GLOSSARY OF CONSTRUCTION TERMS (A - M)

ABSTRACT OF TITLE: A summary of all deeds, wills, and legal actions to show ownership. ABUT: Joining the ends of construction members. ACOUSTICS: The science of sound. In housing, acoustical materials used to keep down noise within a room or to prevent it from passing through walls. ADOBE: Construction using sun-dried units of adobe soil for walls; usually found in southwestern United States. A-FRAME: A structural system utilizing members which when fastened together resemble the letter A. AGGREGATE: Gravel (course) or sand (fine) used in concrete mixes. AIR CONDITIONER: An apparatus that can heat, cool, clean, and circulate air. AIR-DRIED LUMBER: Lumber that is left in the open to dry rather than being dried by a kiln. AIR DUCT: A pipe, usually made of sheet metal, that conducts air to rooms from a central source. AIR TRAP: A U-shaped pipe filled with water and located beneath plumbing fixtures to form a seal against the passage of gases and odors. ALCOVE: A recessed space connected at the side of a larger room. ALTERATION: A change in, or addition to, an existing building. AMORTIZATION: An installment payment of a loan, usually monthly for a home loan. AMPERE: The unit used in the measure of the rate of flow of electricity. ANCHOR BOLT: A threaded rod inserted in masonry construction for anchoring the sill plate to the foundation. ANGLE IRON: A structural piece of rolled steel shaped to form a 90-degree angle. APRON: Inside window trim placed under the stool and against the wall. ARCADE: A series of arches supported by a row of columns. ARCH: A curved structure that will support itself by mutual pressure and the weight above its curved opening. AREA WALL: A wall surrounding an areaway. AREAWAY: A recessed area below grade around the foundation to allow light and ventilation into a basement window or doorway. ASHLAR: A facing of squared stones. ASHPIT: The area below the hearth of a fireplace which collects the ashes. ASPHALT: Bituminous sandstones used for paving streets and waterproofing flat roofs. ASPHALT SHINGLES: Composition roof shingles made from asphalt-impregnated felt covered with mineral granules. ASTRAGAL MOLD: T-profiled molding usually used between meeting doors or casement windows. ATRIUM: An open court within a building. ATTIC: The space between the roof and the ceiling. AWNING WINDOW: An out-swinging window hinged at the top. AXIS:

Line around which something rotates or is symmetrically arranged. BACKFILL: Earth used to fill in areas around foundation walls. BACKHEARTH: The part of the hearth inside the fireplace. BAFFLE: A partial blocking against a flow of wind or sound. BALCONY: A deck projecting from the wall of a building above the ground. BALLOON FRAMING: The building-frame construction in which each of the studs is one piece from the foundation to the roof of a two-story house. BALUSTRADE: A series of balusters or post connected by a rail, generally used adjacent to stairs. BANISTER: A handrailing. BARGEBOARD: Finish board covering the projecting and sloping portion (end rafter) of a gable roof. BASE: The finish or a room at the junction of the walls and floors. BASEBOARD: Finish board covering the interior wall where the wall and floor meet. BASE COURSE: The lowest part of masonry construction. BASE LINE: A located line for reference control purposes. BASEMENT: The lowest story of a building, partially or entirely below ground. BASE PLATE: A plate, usually of steel, upon which a column rests. BASE SHOE: A molding used next to the floor in interior baseboards. BATT: A type of fiberglass insulation designed to be installed between framing members. BATTEN: Narrow strip of wood nailed over the vertical joints of boards to form board-and-batten siding. BATTER: A masonry or concrete wall which slopes backward from the perpendicular. BATTER BOARDS: Horizontal boards at exact elevations nailed to posts just outside the corners of a proposed building. Strings are stretched across the boards to locate the outline of the foundation for workers. BAY WINDOW: A projection formed by three windows that are joined at obtuse angels. BEAM: A horizontal structural member that carries a load. BEAM CEILING: A ceiling in which the ceiling beams are exposed to view. BEARING PLATE: Metal plate that provides support for a structural member. BEARING WALL OR PARTITION: A wall supporting any vertical load other than its own weight. BENCH MARK: Mark on some permanent object fixed to the ground from which land measurements and elevations are taken. BENDING MOMENT: A measure of the forces that break a beam by bending. BENT: A frame consisting of two supporting columns and a girder or truss used in vertical position in framing a structure. BEVEL SIDING: Shingles or other siding board thicker on one edge than the other. The thick edge overlaps the thin edge of the next board. BILL OF MATERIAL: A parts list of material accompanying a structural drawing. BLANKET INSULATION:

Insulation in rolled-sheet form, often backed by treated paper that forms a vapor barrier. BLIND NAILING: Method of nailing which will conceal nails, usually used on strip flooring and wood paneling. BLOCKING: Small wood framing members that fill in the open space between the floor and ceiling joists to add stiffness to the floors and ceiling. BLUEPRINT: An architectural type drawing used by workers to build from. The original drawing is transferred to a sensitized paper that turns blue with white lines when printed. Also, prints of blue lines on white paper. BOARD MEASURE: System of lumber measurement. The unit is 1 bd. ft, which is 1 ft square by approximately 1 in. thick. BOND BEAM: Continuous, reinforced concrete block course around the top of masonry walls. BOW WINDOW: A curved projection formed by five or more windows that are joined at obtuse angles. BRACE: Any stiffening member of a framework. BRACED FRAMING: Frame construction with posts and braces used for stiffening. BREEZEWAY: A roofed walkway with open sides. It connects the house and garage. BRIDGING: Cross bracing or solid blocking between joist to stiffen floor framing. BUCK: Frame for a door, usually made of metal, into which the finished door fits. BUILDING CODE: A collection of legal requirements for buildings designed to protect the safety, health, and general welfare of people who work and live them. BUILDING LINE: Setback restrictions on property, established by zoning ordinances, beyond which a building must be placed. BUILDING PAPER: A heavy, waterproof paper used over sheathing and subfloors to prevent passage of air and water. BUILDING PERMIT: A permit issued by a municipal government authorizing the construction of a building or structure. BUILT-UP ROOF: Roofing for low-slope roofs composed of several layers of felt and hot asphalt or coal tar, usually covered with small aggregate. BUTT: Type of hinge allowing edge of door to butt into the jamb; a joint which fastens members end to end. BUTTERFLY ROOF: A roof with two sides sloping down toward the interior of the house. BUTTRESS: Vertical masonry or concrete support, usually larger at the base, which projects from a wall. BTU: Abbreviation for british thermal unit; a standard unit for measuring heat gain or loss. BX CABLE: Armored electric cable wrapped in plastic and protected by a flexible steel covering. CANOPY: A projection over windows and doors to protect them from the weather. CANTILEVER: A projecting beam or structural member anchored at only one end. CANT STRIP: Angular shaped member used to eliminate a sharp, right angle, often used on flat roofs. CARPORT: An automobile shelter not fully enclosed. CARRIAGE: The horizontal part of the stringers of a stair that supports the treads. CASEMENT WINDOW: A hinged window that opens out, usually made of metal. CASING: Trim around window and door openings. CATCH BASIN: An underground structure for drainage into which the water from a roof or floor will drain. It is connected with a sewer drain or sump pump.

CAULKING: Soft, elastic material used to seal small openings around doors, windows, etc. CAVITY WALL: Double masonry wall having an air space between the wyths. CEDAR SHINGLES: Roofing and siding shingles made from western red cedar. CEMENT: A masonry adhesive material purchased in the form of pulverized powder. CENTRAL HEATING: A single source of heat that is distributed by pipes or ducts. CESSPOOL: A pit or cistern to hold sewage. CHALK LINE: A string that is heavily chalked, held tight, then plucked to make a straight guideline against boards or other surfaces. CHAMFER: Beveled edge formed by removing the sharp corner of a material. CHASE: Vertical space within a building for ducts, pipes, or wires. CHECKS: Splits or cracks in a board, ordinarily caused by seasoning. CHECK VALVE: A valve that permits passage through a pipe in only one direction. CHIMNEY: A vertical flue for passing smoke and gases outside a building. CHIMNEY STACK: A group of flues in the same chimney. CHORD: Top or bottom member of a truss. CINDER BLOCK: A building block made of cement and cinder. CIRCUIT: Closed wiring or conductor through which an electric current can pass. CIRCUIT BREAKER: A safety device used to open and close an electrical circuit. CISTERN: A tank or other reservoir to store rainwater run off. CLAPBOARD: A board, thicker on one side than the other, used to overlap an adjacent board. CLEARANCE: A clear space to allow passage. CLERESTORY: An outside wall of a room or building that rises above an adjoining roof and contains windows. CLINCH: To bend over the protruding end of a nail. CLIP: A small connecting angle used for fastening various members of a structure. COLLAR BEAM: Horizontal member tying opposing rafters below the roof ridge. COLUMN: Vertical supporting member. COMMON WALL: A single wall that serves two dwelling units. COMPRESSION: A force that tends to make a member fail because of crushing. CONCRETE: A mixture of cement, sand, gravel, and water. CONCRETE BLOCK: Precast hollow or solid blocks of concrete. CONDEMN: To legally declare unfit for use. CONDENSATION: The formation of frost or drops of water on inside walls when warm vapor inside a room meets a cold wall or window.

