A contract in which the roles, duties and expectations of the parties regarding the administration of a property are clarified and agreed to.
Marijuana Grow Operation
Any property that has been leased or bought by persons in the illegal drug trade which has been turned into an indoor growing environment for marijuana plants.
A temporary situation in the economy characterized by prices for a product becoming grossly inflated beyond its realistic value due primarily to excessive consumer confidence.
Refers to a market condition in economics when the forces of demand and supply do not balance and there is an inherent tendency for change. Disequilibrium is indicated by the existence of either a market surplus or market shortage. Also see Market Shortage and Market Surplus.
Refers to a market condition in economics where a market price is established through competition such that the amount of goods or services sought by buyers is equal to the amount of goods or services supplied by sellers.
The amount actually paid for a property in a particular real estate transaction.
The rental income that a property would probably command on the open market, as indicated by current rents being paid for comparable space as of the effective date of the analysis.
A condition in the market in which the quantity demanded for a product or service exceeds the quantity supplied at the current price.
A condition in the market in which the quantity supplied for a product or service exceeds the quantity demanded at the current price.
The expected value of a property assuming that it has been exposed to an open real estate market for a reasonable period of time and the resulting real estate trade involves informed and willing buyers and sellers.
The process of determining the assessed values of properties by collecting relevant sales data over a specific time period for the same type of property and a similar municipal area. The data is aggregated and analyzed to set an assessed value for each property for that type of property and municipal area. Also see Property Assessment.
Material Latent Defect
A physical deficiency that is not visible and renders a property dangerous or potentially dangerous, unfit for habitation or unfit for the purpose for which it is acquired. It may also include defects that would involve great expense to remedy, notices from local authorities that prejudicially affect the property or a lack of appropriate permits.
False, misleading or inaccurate data that could influence the decisions of those individual who review the information.
The end of a term, or period of time, for a mortgage loan at which time the borrower mat have the option to pay off the mortgage, renew it with the existing lender or transfer it to another lender.
An accepted method of quantifying the area of a property. Each sector of real estate practice tends to have a generally accepted method for measuring the applicable properties.
A form of dispute resolution that involves a trained mediator attempting to assist disputing parties arrive at a mutually acceptable solution.
A gathering of individuals at which the affairs of the condominium corporation are addressed. Meetings provide a forum in which interested parties can identify problems, share ideas, allocate tasks, receive updates and make plans for the future. The Board of Directors is responsible for organizing, facilitating and concluding all meetings according to the bylaws of the condominium.
The official, written record of what transpires during the meetings of the condominium corporation and Board of Directors. They are a technical account of what was discussed.
An individual serving on the Board of Directors for a condominium corporation who is not appointed as an officer of the condominium corporation. A member-at-large usually focuses on how current or proposed changes and actions of the Board of Directors will affect unit owners and may head a specific committee (e.g. welcoming committee, social committee, landscaping committee, etc.).
A listing on a Real Estate Board’s MLS® System where the real estate professional has chosen or agreed not to provide services to the seller other than to submit the listing for posting on MLS®. See also Multiple Listing Service.
The acquisition by one or more persons, whether by purchase, lease of shares or assets, of any control over or interest in the whole or part of a business of a competitor, supplier, customer or other person.
MIC (see Mortgage Investment Corporation)
The amount per thousand dollars of assessed value of a property (or one-thousandth of a dollar). Therefore, a mill rate of 1 means an owner will pay $1 tax per $1,000 of assessed value.
The natural resources beneath the top layer of land. Unless specified otherwise, most land titles exclude rights to the minerals.
Minister of Service Alberta
The elected member of the provincial legislature who is responsible for the legislation and regulations administered by, or overseen by, Service Alberta. Also see Service Alberta.
A false or misleading statement or representation made by one party to another or others. It may also occur with non-disclosure or concealment of material facts. Also see Intentional Misrepresentation, Negligent Misrepresentation, Reckless Misrepresentation.
