JOINT OWNERSHIP AGREEMENT:
A contract between two or more people who have an interest in the same piece of property which sets out their respective rights and obligations with regard to the property and also may set out the way in which the parties agree to manage the property.

JOINT TENANCY:
A way in which two or more people may hold title to property together. Owning as joint tenants means each owner has an equal right to the entire property, that none of the owners may sell, bequeath or encumber their portion of the property without the consent of the other owners and that, in the event of the death of one of the owners, the surviving owners automatically retain title to the entire property by ‘Right of Survivorship’. Compare with ‘tenants in common’.

JOINT TENANTS:
See ‘joint tenancy’.

JOINT VENTURE:
A project which to or more persons undertake together, sharing the cost, the risk and the reward.

JUDICIAL FORECLOSURE:
An enforcement action by a lender, the act of selling the property to recover the mortgage debt after obtaining judgment of a court.

JUNIOR LIEN (MORTGAGE):
A claim against property which is behind at least one other lien in priority.

IMPLIED WARRANTY:
A guarantee of the condition of a thing or the truth of a statement which is created as a result of the actions of a party but not written down.

IMPROVEMENTS:
Things added to vacant land with the view to increasing its usefulness and value, such as buildings, parking areas, drainage works, etc.

IMPROVEMENT RATIO:
A comparison of the value of the improvements of a property with the value of the property without the improvements.

INCOME APPROACH:
An appraisal technique whereby the potential of the property to produce income is used to assess its value.

INDEMNIFY:
To take responsibility for the losses and damages suffered by another person.

INDEMNITY:
A document in which one party agrees to take responsibility for the losses and damages suffered by another party or parties.

INDEPENDENT CONTRACTOR:
A legal term for a person who is hired to do work for another person but who is not an employee or agent of that person. The hiring person is not responsible for the actions of the Independent Contractor nor does she owe that Independent Contractor the same legal duties owed by an Employer to an Employee under labor and employment laws.

INDIRECT COSTS:
Also known as ‘soft costs’, those costs which are not automatically considered in a construction project.

INSPECTION:
A physical examination of a person, document or other thing, such as a home.

INSTRUMENT:
A legal document in written form setting out certain rights of parties to it.

INSURABLE TITLE:
Ownership of land which a Title Insurance Company is willing to insure.

INSURED CLOSING LETTER:
A promise by a Title Insurance Company to a lender to pay for all costs and losses to the lender which might result from the actions of the Company’s closing agent while closing a transaction.

IRREVOCABILITY DATE:
Time and day specified in an offer until which the offeror may not retract the offer, until which the offeree may accept the offer.

IRREVOCABLE:
Unchangeable. Not able to be recalled.

HIDDEN AMENITIES:
Qualities of a property which may not be immediately noticeable but add to the value of the property, such as high quality materials used in construction.

HOLD HARMLESS CLAUSE:
Also known as ‘save harmless clause’. A clause in a contract in which one party releases another party for legal liability for a stated risk.

HOME INSPECTION (REPORT):
The written statement of the results of the inspection of a given property by a professional home inspector. Will show problems and potential problems with the property not always visible to an average purchaser (i.e. a deteriorating roof, an ancient furnace, termites, wood rot, basement seepage). Many purchasers make their offer to purchase conditional upon obtaining a satisfactory Home Inspection report.

HOME INSPECTOR:
A person who offers a service of making a physical inspection of homes. Qualifications may vary.

GST REBATE:
Percentage of the GST payable on a new home which a Purchaser is entitled to have refunded, rebate is often signed over to the Vendor in exchange for the inclusion of the GST in the purchase price.

GENERAL LIEN:
A registered claim against property which, instead of attaching just to one property, attaches to all properties owned by the party against whom the claim has been made.

GOOD AND MARKETABLE TITLE:
Ownership of a property which is free of competing claims and interests.

GOOD FAITH:
A term to describe a party’s legitimate and honest efforts to meet her obligations in a given situation.

