Abandonment - A surrender of rights; point when a broker makes no effort to sell a listed property; failure to perform

Absentee Owner - A property holder who does not reside on the property, and who usually relies on a property manager to supervise the investment

Acceleration Clause - Stipulation in a mortgage that the entire unpaid balance may become due and payable if a default of expressed conditions should occur

Acceptance - Voluntary receipt of an item offered by another

Accretion - Gradual addition of land caused by natural forces, such as wind, tide or flood

Acknowledgement - Certification of a document by a notary public; formal declaration of an act before an official

Actual Notice - Informing any interested party of a right, title, or interest in property by possession of the property

Adjacent - In law, means that two or more properties are not widely separated, though they may not physically touch

Adjoining - In law, means that two properties are contiguous or touching each other

Adjudication - A judicial or court order

Adjustment Date - Date agreed to by both parties to a real estate transaction for the apportionment of rent, interest, strata fees and the like

Ad Valorem - According to the value; in proportion to the worth

Advance Fee - Collection of a fee prior to a transaction actually closing, or prior to providing a service

Adversary - Opponent; a person or group that opposes another

Adverse Interest - A purpose in opposition to the interest of another party (for example, as with a buyer and seller)

Adverse Possession - A method of obtaining title to real property by occupying it in an open and hostile manner contrary to the interests of the owner

Affidavit - A sworn statement written down before a notary or public official

Agency - Express or implied authority for one person to act for another

Agent - A representative; one who is authorised to act on behalf of another

Agreement for Sale - Contract by which the owner of land (vendor) agrees to sell land to a purchaser. The contract provides that the purchase price will be paid by instalments. Title does not pass to the purchaser until the final instalment is paid in full.

Air Rights - The freedom to use the open space above a property

Alienation - The act of transferring ownership, title or an interest or estate in real property

Alluvion - The increase of land by the gradual and imperceptible action of natural forces - e.g. alluvial deposits of sand and mud on a riverbank

Amortisation - Payment of a debt by regular instalment payments; payment spread over the life of a debt

Anniversary Date - Recurring each year; the “birthday” of an agreement; e.g. the date an insurance policy must be renewed

Annual Debt Service - the amount of money required each year for the payment of all mortgage interest and capital

Annual Percentage Rate (APR) - total yearly cost of credit expressed as a percentage rate

Appeal - A request to some (higher) authority for a decision or judgement

Applicant - A person who applies for something; a candidate

Application Book - The record kept at the Land Registry which records all applications received in numerical order based upon order of receipt

Appraisal - Estimated worth of a property

Appraised Value - Estimated worth of a property determined by someone experienced and/or qualified in valuation

Appreciation - An increase in value

Appurtenance - A benefit passing with the title to land; some right(s) associated with the title of a property

Arbitration - the act of having a third party settle a dispute between two parties

Arrears - the state of being behind in the discharge of an obligation; paid at the end of the period for which due - the opposite of “in advance”

Assessment - the allocation of the proportionate individual share of a common expense in a condo or strata

Asset - anything of value

Assignee - person to whom a right or interest is transferred

Assignment - written instrument that serves to transfer the rights or interest of one person to another

Assignor - person who gives his or her legal rights or interests to another person

Associate - person working with or for another

Association - an organisation of persons having a common interest

Assumption of Mortgage - the taking over of an existing mortgage by a buyer

Attachment - a legal writ to prevent removal of property (or earnings) that is expected to be used to satisfy a judgement

Attorney, Power of - designation of another person to act for a principal who may not be present

Biennial - a period of two years

Bilateral Contract - an agreement under which both parties are legally obliged to each other to perform

Binder - a memorandum given subject to the writing of a formal contract for sale, usually acknowledging receipt of a portion of the down payment for purchaseof real property

Bona Fide - genuine; in good faith; without deceit or fraud

Borrower  (Debtor) - one who gives a mortgage on their property as security for a debt; the mortgagor

Breach - failure to do or perform what has been promised

Broker - the owner/principal of a real estate broker company

Building Code - government rules & regulations regarding construction practices and materials

Building Scheme - scheme of development where defined land is laid out in parcels and sold subject to restrictive covenants with the vendor/developer agreeing that the purchaser’s particular parcel is subject to certain restrictions

Business Brokerage - the sale, lease or purchase of businesses that provides goods or services; dealing with the transfers of complete businesses, not just the real estate involved in the business

Buyer’s Market - the supply of available properties for sale exceeds the demand

Capital - the collective wealth (money & property) of a person or business; the investment in property

Capital Asset - certain property held by an individual, generally not including stock for sale to customers

Capital Gain - the profit from the sale of a capital asset

Capitalisation Rate - the relationship between the net income from a real estate investment and its present value

Cash Flow - the spendable income from an investment after deducting all operating and fixed expenses

Caveat Emptor - let the buyer beware!

