Real Estate Terms - Part 1 of 4

Appraisal

The process of determining the value of a property. This value is not always the same as the final purchase price of the home.

Asking Price

The price a property is listed for sale by the seller. Also referred to as the 'list price'.

Appraised Value

The estimated value of a property completed by a certified appraiser for mortgage financing. There is usually a fee to have an appraisal done.

Agent

More commonly referred to as a real estate representative, an agent is a real estate professional who has met and satisfied specific licensing qualifications under the Real Estate Act. The agent or representative can negotiate and act on behalf of another in a real estate transaction in exchange for a service fee.

Adjustment Date

The adjustment of property taxes, rents, interest, and other items on an agreed date by both parties to the real estate transaction.

Amortization

The period of time required to pay off a loan through periodic payments of interest and principal. Amortization periods are most often 15, 20, or 25 years long.

Appreciation

The amount an asset such as real estate, a vehicle, or other asset has increased in value.

Assessment

An appraisal of real estate primarily for tax purposes.

Assign

To transfer a property title or interest to another individual, for example, to assign property in one’s will to another.

Assumable Mortgage

The purchaser may assume or take over the responsibilities and obligations of the existing mortgage from the vendor.

Assignment

A commercial agreement conveying the leasehold interests, including the financial responsibilities, from one tenant to another. Not synonymous with Sub-lease.

Arbitration

A legal method for settling disputes between a landlord and a tenant using a mutually agreed upon third party. Often used as a means of avoiding court actions.

Absentee Owner

A landlord that is based in a city other than the one where the property is located.

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