GLOSSARY

acceleration clause

A term in the contract which brings the maturity date of the loan forward if the borrower defaults, so that the Outstanding Balance is immediately due and payable.

accrual basis

Accounting procedure which recognizes revenue at the time it is earned, as opposed to when it is actually received. This method ties in with the Revenue Principle. Contrast with Cash Basis.

actual value

Actual value as determined by the assessor. This value, in thousands of dollars, when multiplied by the tax rate equals the amount of real property taxes payable.

adjacent

In law, implies that two or more properties are not widely separated, though they may not physically touch.

adjoining

In law, implies that two properties are contiguous or touching each other as opposed to adjacent to one another.

adjustment date

Date agreed to by both parties to a real property transaction for the adjustment of property taxes, rent, interest, and other items.

affidavit

A written statement of facts, the contents of which are sworn under oath to be true by the person making the statement. An affidavit is sometimes used in court proceedings as evidence in place of oral testimony.

agent

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 all levels of licensee, including brokerages, managing brokers, associate brokers

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 Title Office as a charge against the vendor's certificate of title. The contract provid

airspace

Historically, one owned the airspace above a parcel of land "to the heavens". Today, airspace refers to the legal concept that a person who owns land also owns as much of the airspace above the land as he or she can effectively use.

amortization

The process of paying off a loan by periodic payments of blended principal and interest.

appraisal

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

appreciation

The amount by which real property (or any other Asset) has increased in value.

arm's length transaction

Transaction in which the parties involved are not inclined toward making voluntary concessions to each other.

assessment

Appraisal, usually for real property taxation purposes.

asset

Item of value owned by a business. Contrast to Liability.

assign

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

associate broker

A licensee who meets the educational and experience requirements to be a managing broker, but who is providing real estate services under the supervision of a managing broker (formerly known as an "Agent 9.15" under the now repealed Real Estate Act).

assumable mortgage

A Mortgage that allows a purchaser to assume or take over the responsibilities and liabilities under the mortgage from the vendor.

assurance fund

A fund established by the B.C. provincial government to compensate any person who is deprived of land because of the operation of the Land Title Act in certain cases where there has been a fraud committed, a mistake made, or an improper act of the Registr