CONDUCTOR: In architecture, a drain pipe leading from the roof; in electricity, anything that permits the passage of an electric current. CONDUCTOR PIPE: A pipe used to lead water from the roof to the sewer. CONDUIT: A channel built to convey water or other fluids; a drain or sewer. In electrical work, a channel that carries wires for protection and for safety. CONSTRUCTION LOAN: A mortgage loan to be used to pay for labor and materials going into the house. Money is usually advanced to the builder as construction progresses and is repaid when the house is completed and sold. CONTINUOUS BEAM: A beam that has no intermediate supports. CONTRACTOR: The manager of a construction project. CONTROL JOINT: Continuous, vertical joint in masonry walls to control cracking. CONVECTOR: A heat-transfer surface that uses convection currents to transfer heat. COPING: Metal cap or masonry top course of a wall. CORBEL: Projection of masonry from the face of a wall; a stepped coursing bracket to support weight above. CORNER BEAD: A metal molding built into plaster corners to prevent the accidental breaking off of the plaster. CORNICE: Molded projection of the roof overhang at the top of a wall. COUNTERFLASHING: A flashing used under the regular flashing. COURSE: A continuous row of stone or brick of uniform height. COURT: An open space surrounded partly or entirely by a building. COVE: Concave molding usually used on horizontal inside corners. CRAWL SPACE: Shallow space below the floor of a building built above ground, generally surrounded with a foundation wall. CRICKET: Small gable-like roof structure used to divert water and debris from intersection of sloping roof and chimney; also called a saddle. CRIPPLE: Structural member that is cut less than full length, such as a studding piece above a window or door. CROSS BRACING: Boards nailed diagonally across studs or other boards to make framework rigid. CROSS BRIDGING: Bracing between floor joist to add stiffness to the floors. CROSSHATCH: Lines drawn closely together at an angle to show a section cut. CROWN MOLDING: Molding used above eye level; usually the upper trim on interior walls. CULL: Building material rejected as below standard grade. CULVERT: A passage for water below ground level. CUPOLA: A small structure built on top of a roof to provide ventilation. CURB: A very low wall. CURE: To allow concrete to dry slowly by keeping it moist to allow maximum strength. CURTAIN WALL: An exterior wall that provides no structural support. DADO JOINT: Recessed joint on the face of a board to receive the end of a perpendicular board.

DAMP COURSE: A layer of waterproof material. DAMPER: A movable plate that regulates the draft of a stove, fireplace, or furnace. DATUM: A reference point of starting elevations used in mapping and surveying. DEADENING: Construction intended to prevent the passage of sound. DEAD LOAD: All the weight in a structure made up of unmovable materials. DECAY: The disintegration of wood through the action of fungi. DEHUMIDIFY: To reduce the moisture content in the air. DENSITY: The number of people living in a calculated area of land such as s square mile or square kilometer. DENTIL: One of a series of small projecting rectangular blocks forming a molding under an overhang, most common in Colonial-style homes. DETAIL: Information added to a drawing to provide specific instruction with a drawing, dimensions, notes, or specifications. DIMENSION LINE: A line with arrowheads at each end to show the distance between two points. DIMENSION LUMBER: Framing lumber that is nominal thickness. DOME: A hemispherical roof form. DOORSTOP: Projecting strip around the inside of door frame against which the door closes. DORMER: Top-floor projection of a room built out from a sloping roof to allow light and ventilation. DOUBLE GLAZING: A pane made of two pieces of glass with air space between and sealed to provide insulation. DOUBLE HEADER: Two or more timbers joined for strength. DOUBLE HUNG: A window having top and bottom sashes each capable of movement up and down. DOWNSPOUT: Pipe for carrying rainwater from the roof to the ground or storm drainage system; also called a leader. DRAIN: A pipe for carrying waste water. DRESSED LUMBER: Lumber machined and smoothed at the mill. Usually 1/2 inch less than nominal (rough) size. DRIP: Projecting construction or groove below an exterior member to throw off rainwater. DRY ROT: A term applied to many types of decay, especially and advanced stage when the wood can be easily crushed to a dry powder. DRY-WALL CONSTRUCTION: Interior wall covering other than plaster, usually referred to as "gypsum board" or "wallboard." DRY WELL: A pit located in porous ground and lined with rock that allows water to seep through the pit. Used for the disposal of rain water of the effluent from a septic tank. DUCTS: Sheet metal conductors for warm and cold air distribution. DUPLEX OUTLET: Electrical wall outlet having two plug receptacles. EASEMENT: The right to use land owned by another, such as a utility company's right-of-way. EAVE: Lower portion of the roof that overhangs the exterior walls. EFFLORESCENCE:

Whitish powder that forms on the surface of bricks or stone walls due to evaporation of moisture containing slots. EFFLUENT: The liquid discharge from a septic tank after bacterial treatment. ELASTIC LIMIT: The limit to which a material can be bent or pulled out of shape and still return to its former shape and dimensions. ELBOW: An L-shaped pipe fitting. ELEVATION: The drawings of the front, sides, or rear face of a building. ELL: Extension or wing of a building at right angles to the main section. EMBELLISH: To add decoration. EMINENT DOMAIN: The right of the local government to condemn for public use. ENAMEL: Paint with a considerable amount of varnish. It produces a hard, glossy surface. ENTABLATURE: In architecture, the entablature is that part of a structure which is immediately above the column; also the distinguishing feature of the Greek styles. There are five distinct orders of entablature - Tuscan, Doric, Ionic, Corinthian and Composite. The entablature is composed of three parts - the architrave, a stone or marble slab, the prototype of which was the square timber beam of the primitive structure; the frieze or middle member, subdivided into its minor parts; and the cornice, which, with its mouldings and ornaments, is the superior projection of the structure. ERGONOMICS: The study of human space and movement needs. ESCUTCHEON: The hardware on a door to accommodate the knob and keyhole. EXCAVATION: Cavity or pit produced by digging the earth in preparation for construction. EXPANSION JOINT: Flexible joint used to prevent cracking or breaking due to thermal expansion and contraction. FABRICATION: Work done on parts of a structure at the factory before delivery to the building site. FACADE: Face or front elevation of a building. FACE BRICK: Brick of better quality used on the face of a wall. FACING: A surface finish material used to cover another surface. FASCIA: Outside horizontal face of member on the edge of a roof or cornice. FATIGUE: A weakening of structural members. FEDERAL HOUSING ADMINISTRATION (FHA): A government agency that insures loans made by regular lending institutions. FELT PAPER: Papers, sometimes tar-impregnated, used on roofs and sidewalls to give protection against dampness and leaks. FENESTRATION: Arrangement and sizing of doors and windows in a building. FIBERBOARD: A building board made with fibrous material used as an insulating board. FILLED INSULATION: A loose insulating material poured from bags or blown by machines into walls. FINISH LUMBER: Dressed wood used for building trim and cabinet work. FIREBRICK: A brick that is especially hard and heat-resistant. Used in fireplaces. FIRECLAY: A grade of clay that can withstand large quantity of heat. Used for firebrick. FIRE CUT: Angular cut at the ends of joists framing into a masonry wall.

FIRE DOOR: A door that will resist fire. FIRE PARTITION: A partition designed to restrict the spread of fire. FIRE-STOP: Tight closure material or blocking to prevent the spread of flame or hot gases within framing. FISHED: A splice strengthened by metal pieces on the sides. FIXTURE: A piece of electric or plumbing equipment that is part of the structure. FLAGGING: Cut stone, slate, or marble used on floors. FLAGSTONE: Flat stone used for floors, terraces, steps, and walks. FLASHING: Sheet-metal work used in roof or wall construction to prevent water from seeping into the building. FLAT ROOF: A roof with minimum pitch for drainage. FLITCH BEAM: Built-up beam formed by a steel plate sandwiched between two wood members and bolted together for additional strength. FLOATING: Spreading plaster, stucco, or cement on walls or floors with use of a tool called a float. FLOOR PLAN: The top view of a building at a specified floor level. A floor plan includes all vertical details at or above windowsill levels. FLOOR PLUG: An electrical outlet flush with the floor. FLUE: The opening in a chimney through which smoke passes. FLUE LINING: Terra-cotta pipe used for the inner lining of chimneys. FLUSH SURFACE: A continuous surface without an angle. FOOTING: Poured concrete base upon which foundation walls, columns, or chimneys rest; usually has steel reinforcing bars. FOOTING FORM: A wooden or steel form used to hold concrete to the desired shape and size until it hardens. FOOTPRINT: The outline of a home's foundation; this means the home's outermost points and is used for site planning. FRAMING: Wood skeleton of a building constructed one level on top of another. FRIEZE BOARD: Trim member below the cornice that is fastened against the wall. FROST LINE: Depth of frost penetration in the ground; bottom of footings should always be below this line. FURRING STRIPS: Thin strips fastened to walls or ceilings for leveling and for attaching finish surface material. FUSE: A strip of soft metal inserted in an electric circuit and designed to melt and open the circuit should the current exceed a predetermined value. GABLE: The vertical triangular end of a building or part of a building, from the eaves to the ridge. GALVANIZE: A lead and zinc bath treatment to prevent rusting. GAMBREL ROOF: A roof with 2 slopes on each side, the lower slope steeper than the upper. GARRET: An attic. GIRDER: A horizontal beam supporting the floor joists. GLAZING: Installation of glass in windows and doors. GRADE:

(1) Finished surface of ground around a building. (2) Refers to classification of the quality of lumber or plywood. GRADIENT: Inclination of a road, piping, or the ground, expressed in percent. GRAVEL STOP: Strip of metal with a vertical lip used to retain the gravel around a built-up roof. GREEN LUMBER: Lumber that still contains moisture or sap. GROUND-FAULT CIRCUIT INTERRUPTER (GFCI): An electrical device that breaks an electric circuit when an excessive leakage current is detected. Intended to eliminate shock hazards to people. GROUNDS: Wood strips fastened to walls before plastering which serve as edges for the plaster and nailing base for wood trim. GROUT: Thin cement mortar used for leveling and filling masonry cavities. GUSSET: Plywood or metal plate used to strengthen joints of a truss. GUTTER: Metal or wood trough for carrying rainwater to downspouts. GYP BOARD: Gypsum sheets covered with paper which are fastened to walls and ceilings with nails or screws. HALF TIMBER: Exterior wall construction having wood frame members exposed and the spaces between filled with stucco or masonry. HANGER: Metal strap used to support the ends of joists or piping. HARDPAN: A compacted layer of soils. HEAD: The upper frame on a door or window. HEADER: In framing, the continuous joist placed across the ends of floor joists, the double joists at each end of floor or ceiling openings attached to the trimmers, and the structural member above window or door openings. In masonry, exposed ends of masonry units laid horizontally. HEADROOM: Vertical clearance in a passageway or above a stairway, measured from the edge of the nosing. HEARTH: That part of the foor directly in front of the fireplace, and the floor inside the fireplace on which the fire is built. It is made of fire-resistant masonry. HEARTWOOD: Central portion of a tree, which is stronger and more decay-resistant than the surrounding sapwood. HEEL PLATE: A plate at the ends of truss. HIP RAFTER: Diagonal rafter that extends from the plate to the ridge to form the hip. HIP ROOF: A roof with sloping ends and sloping sides that meet at a ridge. HOSE BIBB: Water faucet made for the threaded attachment of a hose; also called a sill-cock. HOUSE DRAIN: Horizontal sewer piping within a building that receives wastes from the soil stacks. HOUSE SEWER: Watertight soil pipe extending from the exterior of the foundation wall to the sewer main. HUMIDIFIER: A mechanical device that controls the amount of water vapor to be added to the atmosphere. HUMIDISTAT: An instrument used for r measuring and controlling moisture in the air. I BEAM: A steel beam with an I-shaped cross section. INCANDESCENT LAMP: Lamp in which a filament gives off light. INDIRECT LIGHTING: Artificial light that is reflected from a surface before reaching source.

INSULATING BOARD: Any board suitable for insulating purposes, usually manufactured board made from vegetable fibers, such as fiberboard. INSULATION: Materials for obstructing the passage of sound, heat, or cold from one surface to another. INTERIOR TRIM: General term for all the finish molding, casing, baseboard, etc., applied within the building by finish carpenters. JACK RAFTER: Rafter shorter than a common rafter; especially used in hip-roof framing. JALOUSIE: A type of window consisting of a number of long, thin, hinged panels. JAMB: Vertical members of a finished door or window opening. JOINTURE: General woodworking term used for better-quality wood-joint construction. JOIST: Structural member which directly supports floors or ceilings and is supported by bearing walls, beams, or girders. KEYSTONE: A wedge-shaped detail at the crown of an arch. KILN: A heating chamber for drying lumber. KILN-DRIED LUMBER: Lumber that has been properly dried and cured (to 15 percent moisture content) resulting in a higher grade lumber than air dried. KING POST: In a roof truss, the central upright piece. KNEE BRACE: A corner brace, fastened at an angle from wall stud to rafter, stiffening a wood or steel frame to prevent angular movement. KNEE WALL: Low wall in upper story resulting from 1 1/2 story construction. KNOB AND TUBE: Electric wiring through walls where insulated wires are supported with porcelain knobs and tubes when passing through wood construction members. KNOCKED DOWN: Unassembled; refers to construction units requiring assembly after being delivered to the job. LALLY COLUMN: A steel column used as a support for girders and beams. LAMINATED BEAM: Beam made of superimposed layers of similar materiel (usually wood) by uniting them with glue under pressure. LANAI: A verandah or porch. LANDING: A platform in a flight of stairs. LAP JOINT: Joint produced by lapping and joining two similar members. LATH: Metal or gypsum sheeting used under plaster, stucco, and ceramic tile. LATTICE: Grillwork made by crossing small wooden strips. LAVATORY: A washbasin or room equipped with a washbasin. LEACHING BED: A system of trenches that carries wastes from sewers. It is constructed in sandy soils or in earth filled with stones. or gravel. LEADER: Vertical pipe or downspout that carries rainwater to the ground or storm sewer. LEAN-TO: A shed whose rafters lean against another building or other part of the same building. LEDGER: Strip of lumber fastened to the lower part of a beam or girder on which notched joist are attached. LINEAL FOOT: One-foot measurement along a straight line.

LINTEL: Horizontal support over a window or door opening. LOADS: Live load; the total of all moving and variable loads that may be placed upon a building. Dead load; the weight of all permanent, stationary construction included in a building. LOAD-BEARING WALL: Wall designed to support the weight imposed upon it from above. LOGGIA: A roofed open gallery, often on an upper level. LOOKOUT: Short, wooden framing member used to support an overhanging portion of a roof. It extends from the wall to support the soffit. LOT LINE: Line forming the legal boundary of a piece of property; also called property line. LOUVER: Opening or slatted grillwork that allows ventilation while providing protection from rain, sight, or light. MANSARD ROOF: A roof with two slopes on each side, with the lower slope being nearly vertical and the upper nearly horizontal. MANTEL: A shelf over a fireplace. MASONRY: General term for brickwork, stonework, concrete blockwork, or similar materials. MASTIC: Flexible adhesive for adhering building materials. MATTE FINISH: Finish free of gloss or highlights. MEETING RAIL: The horizontal rail of a double hung sash that fit together when the window is closed. MEMBER: A single piece of material used in a structure. METAL TIE: A strip of metal used to fasten construction members together. METAL WALL TIES: Strips of corrugated metal used to tie a brick veneer wall to framework. MILLWORK: Finish carpentry work or that woodwork done in a mill and delivered to the site; relates to interior trim. MINERAL WOOL: An insulating material made into a fibrous form from mineral slag. MITER JOINT: Joint made with ends or edges of two pieces cut at 45-degree angles and fastened together. MODULAR CONSTRUCTION: Construction in which the size of the building and the building materials are based on a common unit of measure. MODULE: Standardized unit of measure (e.g., 4", 12", or 4'-0", etc.) to unify construction. MOISTURE BARRIER: A material such as specially treated paper that retards the passage of vapor or moisture into walls and prevents condensation within the walls. MONOLITHIC: Term used for concrete work poured and cast in one piece without joints. MONUMENT: A boundary marker set by surveyors to locate property lines. MORTAR: A mixture of cement, sand, and water, used as a bonding agent by the mason for binding bricks and stones. MOSAIC: Small colored tile, glass, stone, or similar material arranged to produce a decorative surface. MUD ROOM: A small room or entranceway where muddy overshoes and wt garments can be removed before entering other rooms. MULLION: Structural support member between a series of windows. MUTIN: Small bar separating the glass lights in a window sash. NEWEL:

A post supporting the handrail at the top or bottom of a stairway. NORMAL SIZE: Size of lumber before dressing, rather than its actual or finished size. NONBEARING WALL: A dividing wall that does not support a vertical load. NONFERROUS METAL: Metal containing no iron, such as copper, brass, or aluminum. NOSING: The rounded edge of a stair tread. OBSCURE GLASS: Sheet glass that is made translucent instead of transparent. ON CENTER: Method of indicating spacing of framing members by stating the distance from center of one to center of the next. OUTLET: Any type of electrical box allowing current to be drawn from the electrical system for lighting or appliances. ORIENTATION: The positioning of a house on a lot in relation to the sun, wind, view, and noise. OVERHANG: Projecting area of a roof or upper story beyond the wall of the lower part. PALLADIAN WINDOW: A window arrangement with a half-round window on top of a wider rectangular window. PANELBOARD: The center for controlling electrical circuits. PARAPET: Low wall or railing at the edge of a roof; it extends above the roof level. PARGE COAT: Thin coat of cement mortar applied to a masonry wall for refinement or dampproofing. PARQUET FLOORING: Flooring, usually wood, laid in an alternating or inlaid pattern to form various designs. PARTICLE BOARD: Sheets made from compressed wood fiber. PARTITION: An interior wall that separates two rooms. PARTY WALL: Wall common to adjoining buildings in which both owners share, such as a wall between row houses or condominiums. PATIO: An open court. PEDIMENT: A triangular space formed in the middle of a gable; also used as a decoration above a door. PENNY: Term used to identify nail size. PERGOLA: Open, structural framework over an outdoor area, usually covered with climbing vines to form an arbor. PERIPHERY: Entire outside edge of an object or surface. PERSPECTIVE: A drawing of an object in a three dimensional form on a plane surface. An object drawn as it would appear to the eye. PIER: Support, usually in the crawl space, to support the floor framing. PILASTER: Rectangular pier attached to a wall for the purpose of strengthening the wall; also a decorative column attached to a wall. PILES: Long posts driven into the soil in swampy locations, or whenever it is difficult to secure a firm foundation, upon which the foundation footing is laid. PILLAR: A column used for supporting parts of a structure. PINNACLE: Projecting or ornamental cap on the high point of a roof. PLAN: A horizontal, graphic representational section of a building.

