| Accepted Offer |
An accepted offer is a binding contract that cannot be altered unless such alteration is agreed upon by all parties to the contract. In a real estate transaction the contract of purchase and sale usually contains certain "buyer conditions" (i.e., obtaining financing or approving house inspection). The buyer still cannot change the details of those conditions unless such change is also agreed upon by the seller. |
| Adjustment Date |
Found in the Contract of Purchase and Sale ("Offer"), it represents the day from which all calculations of interest, tax adjustments, utility bill adjustments (if applicable) are made to the credit of either the buyer or the seller. This is usually (but not always) the same as the possession date. |
| Agent - Buyer Agent |
Usually referred to as the real estate agent acting on behalf of the BUYER. (Also called the "selling agent" as opposite to "listing agent".) |
| Agent - Dual Agency |
In a real estate transaction where licensee(s) of the same real estate company are acting on behalf of both the SELLER and the BUYER, dual agency exists. Either the seller or the buyer may refuse to have their real estate licensee representing both the seller and the buyer but if they agree, both the seller, the buyer and the real estate licensee(s) will execute a "Limited Dual Agency Agreement". Notice the differences between (a) "ONE licensee of the same company representing both the seller and the buyer", and (b) "TWO licensees of the same company with each licensee representing either the seller or the buyer". |
| Agent - Seller Agent |
Usually referred to as the real estate agent acting on behalf of the SELLER. (Also called the "listing agent" as opposite to "selling agent".) |
| Appraised Value |
An estimate of a property's market value, used by lenders in determining the amount of the mortgage. It is also an ideal information based on which a seller could set an asking price, or a buyer to propose a purchase price, of a property. |
| Assessed Value (Tax Assessment Value) |
The value of a property, set by the B.C. Assessment Authority, and used by the local municipality for the purposes of calculating property tax. This is not necessary the current market value of a property as the "Assessed Value" is normally computed based on sales information of the preceding year. |
| Back-up Offer |
A back-up offer is, simply, an offer ("second offer") after an offer ("first offer") has been accepted. A back-up offer that is accepted by the seller sits in second position waiting for the first offer to collapse or firm up. |
| Closing |
The real estate transaction's completion, when the parties involved agree that all legal and financial obligations have been met and the deed to the property is transferred from the seller to the buyer. |
| Completion Date |
Found in the Contract of Purchase and Sale ("Offer"), it represents the day on which the parties must complete the transaction of purchase and sale. Refer also to "Closing". |
| Conveyance |
The term used to describe the process of transferring the seller's title to the buyer and indicates all the necessary steps to complete the transfer. A conveyancing representative is a person responsible for the conveyance process (this is normally the buyer's representative). Either a lawyer or a notary public can be appointed as the conveyancing representative. |
| Counter Offer |
An offer made by the receiving party back to the originating party, altering one or several terms and/or conditions of the offer as originally written. Each "Counter Offer" is treated as a new offer and may therefore be either accepted, rejected or countered back - Refer to "Offer". |
| Deed |
A legal document that conveys (transfers) ownership of a property to a buyer. |
| Deposit & Trust Account |
Money paid as "deposit" in a real estate transaction is usually paid to the Buyer Agent's trust account, and must be handled in accordance with the Real Estate Act of BC. In particular, the money is held for the transaction and not on behalf of one of the parties. If a party does not remove a subject clause, the agent requires the signature of both the Buyer and the Seller in order to release the deposit. If both parties do not sign the deposit release, then the parties will have to apply to court for a determination of the deposit issue. |
| Easement |
A legal right to use or cross (right-of-way) another person's land for limited purposes. A common example is a utility company's right to run wires or lay pipe across a property. |
| Encroachment |
An intrusion onto an adjoining property. Common examples are a neighbour's fence, storage shed, or overhanging roof line that partially (or even fully) intrudes onto your property. |
| Foreclosure |
A legal process by which the lender takes possession and ownership of a property when the borrower doesn't meet the mortgage obligations. |
| Land Transfer Tax |
Payment to the provincial government for transferring property from the seller to the buyer. See Property Transfer Tax. |
| Lien |
Any legal claim against a property, filed to ensure payment of a debt. |
| Multiple Listing Service® (MLS®) |
A current and comprehensive listing system for relaying property information to Greater Vancouver Real Estate Board Realtors. This service offers the widest exposure to properties listed for sale. |
| Offer |
An "offer" is a form of presenting a buyer's terms and conditions to purchase a property, for the acceptance or consideration of the seller. In a real estate transaction this is usually made in the form of a "Contract of Purchase and Sale". An offer may either be accepted in its entirety, rejected in its entirety, or countered back - refer to "Counter Offer". |
| Possession Date |
Found in the Contract of Purchase and Sale ("Offer"), it represents the day on which the buyer will take possession of the property purchased. Refer also to "Adjustment Date". |
| Power of Attorney |
A form of authorization in which one party gives authorization for another party to act on his or her behalf (usually in the absence of the party giving the authorization). In real estate transaction, a Power of Attorney must be properly drawn up before it is accepted by the Land Title Office for the purposes of land transfer. |
| Property Disclosure Statement |
This form enables sellers to disclose known information and conditions of the property, including any defects where applicable. If the seller decides not to complete the form and does not disclose known defects, he or she can still be held liable. The form also serves as a checklist for buyers enabling them to address concerns about the property's condition on the spot, or to seek further information from alternative sources. |
| Property Taxes |
This levy is affected by location and the value of the property as determined by BC Assessment. The rate of taxation is determined by local government. Property taxes are paid on an annual basis. |
| Property Transfer Tax ("PTT") |
Payment to the provincial government for transferring property from the seller to the buyer. In the 1994 provincial government's budget, the PTT was eliminated for first-time buyers under certain circumstances. |
| Real Estate Licensees |
Persons who are licensed by the Real Estate Council of BC in accordance with the Real Estate Act, and are allowed to conduct business related to real estates and earn fees for services provided therefrom. See also "Realtor". |
| Realtors |
Real estate professionals who are also members of the various Real Estate Boards and the British Columbia and Canadian Real Estate Associations. "Realtor®" is a registered trademark and only those real estate professionals as described above can call themselves Realtors. See also "Real Estate Licensees". |
| Rights of Way |
Are indicated on title at the Land Title Office; often for use of utilities or city or municipality in order to make repairs to pipes, etc.; no permanent structure may be built on a right of way. |
| State of Title Certificate |
A copy of the title which lists charges against the property, e.g., liens, mortgages, rights of way, etc. |
| Statements of Adjustments |
Closing statements in a real estate transaction that set out the sources of funds that make up the purchase price, adjustments to and from the purchase price, the final amount required from the purchase and the amount due to the seller. Lawyers (or notaries public) will prepare a statement for the seller and the buyer. |
| Subject Clause |
A statement of a condition to be fulfilled by the benefiting part which must include a specific deadline for removal. |
| Subject Removal |
If the conditions precedent to a contract are either satisfied or waived by the benefiting party(ies), those conditions must be declared fulfilled or waived in order for the contract to further proceed. Upon subject removal, the contract becomes firm and unconditional, pending the outcome of the closing - Refer to "Closing". |
| Tax Assessment Value (Assessed Value) |
See "Assessed Value". |
| 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. |
| Zoning Regulations |
Strict guidelines set and enforced by municipal governments regulating how a property may or may not be used. |