Chain - term used when there is a series of sales and purchases which are dependent on each other

Chattel - any item of personal property (as opposed to real property)

Clause - a distinct provision in a written document

Cleared Funds - funds which are in the possession of the account holder and are not dependent on the honouring of any cheque or promise

Closing - final settlement between the buyer and seller; the date on which the title passes from the seller to the buyer

Closing Statement - statement prepared for a purchaser or vendor showing the amounts to be received or paid out upon completion of the transaction

Collateral - real or personal property pledged as security on a debt

Collusion - two or more parties jointly attempting to defraud a third party

Commingle (intermingle) - to mix together money or a deposit with personal funds; combine

Commission - compensation paid to a broker or salesperson for successfully concluding a real estate transaction

Common Elements - the parts of a multiple-ownership property not included in the units; those parts in which each unit owner holds an undivided interest

Common Law - a system of law based on accepted customs and traditions

Comparable Property - a recently sold property similar to one being evaluated

Comparable Sales Approach - a method for estimating the market value of a property by comparing similar properties to the subject property

Competitive Market Analysis (CMA) - see Comparable sales approach

Complainant - a person who makes an allegation or a charge against another - see also Plaintiff

Complaint - formal allegation or charge

Completion Date - date on which the vendor and purchaser agree to transfer the property

Compound Interest - interest upon interest. Where interest paid is added to the principal sum and begins to earn interest itself

Concealment - the act of keeping from sight or keeping secret

Condition - fundamental term of a contract, a breach of which allows the injured party to terminate the contract

Condition Precedent - legal term for a “subject to” clause. It calls for the happening of some event or the performance of some act before the contract becomes fully effective

Condominium - a multi-unit project consisting of individual ownership of a dwelling unit and undivided ownership of common areas - a strata

Consideration - inducement offered to conclude a contract

Contract - an agreement between two or more competent parties to do, or not to do, some legal act for a legal consideration

Conversion - the unauthorised use or retention of money or property that rightfully belongs to another person

Conveyance - written instrument that serves to transfer an interest in real property from one party to another

Corporation - an artificial or fictitious person formed to conduct specified types of business activities

Cost - the amount to produce or acquire something

Cost - Depreciation Approach - method for estimating the market value of a property based on the cost to buy the site and to construct a new building on the site, less depreciation

Counteroffer - a rejection of the original offer by proposing a new offer, thereby terminating the original offer

Covenant - warranty, guarantee or promise formally given in a legal document

Credit - verb: to make an entry on the credit side of an account; noun: payment or value received

Creditor - lender; person or business to whom a debt is owed

Culpable Negligence - inadequate care to duties and obligations by one who knows, or should know, what is required of him or her

Customer - a person with whom the broker or salesperson hopes to be successful in accomplishing the purpose of employment - i.e. hopes to sell a house to the customer; a potential buyer; a prospect

Damages - losses incurred as a result of a breach of contract or some other cause

Debit - verb: to make an entry on the charge side of an account; noun: a charge or expense

Debtor - one who owes a debt

Debit-Service Coverage Ratio - relationship of net operating income to the mortgage payment

Decedent - someone who has recently died

Deceit - fraudulent or deceptive misrepresentation used to deceive or trick another who is ignorant of the true facts and may suffer loss or injury because of the deceit

Deed - a type of conveyance; a written instrument to transfer title to real property from one person to another

Default - failure to comply with the terms of an agreement or to meet an obligation when due

Defect in Title - some problem which suggests the owner of the property may be dispossessed or sued without redress

Defendant - the person or party being sued or charged

Demand (Principle of Supply and) - the quantity of goods or services wanted by customers

Demise - legal term for a lease

Denial - a refusal or rejection

Density - the number of homes or lots per acre

Deposit - earnest money or some other valuable consideration given as evidence of good faith to accompany an offer to purchase or rent