A condominium which consists of units with multiple uses (e.g. retail, commercial, residential)
A portable dwelling other than a holiday trailer or recreational vehicle that is used as a residence, is mounted on its own chassis and running gear, is capable of being transported and is situated in a site intended for residential purposes.
Mobile Home Site
Refers to the land that is rented for the purpose of being occupied by a mobile home to be used for residential purposes and where the owner of the mobile home is not the same individual who owns the site on which the mobile home is located. Also see Mobile Home.
Mobile Home Sites Tenancies Act
Alberta legislation that governs the relationship between the owner of a mobile home and the landlord who rents the mobile home site to the mobile home owner. Also see Landlord, Mobile Home and Mobile Home Site.
A type of factory-built construction that involves manufacturing 3-dimensional units that are combined together to create a cohesive building. In general, modular units are approximately 85% complete when they leave the factory.
The monthly fee set by the Board of Directors and paid by a unit owner to the condominium corporation.
Monthly Rental Factor
A method of income analysis for small income producing properties with a single rental unit. The Monthly Rental Factor relates the gross monthly income of comparable properties to the value of the subject property. The formula for determining the Monthly Rental Factor is as follows: Monthly Rental Factor = Value ÷ Gross Monthly Income.
A legal agreement specifying the pledging of real property to a lender as security for a debt.
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.
A type of investment that represents an ownership interest in a bundle of amortized residential mortgages insured by Canada Mortgage and Housing Corporation (CMHC) under the National Housing Act (NHA) or the government-backed private mortgage insurers.
A borrower’s failure to fulfill his or her obligations contained in a mortgage agreement.
A material misstatement, misrepresentation or omission relied upon by a lender or insurer to underwrite, approve, fund or insure a mortgage loan. It is any scheme designed to obtain mortgage financing under false pretenses.
Mortgage Fraud for Housing
Occurs when a borrower (i.e. buyer) attempts to obtain a larger mortgage then he or she would otherwise be able to arrange and falsifies the information to the lender in order to qualify for the mortgage.
Mortgage Fraud for Profit
Typically perpetrated by organized crime or by individuals seeking financial gain through property manipulations.
Mortgage Fraud Red Flags
Potential indicators or warning signs that a real estate, mortgage brokerage or real estate appraisal transaction may be fraudulent. When 2 or 3 red flags appear in the same transaction, it can be an indication of the presence of mortgage fraud.
A credit risk management tool protecting the lender from losses due to default on the mortgage by the borrower. It is typically required when the loan to value ratio for the property is 80% or greater.
A provider of mortgage loan (default) insurance to lenders. Also see Mortgage Insurance.
Mortgage Investment Corporation
A private investment and lending company that pools its funds from many investors for the purpose of loaning money to borrowers. Each loan is secured with a mortgage registered on the title of the respective property.
The process through which a lender creates a mortgage secured by the borrower’s (i.e. mortgagor’s) real property. Also see Mortgage.
Mortgage Plus Improvements
A feature that allows the borrower to add the cost of improvements or renovations to a property into a mortgage loan.
An approval for a mortgage based on a borrower’s qualifications made in advance of a real estate purchase. A written pre-approval protects the borrower by specifying the mortgage term, interest rate and maximum amount of the loan. If mortgage rates rise, the borrower receives the pre-approved rate. If rates drop, the borrower receives the lower rate. However, the borrower must take possession of a property before the pre-approval expires. They typically are 60 or 90 days, but may be as long as 120 days for new construction. Once a property has been purchased, the pre-approval is subject to the borrower submitting any final supporting documentation, providing his or her financial position has not changed. It is also subject to the property meeting the lender’s underwriting requirements.
The tentative approval for a mortgage based on the borrower’s qualifications made in advance of a real estate purchase. It is for a specified period of time and subject to the borrower submitting his or her supporting documentation to the lender, providing his or her financial position has not changed. Once a property has been purchased, the property must also meet the lender’s underwriting requirements.
