles Act is assigned a unique:

Back 42

Parcel Number

Front 43

The older type of land registration systems recording property interests on a geographic basis.

Back 43

Registry Act

Front 44

The newer and more accurate land registration system currently used.

Back 44

Land Titles Act

Front 45

Second number in the PIN

Back 45

Property Index Number

Front 46

This standard form is used to register a deed under either the registry or the land titles system.

Back 46

Transfer/Deed of Land (Form 1)

Front 47

Tax form which must accompany every document being registered in Ontario land registry offices that transfers an interest in land.

Back 47

Land Transfer Tax Affidavit

Front 48

A standard form used to register a mortgage under either the registry or land titles system.

Back 48

Charge/Mortgage of Land (Form 2)

Front 49

Standard form is used when stating a mortgage is closed under either registry or land titles systems.

Back 49

Discharge of Charge/Mortgage (Form 3)

Front 50

Essentially a blank form meeting prescribed standards that is used to register any documents that are not a transfer, charge or discharge.

Back 50

Document General (Form 4)

Front 51

This form is used as an attachment with other paper-based or electronic forms which can accompany a transfer, charge, discharge or document general.

Back 51

Schedule (Form 5)

Front 52

Original deed issued by the Crown

Back 52

Root of Title

Front 53

Titles in the registry system dating back to the Crown Patient, also known as the root of title.

Back 53

Chain of Title

Front 54

Responsible for implantation, operation and enhancement of POLARIS.

Back 54

Teranet

Front 55

Software used to remotely access to automated property records in Ontario land registry offices.

Back 55

Teraview

Front 56

The mapping and property detail database of the Ontario government

Back 56

Province of Ontario Land Registration and Information System (POLARIS)

Front 57

The estate of a deceased person is administered by.

Back 57

Estate Trustee

Front 58

The division of land by means of a consent under the Planning Act.

Back 58

Land Severance

Front 59

A municipality involved in planning-related activities.

Back 59

Lower Tier Municipality

Front 60

A regional, county or district involved in planning-related activities.

Back 60

Upper Tier Municipality

Front 61

Legislation that establishes the statutory framework for orderly planning in the province.

Back 61

Planning Act

Front 62

A use that existed prior to the current zoning by-laws.

Back 62

Non-Conforming Use

Front 63

A committee charged with the responsibility for granting minor variances under the Planning Act.

Back 63

Committee of Adjustment

Front 64

A general statement or principle issued by the Ministry of Municipal Affairs and Housing relating to long-term planning directions.

Back 64

Provincial Policy Statement

Front 65

A self-contained unit within a house.

Back 65

Accessory Apartment

Front 66

Federal enviromental legislation viewed as an enabling statute to establish a statutory framework for provincial activities.

Back 66

Canadian Environmental Protection Act

Front 67

An agency authorized under conservation legislation to oversee regulated areas.

Back 67

Conservation Authority

Front 68

A municipal permit issued following final inspection permitting occupancy of a structure.

Back 68

Occupancy Permit

Front 69

A regulated area in which the entire area is considered to be a flood way.

Back 69

One Zone Flood Plain

Front 70

A regulated area in which the flood plain is divided into a flood way and flood fringe.

Back 70

Two Zone Flood Plain

Front 71

The rights of the owner of lands on the banks of watercourses, to take advantageous use of the water on, under or adjacent to this land, including the right to acquire accretions, wharf slips and fish therefrom.

Back 71

Riparian Rights

Front 72

A distance from a curb, property line, or structure within which building is porhibited

Back 72

Setback

Front 73

Fires involving grease or flammable liquids that burn rapidly, such as gasoline, oil, lacquers, paints, mineral spirits, alcohol, fats and greases. A smothering or blanketing effect is needed to stop them.