Deposition - written testimony of a witness under oath

Depreciation - a loss in value for any reason

Descent - the passage of title to real estate to the legal descendants upon the death of the owner

Devise - a gift of real property by a Will

Devisee - one who receives real property under a Will

Devisor - one who gives real property through a will

Disbursement - a fee or charge which is paid out, e.g. by agents or attorneys on behalf of a client

Distress - legal term for a landlord’s right to seize and sell a tenant’s personal property in order to recover rent arrears

Document - any written paper that provides information or evidence

Dominant Tenement - land to which the benefit of a right, e.g. easement or restrictive covenant, is attached

Down Payment - proportion of a purchase price paid prior to closing the transaction; earnest money may be part of or the entire down payment

Duress - at common law, a situation where a person is forced to enter into a contract against their will by the threat of imprisonment or physical force, either to himself or his family

Earnest Money - a sum that, if a contract is executed, is applied against the down payment

Easement - a right, privilege or interest in real property that one individual has in the lands belonging to another; a legal right to trespass; right-of-way authorising access to or over land

Economic Life - the period of time a property may be expected to be profitable or productive; useful life

Effect a Sale - provision in the listing agreement requiring the broker to obtain a signed contract from a ready, willing and able buyer on the terms specified

Employer - individual who hires the services of another

Encroachment - unauthorised use of another person’s property

Encumbrance - any lien, claim, or liability affecting the title or attaching to real estate

Encumbrance Clause - a provision in a deed to real property that warrants that no liens, claims or liabilities exist on the property being conveyed, except as specified

Engrossment - final version of a deed produced on good paper ready for signature

Equitable Title - the interest held by a prospective purchaser under contract of sale and purchase; the right of that purchaser to obtain absolute ownership of property to which the vendor has legal title; beneficial interest

Equity - a) the market value of a property less any debt against it; b) in a business, assets minus liability equals owner’s equity; c) a system of legal rules administered by a court of chancery, based on and concerned with the principle of “fairness”

Erosion - gradual loss of land due to water or other natural causes

Escheat - revision of property to the Crown when an owner dies without leaving a Will or any known heirs

Escrow Account - trust account; an account (in the bank) used solely for safekeeping customer funds and not for the deposit of personal funds; impound account

Estate - tenancy; the interest one holds in real property; the total of one’s property and possessions

Estate for Life - life estate; a tenancy with a duration limited to the life of some person whose lifetime is used to measure the estate

Estate for Years - a tenancy measured from a starting date to a termination date e.g. a leasehold

Estate in Fee - fee simple; the most comprehensive interest one can hold in real property

Estate in Revision - an estate that comes back to the original estate

Estate of Freehold - an estate that can be inherited by the heirs of an owner

Estate of Remainder - an estate that can become effective only after the termination of another estate

Estoppel - principle of law that stops a person from defending themselves against their own acts or lack of action

Ethics - the moral obligations and duties that a member of a profession owes to the public, to a client, or to fellow members of that profession

Evidence - any proof that may be legally admitted in settlement of an issue

Exclusion - the right of an owner to control entry onto the property

Exclusive Agency - a listing given to one real estate broker as the sole agent for the sale of an owner’s property

Exclusive Right to Sell - a listing given to one real estate broker as the sole agent for the sale of an owner’s property with the commission going to that broker regardless of who actually sells the property during the listing contract period (subject to “co-broke” arrangements under the MLS system)

Executed Contract - an agreement in which the terms have been fully performed by all the parties; a completed and finished contract

Execution - carrying out some act to its completion. Execution of a judgement refers to the legal process of enforcing the judgement.

Executor - a personal representative empowered by a Will to carry out the provisions of that Will

Executory Contract - an agreement containing some act or condition which remains to be completed

Expressed Contract - an agreement wherein the terms are specifically stated by the parties, either orally, in writing, or a combination of the two

Facsimile - an exact copy

Fee Simple Estate - the most comprehensive and complete interest one can hold in real property, also called “freehold”

Fictitious Name - a trade name; any adopted or fictitious name used to designate a business concern

Fiduciary - a person in a position of trust and confidence with respect to another person

Fiduciary Relationship - an alliance of trust and confidence that creates a moral and legal obligation when extended by one person and accepted by another

Find a Buyer - the introduction of a ready, willing and able buyer or offer on the terms specified

Fixture - some thing considered to be real property because of attachment to, or use in, an improvement to real property; will pass to the purchaser as part of the property (unless otherwise specified) unlike a chattel.

