Acceptance - The agreement by all parties to the terms of a contract, making it legally binding.
Agency - A relationship where one party (the agent) is authorized to act on behalf of another (the principal) in dealings with third parties.
Agent - A person authorized to act on behalf of another, typically in negotiating sales or transactions.
Agreement of Purchase and Sale - A legally binding contract between buyer and seller detailing the terms and conditions of a property sale.
Alberta Real Estate Association - An association of real estate industry members who belong to real estate boards in Alberta.
Asking or List Price - The price placed on the property for sale by the seller.
Associate/Agent - A real estate professional registered in Alberta to facilitate the sale, lease or exchange of a property.
Attached Goods - An item which is attached to real property so as to form, in law, part of the land. Attached goods belong to the buyer and are also known as fixtures.
Backup Offer - A secondary agreement to purchase a property, activated if a prior contract falls through.
Balanced Market - A real estate market condition where supply and demand are about equal, leading to stable prices.
Broker - A person licensed by the provincial or territorial government to trade in real estate. Real estate brokers may form companies or offices which appoint sales representatives to provide services to the seller or buyer, or they may provide the same services themselves. In parts of Canada, brokers are referred to as Associates or Agents.
Buyer - The individual or entity purchasing a property.
Buyer Brokerage Agreement - A written agreement between the buyer and the buyer's associate, outlining the agency relationship between the two parties and the manner in which the buyer's associate will be compensated. In Alberta, a buyer agency relationship arises automatically without a written agreement establishing the relationship.
Buyer's Agent - A person or firm representing the buyer. A buyer’s associate's primary allegiance is to the buyer. The buyer is the buyer associate's client.
Buyer’s Market - A market condition characterized by a surplus of properties for sale, giving buyers an advantage in terms of selection and negotiation.
Caveat Emptor - A Latin phrase meaning "let the buyer beware," indicating that the buyer assumes the risk of quality in a purchase.
Certificate of Compliance - A stamp issued by the municipality which states the improvements comply with the local building bylaws and requirements.
Certificate of Title - A document that shows legal ownership of a property.
Chattels - Personal property that is movable and not permanently fixed to real estate.
Client - The person being represented by an associate. The associate owes the client fiduciary duties including utmost care, integrity, confidentiality and loyalty.
Closing Costs - Expenses in addition to the purchase price for buying and selling a property.
Commission - An amount agreed to by the seller and the real estate broker/associate and stated in the listing agreement. It is payable to the brokerage on closing and shared, if applicable, among those Associates involved in the sale.
Comparative Market Analysis (CMA) - The most widely used technique for REALTORS® to establishing the value of residential properties. It uses sales, competitive listings and expired listings to try to determine a probable selling price for the subject property. Used synonymously with Competitive Market Analysis.
Completion Day - The day from which all calculations of interest, tax adjustments are made to the credit of either the buyer or the seller. All legal and financial obligations are met on that day and the title to the property is transferred from the seller to the buyer. Completion day is usually (but not always) the same as the possession date.
Condominium Ownership - Shared ownership in a strata-titled property. Owners have title (ownership) to individual units and a proportionate share in the common property.
Conveyance - The term used to describe the process of transferring the seller's title to the buyer and indicates all the necessary steps to complete the transfer. A conveyance lawyer is a lawyer responsible for the conveyance process.
Counter Offer - An offer made by the seller back to the buyer altering one or several terms and/or conditions of the offer as originally written.
CREA - The Canadian Real Estate Association. A national association representing the real estate industry on federal public policy matters, providing member services and education. CREA promotes adherence to a strict REALTOR® Code. CREA Code of Ethics - Rules of behaviour or conduct which provide a standard of fair, moral practice and a guide by which a REALTOR®'s behaviour or conduct is evaluated.
Customer - A person who receives valuable information and assistance from a real estate broker or associate, but is not represented by that individual.
Deposit - A sum of money given in advance as security for the completion of a purchase or contract.
Disclosure Statement - A document that outlines important information about a property or transaction.
Dual Associate - A real estate brokerage which acts as associate for both the seller and the buyer in the same transaction. Both buyer and seller are the brokerage's clients.
Easement - A legal right to use or cross (right-of-way) another person's land for limited purposes. A common example is a utility company's right to run wires or lay pipe across a property.
Encroachment - An intrusion onto an adjoining property. Common examples are a neighbour's fence, storage shed, or overhanging roof line which partially (or even fully) intrudes onto your property.