Mortgage Professionals Canada
Canada's national mortgage industry association.
The process by which a borrower seeks to discharge an existing mortgage in order to establish a new one. The new mortgage maybe with the same lender or a different lender. The process typically involves the borrower paying out the existing mortgage, along with any legal claims against the property and any applicable payout penalties as a result of the early discharge. Some reasons that a borrower may consider refinancing a mortgage include obtaining a better rate, benefitting from different mortgage privileges, or experiencing better service or greater convenience.
The process by which a borrower agrees to another mortgage term with the current lender to replace the term that has matured. At the end of the prior mortgage term, and with a balance of funds still owing, the borrower may choose to continue with the same lender for another term. However, the details of the mortgage document may change at the time of the mortgage renewal to reflect the current mortgage market. The new term leaves the existing registered mortgage in place and is therefore not considered a new mortgage. The renewed term is secured by the old mortgage document and its provisions are amended to fit the new term.
A statement received from the lender that includes details of the mortgage such as property address, outstanding principal balance, monthly payment, interest rate and mortgage term.
Occurs when a borrower moves his or her current mortgage balance and remaining amortization period to a new lender. An agreement effectively transferring the interest in the mortgage to the new lender is signed by the parties and registered with the Land Titles Office. The previous mortgage terms and conditions are replaced by those of the new lender.
The period of time for which the lender loans funds to the borrower, as specified in the mortgage agreement. At the end of the mortgage term, the principal and unpaid interest becomes due and payable by the borrower to the lender. At that time the borrower may renew or refinance the mortgage. Also see Mortgage Refinance and Mortgage Renewal.
The lender to whom a mortgage has been conveyed (transferred).
The lender who conveys (transfers) a mortgage to another lender.
The security for the loan in the mortgage document, which typically includes the physical land and everything that is part of that land, or becomes part of that land. A mortgage of land automatically extends to everything that is securely attached to that land.
An individual or organization that lends money secured by real property for which they may receive specified payments according to the mortgage agreement. Also see Lender.
Mortgagee in Possession
A lender that takes possession and responsibility (e.g. insurance, taxes, security and tenant relations, if applicable) of a mortgaged property. If a property includes residential leases, the mortgagee in possession must also abide by the provisions of the Residential Tenancy Act.
A person that borrows funds secured by real property for which they may make specified payments according to the mortgage agreement. Also see Borrower.
A group of microscopic living organisms also known as fungi. Extensive mould could make a property unfit to live in.
A situation when multiple buyers submit an Offer to Purchase on the same property, at the same time.
The address of a property, which has been provided by the municipality, and typically is the city, street and number of the property on the street. It may often be used as the mailing address as well. However, it is not the legal address of the property. Also see Legal Description.
Municipal Compliance Stamp
Municipal Compliance Stamps are found on Real Property Reports and serve as confirmation that property improvements comply with municipal bylaws and regulations. Some municipalities refer to the stamp as a Certificate of Compliance. See also Real Property Reports.
Municipal Development Plan
The basis for the municipal Land Use Bylaw and determines how property may be used and development may be carried out within its jurisdiction. According to the Municipal Government Act, the province is divided into municipalities and each municipality over a certain size of population must have a Development Plan. Also see Municipal Land Use Bylaws.
Municipal Government Act
Alberta legislation setting out the procedures and agreements that establish the planning policies and processes of a municipality. In addition, it establishes the municipal authorities that oversee and approve land and building development within its jurisdiction. It also authorizes the municipality regarding property taxation, service fees and local improvement levies.
Municipal Land Use Bylaws
General rules applicable to all land use classifications in a municipality (e.g. Residential, Commercial, Industrial and Special district classifications).
An agreement created by an offer, the acceptance of the offer, and communication of the acceptance back to the offeror. It is one of several essential elements of a contract and is the basis for a meeting of the minds between the contracting parties.