acceleration clause
A provision in a mortgage that gives the lender the right to demand payment of
the entire principal balance if a monthly payment is missed. |
acceptance
An offeree’s consent to enter into a contract and be bound by the terms of the
offer. |
additional deposit
The cash that is added to the initial deposit. The amount is to be noted on the
Real Estate Purchase Contract. |
additional principal
payment
A payment by a borrower of more than the scheduled principal amount due in order
to reduce the remaining balance on the loan. |
adjustments
Changes or adaptations made in real estate. |
adjustable-rate mortgage
(ARM)
A mortgage that permits the lender to adjust its interest rate periodically on
the basis of changes in a specified index. |
adjusted basis
The original cost of a property plus the value of any capital expenditures for
improvements to the property minus any depreciation taken. |
adjustment date
The date on which the interest rate changes for an adjustable-rate mortgage (ARM).
|
adjustment period
The period that elapses between the adjustment dates for an adjustable-rate mortgage
(ARM). |
administrator
A person appointed by a probate court to administer the estate of a person who
died intestate. |
affordability analysis
A detailed analysis of your ability to afford the purchase of a home. An affordability
analysis takes into consideration your income, liabilities, and available funds,
along with the type of mortgage you plan to use, the area where you want to purchase
a home, and the closing costs that you might expect to pay. |
agency disclosure/acknowledgement
The fiduciary duty that requires an agent to tell his/her principal all facts
and information that might affect the principal’s decisions concerning either
the property of the transaction. |
agent
May have two meanings as it relates to real estate. Broadly, an agent my be a
representative of a principal acting on his/her behalf, creating and "agency"
relationship. More specifically, agent means a person who is authorized by the
Real Estate Council of Alberta and holds an agents licence to trade in real estate
on behalf of others, for some form of compensation. |
amenity
A feature of real property that enhances its attractiveness and increases the
occupant’s or user’s satisfaction although the feature is not essential to the
property’s use. Natural amenities include a pleasant or desirable location near
water, scenic views of the surrounding area, etc. Human-made amenities include
swimming pools, tennis courts, community buildings, and other recreational facilities.
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amortization
The gradual repayment of a mortgage loan by instalments. |
amortization schedule
A timetable for payment of a mortgage loan. An amortization schedule shows the
amount of each payment applied to interest and principal and shows the remaining
balance after each payment is made. |
amortization term
The amount of time required to amortize the mortgage loan. The amortization term
is expressed as a number of months. For example, for a 30-year fixed-rate mortgage,
the amortization term is 360 months. |
amortize
To repay a mortgage with regular payments that cover both principal and interest.
|
annual mortgagor statement
A report sent to the mortgagor each year. The report shows how much was paid in
taxes and interest during the year, as well as the remaining mortgage loan balance
at the end of the year. |
annual percentage rate
(APR)
The cost of a mortgage stated as a yearly rate; includes such items as interest,
mortgage insurance, and loan origination fee (points). |
annuity
An amount paid yearly or at other regular intervals, often on a guaranteed dollar
basis. |
application
A form used to apply for a mortgage loan and to record pertinent information concerning
a prospective mortgagor and the proposed security. |
appraisal
A written analysis of the estimated value of a property prepared by a qualified
appraiser. |
appraised value
An opinion of a property's fair market value, based on an appraiser's knowledge,
experience, and analysis of the property. |
appraiser
A person qualified by education, training, and experience to estimate the value
of real property and personal property. |
appreciation
An increase in the value of a property due to changes in market conditions or
other causes. The opposite of depreciation. |
assessed value
The valuation placed on property by a public tax assessor for purposes of taxation.
|
assessment
The process of placing a value on property for the strict purpose of taxation.
May also refer to a levy against property for a special purpose, such as a sewer
assessment. |
assessment rolls
The public record of taxable property. |
asset
Anything of monetary value that is owned by a person. Assets include real property,
personal property, and enforceable claims against others (including bank accounts,
stocks, mutual funds, and so on). |
assignment
The transfer of a mortgage from one person to another. |
assumable mortgage
A mortgage that can be taken over ("assumed") by the buyer when a home is sold.
|
assumption
The transfer of the seller’s existing mortgage to the buyer. See assumable mortgage.
|
assumption clause
A provision in an assumable mortgage that allows a buyer to assume responsibility
for the mortgage from the seller. The loan does not need to be paid in full by
the original borrower upon sale or transfer of the property. |
attached goods
An item that is attached to real property so as to form in law, part of the land.
They belong to the buyer and are also known as fixtures. |
attorney-in-fact
One who holds a power of attorney from another to execute documents on behalf
of the grantor of the power. |
authority
The legal power or rights given by a principal and accepted by the agent to act
on the principal’s behalf in performing specific acts or negotiations.
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