GRANT:
The act of giving title to another. May also be used as a noun, meaning the instrument that transfers title.

GRANTEE:
One who receives title.

GRANTOR:
One who gives title to another.

GROSS AREA:
The total floor space of a building, including unusable space, measured from the outside walls.

GUARANTOR:
The person who signs a mortgage and assumes responsibility for it despite the fact that he receives no benefit from the loan.

FEES:
1) The money required at the outset by a lender from the borrower or held back from the mortgage advance. 2) The amounts charged by a professional for services rendered.

FINAL VALUE ESTIMATE:
The product of a real estate appraiser’s completed work, an assessment of the value of a property based on all factors and taking into consideration the different evaluation methods available.

FINDER’S FEE:
Commission paid to a mortgage broker for placing a mortgage with a specific institution.

FIRM AND BINDING:
Description of a legal contract once all conditions have been removed. It is now legally enforceable by the parties to it.

FIRM OFFER:
An offer to purchase delivered to the potential Vendor by a potential Purchaser who will not negotiate any changes to the offer.

FIRM PRICE:
An indication in a real estate advertisement that the price asked for the property is not open for negotiation.

FIRST LIEN:
The registered legal claim which stands first in line to enjoy the proceeds of a sale of the property. Liens generally are ordered according to time or registration but various statutes allow some liens (realty taxes) to jump to the head of the line.

FIRST MORTGAGE:
A mortgage that, when registered, is first in line on the property, giving the lender superior right to the proceeds of the sale of the property over other, later claimants.

FIXING-UP EXPENSES:
Moneys spent on minor repairs to improve the marketability of a property.

FIXTURE:
An item which is attached to an forms part of the buildings or land itself and are, therefore, included in the sale or property unless specifically excluded in the contract.

FLEA BAG:
Slang term for a cheap, run-down property.

FLIP:
The rapid turnover of a piece of property by one person who buys it for a certain price then sells it soon thereafter for more.

FLOOR AREA:
The total space covered by all floors in a building.

FLOOR AREA RATIO (FAR):
A comparison of the total area of the floor of a building with the total area of the land upon which it stands. Maximum or minimum FARs may be established by local zoning rules.

FLOOR PLAN:
A sketch of an existing or proposed building showing the design and layout of the building and the specifications of each room. May also show doors, windows, stairways and other features.

FOR SALE BY OWNER (FSBO):
Indication that the owner of a property is attempting to find a purchaser for his property on her own, without employing an agent.

FORCED SALE:
The marketing of a property as a result of some outside influence, such as bankruptcy, where the price obtained might not be optimum.

FORECLOSURE:
An enforcement process in which the lender under a defaulted mortgage takes title to the property for the purposes of selling it to recoup moneys owed under the mortgage.

FORFEITURE:
The loss of a right, claim, interest or item of property as a result of one’s failure to meet one’s legal obligations.

FORMAL CONTRACT:
A contract under seal.

FORTY-YEAR SEARCH:
An investigation of the records regarding title to a property that goes back forty-years prior to the date of the search. Statute law in Ontario has deemed that any registered interest which is older than forty years and has not been renewed is unenforceable.

FREE AND CLEAR:
A description of title to property which is unencumbered and subject to no competing claims.

FRONTAGE:
The measurement of a property’s boundary that runs along the side of a particular feature (street, lake, ocean, river, etc.).

FULL DISCLOSURE:
The revelation to another party in a contract or legal dispute of all relevant information in one’s possession. An agent acting for both parties in a real estate purchase must fully disclose this conflict of interest to all parties.

FULL-PRICE OFFER:
A proposal by a purchaser to buy a property at the price and on the terms asked by the vendor in her property listing.

FULLY ASSUMABLE MORTGAGE:
A land loan that may be transferred to a new owner without any change to the terms, as long as the new owner qualifies.

FULLY EXECUTED SALES CONTRACT:
An agreement in which all parties have agreed and signed to all terms of the agreement.

ENCUMBRANCE:
Any right, interest or other claim against land which is registered on title and affects the owner’s ability to sell the property.