PITCH: Slope of a roof usually expressed as a ratio. PLANK: Lumber 2" thick or more and more than 4" wide, such as joists, flooring, and the like. PLASTER: A mortarlike composition used for covering walls and ceilings. Usually made of portland cement mixed with sand and water. PLASTERBOARD: A board made of plastering material covered on both sides with heavy paper. PLASTER GROUND: A nailer strip included in plaster walls to act as a gage for thickness of plaster and to give a nailing support for finish trim around openings and near the base of the wall. PLAT: A map or chart of an area showing boundaries of lots and other parcels of property. PLATE: Top or bottom horizontal members of a row of studs in a frame wall; also, the sill member over a foundation wall. PLATE CUT: The cut in the rafter that rests upon the plate. It is also called the seat cut or birdmounth. PLATE GLASS: A high-quality sheet of glass used in large windows. PLATFORM: Framing in which each story is built upon the other. PLENUM SYSTEM: A system of heating or air-conditioning in which the air is forced through a chamber connected to distributing ducts. PLOT: The land on which a building stands. PLOW: To cut a groove running the same direction as the grain of the wood. PLUMB: Said of a member when it is in true vertical position as determined by a plumb bob or vertical level. PLYWOOD: A piece of wood made of three or more layers of veneer joined with glue and usually laid with the grain of adjoining piles at right angles. PORCH: A covered area attached to a house at an entrance. PORTE COCHERE: A covered, drive-through structure that extends from the side of a home, providing shelter for people getting in and out of vehicles. PORTICO: A roof supported by columns; often used at an entry. PORTLAND CEMENT: A hydraulic cement, extremely hard, formed by burning silica, lime, and alumina together and then grinding up the mixture. POST: A perpendicular supporting member. POST & BEAM CONSTRUCTION: Wall construction consisting of large, widely spaced posts to support horizontal beams. PRECAST: Concrete shapes made separately before being used in a structure. PREFABRICATED BUILDINGS: Buildings that are built in sections or component parts in a factory, and then assembled at the site. PRIME COAT: First coat of paint applied to wood or metal to prime the surface for succeeding coats. PURLIN: Horizontal roof members laid over trusses to support roof decking. QUAD: An enclosed court. QUARRY TILE: Unglazed, machine-made tile used for floors. QUARTER ROUND: Small molding with a quarter-circle profile. QUARTER SAWED:

Lumber, usually flooring, that has been sawed so that the medulary rays showing on end grain are nearly perpendicular to the face of the lumber. QUOIN: A large, square stone or brick veneer set into the corners of masonry buildings for architectural style. RABBET: Groove cut along the edge or end of a board to receive another board. RADIANT HEATING: A system using heating elements in the floors, ceilings, or walls to radiate heat into the room. RAFTER: Inclined structural members used to frame a roof. RAGLIN: The open joint in masonry to receive flashing. RAKE: Inclined edge of a roof that overhangs the gable end. RANDOM RUBBLE: Stonework having irregular shaped units and no indication of systematic course work. REBAR: Steel reinforcing bar. REGISTER: The open end of a duct in a room for warm or cool air. REINFORCED CONCRETE: Concrete in which steel bars or webbing has been embedded for strength. RENDERING: The art of shading or coloring a drawing. RESTORATION: Rebuilding s structure so it will appear in its original form. RESTRICTIONS: Limitations on the use of real estate building materials, size, or design styles. RETAINING WALL: A wall to hold back an earth embankment. REVEAL: Side of an opening of a window or door. RHEOSTAT: An instrument for regulating electric current. RIBBON: Wood strip let into the studs to provide a bearing for joists. RIDGEBOARD: Horizontal wood framing member to which the top of rafters are attached. RIDGE CAP: A wood or metal cap used over roofing at the ridge. RIPRAP: Stones placed on a slope to prevent erosion. Also broken stone used for foundation fill. RISE: The vertical height of a roof. RISER: The vertical board in a stairway between two treads. ROCK WOOL: An insulating material that looks like wool but is composed of such substances as granite or silica. RODDING: Stirring freshly poured concrete with a vibrator to remove air pockets. ROLL ROOFING: Roofing material of fiber and asphalt manufactured in rolls. ROUGH FLOOR: The subfloor on which the finished floor is laid. ROUGH HARDWARE: All the concealed fasteners in a building, such as nails, bolts, and hangers. ROUGH-IN: Putting up the skeleton of the building. ROUGH LUMBER: Lumber as it comes from the saw. ROUGH OPENING: Any unfinished opening in the framing of a building. ROWLOCK: Brickwork with exposed ends setting vertically.

RUN: Horizontal distance of a flight of stairs, or the horizontal distance from the outside wall to the ridge of a roof. SADDLE: Small gable-like roof structure used to divert water and debris from intersection of sloping roof and chimney; also called a cricket. SAFETY FACTOR: The ultimate strength of the material divided by the allowable working load. the element of safety needed to make certain that there will be no structural failures. SAND FINISH: A final plaster coat; a skim coat. SAP: All the fluids in a tree. SASH: Individual frame into which glass is set; the movable part of a double-hung window. SCAB: A small wood member, used to join other members, which is fastened on the outside face. SCARF JOINT: Joint made with diagonal ends. SCHEDULE: Listing of finishes, doors, windows, etc. SCRATCH COAT: The first coat of plaster. It is scratched to provide a good bond for the next coat. SCREED: A guide for the correct thickness of plaster or concrete being placed on surfaces. SCUTTLE: Small opening in a ceiling to provide access to an attic or roof. SEASONING: Drying out of green lumber, either in an over or kiln or by exposing it to air. SECTION: The drawing of an object that is cut to show the interior. Also, a panel construction used in walls, floors, ceilings, or roofs. SEEPAGE PIT: A pit in which sewage drains from a septic tank, and which is so constructed that the liquid waste seeps through the sides of the pit into the ground. SEPTIC TANK: A concrete or steel tank where sewage is reduced to liquid and gases by bacterial action. About half the sewage solids become gases that escape back through the vent stack in the house. The liquids flow from the tank into the ground through a leaching field tile bed. SERVICE CONNECTION: The electric wires to the building from the outside power lines. SET: The hardening of cement or plaster. SETBACK: Distance from the property lines, front, side, and rear, to the face of building; established by zoning ordinances. SETTLEMENT: Compression of the soil or the members in a structure. SHAKES: Thick hand-cut wood shingles. SHEATHING: Rough covering over the framing of a building, either roof or wall, which is not exposed when finish material is applied. SHED ROOF: A roof slanting in one direction. SHIM: A piece of material used to fill in the space between two surfaces. SHINGLES: Thin pieces of wood or materials that overlap each other in covering a roof. The number and kind needed depend on the steepness of the roof and slope. SHIPLAP: Boards with lapped joints along their edges. SHOE MOLD: Small rounded molding covering the joint between the flooring and the baseboard. SHORING:

Lumber placed in a slanted position to support the structure of a building temporarily. SIDING: The outside boards of an exterior wall. SIDELIGHT: A vertical window beside a door or another window. SILL: Horizontal exterior member below a window or door opening. In frame construction, the lowest structural member that rests on the foundation. SILL-COCK: Water faucet made for the threaded attachment of a hose; also called a hose bibb. SKYLIGHT: An opening in the roof for admitting light. SLAB CONSTRUCTION: A reinforced concrete floor and foundation system. SLEEPERS: Wood strips placed over or in a concrete slab to receive a finished wood floor. SMOKE CHAMBER: The portion of a chimney flue located directly over the fireplace. SOFFIT: Underside of an overhang such as the eave, a second floor, or stairs. SOFTWOOD: Wood from trees having needles rather than broad leaves. The term does not necessarily refer to the softness of the wood. SOIL STACK: Vertical plumbing pipe that carries sewage. SOLAR HEAT: Heat from the sun. SOLE PLATE: The horizontal framing member directly under the studs. SPACING: The distance between two structural members. SPACKLE: To cover wallboard joints with plaster. SPAN: Horizontal distance between supports for joists, beams, or trusses. SPECIFICATIONS: The written or printed direction regarding the details of a building or other construction not included in the set of working drawings. SPIKE: A large, heavy nail. SPLICE: Joining of two similar members in a straight line. SQUARE: In roofing, 100 sq ft of roofing. STACK: A vertical pipe. STAKEOUT: Marking the foundation layout with stakes. STEEL FRAMING: Skeleton framing with structural steel members. STEENING: Brickwork without mortar. STILE: Vertical framing member of a panel door. STIRRUP: A metal U-shaped strap used to support framing members and pipes. STOOL: Horizontal interior member of the frame below a window. STOP: A small strip to hold a door or window sash in place. STORM SEWER: A sewer that is designed to carry away water from storms, but not sewage. STORY: Space between two floors of a building.

