Adjustment Date
The date agreed to by both parties for the allocation and adjustment of property taxes, interest, utilities, rents and other appropriate items. This date is usually the same as the possession date. (See Seller’s and Buyer’s statements).

Agreement For Sale
The Seller agrees to sell the property to a Buyer on credit terms. Normally the Seller carries the financing himself and the Buyer arranges a payment with the Seller. The Seller remains on the title as registered owner. Very similar to a first mortgage. The agreement for sale is the registered contract.

Amortization
The paying off of debt with a fixed repayment schedule in regular installments over a period of time. Consumers are most likely to encounter amortization with a mortgage or car loan.

Appraised Value
A report made by a qualified person giving an estimate of value, based on experience, comparable sales and pertinent data relating to the property.

Asking Price
The price placed on the property for sale by the Seller.

Assessed Value
Used for the purpose of assessing property tax by a local municipality, this property value is assessed by the B.C. Assessment Authority.

Blended Payments
Payments consisting of principal and interest components, paid during the amortization period of a mortgage.

Buy Down
A mortgage financing technique where the buyer attempts to obtain a lower interest rate for at least the first few years of the mortgage.

Buyer’s Agent
The date agreed to by both parties for the allocation and adjustment of property taxes, interest, utilities, rents and other appropriate items. This date is usually the same as the possession date. (See Seller’s and Buyer’s statements).

Caveat
A note placed on the register in the Land Titles Office at the instigation of a person who claims a certain interest in the land. In B.C., a caveat remains in force for only 2 months, then lapses.

Chattels
Personal property not attached or affixed to the land or property. Also refers to appliances, etc. in a rental property.

CMHC
Canada Mortgage and Housing Corporation. A Crown corporation which provides information services and mortgage loan insurance.

Co-Op Suite
A co-op is a company formed to create and operate defined living spaces within a building. A Buyer purchases shares in the company that normally owns the building. The purchase of these shares usually entitles the owner to the sole use of a suite in a co-op building through a long term lease or shareholder’s agreement.

Commissions
In B.C. it is illegal to receive “net” commissions (i.e. any amount of money given on the sale of the property over and above the agreed price.)

Completion Date
The date on which the Seller is entitled to the net proceeds of the sale and the Buyer is entitled to the transfer of the title. Real Estate commissions and legal fees are paid out at this time.

Consideration
Something done or promised (i.e. deposit money) to be done by one party in return for something done or promised to be done by the other party (i.e. the transfer of title to the property).

CTAM
Cash to a new mortgage to be arranged.

Debt-Service Ratio
The measurement of debt payments to gross household income which may include, in addition to the main wage earner’s salary, salaries of other wage earners, commissions, bonuses, overtime, etc.

Deposit
Money taken at the time of acceptance or upon final subject removal as a sign of good faith. This money is held in a real estate company’s trust account pending the completion of the purchase and are credited towards the purchase price.

Designated Agency
The essence of the system of “designated agency” is that the brokerage has contractual duties to the buyer or seller who has engaged it and agency duties are provided by the REALTOR® appointed by the brokerage as the “Designated Agent” for that client.

Dual Agent
A real estate broker or salesperson who acts as agent for both the Seller and the Buyer in the same transaction. Both Buyer and Seller are the agent’s clients.

Encumbrances
Anything that affects or limits the title to property such as a mortgage, lease, easement, etc.

Equity
The difference between the price for which a property could be sold and the total debts and mortgages registered against it.

Fixtures
All things attached to the property or growing on it. To avoid this dispute, specify in writing any items that will not be included in the sale of the property. Better yet, remove them prior to offering the property for sale.

FSR
Floor Space Ratio. A City zoning term that defines the maximum allowable square footage to be built or occupied in a building in relation to its lot size.

Gross Debt Service
The amount of money needed to pay principal, interest, taxes and sometimes, energy costs. If the dwelling unit is a condominium, all or a portion of common fees are included, depending on what expenses are covered.

Gross Debt Service Ratio
The percentage of gross annual income needed to cover payments associated with housing payments. (Mortgage, principal and interest, taxes, secondary financing). Primarily used by the mortgagee (lender). Most lenders prefer the GDS be no more than 30% of a purchaser’s gross annual income (before deductions).

Gross Taxes
The total amount of taxes owing as per your B.C. Assessment and municipal property tax bill before any deductions are made.

High Ratio Mortgage
A situation where the loan exceeds 80% of the appraised value (or the selling price – whichever is lower). This loan must be insured by C.M.H.C., G.E. Capital (Mortgage Insurance Canada) or other insuring agencies for a fee.

Highlight Sheet / Feature Sheet
An information and marketing sheet given to the public and other sales agents that outlines details of the property for sale.

Lease
A lease is a rental for a fixed period of time. Leases over 3 years duration should be registered in the Land Titles Office.

Listing Agreement
A contract between a Seller and a real estate company whereby the real estate agent agrees to find a ready, willing and able Buyer for a listed property on certain terms stipulated by the Seller. The Seller agrees to pay a stated amount of commission if the salesperson is successful.

Market Value
The highest price paid for a piece of property which has been exposed ‘for sale’ in the open market allowing a reasonable time to find a Buyer.

MLS® Listing
Multiple Listing Service. A listing service handled by the Real Estate Board that issues print and online listing information comprising details of properties for sale on MLS® in our market areas.