EQUITY:
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’.

EQUITY OF REDEMPTION:
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.

ESCAPE CLAUSE:
Any provision in a contract that allows one or more parties to end the contract upon the occurrence of certain events.

ESCROW:
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.

DATE OF INSTRUMENT:
The specific day, month and year a legal document was signed or prepared.

DATE OF REGISTRATION:
The specific day, month and year upon which an instrument was registered on title to the property.

DECLARATION OF TRUST:
A signed statement by a trustee acknowledging that she holds legal title to property on behalf of someone else (the beneficiary of the trust).

DEED:
The instrument by which title to property is conveyed from one person to another. In USA, also known as a transfer.

DEED OF TRUST:
An instrument of conveyance of title to property wherein a (trustee) will be holding the title to the property on behalf of the lender until the loan is satisfied.

DEFAULT:
Failure. In mortgages, the failure to make payments in full, on time or at all or to live up to any other obligations placed on the borrower by the loan agreement.

DEFAULT JUDGMENT:
A decision rendered by a Court when the defendant has failed to respond to the claim.

DEFECTIVE TITLE:
Ownership of property which is subject to some competing claim.

DEFERRED MAINTENANCE:
A nice way to say that the property has not been kept up and is depreciating both physically and in value.

DELINQUENCY:
The condition of being late on a payment but not yet in default.

DEPOSIT OF TITLE DEEDS:
When a lender requires ownership documents to be left with it as further security for a loan.

DESCRIPTION:
Also known as ‘Legal Description’. The manner in which a piece of land is identified. May involve metes and bounds measurements using astronomic bearings or may simply set out Lot and Plan numbers in a specific municipality. Most jurisdictions require description of land to be included in all instruments to be registered on title to that property.

DIRECT COSTS:
Those expenses in the improvement of property which can be directly attributed to the improvement itself (i.e. labor, material, taxes, etc.). Also known as ‘hard costs’.

DIRECTION:
1. A document containing written instructions to a person to do a certain thing in a certain way.
2. A point on a compass, used in legal descriptions.

DIRECTION REGARDING FUNDS:
A direction made by a party who is entitled to money to the party who is obligated to pay the money which sets out how the receiving party wishes the money paid.

DIRECTION REGARDING TITLE:
Also known as ‘Title Direction’. A direction made by the Purchaser to the Vendor of property setting out how the Purchaser wishes to take title. May include the full legal name, the birth date (if necessary), the address for service of the Purchaser and, if there are more than one Purchaser, the capacity in which they wish to share title ( i.e. as Joint Tenants or Tenants in Common).

DISCLOSURE STATEMENT:
A document issued by a lender to a borrower in which the lender sets out the terms and conditions of the loan. Often required under legislation.

DISCLOSURE:
Sometimes known as ‘Vendor’s Disclosure’, a legal requirement in some jurisdictions in which the Vendor of a property must provide a written statement to an prospective purchaser setting out defects in the property known the Vendor.

DISTRESS:
The right of a party to sell the real or personal property of another party to pay for arrears in rent or loan payments.

DISTRESSED PROPERTY:
A property which is to be sold as a result of payment arrears on a mortgage.

DUE DATE:
The date established in the loan agreement upon which all moneys then outstanding on the loan become due and payable in full.

DUE ON SALE CLAUSE:
A clause in a mortgage which requires that the mortgage be paid out in full upon the sale of the property against which it is secured. A mortgage with this clause may not be assumed by a purchaser.

CAPITAL IMPROVEMENT:
Value enhancing work carried out on a capital property.

CAPITAL:
The working money in a business venture.

CARRYING CHARGES (COSTS):
The expense required to maintain a property over a given period of time, including property taxes, maintenance, insurance payments, interest charges on financing, etc.

CASH FLOW:
Description of the net income from a property after all expenses of holding and carrying the property are paid.

