AAA (see Alberta Assessors’ Association)
AACI (see Accredited Appraiser Canadian Institute)
A mortgage payment option whereby the monthly mortgage payment is either split in half or in quarters and is paid every two weeks (bi-weekly) or every week (weekly).
A building design concept that relates to individuals with disabilities. It refers to building features that facilitate entry or use by individuals with physical and/or sensory impairments.
Accredited Appraiser Canadian Institute
A designation granted by the Appraisal Institute of Canada.
Accredited Mortgage Professional
A national designation for mortgage professionals in Canada issued by Mortgage Professionals Canada.
Accredited Municipal Assessor of Alberta
A designation granted by the Alberta Assessors’ Association.
A document that is attached to, and made part of, an original contract as a result of making changes to elements that have already been agreed to.
Adjustable Rate Mortgage
A mortgage where the interest rate and payments are increased or decreased at predetermined intervals based on a lender's rate market review. The interest rate charged on the mortgage may be linked to the lender’s prime rate or a pre-selected index rate. Also see Index Rate.
The financial calculations made regarding the costs for the respective parties associated with a mortgage or real estate transaction at the time of closing (e.g. property taxes). Also see Closing and Closing Costs.
A disciplinary outcome issued to an industry professional following a Professional Conduct Review by the Real Estate Council of Alberta. It is typically issued when 1 or 2 straight-forward though potentially serious breaches of the Real Estate Act, Rules, Regulations or Bylaws occur and includes the required monetary payment that must be paid by the industry professional to RECA. Also see Professional Conduct Review.
A letter issued to an industry professional for a technical breach of the Real Estate Act, Rules, Regulations or Bylaws following a Professional Conduct Review carried out by the Real Estate Council of Alberta. It is not a form of disciplinary sanction but rather a best practice guideline for avoiding the same or similar breach of the legislation in the future. Also see Professional Conduct Review.
A formal written statement of fact sworn to or affirmed by the author and witnessed as to the authenticity of the author’s signature before a person such as a notary or commissioner of oaths who is authorized to administer an oath.
The ability of an individual to carry the cost of ownership of a property in relation to his or her available income.
A consensual relationship created by contract or by law where one party, the principal, grants authority for another party, the agent, to act on behalf of and under the control of the principal to deal with a third party and where the agent accepts responsibility for representing the principal.
The body of law applicable to consensual relationships in which one person (i.e. the agent) consents to act on behalf of another person (i.e. the principal), and thereby legally binds the principal in his or her connection with a third person. Also see Agent and Principal (Agency).
An industry professional who is expressly or implicitly authorized to act or represent another party.
AGM (see Annual General Meeting)
Agreement for Sale
A financial arrangement between a seller and buyer in which the seller carries the financing for the buyer’s purchase of the property. However, the title remains in the name of the seller and the seller registers a caveat on title protecting his or her financial interests until such time as the funds are repaid by the buyer.
The businesses that are involved in the production, storage, processing and wholesale marketing of agricultural products.
A building used for the production of food or other goods through endeavours such as farming, ranching or forestry.
AIC (see Appraisal Institute of Canada)
Alberta Assessors’ Association
A non-profit, member-based association focused on property assessment valuation.
Alberta Building Code
Provincial legislation that states the technical specifications required for new building construction and building materials in Alberta.
Alberta Land Surveyor
A licensed professional involved in gathering, storing, processing and delivering geographic information involved in the determination of property boundaries or assembly and analysis of land related information.
Alberta Land Surveyors’ Association
A self-governing professional association legislated under the Land Surveyors’ Act of Albertathat regulates the practice of land surveying for the protection of the public and the administration of the profession.
Alberta Mortgage Brokers Association
Alberta’s professional association for licensed mortgage brokers and mortgage associates.
