Glossary of Terms

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ABSTRACT
	A written history of the title to a parcel of land or real estate as recorded in a Land Registry Office.
ACRE
	A measure of land equalling 43,560 square feet, 0.4 hectares, 4,840 square yards or 160 square rods.
ADJUSTABLE MORTGAGE INTEREST RATE
	With an adjustable rate, both the interest rate and the mortgage payment vary, based on market conditions.
ADVERSE POSSESSION
	When an individual, not the owner, takes actual possession of a property, hostile to, and without the consent of the owner.
AGENCY
	The relationship between principal and agent which arises out of contract, either written or oral, wherein an agent is employed and authorized by the principal to represent him/her in business transactions with a third party.
AGENT
	One who is authorized by a principal to represent him/her in business transactions with a third party. In the real estate profession it refers to a licensed brokerage.
AGREEMENT FOR SALE
	An agreement for the purchase of real property wherein the purchase price is paid in installments and title is not conveyed to the purchaser until the purchase price is paid in full.
AGREEMENT OF PURCHASE AND SALE
	A contract by which one party agrees to sell and another party agrees to purchase.
AGREEMENT TO LEASE
	A contract by which one party agrees to rent real estate to another party for a rental fee or other compensation. Also known as a Lease.
AMORTIZATION
	A term used to describe the period of time over which the entire mortgage is to be paid assuming regular payments.
APPRAISAL
	An independent assessment of the property by a qualified professional.
APPRAISER
	A certified professional who carries out an appraisal.
APPRECIATION
	The increase in value of something because it is worth more now than when it was originally purchased.
APPROVED LENDER
	A lending institution designated as an approved lender by CMHC under the National Housing Act. Only Approved Lenders may qualify for CMHC Loan Insurance.
APPURTENANCE
	Something which is outside the real property itself, but belongs to the land and is joined thereto. It adds to greater enjoyment of the land. A right-of-way is an example of an appurtenance.
ASSESSED VALUE
	A valuation placed upon property as a basis for municipal taxation.
ASSESSOR
	An official who has the responsibility of determining assessed value for tax purposes.
ASSUMPTION AGREEMENT
	A legal document signed by a purchaser that requires them to assume responsibility for the obligations of a mortgage from a builder or previous owner.
ASSUMPTION OF MORTGAGE
	The taking of title to property by a grantee, wherein grantee assumes liability for an existing mortgage against a property and becomes personally liable for the payment of such mortgage debt. For example, a purchaser could take over the previous owner's (or builder's) mortgage when they buy a property.
AUTHORITY
	The legal power or right given by a principal and accepted by the agent to act on the principal's behalf in business transactions with a third party.