Glossary of terms
Adjustment Date: Date agreed to by both parties to a real property
transaction for the adjustment of property taxes, rent, interest, and other
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.
Agreement for Sale: A contract by which the owner of land (vendor) agrees to
sell land to another (purchaser) who aggress 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 provides that the purchase price will be paid by
Amortization: The number of years needed to fully repay a loan. Most
mortgages are amortized over 25 years. This means that by making set
monthly payments - each a blend of interest costs and repayment of the
original principal - you'll have paid back the original amount and all the interest
in 25 years. You can however choose different amortization periods. A shorter
amortization, 15 or 20 years for example, will mean higher monthly payments,
but a significantly lower interest cost. Do not confuse amortization with term.
Appraisal: The estimation of the value of a legal interest in land.
Arms Length Transaction: Transaction in which the parties involved are not
inclined towards making voluntary concession to each other.
Assessment: Appraisal, usually for real property taxation purposes.
Asset: Items of value owned by a business. Contrast to Liability.
Assumable Mortgage: A Mortgage that allows a purchaser to assume or take
over the responsibility and liabilities under the mortgage from a vender.