Alberta New Home Warranty Program (also New Home Buyer Protection Act)
The New Home Buyer Protection Act applies to new homes constructed with a building permit applied for after February 1, 2014. The legislation covers single family homes, duplexes, multi-family homes, condominiums, manufactured homes (including ready to move homes), and recreational properties. The legislation does not cover dorms, work camps, hotels and rental apartments. under the warranty periods. The minimum required warranty coverage terms are:
- 1 year labour and materials
- 2 years for defects in labour and material related to delivery and distribution systems
- 10 years for major structural
- 5 years on building envelope, with a requirement for the warranty provider to offer the option to purchase additional years of coverage
Alberta Real Estate Association
A provincial professional association with 10 real estate boards operating in Alberta and more than 10,000 Alberta REALTORS® as its members.
Alberta Real Estate Foundation
An organization created under Alberta’s Real Estate Act to promote the development of educational initiatives for real estate professionals and consumers, support law reform and research regarding the real estate industry, and other projects and activities to advance and improve the real estate industry.
Alberta Registry Agents
A network of community-based service centres, offering a wide range of registration, information and licensing services on behalf of the Government of Alberta.
Alberta Securities Commission
The regulatory agency responsible for administering the province’s securities laws and ensuring that persons who sell securities in Alberta are registered and conduct themselves according to applicable laws and professional standards.
ALSA (see Alberta Land Surveyors’ Association)
AMAA (see Accredited Municipal Assessor of Alberta)
AMBA (see Alberta Mortgage Brokers Association)
A document that records a correction, addition, deletion or other changes to any previously agreed-to terms in the original contract.
The gradual retirement of a debt by means of installment payments which often includes principal and interest. Also see Principal and Interest.
The length of time required to repay a mortgage by equal installments of periodic constant payments based on a set interest rate. The payments are typically a combination of principal and interest in blended amounts.
A table illustrating the amount of principal and interest that comprise each of the periodic installments and the outstanding principal balance of the loan after each level payment is made.
AMP (see Accredited Mortgage Professional)
Annual General Meeting
A meeting at which the Board of Directors and all members of a condominium corporation gather to elect a Board of Directors for the forthcoming year as well as discuss the finances, current issues and future plans for the condominium corporation. An annual general meeting must be scheduled within 15 months from the date on which the previous one was held.
Annual Percentage Rate
The interest rate stated on a yearly basis that represents the cost of a mortgage.
A style of residential condominium involving units that are part of a building and attached to each other on one or more sides. This condominium style has a shared entrance, usually through the building lobby.
A legal proceeding in which a lower court’s or agency’s decision is brought before a higher court or agency for review and possible reversal. Under the Real Estate Act, an industry professional is given the right to appeal certain decisions made by the Executive Director or a Hearing Panel of RECA.
Council members appointed under the Real Estate Act who hear and review appeals of a decision of a Hearing Panel. Appeal Panels can uphold, modify or quash decisions made by a Hearing Panel or refer the matter back to the Hearing Panel for further consideration.
A person who submits a formal application to RECA as part of the authorization process to trade in real estate, deal in mortgages or provide real estate appraisal services in Alberta.
Refers to all borrowers, co-borrowers and guarantors on a mortgage loan application.
A formal, impartial estimate or opinion of value, usually written, of a specific and adequately described property, as of a specific date and supported by the presentation and analysis of relevant data pertinent to a property.
An agreement between a real estate appraiser and a client to provide a valuation service on real estate.
Appraisal Institute of Canada
A national, member-based association that offers real estate appraiser designations in Canada.
A systematic analysis of the factors that bear upon the value of real estate. It consists of an orderly process by which the problem is defined, the work necessary to solve the problem is planned, and the data involved are acquired, classified, analyzed, and interpreted into an estimate of value.
A formal report detailing an opinion of value of a property based on the findings of a real estate appraiser. The report must state the purpose of the appraisal, the date of the appraisal and be signed by the appraiser. Also see Real Estate Appraisal.
The act or process of re-examining an appraisal report as to its completeness and accuracy and to ensure compliance with the applicable appraisal standards.
An individual authorized by RECA to perform real estate appraisal services for a fee. A real estate appraiser is an accredited professional whose main service typically involves estimating the value of real property at a specified date in a manner that is independent, impartial, and objective.
