Glossary of terms

Adjustment date
The date on which property taxes, water and sewage charges, strata fees, rents,
interests and other items are adjusted between the buyer and seller of real estate.

Amortization period
The length of time in (usually) in years that it takes to pay a mortgage through
equal installments. The shorter the amortization period the less interest is paid.

Contract of Purchase and Sale
An agreement whereby one party agrees to sell and another agrees to buy a
property at set terms, including price.

Closing date
The date on which documents required to transfer title from the seller to the buyer,
and mortgage documents, if applicable, must be registered in the Land Title Office.
This is the date when the balance of the purchase price is paid by the buyer.

Completion date
See closing date

Conveyance
A transfer of an interest in real estate from one party to another.

Deposit
The amount of money paid by the buyer to the seller or, more commonly, to the
seller’s real estate agent, at the time of accepting the Contract of Purchase and
Sale or at the time of removing subject-to clauses in the contract as a pledge to
complete the contract.

Easement
A right of one owner of property over the adjacent property of another.

Equity
The difference between the value of real estate and the amount owing, if any, on a
mortgage.

Fee simple
An absolute right in real property.

Joint tenancy
Ownership of a property by two or more parties in which the parties have an equal
and undivided interest in the property and on death of one party his or her interest
passes to the surviving party or parties.

Mortgage
A document providing security in form of real estate property for a repayment of a
loan. Mortgage documents are registered against the property in a Land Title Office.

Mortgagee
The person or financial institution lending money which is secured by a mortgage.

Mortgagor
The property owner borrowing money which is secured by a mortgage.

Possession date
The date on which the buyer moves into or takes physical possession of the
property.

Right of way
The right to pass over a property which is registered as a charge against title in a
Land Title Office.

Standard Mortgage Terms
Part of a mortgage which is standard to most mortgages and which sets out the
obligations under a mortgage.

Statement of adjustments
A statement prepared by the buyer’s lawyer or notary listing credits to the seller
and credits to the buyer and providing for the balance due on closing.

State of Title Certificate
A certified copy of title issued by a Land Title Office indicating the ownership of a
property and any interests registered against the property at a particular point in
time.

Tenants in common
Ownership of a property by two or more parties in which the interest upon death
passes to the estate of the deceased.

Disclaimer

Please remember that the information provided on this website is not legal advice and is intended as general information only. We try to keep this website as accurate and up-to-date as possible but laws, regulations, policies and practice are constantly changing. Please talk to one of our lawyers. Contact us