Encroachment Agreement - An agreement which allows the encroachment to remain. The owner of the development which encroaches onto the adjoining property is granted the right to enter onto that property to maintain or repair the construction.
Encumbrance - A restriction which is either a monetary claim against the land (such as a lien, mortgage or lease), or a non-monetary one (such as an easement).
Estoppel Certificate - A written statement of a condominium unit's current financial and legal status.
Fee Simple - The most complete form of property ownership, which includes the rights to use, lease, or sell the property at will.
Fiduciary Duties - The duties of loyalty, disclosure, confidentiality, obedience, reasonable care and diligence, and full accounting that are required by law of any associate relative to his or her principal.
Home Inspection - A thorough examination of a property's condition, usually performed by a professional inspector before a sale.
Joint Tenancy - A form of ownership in which two or more individuals (often spouses) have an equal share in the ownership of a property. In the event of one owner's death, his or her share is automatically transferred to the surviving owner(s); and does not become part of the deceased's estate.
Legal Description - A detailed way of describing a parcel of land for legal documents, distinct from the street address.
Lien - Any legal claim against a property, filed to ensure payment of a debt.
Listing Agent - The REALTOR® who signs a contract (on behalf of the brokerage) with an owner to sell the property.
Listing Contract - The legal agreement between the listing brokerage and the seller, setting out the services to be rendered, describing the property for sale and stating the terms of payment. A commission is generally payable to the brokerage upon completion of a sale.
Multiple Listing Service® (MLS® System) - An MLS® System is a cooperative selling system operated and promoted by a Board or Association in association with the MLS® Marks. An MLS® System includes an inventory of listings of participating REALTORS®, and ensures a certain level of accuracy of information, professionalism and cooperation amongst REALTORS® to effect the purchase and sale of real estate.
Organized Real Estate - Refers to the various bodies or groups (CREA, AREA, local boards) who work together to bring about structure, standards and accepted practices in real estate.
Owner - The individual or entity that holds the title to a property.
Property Taxes - The value of the property as determined by local municipalities affects this levy. Local government determines the rate of taxation. Property taxes are paid on an annual basis.
Purchase Contract - The document through which the prospective buyer sets out the price and conditions under which he or she will buy the property.
Real Estate Board - A non-profit organization representing local real estate brokers and Associates which provides services to its members and maintains and operates the local MLS® System. It offers orientation and other continuing education courses to its members and represents local real estate matters at the municipal level.
Real Property Report - The legal outline of the property and location of all buildings and improvements on the land (formerly called the Surveyor's certificate).
REALTOR® - A trademark controlled by the Canadian Real Estate Association (CREA) that identifies real estate professionals who are members of CREA. REALTOR® refers to the standard of brokerage services provided by members of CREA. REALTOR® is synonymous with professionalism. And professionalism means at least three things -service, competence and ethics. All three are essential ingredients in the REALTOR® recipe.
REALTORS® Association of Edmonton - REALTORS® Association of Edmonton is a professional association of over 3,100 Brokers and Associates in the greater Edmonton area. The Association enforces a Code of Ethics, Standards of Business Practice and disciplinary action, when necessary, for its members. The Association provides professional education to its members, administers the Multiple Listing Service® and advertises property listings on the Internet atREALTOR.ca, as well as in the Real Estate Weekly for the benefit of REALTORS® and their clients.
Rights of Way - Are indicated on title at the Land Title Office; often for use of utilities or city or municipality in order to make repairs to pipes, etc. No permanent structure may be built on a right of way.
Seller's Agent - The seller's associate represents the seller as a listing associate under the listing contract. His or her primary allegiance is to the seller. The seller's associate does not represent the buyer.
Seller’s Market - A market condition characterized by a shortage of properties for sale, giving sellers an advantage in terms of pricing and negotiation.
Single Agency - The practice of representing either the buyer or the seller, but not both in the same transaction.
Tenancy in Common - The owners each own a part of a common land. If one owner dies, the interest goes to his or her heirs rather than the other owner(s).
Title - The legal evidence of ownership in a property.
Title Search - A detailed examination of the ownership documents to identify the owner and any liens or other encumbrances on the property.
Torrens System - Alberta's land registry system.
Transaction Brokerage Disclosure - The information which a dual associate must disclose and explain to both buyer or a seller when he or she is acting as a dual associate.
Unattached Goods - Moveable personal property that goes with the seller (also known as chattels).
Zoning - Land Use Bylaw specifies in great detail every aspect of how property within a particular area of the municipality may be used.