Foreclosure - a court process to transfer title to real property used as security for a debt as a means of paying the debt by involuntary sale of the property

Formal Contract - any agreement that contains all the essentials of a contract

Fraud - any deception, or intent to deceive, for the purpose of acquiring an unfair advantage of another party

Free and Clear - title to real property that is absolute and unencumbered

Freehold - an estate in real property with no set termination date as long as there are persons entitled to take the property by inheritance - “fee simple”

Freeholder - one who owns a freehold interest in real property that may be sold, conveyed or inherited.

Frontager - someone whose property adjoins another piece of property, particularly a road or river

Frustration - doctrine under which the parties to a contract are discharged from further obligations when performance of the contract becomes impossible or only possible in a radically different way - must be frustrated by events outside the parties control, e.g. by “acts of God”

General Lien - a claim that may affect all of the properties of a debtor

Going Concern Value - the worth of a business, including real estate, goodwill and earning capacity

Goodwill - the intangible asset (value) of a business

Grant of Administration - grant of representation made to administrators where the deceased died either leaving a Will which did not appoint executors or died without leaving a Will. The administrators then act as executors for the deceased

Grant of Probate - grant of representation made to executors where the deceased left a Will - confirmation of their authority and the validity of the Will

Grantee - one who receives a deed or a grant; buyer

Grantor - one who gives a deed or a grant; seller

Guarantor - one who is contingently or secondarily liable for another’s debt or performance

Hearing - a session in which testimony and arguments are presented before an official

Highest and Best Use - a principle of value that focuses on the most profitable, legal use to which a property can be put

Household - one individual, or a group of individuals, living in one dwelling unit

Implied - expressed indirectly, e.g. implied contract

Implied Contract - an agreement wherein the terms are not stated but are inferred from the conduct of the parties

Improvement - addition that increases the value of real property (but not repairs)

Income - Amount earned or gained, not return on capital

Income Capitalisation - a way of estimating the market value of a property based on present and future income it can be expected to produce

Indefeasibility - in the Torrens system - the title acquired by a bona fide purchaser for value who purchases from the registered owner cannot be voided

Ineffective/ineffectual - with no power or effect; not in force

Injunction - a writ or order by a court forbidding a party from doing something

Instrument - any formal or legal document. such as a Will, option, lease, contract or deed

Intangible Asset - something of value lacking physical substance; existing only in connection with something else ( e.g. the goodwill of a business )

Intensity - the concentration of activity/building/use; designation in Planning Zones

Interest - the price paid for the use of borrowed money

Interest Rate - the percentage charged for the use of borrowed money

Intermingle - mix together client money or a deposit with the ordinary funds of business

Intestate - without a Will

Investment - the outlay of money in anticipation of income or profit; the sum risked or the property purchased

Invitation to Treat - type of advertisement inviting the public or some individual to make offers. Not an offer for the purposes of a contract

Involuntary Lien - a claim imposed against real estate without the consent of the owner

Joint Tenancy - an estate or interest owned by more than one person, each having equal rights to possession and enjoyment

Joint Venture - two or more parties in an arrangement confined to only one or a limited number of business deals

Judgement - decree of a court that not only declares that one party owes another party a debt, but also fixes the amount of debt

Judicial Review - power of a court to re-examine statutes or administrative acts and to determine their validity; a rehearing or appeal to a higher court

Jurisprudence - collection of legal decisions out of which legal principles and rules emerge

Just Value - the fair market price

Laissez-Faire - allow to act; non-intervention ; not interference

Land Charge - a third-party interest affecting land e.g. a mortgage

Latent Defect - hidden or concealed defect that would not be discovered during the course of a reasonable inspection

Lateral Support - support provided to one piece of land by the land that lies next to it

Lease - an estate for years; an agreement that does not convey ownership but does convey possession and use for an agreed period of time and for compensation

Leasehold - an estate in real property held under a lease for an agreed period either a definite number of years, until the death of either landlord or tenant, or some other arrangement

Lessee - the tenant or leaseholder; party to whom the lease is granted

Lessor - the landlord or owner; party who grants the lease to another

Liability - debt; financial obligation; drawback

Licence - a privilege granted by one party to another, either with or without payment for the benefit; given permission

Licensee - someone who holds a licence; someone given permission or who enjoys certain privileges