Back 73

Class B Fires

Front 74

Fires that start in energized electrical equipment, such as air-conditioning compressors, motors, transformers, generators and electrical wiring. The use of water or a chemical that carries an electrical charge may result in death or injury for the person trying to stop such a fire and should therefore not be used

Back 74

Class C Fires

Front 75

Fires which start in combustible metals such as aluminum, magnesium, titanium, zirconium, sodium and potassium.

Back 75

Class D Fires

Front 76

When land identified for future use can be subsequently amended within a zoning by-law.

Back 76

Holding Provision

Front 77

A crystalline salt deposit is left as water evaporates from the surface of a masonry wall.

Back 77

Efflorescence

Front 78

Cover with plaster or mortar over a wall.

Back 78

Parging

Front 79

Name the following framing methods:

1. The wall studs are built before the floor systems, and the wall studs were continuous from the foundation up to the roof line.

2 The wood floor joist and sub floor system is provided on top of the foundation and studs are erected over this system, that are one-story high.

Back 79

1. Balloon Framing

2. Platform Framing

Front 80

Two different types of split level homes

Back 80

Backsplits and Sidesplits

Front 81

A horizontal support of timber, stone, concrete, or steel across the top of a door or window.

Back 81

Lintel

Front 82

When building occupants experience health-related problems arising from time spent in part or all of a structure.

Back 82

Sick Building Syndrome (SBS)

Front 83

Building materials which contain adhesives, resins, caulking, fillers and finishes can product off-gas emissions into the interior of structures.

Back 83

Volatile Organic Compounds (VOC)

Front 84

The horizontal top portion of the door frame.

Back 84

Head

Front 85

Either the left or right vertical portion of the door frame.

Back 85

Jamb

Front 86

The bottom of the door at floor level.

Back 86

Sill

Front 87

A continuous projection around the frame to resist the door from travelling beyond a closing point.

Back 87

Stop

Front 88

The sub frame of wood or pressed metal to which the door case is fixed.

Back 88

Buck

Front 89

A beam that supports the load over an opening such as a door or window.

Back 89

Linlet

Front 90

Refers to the act of furnishing and/or fitting panes or sheets of glass as in the case of windows and doors.

Back 90

Glazing

Front 91

Windows which arehinged at the side and can open either inward or outward.

Back 91

Casement Windows

Front 92

The pieces of glass in a window.

Back 92

Panes or Lites

Front 93

Panes of a window are held in this.

Back 93

Sash

Front 94

A measure of thermal resistance where the higher the number, the more resistance to heat transfer.

Back 94

R-Value

Front 95

Metric equivalent to R-Value.

(Divide R-value by 5.6)

Back 95

RSI-Value

Front 96

Commonly occurs with energy transferal through solid objects such as basements, walls and ceiling components.

Back 96

Conduction

Front 97

Involves the movement of gas or liquid given changes in density and can be controlled by minimizing air leakage.

Back 97

Convection

Front 98

Involves the transmission of energy through space via a straight line between the source and the absorber.

Back 98

Radiation

Front 99

An energy efficiency program relating to new residential construction

Back 99

R-2000

Front 100

An electrical panel between the service entrance wires and power distribution within a structure.

Back 100

Distribution Panel

Front 101

The number of amps provided to a structure(s) through a primary service wire.

Back 101

Electrical Service Size

Front 102

In a hot water tank, refers to water that can be drawn off without depleting the hot water supply is referred.

Back 102

Recovery Rate

Front 103

Resistance of electricity.

Back 103

Ohms

Front 104

Electric current.

Back 104

Amps

Front 105

A detailed appraisal report typically prepared by a fee appraiser.

Back 105

Narrative Report

Front 106

A standardized appraisal report format typically associated with property valuation for residential property.

Back 106

Form Report

Front 107

A computer based program that relies on statistical methods to arrive at property values.

Back 107

Automated Valuation Model (AVM)

Front 108

Improvement generally limited to enclosed structures such as buildings, garages and sheds.

Back 108

Improvements On-Site

Front 109

Improvements that include items that either add to or detract from the outside enjoyment of the property.