CAVEAT EMPTOR:
Latin, meaning ‘Let the Buyer beware’. Maxim which applies to real estate transactions where the onus is on the Purchaser to satisfy herself as to the suitability and condition of the property she is considering for purchase. Vendor is not responsible to the Purchaser for the condition of the property and, unless he is specifically asked, does not generally have and obligation to reveal problems to the Purchaser (except where the defect is hidden, serious and could not be discovered by the Purchaser after reasonably prudent inquiries and investiga­tions).

CC&R’S:
Short form for ‘covenants, conditions, and restrictions’, which are the rules of general application governing the relations between land owners in a specific subdivision, development, condominium development or cooperative housing facility. May be registered on title.

CERTIFICATE OF INSURANCE:
A document, issued by the insurance company, setting out the particulars of the insurance coverage for a particular property

CERTIFICATE OF TITLE:
A written opinion of the quality of a person’s ownership of property, issued by a lawyer or a title insurance company after a search of the title records has been conducted. May contain qualifications to the certification regarding defects found or potential defects not investi­gated.

CERTIFIED COPY:
A copy of a document which bears some form of declaration (usually by the holder of the original document) that it is a true copy of the original.

CERTIFIED HOME INSPECTOR:
A person who has met the requirements to be ‘certified’ to inspect the physical condition of homes. Qualification requirements may vary from one jurisdiction to the next.

CHAIN OF TITLE:
A part of a title search. A listing, in chronological order, of successive legal owners of a property, often listing as well the registration particulars of the document by which title is transferred from each owner to his successor in title.

CHATTEL:
An item of personal property which is not affixed to the land or building (as opposed to a fixture, an item which is a part of the land or building). Chattels are generally not included in the sale of property unless specifically included in the Agreement of Purchase and Sale

CLEAR TITLE:
Ownership of land which is marketable and free of competing claims, liens, mortgages or other encumbrances.

CLAIM:
A right asserted against another party. One might register a claim on title to the property to which the claim applies, file a claim under an insurance policy or file a Statement of Claim in court to assert one’s rights.

CLOSING:
The culmination of any transaction in which the interested parties (or their representatives) meet to exchange documents, funds, and property and, if necessary, to register the transfer of title.

CLOSING COSTS:
Moneys expended by a party in completing a transaction, over and above the purchase price, including: legal fees, taxes, mortgage application charges, interest adjustments, registration fees, appraisal fees, etc.

CLOSING DATE:
Also known a Completion Date. The date set in the Agreement of Purchase and Sale upon which the transaction is to be completed, the purchase price paid and the transfer of title registered.

CLOUD (ON TITLE):
Any unresolved claim against ownership of all or part of a property, affecting the owner’s title to the property and marketability of that title.

COLLATERAL MORTGAGE:
A loan which is secured by some sort of written note of indebtedness (such as a Promissory Note) which is secondarily secured by a mortgage registered against a property.

COMMON LAW:
As opposed to statute law. Laws or legal principles that have been established by courts over the years. May be codified into a statute or overruled by a statute passed by the government.

COMPARABLES:
Used in assessing or establishing the fair market value of a property, a property which has been sold recently that is similar in size, condition, location and amenities to the subject property.

CONCESSIONS:
1) In the early surveying of land in Ontario, concession roads were plotted and laid out at a distance of 100 chains (6,600 feet or 1.25 miles) from each other) across the width of the township. Some properties are still legally described as Lots or part of Lots on a particular Concession. 2) Sacrifices made by a party to convince another party to enter a contract.

CONDITION(S):
Clauses in the Agreement which must be fulfilled before the Agreement becomes firm and binding. If the condition is not fulfilled, the Agreement will usually become null and void and any deposit paid returned to the Purchaser.

CONDITIONAL OFFER:
An offer to purchase a property which is contingent on the fulfillment of certain conditions before it becomes firm and binding. Also known as ‘Conditional Sales Contract’.

CONSIDERATION:
The value, asset, service, information etc. which is offered to another party in a contract in exchange for that party’s agreeing to enter the contract. A contract is not binding if each party does not offer at least some consideration to the other party(ies).

