Glossary R-Z
Real Estate
The land itself, and everything below and above it, including all things permanently attached, whether by nature or by man.
Real Estate Salesperson
A person licensed to sell real estate working under the supervision of a broker.
REALTOR®
A representative who is a member of an organization of persons engaged in the business of buying and selling real estate, such as the Ontario Real Estate Association.
Refinance
To pay off a mortgage or other registered encumbrance and arrange for a new mortgage, usually at a lower interest rate, and sometimes with a different lender.
Renewal
Re-negotiation of a mortgage loan at the end of a term for a new term.
Rent Control
Government-imposed restrictions on the amount of rent a property owner can charge.
Replacement Cost
The cost at today's prices and using today's construction methods, of building an improvement having the same usefulness as the one being appraised.
Reserve Fund
The portion of a condominium fee that is set aside to cover future major repair and replacement costs.
Restrictive Covenants
Clauses placed in a deed to restrict the full use of the property by controlling how future landowners may or may not use the property; also used in leases.
Second Mortgage
A second financing arrangement, in addition to the first mortgage, also secured by the property. Second mortgages are usually issued at a higher interest rate and for a shorter term than the first mortgage.
Secondary Financing
Second, third, fourth, etc. mortgages, secured by a property 'behind' the first mortgage.
Seller's Market
A decreased supply of homes for sale, in which there are few Sellers and many Buyers. In such a market, the Seller can typically negotiate more favourable prices and terms.
Selling Broker
The REALTOR® who actually finds the Buyer.
Semi-Detached Home
A residential structure containing two dwelling units separated vertically by a common wall.
Special Assessment
A special tax imposed on specific parcels of real estate that will benefit from a proposed public improvement, such as a sewer or waterline.
Status Certificate
A written statement of a condominium unit's current legal and financial status.
Subletting
The leasing of premises by a lessee to a third party for part of the lessee's remaining term.
Survey
An exact measurement of the size and boundaries of a piece of land by a surveyor.
Tenants in Common
Form of ownership in which two or more persons buy a property jointly, but with no right of survivorship and separate undivided interests. They are free to will their share to anyone they choose, a principal difference between this form of ownership and joint tenancy.
Term
The length of time during which a mortgagor pays a specific interest rate on the mortgage loan. The entire mortgage principal is usually not paid off at the end of the term because the amortization period is normally longer than the term.
Title
The legal evidence of ownership of a property. A freehold title gives the holder full and exclusive ownership of land and buildings for an indefinite period of time. In condominium title, land and common elements of buildings are owned collectively by all unit owners, while the residential units belong exclusively to the individual owners. A leasehold title gives the holder a right to use and occupy land and buildings for a defined period of time.
Title Insurance
An insurance policy that protects against any losses incurred because of defects in the title not listed in the title report or abstract.
Title Search
A 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.
Townhouse
Usually a two or three storey residential dwelling with shared walls, operating under the condominium or freehold form of ownership.
Total Debt Service Ratio (TDS)
The percentage of gross monthly income required to cover all monthly payments for housing and all other debts, such as car payments.
Unit
Term used to describe the individual home or apartment held by the owner within a condominium development.
Variable-Rate Mortgage
A mortgage for which payments are fixed, but whose interest rate changes in relationship to fluctuating market interest rates. If market rates go up, a larger portion of the payment goes to interest. If rates go down, a larger portion of the payment is applied to the principal.
Vendor Take Back Mortgage
Mortgage financing arranged between the Seller of the property and the Buyer. The title is transferred to the Buyer. Often this type of loan is a second mortgage which the Seller is willing to arrange at below market rates to ensure the Buyer can purchase the house. Most of these arrangements are generally not renewable or transferable to the next owner.
Zoning By-laws
Municipal or regional laws that specify or restrict land use.
