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Copyright © 2010, Prud'Homme, Mercier & Associates. All Rights Reserved.
This site has been created by Prud'Homme, Mercier & Associates. The glossary is based on free translation and should be considered as an on going process. Mistakes and omissions could subsist. Your comments and input are welcome.
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Quantity Survey Method The most comprehensive and accurate method of cost estimating is the quantity survey method. A quantity survey is a computation that reflects the quantity and quality of aIl materials used and aIl categories of labour hours required. Unit costs are applied to these figures to arrive at a total cost estimate for materials and labour; then the contractor adds a margin for contingencies, overhead, and profit.
Unit-In-Place Method ln the unit-in-place, or segregated-cost, method, unit costs for various building components as installed are applied to the number of components or to linear, area, volume, or other appropriate measures of these components. Using this method, the appraiser computes a unit cost based on the actual quantity of materials used plus the labour of assembly required for each square metre of area. The costs are taken out of guides of which the most widely spread are "Marshall & Swift Valuation Service" and the "Manuel d'affaires municipales du Québec".
Comparative-Unit Method The comparative-unit method is used to derive a cost estimate in terms of dollars per unit of area or unit of volume. The method employs thknown costs of similar structures adjusted for market conditions and physical differences. Indirect costs may be included in the unit cost or computed separately. If the comparable properties and the subject property are in different construction markets, the appraiser may need to make an adjustment for location.
Cost-Index Trending Method The Cost-Index Trending Method assumes that the replacement cost is simply the original construction cost times a cost index.
- Damage caused by the tenant beyond normal wear and tear,
- Any unpaid rent or bills, and
- Any costs to the landlord if the tenant vacates without proper notice.
AACI
Accredited Appraiser Canadian Institute designation from the Appraisal Institute of Canada.
Accrued Depreciation
The difference between an improvement’s cost new and its value as of any given date. Depreciation is defined as a loss in utility and hence values from any cause. There are three (3) types of depreciation: physical deterioration, functional obsolescence and economic obsolescence.
Depreciation can be measured in many ways, such as: - Depreciation Tables: (variant from Sales comparison method) elaborated throughout commercial Cost Manuals (ex: Marshall & Swift). - Sales Comparison Method: based on sales comparable to the subject building. The appraiser determines for each sale the sale price allocation to the building which is then deducted from the estimated reproduction or replacement cost new of building. - Breakdown Method: where each cause of depreciation is analyzed and measured separately for each of the components of the construction based on the appraiser's observations, experience and judgment. The appraiser then totals the estimates to derive a lump-sum figure that is deducted from the estimated reproduction or replacement cost of building. - Economic Age-Life Method: where the ratio between the effective age and total economic life of a building is applied to the cost of improvements. - Allocation Method: which allows the appraiser to identify, to analyze and to measure each cause of depreciation separately. The sum of all types of depreciations (i.e.: physical deterioration, functional obsolescence and economic obsolescence) is then deducted from the estimated reproduction or replacement cost of building.
Acquittal or Quittance
Written release from which a Creditor declares the debtor is free of any debt, obligation, or penalty towards him. Withdrawal of all mortgage and financial charges from a property.
Acre
A measure of land equalling 4,840 square yards, or 43,560 square feet.
Active Asset
An asset that is used by a business in its daily or routine operations. Active assets can be tangible, such as buildings or equipment, or intangible, such as patents or copyrights.
Ad Valorem
A Latin phrase meaning "according to value". Usually used in connection with real estate taxation.
Affidavit
An affidavit is a formal sworn statement of fact, signed by the author, who is called the affiant or deponent, and witnessed as to the authenticity of the affiant's signature by a taker of oaths, such as a notary public or commissioner of oaths. The name is Medieval Latin for "he has declared upon oath".
Air Rights
The rights in real property to the reasonable use of the air space above the surface of the land.
Alluvium
The gradual increase of the earth on a shore of an ocean or bank of a stream resulting from the action of the water (from the Latin, alluvius, from alluere, "to wash against").
Amortization
The deduction of capital expenses over a specific period of time usually over the asset's life. It is not a cash outflow. It is an accounting statement of the lessening of the potential of service of an asset caused by wear, obsolescence, or any other causes.
An act respecting municipal taxation
R.S.Q., chapter F-2.1
Annual Report
Audited document required by the AMF and sent to a public company's or mutual fund's shareholders at the end of each fiscal year, reporting the financial results for the year (including the balance sheet, income statement, cash flow statement and description of company operations) and commenting on the outlook for the future.
Applicant
The borrower which requests or seeks a loan.