STRESS: Any force acting upon a part or member. STRESS COVER CONSTRUCTION: Construction consisting of panels or sections with wood frameworks to which plywood or other sheet material is bonded with glue so that the covering carries a large part of the loads. STRETCHER COURSE: A row of masonry in a wall with the long side of the units exposed to the exterior. STRINGER: One of the sides of a flight of stairs. The supporting member cut to receive the treads and risers. STRIPPING: Removal of concrete forms from the hardened concrete. STUCCO: Any of various plasters used for covering walls, especially an exterior wall covering in which cement is used. STUDS: Vertical framing members in a wall spaced at 16" or 24" o.c. SUBFLOOR: Material fastened directly to floor joist below the finish floor. SUMP: A pit in a basement floor to collect water, into which a sump pump is placed to remove water. SURFACE LUMBER: Lumber that is dressed by running it through a planer. SURVEYOR: A person skilled in land measurement. SUSPENDED CEILING: Finish ceiling hung below the underside of the building structure, either floor or roof. SWALE: A drainage channel formed where two slopes meet. TAIL JOISTS: Relatively shorter joists that join against a header or trimmer in floor framing. TAMP: To ram or compact the soil. TAR: A dark heavy oil used in roofing and roof surfacing. TEMPERED: Thoroughly mixed cement or mortar. TENSILE STRENGTH: The greatest longitudinal stress a structural member can resist without adverse affects (breaking or cracking). TERMITE SHIELD: Sheet metal used to block the passage of termites. TERRAZZO: Wear-resistant flooring made of marble chips or small stones embedded in cement matrix that has been polished smooth. THERMAL CONDUCTOR: Material capable of transmitting heat. THERMOSTAT: A device for automatically controlling the supply of heat and air. THRESHOLD: Wood, metal, or stone member placed directly below a door. THROAT: A passage located directly above the fireplace opening where a damper is set. TIE: A structural member used to bind others together. TIMBER: Lumber with a cross section larger than 4"x6", for posts, sills, and girders. TOENAIL: Nailing diagonally through a member. TOLERANCE: The acceptable variance of dimensions from s standard size. TONGUE: A projection on the edge of wood that joins with a similarly shaped groove. T-POST: Post built up of studs and blocking to form the intersection framing for perpendicular walls. TRANSOM WINDOW: A narrow horizontal window above a window or door, named for the cross bar on which it rests.

TRAP: U-shaped pipe below plumbing fixtures which provides a water seal to prevent sewer odors and gases from entering habitable areas. TRAY CEILING: A recessed ceiling resembling an upside-down tray; also referred to as a stepped ceiling. TREAD: The step or horizontal member of a stair. TRIMMER: The longer floor or ceiling-framing member around a rectangular opening into which headers are joined; both headers and trimmers are doubled. TRUSS: Structural unit of members fastened in triangular arrangements to form a rigid framework for support over long spans. TRUSS RAFTER: Truss spaced close enough (usually 24" o.c.) to eliminate the need for purlins. TURRET: A small tower usually on the corner of a building, most common in Victorian-style homes. UNDERPINNING: A foundation replacement or reinforcement for temporary braced supports. UNDRESSED LUMBER: Lumber that is not squared or finished smooth. VALLEY: The internal angle formed by two slopes of a roof. VALLEY JACKS: Rafters that run from a ridgeboard to a valley rafter. VALLEY RAFTER: Diagonal rafter at the intersection of two intersecting sloping roofs. VALVE: A device that regulates the flow of material in a pipe. VAPOR BARRIER: Watertight material used to prevent the passage of moisture or water vapor into and through walls and under concrete slabs. VAULTED CEILING: A ceiling that slopes up to a peak. VENEER CONSTRUCTION: Type of wall construction in which frame or masonry walls are faced with other exterior surfacing materials. VENT: A screened opening for ventilation. VENTILATION: The process of supplying and removing air by natural or mechanical means to or from any space. VENT PIPES: Small ventilating pipes extending from each fixture of a plumbing system to the vent stack. VENT STACK: Vertical soil pipe connected to the drainage system to allow ventilation and pressure equalization. VERGEBOARD: The board that serves as the eaves finish on the gable end of a building. VESTIBULE: A small lobby or entrance room. VITREOUS: Pertaining to a composition of materials that resemble glass. VOLUME CEILING: Any ceiling higher than the standard 8 feet. WAINSCOT: Surfacing on the lower part of an interior wall when finished differently from the remainder of the wall. WALLBOARD: Wood pulp, gypsum, or similar materials made into large rigid sheets that may be fastened to the frame of a building to provide a surface finish. WALL TIE: Small metal strip or steel wire used to bind courses of masonry to wood frame in veneer construction. WARP: Any change from a true or plane surface. Warping includes bow, crook, cup, and twist. WASH: The slant upon a sill, capping, etc., to allow the water to run off. WASTE STACK:

A vertical pipe in a plumbing system that carries the discharge from any fixture. WATERPROOFING: Material or construction that prevents the passage of water. WATER TABLE: Horizontal member extending from the surface of an exterior wall to throw rainwater away from the wall; also, the level of subsurface water. WEATHER STRIPPING: Strips of fabric or metal fastened around the edges of windows and doors to prevent air infiltration. WEEP HOLE: Small holes in masonry cavity walls to release moisture accumulation to the exterior. WELL OPENING: A floor opening for a stairway. WINDER: Stair tread that is wider at one end than the other, allowing the stairs to change direction. WYTHE: Pertaining to s single-width masonry wall. ZONING: Building restrictions as to size, location, and type of structures to be built in specific areas.

acceleration clause

A term in the contract which brings the maturity date of the loan forward if the borrower defaults, so that the Outstanding Balance is immediately due and payable.

accrual basis

Accounting procedure which recognizes revenue at the time it is earned, as opposed to when it is actually received. This method ties in with the Revenue Principle. Contrast with Cash Basis.

actual value

Actual value as determined by the assessor. This value, in thousands of dollars, when multiplied by the tax rate equals the amount of real property taxes payable.

adjacent

In law, implies that two or more properties are not widely separated, though they may not physically touch.

adjoining

In law, implies that two properties are contiguous or touching each other as opposed to adjacent to one another.

adjustment date

Date agreed to by both parties to a real property transaction for the adjustment of property taxes, rent, interest, and other items.

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.

agent

At common law, an agent is any person who contracts to act for or on behalf of another, who in turn, is known as the principal. The common law principles of agency apply to all levels of licensee, including brokerages, managing brokers, associate brokers and representatives, as defined by the Real Estate Services Act, when they are acting on behalf of a vendor or purchaser.

agreement for sale

A contract by which the owner of land (vendor) agrees to sell land to another (purchaser) who agrees 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 instalments.

airspace

Historically, one owned the airspace above a parcel of land "to the heavens". Today, airspace refers to the legal concept that a person who owns land also owns as much of the airspace above the land as he or she can effectively use.

amortization

The process of paying off a loan by periodic payments of blended principal and interest.

appraisal

The estimation of the value of a legal interest in land.

appreciation

The amount by which real property (or any other Asset) has increased in value.

arm's length transaction

Transaction in which the parties involved are not inclined toward making voluntary concessions to each other.

assessment

Appraisal, usually for real property taxation purposes.

a s s e t

Item of value owned by a business. Contrast to Liability.

a s s i g n

To transfer over to another. (e.g., "I assign all right, title and interest in Blackacre to my wife, Elaine.")

a s s o c

i a t e

b r o k e r

A licensee who meets the educational and experience requirements to be a managing broker, but who is providing real estate services under the supervision of a managing broker (formerly known as an "Agent 9.15" under the now repealed Real Estate Act).

A Mortgage that allows a purchaser to assume or take over the responsibilities and liabilities under the mortgage from the vendor.

A fund established by the B.C. provincial government to compensate any person who is deprived of land because of the operation of the Land Title Act in certain cases where there has been a fraud committed, a mistake made, or an improper act of the Registrar of Titles or his employees.

An estimate of the amount of rent that may become uncollectible from the tenants of occupied units (also known as collection loss allowance).

The amount of money the purchaser will be required to pay to the vendor to complete the purchase, after all adjustments have been made.

A financial statement listing Assets, Liabilities, and Owner's Equity at a specific point in time. Also known as a Statement of Financial Position or Statement of Assets and Liabilities.

Any payment of principal over and above the regular payment.

A single mortgage registered against two or more individual parcels of real property.

See constant payment loan or payment.

The portion of the face value of a mortgage loan which exceeds the funds actually received by the borrower and which is intended as additional compensation for the lender.

The original cost of a noncurrent asset less all depreciation claimed to date.