CONTINGENCY:
An event which may (or may not) happen in the future, a condition that must be fulfilled before a contract becomes firm and binding.

CONTRACT:
A legally binding agreement (oral or written) between two or more persons regarding an exchange of some sort. A legally binding contract must include consideration passing between the parties, an intention on the part of all parties to be bound to the contract, a meeting of the minds of the parties as to the contents of the contract, and an element of clarity such that the terms of the contract may be interpreted, understood and enforced by a court.

CONVEY:
To transfer title to (or any other interest in) a property to someone else.

CONVEYANCE:
The act of transferring an interest in property to someone else or the document which effects the transfer.

COOPERATING BROKER:
A Broker who is involved in a real estate transaction and is, therefore, entitled to share in the commission from the transaction.

CORRECTING DEED:
A legal instrument registered specifically to amend an earlier deed by correcting errors in that earlier deed.

COST APPROACH:
Appraisal method where a property value is estimated using the cost of the property plus cost of all improvements, minus depreciation.

COST PLUS CONTRACT:
procedure ; {-} begin {} end; {} An agreement with a contractor or builder which sets the contractor’s compensation for the project as a percentage of the total cost of all labor and materials

CO-TENANCY:
When more than one person owns a piece of property. Title will be held by the owners as Joint Tenants (each owns the land equally and, in the event of the death of one of the owners, the survivors continue to share title equally by right of survivorship) or as Tenants in Common (each owner has title to a specific percentage of the land and may sell, mortgage, or bequeath her interest to a third party without consent of the other owners).

COUNTEROFFER:
An answer to an offer. If a prospective Purchaser presents an offer to purchase a property to the owner of the property, that owner may accept the offer as it stands, reject it outright or respond with a ‘counteroffer’ which changes certain terms of the original offer. Making a counteroffer, at law, entails rejection of the original offer. The Purchaser may then counteroffer back, making changes to the owner’s counteroffer. Sometimes, the process of counter offering is referred to as ‘signing back’ the offer.

COVENANT:
A promise contained in a contract or agreement.

CREATIVE FINANCING:
An arrangement for the financing of the purchase of a property which is outside the normal practice of residential financing.

BACKUP CONTRACT

An Agreement of Purchase and Sale for a particular property which is conditional (becomes binding) upon the failure of another Agreement for the same property.

BETTERMENT

The improvement of real estate that results in a rise in market value. Also, a legal concept of civil law: when a court award, judgment or order in favor of an injured party places that party in a better position than he would have been had his original injury never taken place.

BID

An offer of a certain amount of consideration.

BILL OF SALE

Documentary evidence that title to personal property (chattels) has passed to the Purchaser for valuable consideration.

BROKER

An intermediary who brings parties together for specific purposes. A mortgage broker brings borrowers together with lenders; a real estate broker brings purchasers together with vendors. Often charges a percentage of the contract price as a fee. Specific training required to become a Real Estate Broker, a professional designation.

BUILT-INS

Items which could be chattels but which are installed so as to form part of a building.

BUYER’S AGENT

A real estate agent who contracts to represent the interests of a person wishing to purchase a home.

BUYER’S MARKET

A condition of the real estate market where there are more properties for sale than people interested in buying them. Buyer’s have more choice and less competition for the available properties, resulting in lower prices.

BUY-SELL AGREEMENT

A pact between partners in a business or shareholders in a company, obliging one to buy the other’s interest (and obliging the other to sell) upon the occurrence of some event stated in the agreement.

ABANDONMENT
Abandonment occurs when a person with a right or interest in a property voluntarily gives up that right or interest, either by physically ‘abandoning’ the property or by showing the intention to give up the right or interest.

ABATEMENT
A decrease or reduction in the price of a property (or in rent chargeable to a tenant). Usually occurs as a result of the discovery of a negative fact about the property which decreases its value from the price originally agreed upon by the parties.

ABSTRACT OF TITLE
A summary listing of the documents registered in the local land registry office and which affect title (ownership) of a particular property.

