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Real Estate Glossary - Definitions - Rental Management Terms

Advent Real Estate Services Ltd.

Glossary - Definitions

Agent Agreement For Sale Appraisal Assign Breach of Contract Chattels Civil Law Common Law Condition Consideration Contract Contract of Purchase and Sale Counter-Offer Creditor Debtor Deceit Demise Disclosure Statement Distress Duress Equity Execution Financial Statement Fixed Term Tenancy Fixture Frustration Goodwill Gross Potential Rent Gross Realized Rent Guarantor Infant Landlord Lease Lien Liquidated Damages Mitigate Negligence Periodic Tenancy Pet Damage Deposit Possession Date Power of Attorney Public Nuisance Real Estate Transaction Rent Rental Unit Residential Property Security Deposit Tenancy Tenancy Agreement Tenant Tenants in Common Trust Account Vacancy Allowance
Agent

Has two meanings as follows: (i) as defined by the Real Estate Act, an agent is a person who has met specified licensing qualifications and who acts on behalf of another in a real estate transaction with the expectation of payment for services rendered. An agent, as defined by the Act, may employ a salesman to do virtually everything referred to in the definition of agent. (ii) at common law an agent is any person who contracts to act for or on behalf of another, who in turn, is known as the principal. The common law principles of agency apply to both an agent and a salesman, as defined by the Act, when they are acting on behalf of a vendor or purchaser.

Agreement For Sale

A contract by which the owner of land (vendor) agrees to sell land to another (purchaser) who agrees to purchase it. The purchaser's interest is registered in the land titles office as a charge against the vendor's certificate of title. The contract provides that the purchase price will be paid by installments.

Appraisal

The estimation of the value of a legal interest in land.

Assign

To transfer over to another. (e.g.,"I assign all right, title and interest in Blackacre to my wife, Elaine.")

Breach of Contract

Failure, without legal excuse, to perform any promise which forms the whole or part of a contract.

Chattels

Articles of personal property (i.e., a car, stereo, television, etc.) as apposed to real property.

Civil Law

A system whereby the law of a nation is set out in a comprehensive set of writings. An example of these writings or codes would be a Criminal Code for a country.

Common Law

A system of law made up of principles and rules of action based upon the ancient customs and usages of the people of a nation, which have been recognized, affirmed or enforced by the courts.

Condition

A fundamental term of a contract, a breach of which allows the injured party to terminate the contract and/or sue for damages or Specific Performance.

Consideration

The legal term for the reason, which induces a party to enter into a contract. Consideration may be in the form of a right, interest, profit or benefit accruing to one party. It may also be in the form of an agreement not to do something, or loss suffered by the other.

Contract

An agreement between two or more persons which creates an obligation to do or not to do a particular thing.

Contract of Purchase and Sale

A contract of purchase or sale of land which contains the obligations of the vendor and purchaser with respect to the purchase and sale. You may also find that this type of contract is referred to as an Interim Agreement.

Counter-Offer

A statement by the recipient of the offer which has the legal effect of rejecting the offer and of proposing a new offer to the offeror (who then becomes the recipient of the "new" offer).

Creditor

A person to whom a debt is owed. Contrast to Debtor.

Debtor

One who owes a debt. Contrast to Creditor

Deceit

A fraudulent or deceptive misrepresentation used by one person to deceive or trick another person ignorant of the true facts.

Demise

The legal term for the granting of a Lease.

Disclosure Statement

A document prepared by the developer to ensure that investors or purchasers have adequate information upon which to base a purchasing decision.

Distress

A legal term for a landlord's right to seize and sell a tenant's personal property in order to recover arrears of rent.

Duress

A situation where a person is forced to enter into a contractual relationship against his will by the threat of imprisonment either to himself or his family, or the threat of actual physical force.

Equity

The concept of justice being administered by the Courts according to fairness as contrasted with the strictly formulated rules of common law. In law the term "equity" denotes the spirit and habit of fairness, justness, and right dealing which would regulate interaction of men with men.

Execution

The process of commencing proceedings to collect an amount owing by reason of judgment.

Financial Statement

A numerical presentation of particular aspects of a business. Common financial statements include the Balance Sheet and the Income Statement

Fixed Term Tenancy

A tenancy under a tenancy agreement that specifies the date on which the tenancy ends.

Fixture

A chattel attached to real property; anything which has become so attached to the land as to form, in law, part of the land.

Frustration

A legal doctrine that provides that where the existence of a specific thing is necessary for performance of the contract, the duty to perform is discharged if the thing, for reasons beyond anyone's control, is no longer in existence at the time for performance.

Goodwill

The amount by which the purchase price of a business exceeds the fair market value of its net assets. This extra amount could be attributed to factors such as the value of good customer relations, high employee morale, a well-respected business name, or other intangible attributes of the business which are not quantifiable, but contribute to purchasers' expectations for the income potential of the business.