The original face value of the mortgage less the amount of principal repayment, or the mortgage amount outstanding at a particular point in time. At origination, the book value and face value are the same.

The process of determining the maximum amount that can be lent to a potential borrower, given his or her income and the Lending Value of the property to be purchased.

Incurring an obligation to repay a debt in order to invest or consume more than one currently owns.

Failure, without legal excuse, to perform any promise which forms the whole or part of a contract.

The square footage of floor space (or number of units) which must be rented in order for revenues to exactly equal expenses.

A licensee (often corporate) on behalf of which other licensees must provide real estate services.

A fee charged by a mortgage broker for arranging a loan.

A claim registered against the title to land by a contractor, supplier of materials or workman with respect to work done or materials supplied to improve that land.

Refers to a scheme of development which comes into existence where defined land is laid out in parcels and intended to be sold to different purchasers or leased or subleased to different tenants each of whom enters into a restrictive covenant with the common vendor or landlord agreeing that his particular parcel should be subject to certain restrictions as to use.

The amount that an owner of an income producing asset is allowed to deduct as an expense for Income Tax purposes as a result of ownership of that depreciable asset. Only one-half of the ordinary CCA may be claimed in the first year of the holding period; no CCA may be claimed in the year of sale.

The risk of losing all or part of an Investment. (Capital at risk is the estimate).

Changing a stream of income to a capital market value (current market value) using a required rate of return.

The return an investor requires for investing in a property to receive the annual net operating income flows. It can be estimated from similar properties by dividing their estimated net operating incomes by the prices at which the properties sell.

Accounting procedure which recognizes revenue at the time it is actually received in cash form. Contrast to Accrual Basis.

A calculation of the cash available at any point in time. The old cash balance plus all receipts less all disbursements will compute the current cash at hand.

See Market Value (of an offer).

A notice registered against the title to land warning those looking at the title that a claim has been made.

Abbreviation of Capital Cost Allowance.

The maximum price that a purchaser is willing to pay for a property. Compare to Floor Price.

A notice of a pending court action registered against the title to property for the purpose of warning all persons that the title to the property is in litigation and preventing dealings with respect to the property.

A document evidencing a debt owed by the borrower (mortgagor) to the lender (mortgagee). The mortgage is secured by the lender against personal property owned by the borrower as collateral to ensure the repayment of the debt. These mortgages are governed by the Personal Property Security Act.

Articles of personal property (i.e., a car, stereo, television, etc.) as opposed to real property.

A system whereby the law of a nation is set out in a comprehensive set of writings. An example of these writings or codes would be a Criminal Code for a country.

A mortgage which cannot be fully paid out before expiry of its term.

A statement prepared for a purchaser or vendor, showing the amounts to be received and paid out. The difference between these amounts represents either the balance payable (by the purchaser) or the cash proceeds from sale (to the vendor) upon completion of the transaction. See also Purchaser's Statement of Adjustment and Vendor's Statement of Adjustment.

A real estate syndicate organization in which two or more investors are owners of an undivided interest in real property.

A system of law made up of principles and rules of action based upon the ancient customs and usages of the people of a nation which have been recognized, affirmed or enforced by the courts.

An appraisal method which bases the value of the subject property on the price of similar properties which have sold recently. Also named the Market Method.

Date on which the purchaser's solicitor undertakes to the vendor (or his solicitor) that he will pay the balance owing to the vendor upon the Transfer of Title being accepted for registration.

Interest which, during the life of the loan, is charged or calculated at regular intervals and if not immediately paid (as in an interest only loan) will, in subsequent periods, earn interest itself (as in an interest accruing loan).

Indicates the number of times compound interest is charged or calculated per year (for example, semiannually or monthly).

A fundamental term of a contract, a breach of which allows the injured party to terminate the contract and/or sue for damages or Specific Performance.

Legal term for a "subject to" clause. In contract law, a condition precedent calls for the happening of some event or the performance of some act before the contract shall be binding upon the parties.

A contract for the sale of goods by which the seller reserves ownership (but not possession) of the goods until the price has been paid (usually by instalments). Such contracts are regulated by the Personal Property Security Act.

The legal term for the reason which induces a party to enter into a contract. Consideration may be in the form of a right, interest, profit or benefit accruing to one party. It may also be in the form of an agreement not to do something, or loss suffered by the other.

The accounting rule which states that once a firm has selected a method of recording financial transactions from a number of alternative options, all of which are acceptable under generally accepted accounting principles, it will apply those principles over subsequent accounting periods.

A loan which is repaid by equal and consecutive instalments that include principal and interest.

The act of spending money on goods which decrease in value after the time of purchase (for example, the purchase of bread or a refrigerator). Contrast to Investment.

An agreement between two or more persons which creates an obligation to do or not to do a particular thing.

A contract of purchase or sale of land which contains the obligations of the vendor and purchaser with respect to the purchase and sale.

The process of changing an interest rate with one compounding frequency to an equivalent rate with a different compounding frequency.

The process of transferring an interest in land from one person to another by way of a transfer document. Conveyancing usually refers to the transfer of title to land but also includes dealings such as assignments, leases, and mortgages.

In law, this refers to the distinct status of a corporation as a separate entity from its shareholders and corporate officers. Because a corporation is a separate entity, a person dealing with the corporation may not know the identities of the shareholders or officers. For example, the names of the owners of an incorporated business are not shown on its financial statements.

A business entity which is owned by shareholders who decide on the general policies of the company through their elected Board of Directors. A corporation is a separate legal entity and therefore has the rights and liabilities of an individual.

A method of appraisal which determines the value of a property by adding the market value of the site to the cost of replacing the existing building.

The cost to the business of manufacturing or purchasing the items actually sold.

A generally accepted accounting principle which states that the historical cost of an asset must be reflected in a company's Financial Statements.

A statement by the recipient of the offer which has the legal effect of rejecting the offer and of proposing a new offer to the offeror (who then becomes the recipient of the "new" offer).

An Act which, amongst other things, provides for the rights and remedies of individuals attempting to collect on judgments awarded by the Court.

For the purposes of this course a covenant is a promise contained within an agreement. The person making the covenant is called the covenantor and the person in whose favour it is made is called the covenantee.

An investigation of a loan applicant's ability to repay.

A person to whom a debt is owed. Contrast to Debtor.

Wear and tear or outmoded design which can be corrected at a cost that is economically feasible (e.g., worn carpeting). Contrast to Incurable Depreciation.

Those assets which will be converted into cash, sold, or consumed within one year or the normal operating cycle of a business, whichever is longer. Current Assets may include Cash, Marketable Securities, Accounts Receivable, Inventories, and Prepaid Expenses. Compare to Noncurrent Assets.

The amount of money it would be necessary to spend today to reconstruct existing improvements. See also Historic Cost.

Those Liabilities which are expected to be paid within one year. Current Liabilities may include Accounts Payable, Property Taxes Payable, Wages Payable, and Income Taxes Payable.

In appraisal, the date for which the value of the subject property is established, not to be confused with the date at which the appraisal takes place.

The number of times net operating income must cover the annual mortgage payments (principal and interest). For example, if the lender requires the borrower to earn $1,100 in net income to allow him $1,000 in annual mortgage payments, the ratio is 1.1:1. The lender usually states the ratio as a number exceeding one (i.e., 1.1) and the maximum allowable loan payment can then be calculated by dividing N.O.I. by the number supplied (i.e., $1,100 1.1 = $1,000.) See also Ratio.

Incurring an obligation to repay a debt in order to invest or consume more than one currently owns.

The making of mortgage payments by the borrower, as arranged with the lender.

One who owes a debt. Contrast to Creditor.

A fraudulent or deceptive misrepresentation used by one person to deceive or trick another person ignorant of the true facts.

A document used to transfer an interest in land from one party to another.

The legal term for the granting of a Lease.

An amount deposited with the brokerage by the purchaser when an offer to purchase is made.

The amount by which the value of improvements has decreased over time as a result of wear and tear or changes in taste. Depreciation can be classified as physical or functional and curable or incurable. See also Depreciation Expense and compare to Capital Cost Allowance.

The periodic cost of owning depreciable assets which are subject to wear and tear, such as buildings and equipment. No depreciation expense can be taken on land. Depreciation expense is a method of accounting for the initial cost of an asset in its subsequent periods of use.

A document prepared by the developer of a subdivision to ensure that investors or purchasers have adequate information upon which to base a purchasing decision.

A schedule showing the face value of the loan, all costs associated with issuing the loan to the borrower, and the effective annual rate as required by the B.C. Mortgage Brokers Act.

The process of expressing expected future income in terms of a present value.

A legal term for a landlord's right to seize and sell a tenant's personal property in order to recover arrears of rent.

The process of investing funds in more than one project or industry in order to reduce the risk of incurring unexpected losses. The opposite of "putting all your eggs in one basket."

A real estate syndicate organization in which the investors are the individual owners of the (condominium) units.

That part of a corporation's after-tax income that is distributed to the shareholders.

Land to which the benefit of a right (i.e., an easement or restrictive covenant) is attached.

A situation where a person is forced to enter into a contractual relationship against his will by the threat of imprisonment either to himself or his family, or the threat of actual physical force.

