The use of land or property that does not meet the requirements of the current municipal Land Use Bylaw and, in the case of a property, has been built without the proper permits. The municipality can require the owner of the property to cease the illegal use upon notice.
An agreement based on the conduct and actions of the parties involved.
Authority held by an agent that is typically not given expressly but rather by inferences and that arises by virtue of being reasonably necessary to carry out the agent’s express authority. Also see Agent.
A contract that is formed based on the conduct and actions of the parties involved.
An item that is permanently affixed to the land.
Anything that is advertised, communicated or offered by a brokerage to the public or a person for the purpose of attracting business to the brokerage and includes a promise, good, service, game of chance, contest, or anything else of value.
An appraisal method for income producing properties that converts the future income to be received from the property into an estimate of value.
An estate or right in land that cannot be defeated, revoked or made void.
The act of reimbursing or repaying a real estate professional for any liabilities he or she incurs on behalf of a client.
The act of securing someone or something against the possibility of future loss, damage or liability, as the case may be.
The assurance of one party to another to make compensation or repair for any loss or damage that has been incurred or may be incurred.
The rate used by a lender to measure the difference between the current interest rate charged on an adjustable rate mortgage and that earned by another type of debt instrument.
Anything offered by a brokerage to a specific person who is a party to a specific real estate trade (or potential trade), and is intended to assist, persuade or cause that person to enter into such a transaction.
A building used for processing raw materials and manufacturing goods, as well as their storage.
A condominium which consists of units within a manufacturing or distribution-oriented building, such as a workshop, warehouse or storage facility.
The term used in the Real Estate Act, Rules, Regulations and Bylaws to refer to any person who is authorized by RECA to trade in real estate, deal in mortgages or provide real estate appraisal services in accordance with the Real Estate Act.
The term used by RECA to refer to any person authorized in the various classes of licences in real estate, mortgage brokerage and real estate appraisal. Industry professionals possess the required education, knowledge and experience of current practices for their respective class of licence in order to provide competent services to members of the public in Alberta.
Refers to policies, procedures and enforcement mechanisms that are created to keep client information confidential by safeguarding it from inadvertent exposure or sharing, or purposeful intrusion by individuals who have not been granted the permission to access it.
The decision of a party (e.g. buyer, seller, borrower) to provide agreement or select an option among available options based on full information and disclosure of any conflicts of interest by the other party (e.g. real estate, mortgage brokerage, real estate appraisal professional). In addition, it requires that the party asked to make the decision (e.g. buyer, seller, borrower) understands the nature of what is being proposed, be fully informed of the choices, be aware of the consequences of any of the options, and be able to freely exercise his or her free will in the absence of duress.
A statement made to a party that is untrue, but the person making the statement had reasonable grounds to believe that the statement was true.
A loan that is repaid over time with a set number of scheduled payments. The term of loan may be as little as a few months and as long as 30 years. For example, a mortgage may be considered an f installment loan.
A building with a specialized use aimed as serving the public or private clientele.
A written, legal document used to register an encumbrance on a property title (e.g. agreement, restriction, mortgage). Each instrument has a unique registration number.
The value of a commodity in terms of insurance policies or claims.
A promise of compensation for possible damage or loss from one entity to another in exchange for compensation. Typically, the damages and losses covered in insurance policies are unexpected, unintentional or accidental in nature.
Insurance Against Perils
A type of insurance that provides replacement cost value for property that is destroyed due to hazards outlined in the Condominium Property Regulation and condominium bylaws.
The person, group, or organization who has, or is covered by, an insurance policy.
A person or company that undertakes to indemnify another in the event of a loss. Also see Indemnify.
The quality of being honest and having strong moral principles.
A false or misleading statement made by a person who knew that the statement was untruthful and a third party relies on the misrepresentation to his or her potential or actual detriment.
A charge for a debt that is owed, usually calculated as a percentage of the amount that was loaned.
A mortgage in which the borrower pays only the interest portion, with the principal balance unchanged. The principal is repaid in full at the end of the mortgage term.
The amount charged by a lender to a borrower for the use of borrowed funds and is calculated as a percentage of the principal
Interest Rate Differential
The compensation due a lender for early prepayment of a mortgage outside of its normal prepayment terms. It is usually calculated as the difference between the mortgage rate and market rate multiplied by the principal outstanding and the balance of the term.
A loan of short duration (i.e. up to 1 year) with higher interest intended to cover immediate cash requirements until permanent financing is secured or until such time as the permanent financing comes into effect. Also see Bridge Loan.
An even-handed, objective and impartial relationship formed when a mortgage broker brings together a borrower and a lender with the goal of originating a mortgage loan. In this relationship, the mortgage broker is not representing (not agent for) either the borrower or the lender.
International Valuation Standards
Refers to the global standards for valuation especially those that will be relied upon by investors and third party stakeholders.
A person owning property who dies without a will.
Investigation (also known as Professional Conduct Review)
The formal process RECA undertakes to gather evidence to help determine if an industry professional’s conduct is deserving of sanction. Professional Conduct Reviews are carried out based on the legislative requirements of the Real Estate Act, the principles of natural justice and administrative law and RECA’s investigative policies and procedures.
Investigator (also known as Professional Conduct Review Officer)
The person who is responsible for carrying out the duties of RECA’s formal investigative process according to the legislative requirements of the Real EstateAct, the principles of natural justice and administrative law and RECA’s Professional Conduct Review Program.
An individual or entity that acquires an ownership position in an investment, assuming risk of loss in exchange for anticipated returns.
IRD (see Interest Rate Differential)