Gross Potential Rent

The rent which would be collected if all units were leased at market rents.

Gross Realized Rent

Gross Potential Rent less Vacancy Allowance and Bad Debt Allowance.

Guarantor

One who becomes contingently or secondarily liable for another's debt or performance.

Infant

In B.C., a person under 19 years of age which, generally speaking, is the age of legal competence.

Landlord

In relation to a rental unit, includes any of the following:

(a) The owner of the rental unit, the owners agent or another person who, on behalf of the landlord, (i) Permits occupation of the rental unit under a tenancy agreement, or (ii) Exercises powers and performs duties under the Residential Tenancy Act, the tenancy agreement or a service agreement;
(b) The heirs, assigns, personal representatives and successors in title to a person referred to in paragraph (a);
(c) A person, other than the tenant occupying the rental unit, who (i) Is entitled to possession of the rental unit, and (ii) Exercises any of the rights of a landlord under a tenancy agreement or the Residential Tenancy Act in relation to the rental unit;
(d) A former landlord, when the context requires this.

 

Lease

An instrument granting exclusive possession of land to another for a specified term, usually at a rent. The one who grants the lease is called the Landlord (or Lessor) and the one to whom it is granted is called the Tenant (or Lessee).

Lien

A claim or charge on real or personal property for payment of some debt, lien obligation or duty.

Liquidated Damages

A specific sum of money expressly stipulated by the parties to a contract as a pre-estimate of the amount of damages to be recovered by either party for a breach of the contract by the other.

Mitigate

The legal doctrine of "mitigation" imposes upon an injured party a duty to exercise reasonable diligence and ordinary care in attempting to minimize his damages after injury has been inflicted.

Negligence

A legal term for the failure to use such care as a reasonably prudent and careful person would use under similar circumstances; it is the doing of some act which a person of ordinary prudence would not have done under similar circumstances or failure to do what a person of ordinary prudence would have done under similar circumstances.

Periodic Tenancy

A tenancy which automatically renews itself on the last day of the term for a further term of the same duration until terminated by either party.

Pet Damage Deposit

Money paid, or value or a right given, by or on behalf of a tenant to a landlord that is to be held as security for damage to residential property caused by a pet, but does not include (a) A security deposit, or (b) A fee prescribed under section 97 (2) (k) [regulations in relation to fees] of The Residential Tenancy Act.

Possession Date

Date on which the purchaser or tenant is entitled to possession of the property.

Power of Attorney (P.O.A)

A document conferring authority to one person to act as another's agent on his behalf.

Public Nuisance

A legal term for some unlawful act or omission which endangers the safety or comfort of the public or some section of the public.

Real Estate Transaction

A term covering the sale of real estate, the negotiation and sale of loans on real estate, and property management. The term is defined in Sec.1 of the Real Estate Act.

Rent

Money paid or agreed to be paid, or value or a right given or agreed to be given, by or on behalf of a tenant to a landlord in return for the right to possess a rental unit, for the use of common areas and for services or facilities, but does not include any of the following: (a) A security deposit (b) A pet damage deposit (c) A fee prescribed under section 97 (2) (k) [regulations in relation to fees] of The Residential Tenancy Act.

Rental Unit

Living accommodation rented or intended to be rented to a tenant.

Residential Property

Means: (a) A building, a part of a building or a related group of buildings, in which one or more rental units or common areas are located (b) The parcel or parcels on which the building, related group of buildings or common areas are located (c) The rental unit and common areas, and (d) Any other structure located on the parcel or parcels.

Security Deposit

Money paid, or value or a right given, by or on behalf of a tenant to a landlord that is to be held as security for any liability or obligation of the tenant respecting the residential property, but does not include any of the following: (a) Post-dated cheques for rent (b) A pet damage deposit (c) A fee prescribed under section 97 (2) (k) [regulations in relation to fees] of The Residential Tenancy Act

Tenancy

A tenant's right to possession of a rental unit under a tenancy agreement.

Tenancy Agreement

Contract between the landlord and the tenant, pertaining to the letting of residential premises.

Tenant

Includes: (a) The estate of a deceased tenant, and (b) When the context requires, a former or prospective tenant.

Tenants in Common

Where two or more persons acquire interests in a single property. Each may sell or bequeath their interest and in the event of death, their interest becomes a part of their estate.

Trust Account

An account where money is deposited by one for the benefit of another. The money is devoted to a particular purpose and cannot or should not be diverted for other purposes.

Vacancy Allowance

An estimate of the amount of rent that may be forgone because of unoccupied units.

 

 

*Advent Real Estate Services Ltd. does not represent the definitions on this web page to be complete or legally exact.* *Advent Real Estate Services Ltd. offers this list of definitions only as a guide to help better understand certain terms related to real estate and rental management.*

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