A limited right of use of another's land by a landowner for the benefit of his land. The land receiving the benefit is called the dominant tenement and the land granting the benefit is called the servient tenement.

The time span over which a property is employed in its Highest and Best Use.

ve annual rate

An annual interest rate which is compounded once a year. This rate is used for disclosure purposes under the B.C. Mortgage Brokers Act.

encroachment

A fixture, such as a wall or fence, which illegally intrudes into or invades on public or private property, diminishing the size and value of the invaded property.

encumbrance

A judgment, mortgage or lien or any other claim which is registered against the title to land.

equitable mortgage

The transfer of equity in property as security for a debt. Technically, any mortgage registered on title subsequent to the first mortgage (i.e., second or third mortgage).

equity (in common law)

The concept of justice being administered by the Courts according to fairness as contrasted with the strictly formulated rules of common law. In law the term "equity" denotes the spirit and habit of fairness, justness, and right dealing which would regulate interaction of men with men.

equity (in mortgage finance)

The difference between a property's market value or purchase price and the debt incurred to purchase the property.

equity of redemption

The mortgagor's right to repay the mortgage.

equivalent rate

Two interest rates are equivalent if, for the same amount borrowed, over the same period of time, the same amount is owed at the end of that period of time.

escalator clause

A term in a commercial lease which allows the landlord to charge the tenant for any increases in specified operating expenses.

execution

The process of commencing proceedings to collect an amount owing by reason of a judgment.

F

face value of a loan

The loan amount which must be repaid at a stated rate of interest according to the contract terms.

fee simple

The legal term for the maximum interest in land available to a person, or the maximum of legal ownership. Equivalent in many ways, for practical purposes, to absolute ownership.

fiduciary

A person who holds a position of trust with respect to someone else and is obliged, by virtue of the relationship of trust, to act solely in the other person's benefit.

final payment

The last instalment that is made on a fully amortized loan. It is usually smaller than the preceding periodic payments.

financial statement

A numerical presentation of particular aspects of a business. Common financial statements include the Balance Sheet and the Income Statement.

first-year half-rate rule

In the year an asset is purchased, only one-half the maximum allowable CCA may be claimed.

fiscal year

Any period of twelve consecutive months chosen by a business as its accounting period.

fixed expenses

Those costs which will be incurred irrespective of the extent to which a property is occupied.

fi xt ur e

A chattel attached to real property; anything which has become so attached to the land as to form, in law, part of the land.

f l o o r

p r i c e

The minimum price that a vendor is willing to accept for a property. Compare to Ceiling Price.

f o r e c l o s u r e

A legal action taken by a mortgagee to obtain possession of a property, by reason of the mortgagor's default in payment of the principal and/or interest of the mortgage debt.

A legal doctrine that provides that where the existence of a specific thing is necessary for performance of the contract, the duty to perform is discharged if the thing, for reasons beyond anyone's control, is no longer in existence at the time for performance.

Loan which is repaid completely by a series of payments over the full duration of the amortization period.

The loss in value caused by outmoded or inadequate design (e.g., small closets in a residential property) which may be curable or incurable. See Curable Depreciation and Incurable Depreciation. Compare to Physical Depreciation.

Any lump sum which is payable or will have been accumulated some time from now.

A form of organization in which two or more persons carry on a business with a view to profit. Each general partner assumes unlimited liability. The partnership is not a taxable entity; net income is distributed to the partners who, in turn, must report this income on their personal income tax return. Compare to Limited Partnership.

The rules and guidelines followed in the preparation of Financial Statements. They include the Cost Principle, the Revenue Principle, the Matching Principle, the Objectivity Principle, the Consistency Principle and the Fiscal Year.

The amount by which the purchase price of a business exceeds the fair market value of its net assets. This extra amount could be attributed to factors such as the value of good customer relations, high employee morale, a well-respected business name, or other intangible attributes of the business which are not quantifiable, but contribute to purchasers' expectations for the income potential of the business.

An innovative loan arrangement in which the periodic payments made by the borrower increase in size over all, or a portion of, the term of the mortgage contract.

The percentage of gross income which is the maximum amount a mortgagor is allowed to pay annually in principal, interest, and property taxes. For example, a mortgagor may pay $270 out of $1000 gross income as P.I.T. payments. This ratio is usually expressed as a percentage i.e., P.I.T. payments can be 27% of gross income. Compare to Loan-to-Value Ratio. See also Ratio and Total Debt Service Ratio.

The amount earned through employment or investment before taking taxes or other deductions into consideration. This amount may or may not be the same as gross income for purposes of mortgage lending.

A lease in which the landlord pays for all the operating expenses. Contrast to Net Lease.

The rent which would be collected if all units were leased at market rents.

Similar to Gross Potential Rent, except it also includes income from other sources such as parking income or laundry income (in the case of an apartment building, for example).

Gross Potential Rent less Vacancy Allowance and Bad Debt Allowance.

Gross Potential Revenue less an allowance for Vacancy and Bad Debt. Note that different rates may be used for the different income sources (i.e., 5% vacancy rate for units, 2% vacancy rate for parking spaces).

One who becomes contingently or secondarily liable for another's debt or performance.

That use of land which, within all constraints (for example, zoning bylaws), will provide the maximum net return during the foreseeable future.

The actual amount of money spent at the time the asset was purchased or the improvements were built. See also Current Cost.

One of two tests which determines whether an investment unit is a security. The other test is called the Risk Capital Test.

A market in which (similar) properties are traded for either more or less than actual Market Value.

A structural addition to the land which can be considered to be a fixture.

An appraisal method, also called the Investment Method, which is typically used for income producing properties. It converts the income stream produced by the property into a market value for the property by using a Capitalization Rate.

A financial statement which lists the revenues and expenses of a business organization for a stated period of time. Also called a profit and loss statement.

That part of taxable income which a person or corporation is required to forward to Revenue Canada periodically.

Wear and tear or outmoded design which can only be corrected at considerable expense and, in fact, correction may be cost-prohibitive (e.g., narrow hallways). Contrast with Curable Depreciation.

A legal principle. In B.C., subject to certain statutory exceptions, the Title Register is conclusive evidence that the person named as holding an estate in land is in fact entitled to that interest, and his holding is not subject to any condition or encumbrance other than those shown on the Title Register.

A document or deed, expressing certain objects between two or more parties.

In B.C., a person under 19 years of age which, generally speaking, is the age of legal competence.

A rise in the average price level.

A court order which either restrains a party from doing something or requires a party to do something.

The estimated value of a property for insurance purposes.

The dollar value which represents the cost of borrowing or the benefit of lending money.

Debt which is paid off as one lump sum, including principal plus accumulated compound interest.

The process of calculating compound interest payable on the amount borrowed between the day the monies are advanced and the day the amortization period starts.

The percentage rate that represents the cost of borrowing or the benefit of lending money.

A loan which is serviced by interest-only payments. At the end of the term the full principal plus interest for the last payment period of the loan is still owing.

The spending of capital today in order to receive benefits in the future (e.g., the purchase of a Canada Savings Bond which pays interest periodically). Contrast to Consumption.

A type of advertisement used by one to induce the public or some individual to submit their own offers. An invitation to treat is not an offer capable of acceptance to form a contract.

Where two or more persons acquire an equal undivided interest in a property. When one person dies, that person's share automatically goes to the survivor or survivors.

A type of business where two or more business organizations cooperate in a particular undertaking. Profits or losses are shared by the participants and taxed in their hands.

An award granted to a successful party to litigation by the court. The award may include a specific amount of money to be paid to the successful party by the unsuccessful party to the litigation.

The collection of legal decisions out of which legal principles or rules emerge.

A hidden or concealed defect that would not be discovered during the course of a reasonable inspection.

The value possessed by a property which has potential for redevelopment because it is currently not employed at its Highest and Best Use.

The support provided to one piece of land by the land which lies next to it.

An instrument granting exclusive possession of land to another for a specified term, usually at a rent. The one who grants the lease is called the Landlord (or Lessor) and the one to whom it is granted is called the Tenant (or Lessee ).

The estimated value of a property for lending purposes. It is a long-term, conservative estimate of the value of the security as determined by the lender and, therefore, does not necessarily equal Market Value or Sales Price.

The partial use of debt to finance investments. The use of debt can magnify the potential variations of yields on the equity portion of the investment.

Monies owed by a business. Contrast to Asset.

With respect to real property, a privilege to enter onto premises for a certain purpose. However, this privilege does not confer upon the licensee any title, interest or estate in such property (e.g., exclusive

right to possession of the property). Examples of a licence include a hotel suite where monthly rates may be available but the innkeeper has the right to enter the suite at his pleasure.

A claim or charge on real or personal property for payment of some debt, lien obligation or duty.

An interest in land to be enjoyed during a person's life, and which ends on that person's death.

The form of Life Estate where the measuring life is that of some other person. (e.g., A man may grant a life estate pur autre vie to his deceased son's wife [his daughter-in-law] for the life of his grandchild. If the grandchild dies, the daughter-in-law loses her interest.)