Lien - a claim on property for payment of some obligation or debt

Lienee - one whose property is subject to a claim or charge by another

Lienor - one who has a claim or charge on the property of another

Life Estate - a tenancy with a duration limited to the life of some person whose lifetime is used to measure the estate

Limited Partnership - a business entity consisting of one or more general partners and one or more limited partners

Lineal - descended in a direct family line; relating to or derived from ancestors

Liquidated Damages - the amount of valuable consideration specified in an agreement as a penalty for default

Liquidation - the process of determining liabilities and apportioning the assets in order to discharge the indebtedness of a business to be sold

Liquidity - the ability to convert non-cash quickly; refers to a firm’s (or person’s) cash position and its ability to meet obligation

Lis Pending - a pending legal action

Listing - an employment agreement between a broker or agent, and the property owner; authorisation to sell, rent or exchange

Litigation - a lawsuit; the act of carrying on a lawsuit; a case before a court of law

Littoral - legal rights relating to land abutting an ocean, sea or lake, usually extending to high-water mark

Maintenance Clause - a provision in a mortgage agreement that requires the mortgagor ( borrower ) to maintain the mortgaged property in good condition

Majority - a person having attained 18 years of age; no longer a minor; a number greater than half the total

Malfeasance - the committing of an unlawful act, especially by a public official

Mandate - directive from a higher authority

Marketable Title - rights to a real property that are so clear that a buyer may have peaceable and quiet enjoyment of the property free of litigation

Market Value - the most probable price a property will bring from a fully informed buyer, willing but not compelled to buy, and the lowest price a fully informed seller will accept if not compelled to sell

Maturity - date on which the balance owing on a mortgage becomes due; the final day of the term of a mortgage

Mediation - having a third party attempt to reconcile a dispute between two parties

Meeting of Minds - the point when two people, thinking of the same thing, reach an agreement through an offer and acceptance

Metes and Bounds - a type of land description; metes means measurements, bounds means boundaries

Middleman -  an intermediate who merely brings two parties together

Misdemeanour - a crime or wrong doing

Misfeasance - a lawful act done in a negligent or unlawful manner

Misrepresentation - a false or misleading statement of material fact; concealment of a material fact

Mistake - legal term for the situation where a person, under some misconception of law or fact, does something or fails to do something which they would not have done or would not have failed to do, had it not been for the misconception

Mitigate - legal obligation upon an injured party to take reasonable steps to minimise his or her damages after injury has been inflicted

Moral Turpitude - an act of corruption, vileness or moral depravity; a disgraceful action or deed

Mortgage - a written agreement that pledges property as security for payment of a debt

Mortgage Broker - one who finds a mortgage lender for a potential borrower, or vice versa

Mortgagee - a lender who holds a mortgage on specific property as security for the money loaned to the borrower

Mortgagor - a borrower who gives a mortgage on his or her property in order to obtain a loan from a lender

Multiple Listing Service (MLS) - arrangement amongst members of CIREBA that allows each member to share listings with other members so that greater exposure is obtained and greater chance of sale will result

Necessaries/necessities - generally, an article indispensable or proper and useful for the sustenance of human life, e.g. food, drink, clothing, medical attention

Negligence - the tort of failure to use such care as a reasonably prudent and careful person would use under similar circumstances. The doing of some act which an ordinarily careful person would not do under similar circumstances, or the failure to do something which a person of ordinary carefulness would have done under similar circumstances

Negligent - tort liability imposed upon “experts” who give, in a business context, incorrect advice to anyone who relies reasonably on that advice to their detriment

Net Income - profit from property or business after expenses have been deducted; effective gross income less operating expenses

Net Present Value - method of ranking investment proposals

Nominee - the representative of someone else - a “front-man”

Non-Conforming Use - continuing land use that is not in compliance with zoning regulations

Notice - informing any interested party of a right, title or interest in property

Novation - substitution of a new party and/or new terms to an existing obligation

Obligee - a lender or mortgagee

Obligor - a borrower or mortgagor

Offer - an intentional proposal or promise made by one party to act or perform on the condition that the other party acts or performs in the manner requested

Offeree - one who receives an offer, usually the seller

Offeror - one who makes an offer, usually the buyer

Open Listing - listing given to any number of brokers without liability to compensate any except the one who produces the buyer