ACCEPTANCE
A positive response to an offer or a counter-offer that creates a binding agreement between the parties. Acceptance may be conditional upon the occurrence of certain events.

ACCESS
The right to enter a property. Access may be restricted to certain times, to certain persons and to certain purposes (i.e. access for the purpose of inspection).

ACCESSORY BUILDING
A structure on a property that serves a specific purpose, complementing the home or main building. A garage or storage shed.

ACKNOWLEDGEMENT
A statement by a person to the effect that they are aware of a certain fact. May also be a sworn document to the same effect, which further states that the person signing the document did so voluntarily.

ACQUISITION
The process of taking title to or ownership of something.

ACQUISITION COST
The cost to the purchaser of obtaining title to anything, including real property. Acquisition cost includes the cost of the transaction of obtaining title, including legal fees and expenses, interest charges on mortgages, land transfer tax, etc.

ACTUAL AUTHORITY
With reference to an agent or representative. The limits of the power the agent or representative has to bind her principal to an agreement or to a statement.

ACTUAL POSSESSION
As opposed to constructive possession. When the owner of a property occupies the property on a day-to-day basis. Constructive possession is when the owner takes actions to establish and maintain his ownership of a property without actually occupying it himself (i.e. leasing it to tenants, removing squatters, hiring a security firm).

ADDENDUM
An addition to a document that forms part of it. Similar to a Schedule to an Agreement of Purchase and Sale. May be used to add specific and detailed information material to the contract or upon which contractual terms are based.

ADJUSTED SALES PRICE
The result of estimating the value of a property by comparison to comparable properties. Take the actual sale price of a property compa­rable to the subject property, then add the value of any extras which the subject property has but the comparable property did not, then subtract the value of any deficiencies in the subject property not shared by the comparable property.

ADJUSTMENTS
In real estate sales, the changes made to the selling price to account for the advantages and disadvantages of the subject property, market conditions etc. When closing a real estate transaction, the changes to the purchase price made as a result of realty taxes over- or under-paid by the Vendor, fuel oil provided, tenant’s rental payments etc. (Contained on the Statement of Adjustments).

AFFIDAVIT
A sworn statement setting out facts which the affiant states are true. Sworn before a Commissioner for swearing Oaths, Notary Public or other public official.

AFTER-TAX PROCEEDS FROM RESALE
The net proceeds from the sale of a property. The sale price minus legal fees and expenses, realty commission, any taxes paid, mortgage payout etc.

AGENCY
The relationship between a person (the Principal) and another person (the Agent) who was appointed, selected, empowered, given authority by the Principal to represent the interests of the Principal in dealings with third parties and to bind the Principal to statements, warranties or contracts.

AGENT
A person empowered by a Principal to act on behalf of the Principal in dealings with third parties. The third party is entitled to rely upon the agreement, assurances or statements of the Agent as being binding on the Principal.

AGREEMENT OF SALE
Also known as Purchase Agreement, Agreement of Purchase and Sale, Land Agreement etc. A legal contract in which one party agrees to buy and another agrees to sell a property or chattel. Contains terms and conditions of the transaction and is signed by the parties.

AGREEMENT
A legally binding contract between two or more people, representing a meeting of minds on one or more issues.

ALTERATION
A change made to an executed contract which has not been approved by the parties to the contract. An alteration may constitute fraud if it has the impact of significantly affecting the rights of a party to the contract and was intentionally carried out by another party. If fraud is found, the innocent party may void the contract.

AMENITIES
Positive features of a particular property (such as a pool, central air conditioning, etc.) or attractions located near a particular property (highways, school, shopping, etc.) which have the effect of enhancing the property’s value.

AO (ACCEPTED OFFER)
A short form used by agents to designate that an offer to purchase has been accepted by the offeree.

APPLICATION FEE
The fees the lender charges the applicant. May include costs of a property appraisal and a credit report on the applicant. May be payable by applicant even if loan is not approved.

APPOINTMENTS
Chattels or decorative touches that may affect the value of a property.