APR (see Annual Percentage Rate)
AREA (see Alberta Real Estate Association)
A type of measurement that represents the physical surface or spatial area that exists within rooms, buildings or to define a lot. This measurement represents the 2-dimensional relationship created by multiplying the width of an item by its depth.
AREF (see Alberta Real Estate Foundation)
ARM (see Adjustable Rate Mortgage)
Past due payments.
A group of silicate minerals that naturally form in host rocks throughout the world. These minerals are made up of millions of thin, fibrous crystals that are strong, durable and resistant to heat, electricity, chemical corrosion, sound and moisture.
ASC (see Alberta Securities Commission)
The amount of money that a seller is asking or intends to ask for his or her property.
The value placed on real property by a municipality as a basis for determining property taxes.
The process of determining the property value for taxation purposes. Assessment is used to determine the property owner’s proportionate share of municipal taxes on an annual basis.
Assigned Parking Stall
A parking stall that is part of the common property and is therefore owned collectively by the condominium corporation. When a parking stall is assigned, the Board of Directors is effectively granting a unit owner sole benefit of that parking stall. However, responsibility for care and maintenance of the parking stall typically remains with the Board of Directors. The Board of Directors can choose to reallocate the assignment whenever they wish. These parking stalls are not individually illustrated on Condominium Plans. Also see Condominium Plan.
Assigned Storage Area
A storage area that is part of the common property and is therefore owned collectively by the condominium corporation. When a storage area is assigned, the Board of Directors is effectively granting a unit owner sole benefit of that storage area. However, responsibility for care and maintenance of the storage area typically remains with the Board of Directors. The Board of Directors can choose to reallocate the assignment whenever they wish. These storage areas are not individually illustrated on Condominium Plans. Also see Condominium Plan.
A person to which an assignment (transfer) of property, rights or interest is made. Also see Assignment.
The act of transferring an interest in real property to another.
Assignment of Mortgage
An agreement that consists of the transfer (i.e. selling) of an interest and all rights in the mortgage contract and the security in the property to a new lender or third party in return for payment of money.
A person who makes a transfer under an assignment. Also see Assignment.
An individual who is licensed as a real estate associate or mortgage associate as defined in the Real Estate Act and as administered through the Real Estate Council of Alberta. An associate must be registered with a licensed brokerage in order to trade in real estate or deal in mortgages. An associate holds the basic licensing level in the real estate or mortgage brokerage industry.
An individual who is licensed as an associate broker as defined in the Real Estate Act and as administered through the Real Estate Council of Alberta. An associate broker holds the qualifications of a real estate broker, but is not authorized to operate a brokerage. An associate broker is registered with a real estate brokerage and authorized to trade in real estate on its behalf.
The process of an individual acquiring the title and access to a property that has an existing mortgage registered. Lenders typically require the individual to qualify under the terms and conditions of the existing mortgage before allowing the mortgage assumption to occur.
The act of taking possession of mortgaged property whereby the buyer accepts liability for the debt and takes responsibility of seller’s existing mortgage at the interest rate and terms as laid out in the original mortgage documents. The seller remains liable to the mortgage lender unless the lender agrees to release the seller from the debt obligation.
An improvement or personal property item attached to the real property or building. Whether an item becomes a fixture depends largely on the circumstances, with emphasis placed on the method of how the item is affixed to the property. Also see Fixtures.
Refers to the person appointed to act on behalf of a donor in a Power of Attorney. Also see Power of Attorney.
A concept under the common law that presumes all real estate professionals registered with the brokerage share information and advice and have knowledge of confidential information concerning all the clients of the brokerage.
A person who engages in the business of selling or offering for sale by public auction, goods, wares, merchandise or effects of any kind. In Alberta, only a qualified auctioneer can conduct the bidding at a public auction and must be licensed by the province through Service Alberta.
Refers to the licence and registration certificate issued by RECA to real estate professionals and is one of the requirements for trading in real estate in Alberta.