Opinion of Value - an estimate of a property’s worth given by a real estate professional for the purpose of a prospective sale

Option - a right or privilege to purchase or lease real property at a specified price during a designated period based on a sufficient consideration

Optionee - the party who takes an option and pays a consideration

Optionor - the party who gives an option and receives a consideration

Overimprovement - an addition or change to property not in line with its highest and best use, or a betterment that exceeds that, justified by local conditions

Partnership - two or more competent individuals each of whom agrees to share in the profits and losses of the venture

Penalty Clause - a provision in a mortgage that requires the borrower to pay a penalty in money if the mortgage payments are made in advance of the normal due date or if the mortgage is paid in full ahead of schedule

Per Diem - by the day; per day; an allowance for daily expenses

Performance - point when a party or parties to a contract fulfil the promises or obligations in the contract

Periodic Tenancy - tenancy which renews itself on the last day of the term for a further term of the same duration until terminated by either party. A tenancy from year to year, month to month or week to week and the like

Personal Property (Chattels) -  tangible and movable property (transferred by bill of sale); property not classified as real property

Personal Representative - executor or administrator of a deceased person’s estate

Plaintiff - the person or party bringing suit or charges; the complaining party; complainant

Planning - devising ways and means for achieving desired goals

Possession Date - date on which the purchaser is entitled to possession of the property

Postal Rule - general rule of law that a contract is made when the acceptance is put in the post, not when it is received by the offeror

Potential Gross Income - the total annual income a property would produce with 100 percent occupancy and no collection or vacancy losses

Power of Attorney - designation of another person to act for a principal who may not be present

Prepayment Clause - a provision in a mortgage that allows the mortgagor to pay the mortgage debt ahead of schedule without penalty

Prescription, Easement by - a method of acquiring an interest in real property through long and continued use

Present Value - the worth of all future benefits of an investment in terms of today’s money

Price - the amount paid or expected to be paid for something

Prima Facie Evidence - requiring no further proof; acceptable on the face of

Principal - the party employing the services of a real estate broker/agent; amount of money borrowed in a mortgage loan, excluding interest and other charges

Probable Cause - reasonable grounds or justification for prosecuting

Probation - a suspended sentence during good behaviour, usually under supervision

Profit (A Prendre) - right to take the produce or part of the soil from the lands of another, e.g. fruit, minerals, oils, stone etc.

Promissory Note - a written promise to pay a specific amount

Property - a bundle of legal rights

Prorate - to divide or assess proportionate shares of charges and credits between the buyer and the seller according to their individual period of ownership

Prospect - the customer with whom a broker/agent hopes to be successful in accomplishing the purpose of employment

Qualification - process of reviewing prior to approval (of a buyer’s housing needs and financial abilities, of a borrower’s mortgage loan application)

Quantum Meruit - “as much as they deserve”: the legal principle to pay a reasonable amount for the labour and materials supplied in the circumstances, even though a specific contract price may not have been agreed

Quasi - as if; of a similar nature; seemingly

Quiet Enjoyment - a provision in a deed guaranteeing that the buyer may enjoy possession of the property in peace and without disturbance by reason of other claims on the title by the seller or anyone else

Quiet Title - a suit or action in a court to remove a defect or claim against the title to real property

Quorum - the minimum number of persons who may lawfully transact the business of a meeting

Ratio - the relationship in quantity, size or amount between two things; proportion

Ready, Willing & Able -  “Ready” indicates the prospect is in a position and of a mind to complete the transaction. “Willing” implies that the prospect desires to do so at the price and terms agreed. “Able” refers to the prospect’s financial ability to produce the required money when necessary.

Real Estate - land, including the air above and the earth below, plus any permanent improvements affecting the utility of the land; real property; property that is not personal property

Real Estate Business - a commercial activity in which the sale, purchase, leasing, rental, exchange or management of real property is conducted by professional parties acting either for themselves or for others for reward

Real Property - any interest or estate in land, including leaseholds, subleaseholds, business opportunities and enterprises and mineral rights; real estate

Realtor - a real estate broker who is a member of a US board of Realtors, and is affiliated with a State or National Association of US Realtors

Realty - real estate and real property

Reasonable Time - a variable period of time, which may be affected by market conditions, desires of the owner, supply and demand, fluctuations of values or an official decision

