Question 1

Capital Gains Tax

Accepted Answer

A tax on the profit when you sell (or 'dispose of') something (an 'asset') that's increased in value.

Question 2

Co-Borrower

Accepted Answer

A person who is equally responsible for the repayment of a loan, typically part of the same mortgage agreement.

Question 3

Debt-to-Income Ratio (DTI)

Accepted Answer

A personal finance measure that compares the amount of debt you have to your overall income.

Question 4

Encroachment

Accepted Answer

An intrusion on a person's territory, rights, etc.

Question 5

Equity

Accepted Answer

The difference between the market value of a property and the amount the owner still owes on the mortgage.

Question 6

Escrow

Accepted Answer

A financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction.

Question 7

Fixed Rate Mortgage

Accepted Answer

A mortgage that has a fixed interest rate for the entire term of the loan.

Question 8

Gross Debt Service Ratio

Accepted Answer

A debt service measure that financial lenders use as a rule of thumb to give a preliminary assessment of the borrower's financial capacity to service a mortgage.

Question 9

Home Inspection

Accepted Answer

An examination of the condition of a real estate property, typically performed before the property is sold.

Question 10

Interest

Accepted Answer

Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.

Question 11

Joint Tenancy

Accepted Answer

A property ownership type where two or more individuals own a property together, each with equal shares and rights.

Question 12

Land Transfer Tax

Accepted Answer

A tax on transferring land from one owner to another.

Question 13

Mortgage Insurance

Accepted Answer

An insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan.

Question 14

Negative Amortization

Accepted Answer

An increase in the principal balance of a loan caused by a failure to cover the interest due on that loan.

Question 15

Open Mortgage

Accepted Answer

A mortgage that can be paid off at any time without penalty.

Question 16

Pre-Approved Mortgage

Accepted Answer

A preliminary assessment by a lender to determine if a borrower qualifies for a loan.

Question 17

Quiet Enjoyment

Accepted Answer

A right to the undisturbed use and enjoyment of real property by a tenant or landowner.

Question 18

Real Property

Accepted Answer

Land and anything permanently affixed to it, including buildings, fences, and even trees.

Question 19

Survey

Accepted Answer

A plan or map made by a professional surveyor showing the legal boundaries of a property.

Question 20

Title

Accepted Answer

A legal term for an owner's interest in a piece of property.

Question 21

Underwriting

Accepted Answer

The process through which an individual or institution takes on financial risk for a fee.

Question 22

Vendor Take Back Mortgage

Accepted Answer

A type of mortgage where the seller provides some or all of the mortgage financing in order to sell the property.

Question 23

Writ of Execution

Accepted Answer

A court order that puts in force a judgment of possession and directs law enforcement personnel to begin the transfer of property.

Question 24

Zoning

Accepted Answer

The legislative process of dividing land into zones for different purposes.

Question 25

Amortization

Accepted Answer

The process of gradually reducing a debt through scheduled, pre-determined installments of principal and interest.

Question 26

Bridge Financing

Accepted Answer

A short-term loan used until a person or company secures permanent financing or removes an existing obligation.

Question 27

Chattel

Accepted Answer

Personal property that is movable, as opposed to real property or real estate.

Question 28

Depreciation

Accepted Answer

The loss in value a property experiences over time due to wear and tear, decay, or other related factors.

Question 29

Easement

Accepted Answer

The right to use another person's land for a specific purpose.

Question 30

Foreclosure

Accepted Answer

The legal process by which a lender takes control of a property, evicts the homeowner and sells the home after a homeowner is unable to make full principal and interest payments on his or her mortgage.

Question 31

Holdback

Accepted Answer

An amount of money retained until a particular condition is met in a real estate transaction.

Question 32

Investment Property

Accepted Answer

A property that is not occupied by the owner, usually purchased specifically to generate profit through rental income or capital gains.

Question 33

Joint Venture

Accepted Answer

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Question 34

Leasehold Estate

Accepted Answer

An ownership interest in a property where the owner leases the property for a specific, predetermined amount of time.

Question 35

Market Value

Accepted Answer

The price at which a property would sell under normal conditions in a free and open market.

Question 36

Net Operating Income

Accepted Answer

A company's operating income after operating expenses are deducted, but before income taxes and interest are deducted.

Question 37

Offer to Purchase

Accepted Answer

A written contract setting out the terms under which the buyer agrees to buy the home.

Question 38

Principal

Accepted Answer

The amount of money originally borrowed in a loan, or the part of the amount borrowed which remains unpaid (excluding interest).

Question 39

Real Estate Broker

Accepted Answer

A person who represents sellers or buyers of real estate or real property.

Question 40

Subdivision

Accepted Answer

The act of dividing land into pieces that are easier to sell or otherwise develop.

Question 41

Title Insurance

Accepted Answer

Insurance that covers the loss of an interest in a property due to legal defects and is required if the property is under mortgage.

Question 42

Under Contract

Accepted Answer

A term used to describe a seller and a buyer who have agreed on a real estate deal, but the paperwork has not yet been completed.

Question 43

Vested

Accepted Answer

The point at which you have earned the right to receive a pension or other employer-contributed benefit, regardless of whether or not you remain with the employer.

Question 44

Warranty Deed

Accepted Answer

A type of deed where the grantor (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee (buyer).

Question 45

Zoning Ordinance

Accepted Answer

A written regulation and law that defines how property in specific geographic zones can be used.

Question 46

Assumption of Mortgage

Accepted Answer

An agreement where the buyer takes over the seller's mortgage; the seller remains liable unless the lender agrees to release them.

Question 47

Building Code

Accepted Answer

A set of rules that specify the standards for constructed objects such as buildings and non-building structures.

Question 48

Condominium

Accepted Answer

A building structure divided into several units that are each separately owned, surrounded by common areas jointly owned.

Question 49

Due Diligence

Accepted Answer

The care that a reasonable person exercises to avoid harm to other persons or their property; in real estate, it refers to the time period after a contract is signed, but before the deal closes.

Advanced Concepts in Quebec Real Estate