APPORTIONMENT
Also known as adjustment. The division of responsibility for certain costs between the parties to a transaction, such as realty taxes. In America, the purchaser is responsible for such charges from and including the day of closing; in many U.S. jurisdictions, the vendor is responsible for the day of closing and all days prior to it.

APPRAISAL
An estimation of the value of a property on a certain date given by a qualified person, usually after an inspection of the property.

APPRAISAL PRINCIPLES
Elements to be considered by an appraiser in appraising the value of a property, such as competition, supply and demand.

APPRAISAL PROCESS
A standardized approach to appraising a property, to allow for accuracy and consistency.

APPRAISAL REPORT
Documentation to support an appraisal of a property. Varies in length but sets out elements considered, positive and negative aspects of property etc.

APPRAISED VALUE
The estimated market value of a property on a given date, given by a qualified person as a result of an inspection of the property and a consideration of other market forces.

APPRAISER
A licensed professional who has been trained to assess the value of property.

APPROACHES TO VALUE
Different methods by which appraisers estimate the value of a property. Include: (1) cost approach, (2) comparison approach, and (3) income approach.

ARM’S LENGTH’TRANSACTION
A colloquial description of a transaction where none of the parties are related to each other or have common interests — they have each other at ‘arm’s length’. An arms-length transaction is generally at fair market value; in a ‘non-arm’s-length’ transaction, the relationship between the parties may cause one or the other to accept less than they are entitled or pay more than fair market value.

AS IS
Implied in most Agreements of Purchase and Sale, suggests the Purchaser is accepting the property in its current condition and releases the Vendor from any liability for problems found before or after closing.

AS-IS’ AGREEMENT
A statement in the Agreement of Purchase and Sale that confirms that the Purchaser shall accept the property and all chattels included in the Purchase in the condition in which they are found at the time the Agreement is signed.

ASKING PRICE
The price at which the Vendor advertises a property. When used in the advertisement, may suggest flexibility on the part of the Vendor regarding the price.

ASSESSED VALUE
The value assigned to a given property by the municipality for the purpose of establishing realty taxes payable by the owner of the property.

ASSESSMENT
Generally, the apportionment of liability of a general cost among individuals. The act of estimating the value of land for tax purposes or the method by which municipalities raise taxes (property tax assessment).

ASSESSMENT ROLL
Public record of the assessed values of properties. Also includes Assessment Roll Number for each property, the number by which the property is identified in the municipal records.

ASSESSOR
A person who is employed by the municipality to estimate the value of properties for the purpose of taxes.

ASSIGN
To transfer interest in a property, contract, right etc..

ASSIGNEE
The person to whom an interest is transferred. An assignee of an Agreement of Purchase and Sale may buy the property and enforce the contract in the same fashion as the original party.

ASSIGNMENT OF CONTRACT
The transfer of any right, claim or interest to another person or corporation. Often used to refer to the transfer of a mortgage or deed of trust from one person to another. Also a noun describing the document which represents the assignment of the right etc.

ASSIGNOR
The person who assigns a right or interest to another person.

ASSOCIATE BROKER
A qualified real estate broker who works with or for another broker.

ASSUMABLE MORTGAGE
A mortgage that can be taken over (‘assumed’) by the buyer when a home is sold. If interest rates have risen, an assumable mortgage at a low rate may prove a selling point for the property.

ASSUMPTION CLAUSE
The paragraph in the mortgage which sets out the borrower’s right to have the mortgage assumed by a purchaser.

ASSUMPTION OF MORTGAGE
The agreement of a purchaser to take on personal liability for a mortgage already registered on title to the property and to make payments under the mortgage. Purchaser takes the place of the vendor in the contract with the lender.

ATTACHMENT
The binding by a court of a piece of property (real or personal) as security for a debt.

AUCTION
The process of selling property to the highest bidder.

AUTHORIZATION TO SELL
A contract between a property owner and a real estate broker or agent which allows the broker to list the property for sale and which codifies the rights and obligations of the two parties.