Rectification - correction of the wording of a document by a court order if the document does not correctly express the agreement of the parties contracting. Parties to a contract may rectify it by mutual consent, without court approval, provided that the rights of a third-party are not prejudiced by the change

Redemption - to repurchase, to buy back, to recover property used as security for a mortgage by paying the debt

Register - the Register: the documents in which the record of title to land is kept by the Government; to register: the filing and recording of documents under the Registered Land Law

Reliction - gradual receding of water and resulting permanent increase in land previously covered

Remainderman - party designated to receive an estate in remainder, that is the person who will get the estate after the interest of someone else has lapsed, e.g. after the death of a life tenant

Renunciation - abandon an acquired right without transferring that right to another

Reprimand - an official act of criticism with a formal warning included

Rescind - to annul, cancel, repeal or terminate

Respondent - a person who answers to an informal complaint proceeding prior to being adjudged innocent or being named as a defendant

Restriction - any device or action which controls or limits the use of real property

Restrictive Covenant - covenant whereby the covenantor agrees to refrain from doing something, e.g. a covenant not to use premises for business purposes

Reversion - portion of the net proceeds from the sale of property that represents the return of the investor’s capital

Reversioner - the person who has granted a life-time estate to someone else and will get the estate back after the interest has lapsed, e.g. after the death of a life tenant

Revocation - to cancel, rescind, annul or make void

Right of Survivorship - under a joint tenancy, the whole tenancy passes to the surviving owners upon the death of any other joint tenant, until finally the last surviving owner inherits the entire property

Riparian Rights - private ownership rights extending to the normal high-water mark, including access rights to water, boating and bathing

Risk - the chance of loss of all or part of an investment; the uncertainty of financial loss

Sale and Leaseback - a financing arrangement in which an investor buys property owned and used by a business accompanied by a simultaneous leasing back of the property to the business by the buyer/investor

Sales Contract - purchase agreement; contract for sale and purchase; an agreement in which one party agrees to sell and the other party agrees to buy according to the terms set out in the contract

Salesperson - a person employed by a broker or owner/developer to market property for compensation

Seal - a mark, an emblem or impression used on a document to authenticate the document or a signature

Second Mortgage - a loan that is subordinate or “junior” to a first mortgage, normally taken out when the borrower needs more money

Secret Profit or Commission - retaining more than the agreed amount or sales commission, without the express knowledge and consent of the parties involved; a type of fraud

Security - evidence of a debt or ownership

Seisin (Seizin) Clause - a covenant in a deed that warrants that the grantor (seller) holds the property by virtue of a fee simple title and has a complete right to dispose of same

Seller’s Market - demand for available properties exceeds the supply

Service (Secondary) Industry - business that attracts local money (e.g. grocery shop)

Servient Tenement - land bearing the burden of an easement or other right

Setback - planning restriction on the space required between lot line and building lines

Severance - conversion by a joint tenant of his or her interest into that of a tenant in common

Sole Proprietorship - dealing as an individual in business

Specific Lien - a claim that affects only the property designated in the lien instrument or agreement

Specific Performance - a remedy for an injured party obtained through a court of equity which requires specific accomplishment of the contract terms by a defendant

Stakeholder - generally, a neutral third-party who holds money or property, the right to which is uncertain or in question, and will pay or deliver it to the person who establishes their entitlement to it

Stare Decisis -  “let the former decision stand” - once a court has laid down a principle of law applicable to a certain state of facts, under stare decisis it should adhere to that principle, and apply it to all future cases where the facts are substantially the same

Statute - established rule or law passed by a legislative body

Stay - delay temporarily; stop for a limited time

Stock - ownership element in a corporation usually divided into shares and represented by transferable certificates

Subdivide - to divide up large tracts of real property in order to create smaller plots for the purpose of resale

Sublease (Subletting) - a lessee leasing a property to a third party for a period of time less than the original lease

Subordination - make subject to or subservient to; assignment to a lesser role or position

Substitution, Principle of - an economic law of value; no prudent buyer will pay more for a property than the cost of an equally desirable replacement property

Suit - act of suing; an action in a court of law for the recovery of a right or claim

Supply (Principle of Supply and Demand) - the quantity of goods or services offered for sale to consumers

Survey - procedure used to measure and describe a specific tract of real property for the purpose of determining exact boundaries and the area contained therein

Survivorship, Right of - legal concept whereby the surviving owners of a joint interest in real property are entitled to the interest formerly owned by one or more deceased owners

