Montreal Real Estate Blog » terminology

Real Estate Glossary: Y

Deyanira Bautista — Tue, 07 Oct 2008 13:00:17 +0000

Year-End Statement
A mortgage summary or report that is sent to the borrower at the end of each year. The statement shows the amount of taxes and interest paid on the mortgage during the year, as well as the remaining loan balance.

Year-To-Year Tenancy
A periodic tenancy in which the rent is reserved from year to year.

Yield to Maturity (YTM)
The internal rate of return on an investment. The YTM generally considers all investment returns and the timing of each return.

Posted By: Deya Bautista - Affiliated Real Estate Agent working as part of the McGill Immobilier team. Specializing in condos and revenue property in the metropolitan area of Montreal. For buying or selling contact Deya at: 514.917.7889

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Real Estate Glossary: W

Deyanira Bautista — Tue, 30 Sep 2008 16:00:13 +0000

Waiver
The deliberate and voluntary relinquishment or surrender of a claim, right, or privilege.

Walk-through
The buyer’s final inspection of a property which is being purchased is called a walk-through. This final inspectiongenerally takes place on the day of closing or one day prior to ensure all the conditions of the sale have been met.

Warranty
In real estate, warranty refers a document certifying clear title a property.

Witness
An individual who signs his or her name to a document for the purpose of attesting to its authenticity. For example, a witness is usually required to sign a deed, will or other legal document.

Workout
A type of mortgage where basic terms such as interest rate, term, and monthly payment are altered to prevent foreclosure. This is not a typical practice in Canada.

Wraparound Mortgage- [Updated]
A form of secondary financing in which a seller extends to a purchaser a junior mortgage which wraps around and exists in addition to one or more superior mortgages. Under a wrap, a seller accepts a promissory notefrom the buyer for the amount due on the underlying mortgage plus an amount up to the remaining purchase money balance. {source: Wikipedia}

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A list of Real Estate Abbreviations: Residential

Deyanira Bautista — Mon, 18 Aug 2008 14:30:45 +0000

Even though these days we are getting more descriptive Property Information Sheets, there can be times when you’ll run into an almost illegible document. These property sheets were often described with a lot of abbreviations. Trying to decipher its meaning is almost as hard as finding a good property!

Here is a bilingual list of Real Estate abbreviations used to describe residential properties.

Click on this link to view the PDF file: Abbreviations List
(You can save a copy or print)

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Real Estate Glossary: K

Deyanira Bautista — Wed, 16 Apr 2008 12:00:54 +0000

Key Lot
A property that must be acquired because it is essential to the development of land, either because of its strategic location or the timing of the acquisition.

Kicker
Any benefit to a lender above ordinary fixed-interest payments such as an equity position in a property or a percentage participation in the income stream.

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Real Estate Glossary: I

Deyanira Bautista — Wed, 02 Apr 2008 11:40:58 +0000

Illegal View (Quebec)
Any exterior opening or opening in a structure or building that creates an illegal view of adjoining lands.

Income Approach – Evaluation
A step in the valuation process of an income property. The value is reached by estimating the annual income minus an allowance for vacancies and bad debts and then subtracting annual operating expenses, real estate taxes, and insurance premiums to obtain the net operating income. This is then converted by capitalization into a capital value.

Income Property
A property that is developed or improved for the purpose of generating income. Also referred to as “non-owner occupied property” or “rental property.”

Income-splitting
A financial strategy used for tax purposes to reduce the overall tax burden on a family. Income is shifted from one family member to another who is in a lower tax bracket, so the income is taxed at the lower rate to save the family money.

Income Statement
A statement that allows an individual to calculate his or her company’s pre-tax profits by subtracting total expenses from total revenues. Also referred to as a profit & loss statement.

Income Tax
A tax that is levied by the Federal Government and by some Provincial or Municipal Governments on the annual income of an individual or a company. The amount or percentage taxed is based on the amount of an individual’s earned and unearned income, using the government’s graduated tax scale.

Indirect costs
Additional expenses to be paid when buying an immovable, including building inspection, property evaluation, loan application, notary fees, taxes, insurance, etc.

Inflation
An increase in the level of prices or a decline in purchasing power, caused by an increase in available currency and credit beyond the goods and services that are available.

Informal Trust
An investment account registered in the name of an adult, but is in trust for a child. The trust is used to save or invest funds for a child who can access and use the funds when he or she reaches the legal age. Also known as in-trust account or “bare” trust.

Initial Interest Rate
The introductory interest rate on an adjustable-rate mortgage (ARM), which typically changes at a predetermined time.

Injunction
A court order that prohibits a party from taking a specific course of action.

Inspection
A house inspection involves a qualified expert examining the condition of a house and property. Typically, a home inspector will identify all necessary repairs.

Inspection Report
A formal written report detailing the examination of a property’s visible structure and internal systems. The inspection and report are done prior to the completion of a real estate transaction.

Installment
A payment made towards the settlement of a debt that is typically paid at regular intervals to the creditor or lender.

Intangible Asset
An asset such as a patent, permit, computer program, or claim that has no physical properties. It is difficult to assign values to these types of assets.

Intangible Property
Property such as stocks, bonds, or franchises that gets value from what it represents and not from its physical nature. Business furniture and equipment are examples of tangible personal property because they do not represent something else of greater value and they serve their intended functions.

Interest rate
Percentage representing the amount of interest produced by an amount of one hundred dollars. A 6.5% interest rate will produce an interest amount of $6.50 payable to the lender for every $100 borrowed. The interest rate is used to calculate the amount to be paid to the lender in exchange for financing to allow the buyer to purchase a property.

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Real Estate Glossary: H

Deyanira Bautista — Wed, 26 Mar 2008 15:00:30 +0000

Hectare
An area equal to 100 meters by 100 meters

High-Ratio Mortgage
A mortgage loan higher than 80% of the lending value of the property. Such types of mortgages may need to be insured.

Holdback
The amount of money withheld by the lender during construction of a property to ensure that construction at every state is satisfactory.

Home Equity
The part of a home’s value that the mortgage borrower owns outright; the difference between the fair market value of the home and the principal balances of all mortgage loans.

Home Equity Debt
Debt secured by your home.

Home Equity Line of Credit
An open-ended loan, paid as revolving debt, that is backed by the equity in the property or home.

Home Equity Loan
A loan that can replace or be an addition to the first mortgage. Typically used as a home improvement loan.

Home Inspection
A thorough examination of a house’s visible structural parts and systems, conducted before purchase.

Homeowner’s Association
An elected group that governs a subdivision or planned community. It collects fees from owners to maintain common areas and enforce covenants, conditions and restrictions set by the developer and the association itself.

Homeowner’s Insurance
A policy that includes hazard coverage, covering loss or damage to property, as well as coverage for personal liability and theft.

Homeowner’s Insurance Binder
A document accompanying a homeowner’s insurance policy. Its sole purpose is to verify that the homeowner’s property is, in fact, properly insured.

Homeowner’s Warranty
A policy that guarantees workmanship on construction of a home and functionality of some appliances, and which pays for repairs for a specified period.

Hypothec
Real right granted to a creditor on an immovable as collateral for a debt. This right gives the creditor, in case the repayment terms are not respected by the borrower, the option to exercise certain remedies such as taking the immovable in payment or selling it in a judicial sale.

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