The principle that a shareholder or limited partner cannot be held liable for more than he has paid into (or agreed to pay into) the firm. Contrast to Unlimited Liability.

A form of organization in which two or more persons conduct a business. It consists of one or more limited partners and one or more general partners. A general partner assumes unlimited liability but a limited partner has limited liability. Compare to General Partnership.

A specific sum of money expressly stipulated by the parties to a contract as a pre-estimate of the amount of damages to be recovered by either party for a breach of the contract by the other.

The degree of ease and certainty with which an asset can be converted into cash.

A contract between an owner (vendor) and a real estate licensee whereby the licensee agrees to try to find a purchaser for the listed property in return for the vendor paying a stipulated amount of commission should the licensee be successful.

The value at which a property is advertised for sale.

The percentage of lending value which determines the maximum loan available. See Ratio. Compare to Gross Debt Service Ratio or Total Debt Service Ratio (for residential underwriting) and Debt Coverage Ratio (for commercial underwriting).

A study of a property and the factors which affect it. The survey includes an analysis of the region, the market, the neighbourhood, and the property and also presents a study of the economics of alternatives, a financial analysis, and a management plan.

The licensee responsible for a brokerage, and who is responsible for exercising the rights conferred on the brokerage as well as for the performance of the duties imposed on the brokerage by its licence. In addition, the managing broker is responsible for the control and conduct of the brokerage's real estate business, including the supervision of its related licensees. Sometimes also meaning the human representative of a corporate real estate brokerage. See the Real Estate Services Act, sections 5 and 6.

See Comparative Method.

The prevailing interest rate, at any given point in time, at which financing or refinancing can be expected.

In appraisal, the expected or forecasted sales price.

The amount of cash which would have to be received today that equals the downpayment plus the present value of the mortgage loan discounted at the market rate.

A generally accepted accounting principle which states that expenses should be recognized in the same period as the revenues with which they are associated.

The date on which the balance owing on a mortgage becomes due; the final day of the term of a mortgage.

A system of land description whereby all boundary lines are set forth by use of terminal points, directors, and angles - mete referring to a limit or limiting mark, the bounds referring to boundary lines.

A false assertion of fact which, if accepted, leads one to an incorrect belief about a given situation.

A legal term which describes the situation where a person, under some erroneous conviction of law or fact, does, or omits to do, some act which but for the erroneous conviction, he would not have done or omitted doing.

The legal doctrine of "mitigation" imposes upon an injured party a duty to exercise reasonable diligence and ordinary care in attempting to minimize his damages after injury has been inflicted.

A document evidencing a debt owed by the borrower (mortgagor) to the lender (mortgagee). Registration of the mortgage in the Land Title Office transfers the mortgagor's interest in land to the mortgagee as security for the repayment of the debt.

The lender.

The borrower.

Generally, a necessary is an article indispensable or proper and useful, for the sustenance of human life (i.e., food, drink, clothing, medical attention).

A legal term for the failure to use such care as a reasonably prudent and careful person would use under similar circumstances; it is the doing of some act which a person of ordinary prudence would not have done under similar circumstances or failure to do what a person of ordinary prudence would have done under similar circumstances.

A legal principle which provides that if, in the ordinary course of business, a person seeks information or advice from another who possesses special skills in circumstances in which a reasonable man would know that his special skills were being relied upon, and the person asked chooses to give the advice without clearly qualifying his answer so as to show that he does not accept responsibility if it is incorrect then he accepts a legal duty to exercise such care as the circumstances require. If he is incorrect he may be liable for his negligent misrepresentation.

The amount by which revenues exceed expenses in any given time period. Contrast to Net Loss.

A Lease in which the tenant pays some or all of the operating expenses. See also Triple Net Lease. Contrast to Gross Lease.

The amount by which expenses exceed revenues in any given time period. Contrast to Net Income.

Gross Potential Revenue less Vacancy Allowance, Bad Debt Allowance, and total Operating Expenses. This amount is calculated excluding Income Tax, Mortgage Payments, and Depreciation Expense or Capital Cost Allowance.

The face value of a loan less all brokerage fees, legal fees, appraisal costs and other charges.

An interest rate quoted as a rate per annum; it is equal to the interest rate per compounding period multiplied by the number of compounding periods. (For example, j2 = 10%; j4 = 12%; j12 = 11.5%).

Under the now-repealed Real Estate Act, the nominee was the equivalent of the managing broker.

Those assets that will not be sold within one year or the normal operation cycle of a business. Noncurrent Assets may include property, plant, and equipment. Compare to Current Assets.

Those liabilities which are not expected to be paid within one year.

A novation refers to a creditor's acceptance of a 3rd party in place of the debtor so that the 3rd party becomes the debtor and the original debtor is released by the creditor from having to pay off the debt.

ity principle

A generally accepted accounting principle which states that all recorded financial information is based upon objective and verifiable data.

offer

A proposal to do or refrain from doing some specified thing usually followed by an expected acceptance, counter-offer, return promise or act. The person who makes the offer is called the offeror. The recipient of the offer is called the offeree.

offering memorandum

A condensed version of a prospectus.

open listing

A listing given to any number of licensees without liability to compensate any except the licensee who first acquires a buyer ready, willing and able to meet the terms of the listing; the sale of the property automatically terminates the listing.

operating expenses

Those costs which have to be incurred to keep any business going, including the business of renting real property. See also Fixed Expenses and Variable Expenses.

option to purchase

A right conferred by a contract to accept or reject an offer to buy property within a certain time.

outstanding balance

The amount owing to the lender at any specified time, whether it is to be repaid over an amortization period or in a lump sum at the end of the term.

owners' equity

A classification on the balance sheet. Equal to Total Assets less Total Liabilities.

P

partial amortization

A loan repayment scheme in which the term is shorter than the amortization period. Whereas the loan payments will be calculated as if the loan will be paid back over the full amortization period, at the end of a specified term the outstanding balance is due and payable.

partnership

See General Partnership and Limited Partnership.

patent defect

A defect which is plainly visible or which can be discovered during the course of a reasonable inspection.

payment

A periodic instalment that is made to service a debt. For an interest-only loan, the payment consists of interest; for a constant payment loan, the payment consists of interest and principal.

percentage lease

A lease agreement which specifies that the tenant will pay the Landlord:

periodic rate

The interest rate which is charged per compounding period (for example, per month or per day).

periodic tenancy

A tenancy which automatically renews itself on the last day of the term for a further term of the same duration until terminated by either party.

physical depreciation

The loss in value due to wear and tear (e.g., peeling paint) which may be curable or incurable. See Curable Depreciation and Incurable Depreciation. Compare to Functional Depreciation.

pooling agreement

An agreement between investors who have a direct ownership in real property to share revenues and expenses generated by individual rental units.

portable mortgage

A borrower can transfer the terms, conditions and interest rate of his or her current mortgage to the home the borrower would like to purchase.

pos sess ion date

Date on which the purchaser is entitled to possession of the property.

p o w e r

o f

a t t o r n e y

A document conferring authority to one person to act as another's agent on his or her behalf.

p o w e r

o f

s a l e

A clause inserted into a mortgage giving the mortgagee the right and power, on default in the payment of the debt secured, to advertise and sell the mortgaged property at public auction to satisfy the mortgage debt, without the necessity of foreclosure proceedings.

The act of fully or partially paying off the outstanding balance of a loan at any point during the term of the loan at a time earlier than set out in the contract.

The current equivalent of a future dollar amount.

That portion of the original amount borrowed which still has to be paid back to the lender.

The law that deals with disputes between two or more individuals.

A legal term for wrongfully allowing the escape of injurious things onto another person's land or the wrongful disturbance of an easement or other interest granted over land.

A financial statement which shows expected future revenues and expenses.

The part of law which sets out the methods of determining and enforcing rights as between parties.

A right to take the produce or part of the soil from the lands of another. For example: minerals, oil, stones, gravel, etc.

See Income Statement.

A guarantee to the registered owner or mortgagee of an interest in land that after a specified hazard (for example, a fire) the value of the interest in land can be restored.

A business enterprise that is owned by a single owner who assumed unlimited liability. The proprietorship is not a taxable entity; the profits or losses of the business are reported on the owner's personal income tax return.

The law that regulates disputes between individuals and the public as a whole (i.e., the state). The term "public" may be: (i) general (applying to all persons within the jurisdiction); (ii) local (applying to a geographical area); (iii) special (relating to an organization or authority charged with a public interest).

A legal term for some unlawful act or omission which endangers the safety or comfort of the public or some section of the public.

A closing statement in a real property transaction which indicates the balance of cash required from the purchaser to complete the transaction. See also: Closing Statement.

Literally, "as much as he deserves". A doctrine that no one who benefits by the labour and materials of another should be unjustly enriched thereby; under those circumstances, the law implies a promise to pay a reasonable amount for the labour and materials furnished, even though a specific contract price may not have been agreed to.

A matrix which is used to make adjustments to comparable properties in order to derive the value of the subject property when using the market comparison method of appraisal.

A ratio expresses one value in terms of another value; e.g., one out of every four houses is painted white. It can be stated as a fraction, one-quarter (1/4) of the houses are white; as a percentage, twenty-f