Glossary of Real Estate Terms

Adjustment Date: Usually the same as the possession date. This is the day used to calculate payment due to the vendor or purchaser for responsibility of interest, taxes, utility adjustments (if they apply).

Appraised Value: An appraiser estimates the value of a property based on recent sales of similar properties. Banks use this to determine mortgage amounts.

Assessed Value: B.C. Assessment Authority sets with valuation of the property for the municipality to calculate property taxes. It will generally not be the same as the appraised value.

Closing: The date set, that all parties agree on, for legal and financial obligations to be met and the deed or title transferred from the vendor to the purchaser.

Conveyance: Transfer of the seller’s title to the purchaser, all paperwork and registration is handled by a Lawyer or a Notary. The vendor and the purchaser each have their own legal representation.

Counter Offer: The response from the vendor to an offer by a prospective purchaser. This may include a change in price, possession date or any other terms and conditions of the original offer.

Deed: The legal document that confirms ownership if a property.

Easement: The legal right given to someone to cross another person’s land. Could be provided for right to service wires or pipes that cross a property.

Encroachment: Occasionally a shed, garage, fence or even the overhang on a roof may cross the boundary from one property to another “encroaching” on an adjacent property.

Foreclosure: If the registered owner of a property does not meet the payment schedule set out in the mortgage obligations. The lender may apply to the courts to take possession of the property.

Land Transfer Tax: A Provincial tax levied on the purchase of property.

Lien: A legal claim against a property to ensure payment of a debt.

Multiple Listing Service® (MLS®): A tool that provides a central search database and access to property listings in Canada.

Property Disclosure Statement: Identifies defects that are known to exist. If the seller does not fill this out, they can still be held liable if they are found to be in possession of detrimental information they chose to hide from the purchaser. Allows the purchaser to make informed decisions about the properties condition.

Property Taxes: Paid annually on property value determined by B.C. Assessment Authority. Tax rates are set by Municipal Governments.

Property Transfer Tax: Provincial Tax due on transfer of property ownership. First time buyers may be exempt.

Statement Of Adjustments: On closing, lawyers or notaries prepare a detailed statement of the sources of funds that make up the purchase price, including the amount due to the vendor and the final payment amount from the purchaser.

State of Title Certificate: A search of the properties title including any mortgages, liens, “rights of way” or any other charges against the property.

“Subject to”: A subject is a condition placed on an offer that must be met prior to a specific date, to allow the transaction to proceed to completion.

Title Search: Examination of the ownership and any claims against the property to ensure the vendor has the right to sell.

Zoning Regulations: Guidelines set and policed by a municipality, that strictly regulate property usage.