Appraisal Methods
When appraising a property, and depending on the type of property, data is sought in the market on such factors as sales and/or offerings of similar improved properties or parcels of vacant pieces of land, as well as current prices at the appraisal date for construction materials and labor, rentals of similar properties and their operating expenses, and current rates of return on income producing properties. From this data, a value may be developed both for the land and its improvements, as a whole.
When applying the three (3) recognised methods in real estate appraisal, we tend to analyse the data in our possession and estimate the probable market value of the subject property.
These methods are as follows: the Cost Approach, the Income Approach and the Direct Comparison Approach.
Arms Length Transaction
Transaction in which the two parties are unconnected and have no overt common interests. Such a transaction most often reflects the true market value of a property.
Assemblage
Combining of 2 or more abutting parcels of land.
Assessment Roll
The assessment roll, which represents the inventory of all properties in a given jurisdiction, indicates the value of each property on the basis of its actual or commercial value, within the meaning of articles 43 to 45 of the L.F.M. It covers all the residential, commercial, industrial, institutional, agricultural and vacant properties. The values which are registered take account of the real market values on July 1st of the second fiscal year preceding the first for which it is conceived.
Assessment Unit
In municipal assessment, is an assessment unit the largest possible group of immoveables which fulfil the following conditions:
(1) the land or pieces of land belongs to a same owner or a group of undivided owners; (2) the pieces land are contiguous or would be if they were not separated by a river; (3) if the immoveables are used, they are in a same predominant end; and (4) immoveables can normally and on short-term be sold but as a whole and not in parts, considering the most likely use that can be made.
Assessor
A person with technical expertise called in Court to assist and advise a judge or magistrate and in many instances to act as surrogate. Usually selected for special knowledge in a particular area.
Asset
A resource with economic value that a corporation or an individual owns or controls with the expectation that it will provide future benefit.
Assumption
That which is taken to be true.
Audit
The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. Audits are performed to ascertain the validity and reliability of information; also to provide an assessment of a system's internal control. The goal of an audit is to express an opinion on the person / organization/system (etc) in question, under evaluation based on work done on a test basis.
B.T.U.
British thermal unit. Measure unit for thermal energy. The quantity of heat required to raise the temperature of one pound of water one degree Fahrenheit. This measure is widely used to designate the power of air conditioners. To convert a power from BTU to watt divide the Btu power by 3 414,5 to obtain the power in kWh. (1 Kwh = 3 414,5 BTU)
Bad Debt or Outstanding Debts
Estimated accounts receivable amount shown in an income statement (profit and loss account) as irrecoverable.
Bad Debt Reserve
(See: Bad Debts or Outstanding Debts)
Bailiff
Bailiff, sheriff's deputy employed for the execution of judgements (eg, seizure of judgement debtor's goods, repossession of chattels, and evictions); also, an officer of the court having custody of prisoners under arraignment. Individuals may be appointed to carry on business as bailiffs in counties where they are needed for the public convenience.
Balance Sheet
In financial accounting, a balance sheet or statement of financial position is a summary of the financial balances of a company. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year.
Bank Guaranty
A bank guarantee is a bank's commitment to advance funds to a third party should the bank’s client default on the guaranteed obligations.
Bank Rate
The minimum rate at which the Bank of Canada extends short-term advances to chartered banks and other financial institutions members of the Canadian Payments Association. It is the reference rate for the preferred rates fixed by the financial institutions.
Bankruptcy
A bankruptcy is triggered when a company can no longer meet its short-term commitments and thus faces a liquidity crisis. Bankruptcy happens because a company does not make enough profits, and not because of significant debts.
Base Rate
Base rates are interest rates of the day fixed by the Central Bank of a country or a monetary Union, which enables it to regulate economic activity.
These rates are those remunerated by banks and financial institutions for their cash surpluses placed by the Central Bank, and the rate at which can borrow these same economic agents of the Central Bank (refinancing rate and discount rate).
These rates allow, by fixing the "cost of money" on monetary market, to regulate economic investment and thus encourage the economic activity in periods of low growth, or slowdown the over-investment (in unprofitable projects) during periods of inflationary overheating.
Base rates thus influence growth and exchange rate. An increase in the base rates can lead to a new appreciation of the relevant currency.
Board of Directors
The primary mandate of the CA is to manage the affairs of the union and to exercise all powers necessary to that end. It has essentially the union’s executive.
The duties and obligations of the Board are: the conservation of the building, coordination and management of common areas, the protection of collective rights, maintain records of ownership and respect for the declaration of condominium.
Bona Fide
In good faith; without fraud or deceit; authentic.
Bond
A certificate received for a loan made to a company or government. In return, the issuer of the bond promises to pay the lender interest at a set rate and to repay the loan on a set date.
