Real Estate - Definitions

  1. Action on the Covenant
    Legal proceeding based on a clause contained in a contract, such as a lease or a mortgage.
  2. Adverse Possession
    Occupation of land inconsistent with the right of the registered owner (ex. displacing the true owner).
  3. Amortization
    Payment of a debt by way of a fixed number of payments that gradually results in the principal and interest being reduced or paid off.
  4. Assignment of Lease
    Transfer of a tenant's entire leasehold interest to another tenant.
  5. Assignment of Mortgage
    Transfer of a mortgagee's rights under a mortgage to another mortgagee.
  6. Assumption of Mortgage
    Transfer of a mortgagor's obligations under a mortgage to another mortgagor (usually a purchaser of the property that is subject to the mortgage).
  7. Chattel
    Personal property that is tangible and movable.
  8. Closing Date
    Date upon which the transfer of ownership of real property takes place.
  9. Concurrent Ownership
    Ownership by more than one person.
  10. Discharge of Mortgage
    Release by mortgagee of obligations of the mortgagor under the mortgage (usually indicates full payment has been made).
  11. Distrain
    To seize goods by distress.
  12. Distress
    A right to seize goods in order to satisfy a debt.
  13. Dominant Tenement
    Land the benefits from the service of another property (ex. from an easement or from a restrictive covenant).
  14. Easement
    A right enjoyed by the owner of land over the lands of another.
  15. Encroachment
    Extension of property beyond its boundaries onto an adjoining property.
  16. Encumbrance
    An outstanding claim or lien recorded against a property.
  17. Exclusive Right of Possession
    Right to occupy property, to the exclusion of all others.
  18. Expropriate
    Deprive a property owner of her right in all or part of her property.
  19. Fee Simple
    The most extensive freehold estate possible.
  20. Fixed Term Tenancy
    A tenancy for a set period of time.
  21. Fixture
    Anything permanently attached to real property.
  22. Foreclosure
    Court action that results in mortgagor losing all interest in property due to his default in payment of a mortgage.
  23. Freehold Estate
    An interest in land that may last for infinite or an indefinite period of time.
  24. Guarantor
    Person who agrees to assume all obligations of a mortgagor under a mortgage, in the event of the mortgagor's default.
  25. Joint Tenants
    Two or more persons holding title to land where there is a right of survivorship; that is, death of one joint tenant results in title automatically going to the surviving joint tenant.
  26. Land Titles
    System of registration of interests in land in which only current interests are shown and the government guarantees that no other interests affect the land.
  27. Leasehold Estate
    An interest in property for a specific period of time.
  28. Licence
    A right to do something (ex. enter on someone's land), which may be revoked at any time.
  29. Life Estate
    An interest in land for the duration of a designated person's life.
  30. Limitation Period
    Time period during which a proceeding to enforce a right may be commenced.
  31. Matrimonial Home
    Property occupied by a husband and wife
  32. Merger
    Loss of a right (ex. an easement) due to its coinciding with another and greater right in the same person.
  33. Mortgage
    A means of providing land as security for indebtedness.
  34. Mortgagee
    The lender whose security is the mortgage.
  35. Mortgagor
    The borrower, and holder of title to the land that is subject to the mortgage.
  36. Notice to Quit
    Notice by either a landlord or tenant to the other party, indicating an intention to terminate the tenancy.
  37. Nuisance
    An inconvenience that materially interferes with the enjoyment of one's property.
  38. Periodic Tenancy
    A tenancy that renews itself on a periodic (weekly, monthly, or yearly) basis.
  39. Power of Sale
    Right of a mortgagee to force sale of the property in the event of default, without taking court action.
  40. Prescriptive Easement
    Easement obtained by uninterrupted usage for a period of time.
  41. Quiet Possession
    Occupancy without interruption or interference.
  42. Registry
    System of registration of interests in land in which many interests are recorded (not just current ones), and the title searcher must determine which ones are applicable to the title being searched.
  43. Remainder
    An interest in land that becomes effective upon the occurance of a specific event (ex. the death of a life tenant).
  44. Requisition Date
    Date prior to which any problems relating to title must be made known to the vendor of the property or to the vendor's solicitor.
  45. Requisition Letter
    Letter from the purchaser or purchaser's solicitor outlining to the vendor any problems on title that the purchaser requires to be remedied prior to closing.
  46. Reserve Bid
    Lowest acceptable price.
  47. Restrictive Covenant
    A restriction or limitation on the use of the property, which an owner may impose on subsequent owners of the property.
  48. Reversion
    Return of an estate in land to the original owner upon the occurance of a specific event (ex. the death of a life tenant).
  49. Right-of-Way
    Right to pass over another's land.
  50. Right-of-Way of Necessity
    A right to pass over another's land as the only means of access to one's own property.
  51. Runs with the Land
    Extends beyond the original parties and binds subsequent owners of the property.
  52. Servient Tenement
    Land that is subject to a service (ex. an easement or a restrictive covenant) in favor of another property (being the dominant tenement).
  53. Sublet
    Transfer of part of a leasehold interest (either part of the term or part of the premises).
  54. Surrender of Lease
    Termination of a fixed-term lease.
  55. Tenancy at Sufferance
    Occupancy of property with no rent payable and no consent given by the landlord to possession of the premises.
  56. Tenancy at Will
    Right of possession is not for a given length of time, and may or may not be exclusive.
  57. Tenancy in Common
    Ownership of land by two or more persons; upon the death of one person, that person's share becomes an asset of her estate.
  58. Title
    Registered ownership of property.
  59. Waste
    Lasting damage to property (ex. destruction of a house or allowing it to fall into disrepair).
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Real Estate - Definitions
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