Back 109

Improvements to Site

Front 110

The process by which the appraiser evaluates and selects from among two or more alternative conclusions or indications to reach a single value estimate.

Back 110

Reconciliation

Front 111

A range of stipulations and assumptions underlying an appraisal report.

Back 111

Limiting Conditions

Front 112

An study of nearby recently sold homes that helps establish a price range for a home. That price range helps determine the offer price or listing price of a home.

Back 112

Comparative Market Analysis (CMA)

Front 113

Assesses all property in Ontario and all municipalities are a member of.

Back 113

Municipal Property Assessment Corporation (MPAC)

Front 114

Valuation assessment that attempts to mirror the behavior of the market by weighing against a similar property.

Back 114

Direct Comparison Approach

Front 115

Valuation assessment based on the theory that the market value of an improved parcel can be estimated as the sum of the land value and the depreciated value of the improvements.

Back 115

Cost Approach

Front 116

Valuation assessment with investment properties that anticipate future benefits in terms of cash flow.

Back 116

Income Approach

Front 117

Professional appraisers who market services on the basis of time, cost and effort required to arrive at a value estimate.

Back 117

Fee Appraiser

Front 118

A lose of value that arises from the perception of a problem.

Back 118

Stigma

Front 119

The estimated cost to produce an exact replica of a building while using property valuation.

Back 119

Reproduction Cost

Front 120

The estimated cost of construction, at current prices, of a building having utility equivalent to the building being appraised

Back 120

Replacement Cost

Front 121

Estimate of site value through reproduction or replacement cost for the improvements.

Back 121

Cost Appoach

Front 122

Find similar sold properties and, through adjustments, arrive at a value estimate.

Back 122

Direct Comparison Approach

Front 123

Using revenue and expenses of property to arrive at a value estimate.

Back 123

Income Approach

Front 124

Refers to those items that are economically feasible to fix and therefore customarily repaired or replaced by a prudent property owner.

Back 124

Curable Depreciation

Front 125

Physical deterioration or functional obsolescence that either cannot be corrected, or can only be corrected at a cost greater than its contribution to the value of the property.

Back 125

Incurable Depreciation

Front 126

The four age variables considering life expectancy of a building during estimation of it's value.

Back 126

Actual Age

Effective Age

Remaining Economic Life

Economic Life

Front 127

Depreciation resulting from the loss of utility and hence value; e.g., poor design or unacceptable style.

Back 127

Functional Obsolescence

Front 128

Depreciation resulting from loss of utility or marketability due to location or general economic factors.

Back 128

External Obsolescence

Front 129

This method of estimating site value is based on the most recent sales data available onsimilar sites, preferably in the same neighbourhood.

Back 129

Comparative Sales Method

Front 130

This method of estimation involves calculating the known cost per square metre (or its imperialequivalent) of a newly-constructed building similar to the subject, and then multiplyingthis unit cost by the number of square metres in the subject structure.

Back 130

Comparative Square Metre/Foot Method

Front 131

A method of depreciation where a basic rate is applied.

Back 131

Flat Depreciation Method

Front 132

Depreciation based solely on the life expectancy of the structure.

Back 132

Economic Age-Life Depreciation Method

Front 133

Over-improvement that does not realize any or little economic benefit.

Back 133

Superadequacy

Front 134

This method of estimation relies on dollar costs provided in a manual that relevant photographs, charts and tables withsupplements offered by the supplier on a periodic basis.

Back 134

Cost Services Method

Front 135

This method of appraising involves separating the value of structures and other physicalimprovements from the total value of the property to arrive at a site value.

Back 135

Abstraction Method

Front 136

An approach to estimating property value based on the investments future benefits which the property is capable of producing.

Back 136

Income Approach

Front 137

The process of converting the income generated by a property into capital value by means of a capitalization rate.

Back 137

Direct Capitalization

Front 138

A statement used in the income approach to value, typically representing a one-year analysis of income expenses, derived from an owner’s statement with adjustment to reflect typical income and expenses.