Suspension - to cause to cease operating for a period of time; the temporary withholding of the rights and privileges under membership; a period of enforced inactivity

Syndicate - group of people who associate with each other for the purpose of purchasing shares or units, with the money to be used to purchase real estate, often for subdivision and resale

Tangible Asset - anything of substance; personal and real property - e.g. cash, buildings, equipment, land

Tax - compulsory payment made to government

Tenancy - the estate or right of a tenant

Tenancy Agreement - contract between the landlord and tenant concerning the letting of a premises

Tenancy in Common - a form of ownership by two or more persons each having an equal or unequal interest and passing the interest to heirs, not to surviving tenants

Tenant - a person or party with rights of occupancy or possession of real estate

Term - with respect to mortgages, the duration of the mortgage contract

Testate - having left a Will

Testator - person who makes a Will

Third-Party - generally, a member of the public; not the principal or agent in a transaction

Third-Party Right - right of someone other than the owner of the legal estate to own, occupy, use or control the use of land of which the third-party is not the legal freehold owner

Time Clause - clause in a contract which allows the vendor to invoke a time period in which a condition precedent must be waived or fulfilled, failing which the vendor can terminate the contract

Time is of the Essence - phrase in a contract making failure to perform by a specified date a breach or violation of the agreement

Time-Share - an individual interest in a real property unit with a right of exclusive use for a specified number of days or weeks per year

Title - the group of rights that represent ownership of real property and the quality of the estate owned; evidence of ownership of property; legal title

Topography - surface features (natural and man-made) of land (e.g. lakes, mountains, roads)

Torrens Land Registration System - system for the registration of the actual ownership (title) to land in order to provide security to those holding interests in land and to remove the need for retrospective investigations of titles to land

Tort - a private wrong or injury, other than a breach of contract, for which the courts will provide a remedy in the form of an action for damages

Trade Name - any adopted or fictitious name used to designate a business concern

Trespass - tort involving wrongful entering, remaining on or placing something on another’s land

Trust - a right of property, either real or personal, held by one party for the benefit of another

Trust Account - account used solely for the safekeeping of customer or client funds and not for the deposit of the firm’s funds

Trustee - person or party, either appointed or required by law to administer or manage another’s property

Ultra Vires - acts which are beyond the scope of the powers of a corporation, society, government or association

Undertaking - a “professional promise” - promise given in the course of legal proceedings by a party or its attorney, often as a condition of obtaining some concession from the opposite party

Undue Influence - any improper or wrongful constraint, manipulation, or persuasion whereby the will of a person is overpowered and they are induced to do or to refrain from doing something which they would not do or would do if left to act freely

Unilateral Contract - agreement in which only one party promises to perform without receiving a reciprocal promise to perform from the other party

Unities (Four Unities) - individual prerequisites required to constitute a single joint tenancy

Unliquidated Damages - amount of valuable consideration awarded by a court to an injured party as result of a default

Vacate - set aside, cancel or annul; to leave empty

Valid - sufficient to be legally binding; enforceable

Valid Contract - agreement binding on both parties and legally enforceable against all parties to the agreement

Value - the worth of something

Vendee - the buyer or purchaser or real estate under an agreement of sale

Vendor - the seller of real estate under an agreement of sale

Vendor’s Lien - claim against property giving the seller the right to hold the property as security for any unpaid purchase money

Void - invalid; without force; no longer effective

Void Contract - contract which never had any legal existence or effect and which is not capable of ratification

Voidable Contract - contract which exists until repudiated by a party entitled to do so, at which point it becomes void

Warrant - a guarantee or covenant

Warranty of Authority - agent’s promise or guarantee to third-parties that its actions fall within the scope of authority granted by its principal. Any agent acting outside of the scope of its authority breaches its warranty of authority

Waste - abuse or destructive use of property by a person in rightful possession

Will - written document legally executed and containing the essentials of a “last Will and Testament” by which an individual disposes of his or her estate, effective after death

Witness - person who gives testimony; one who observes and attests to the signing or execution of a document

Writ - a court order directing a party to do a specific act, usually to appear in, or report to, a court of law

Yield - rate of return; return on an investment or the amount of profit stated as a percentage of the amount invested; the ratio of the annual net income from a property to the cost or market value of the property

Zoning - classification of real property for various purposes, the government power to control and supervise the utilisation of privately owned property