Ameraco

IMPLIED CONTRACT:
An agreement which is not reduced to writing but is created, under the common law, on the basis of the behavior of the parties which suggests that they are acting under an agreement.

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.

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HANDYMAN’S SPECIAL:
A descriptive term for a property which requires significant work to bring it up to normal standards of condition and repair. Often marketed at a lesser price.

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 CERTIFICATE:
Document, required under the standard form of Agreement of Purchase and Sale, signed by a Vendor upon which the Purchaser may rely stating that Goods and Services Tax is not payable on the purchase price of the property because the subject property is a ‘used residential premises’. GST is payable on new homes, substantially renovated properties, properties which are bought and sold as part of a business of trading in properties and properties for which the Vendor claimed an input tax credit under the Excise Tax Act.

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.

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