Back 138

Reconstructed Operating Statement

Front 139

Potential gross (rental) income plus other income and less vacancy and credit losses. Terminology may vary in the marketplace.

Back 139

Effective Gross Income

Front 140

Net income following deduction of all expenses from effective gross income.

Back 140

Net Operating Income (NOI)

Front 141

Involves the determination of operating cash flows for a specific holding period plus the reversionary value at point of sale.

Back 141

Yield Capitalization

Front 142

The right of the mortgagor to reclaim clear title to the property upon full repayment of the debt.

Back 142

Equity of Redemption

Front 143

A mortgage involving the transferral of an interest in land as security for debt repayment, as distinct from an equitable mortgage–now largely viewed as an historical distinction given present registration practices for charges.

Back 143

Legal Mortgage or First Mortgage

Front 144

An historical term differentiating a mortgage against equity from a legal mortgage against title.

Back 144

Equitable Mortgage or Second Mortgage, Third Mortgage...

Front 145

A lien or interest on assets (movable or personal property) that is taken to secure a loan.

Back 145

Chattel Mortgage

Front 146

The legal priority of mortgages determined by time of registration, subject to various exceptions.

Back 146

Mortgage Priority

Front 147

Obligations of a mortgagor as set out in the Land Registration Reform Act, which apply to a Charge/Mortgage of Land registered in land titles or registry.

Back 147

Implied Covenants

Front 148

The right of the mortgagor to reclaim clear title to the property upon full repayment of the debt.

Back 148

Equity of Redemption

Front 149

A remedial court action taken by a mortgagee, when default occurs on a mortgage, to cause forfeiture of the equity of redemption of the mortgagor and also subsequent encumbrancers' equities of redemption.

Back 149

Foreclosure

Front 150

A legal remedy stating if you default on your mortgage payments the bank can go after, not only the real estate but also all of your personal assets to satisfy the debt.

Back 150

Payment (Personal Covenant)

Front 151

Legal remedy involving the disposition of mortgaged property by court action.

Back 151

Judicial Sale

Front 152

The actual holding and legal occupancy of a property by a mortgagee due to default by the mortgagor, typically undertaken coincident with some other action; e.g., foreclosure.

Back 152

Possession By Mortgagee

Front 153

A legal document wherein a person agrees to release any right that he/she may possess in a parcel of land with no further action towards the mortgagor.

Back 153

Quit Claim Deed

Front 154

The legal right of the mortgagee to force the sale of a property without judicial proceedings should default occur.

Back 154

Power of Sale

Front 155

Name the seven typical processing steps in order for residential mortgage.

Back 155

- Pre-Approval (Optional)

- Mortgage Application Prepared

- Lender Review of Application

- Commitment Letter Prepared and Forwarded

- Commitment Letter Signed/Condition(s) Waived

- Mortgage Documents Prepared

- Mortgage Transaction Completed Coincident with Closing

Front 156

A process undertaken by a lender to evaluate the credit worthiness of an applicant and assess the property being offered as security.

Back 156

Underwriting

Front 157

When a seller or vendor fiances the buyer.

Back 157

Seller Take Back (STB)

Front 158

Measures the ability to pay the property's monthly mortgage payments from the income of a property.

Back 158

Debt Coverage Ratio (DCR)

Front 159

The principal is obligated to compensate or indemnify the agent for liabilities incurred while carrying out responsibilities under the relationship.

Back 159

Indemnification

Front 160

An agent is entitled to payment for services rendered as agreed between the agent and the principal.

Back 160

Remuneration

Front 161

A term generally referring to a position of trust. An agent must maintain utmost loyalty and protect the interests of the principal (client).

Back 161

Fiduciary

Front 162

Two types of agreements between the agent and the principle.

Back 162

Express and Implied Agreements

Front 163

Agency where agent has limited Authority

Back 163

Special Agency