Book Value
The book value of an asset is the value it is given in the account books of the company that owns it. The book value corresponds to the original cost of the asset less its accrued amortization.
Brief historic of municipal legislation
In 1855, there is the creation, through a general law, of the institution of the municipality (Baldwin Law). At that time, there were already two levels: Parishes/Villages/Cities. Nowadays: local municipality and township equivalent today to the regional municipality (MRC), with certain responsibilities inter-municipal).
In 1870, adoption of a municipal code (that still exists today) for the rural world.
In 1876, adoption of the Act of the cities and towns for the urban world (Cities and towns are not distinct nowadays).
These two laws conferred different powers (ex. aqueduct in the cities, agricultural inspectors in the countryside). Often amended since, there are many connections but also fewer distinctions although less and less, we predict the overhaul of both laws into one.
Institutions created to control municipal institutions: In 1918, creation of the Minister of Municipal Affairs.
In 1932, creation of the Municipal Commission (administrative and quasi-judiciary organism surveying the application of certain laws).
In 1971, creation of the Bureau de révision de l’évaluation foncière (BREF), now integrated to the Tribunal administratif du Québec (TAQ).
Several cities have a Charter (old meaning) including Montreal, which may confer some additional special powers. These are so-called "private", laws which are not of general application. The rule nowadays is that a municipality is governed by its Charter interpreted strictly and otherwise by relevant law interpreted more broadly, to which the Charter is often referred to. There are also patent letters, which are based on a slightly different model.
Cadastre
The Québec cadastre shows all the properties of the province on a plan, and identifies them by a lot number. The plan indicates the dimensions, area, shape and position of a given property in relation to adjacent properties. The cadastre is a land register which consist of many plans and documents prepared by land surveyors.
Canada Mortgage and Housing Corporation (CMHC)
The National Housing Act (NHA) authorized Canada Mortgage and Housing Corporation (CMHC) to operate a Mortgage Insurance Fund which protects NHA Approved Lenders from losses resulting from borrower default.
Canada Savings Bond (CSB)
A non-marketable security instrument issued by the Government of Canada, which is redeemable on demand by the registered owner(s), and which, after the first three months, pays interest up to the end of the month prior to cashing.
Cancellation
Cancellation arises from an entry to strike an earlier registration from a register. Cancellation is voluntary or, failing that, judicial; it may also be legal.
Capital
Designates the entire financial means at the disposal of the company, which means the equity and the debt.
Capital Asset
All tangible property which cannot easily be converted into cash and which is usually held for a long period, including real estate, equipment, etc.
Capital Gain (or loss)
The amount by which an asset's selling price exceeds (gain)or not (loss) its initial purchase price. A realized capital gain is an investment that has been sold at a profit. An unrealized capital gain is an investment that hasn't been sold yet but would result in a profit if sold.
Capital Outlay
A disbursement of money by buyer at the time of financing of a fixed asset. Portion of money deducted from the purchase price which determines the amount of financing required to complete the acquisition.
Capital Stock
The book value of the outstanding shares of a corporation. The maximum number of shares authorized under the terms of a corporation's articles of incorporation.
Capitalisation
Capitalisation of income means to forego receipt of it. It then becomes capital and begins itself to produce interest over subsequent periods.
Carryback Loan
A loan agreement in which the seller of a property provides financing in aids for the completion of the sale, often in combination with an assumable mortgage.
Certificate of Deposit
The certificate of deposit is a time deposit represented by a dematerialised negotiable debt security in the form of a bearer certificate or order issued by an authorised financial institution.
Certificate of Location
The location certificate is prepared by the land surveyor. It is part of the record titles of the property. Its main use is to place buildings on the land and demonstrate that they cause no encroachment and no resulting right-to-land substantially taints property ownership. It will also state compliance with municipal standards.
Chronological Age (or Actual Age or Historical Age)
The amount of time that has passed since a building or other structure was built.
Closed Mortgage
A mortgage agreement that cannot be prepaid, renegotiated or refinanced before maturity, except according to its terms.
Closing Costs
Various expenses associated with purchasing a property. The standard closing costs include, but are not limited to, legal/notary fees and disbursements, property land transfer taxes, as well as adjustments for prepaid property taxes or condominium common expenses, if any.
Code of Ethics
A set of rules governing the behaviour provided for either by law or by market regulations, or else by forced use of a profession that has established the Code.
Common Areas
The common areas represent all parts of building and land that are not stipulated to be private parts in the declaration of co-ownership. These are the common property of all co-owners, so undivided, and serve, unless otherwise agreed, to their common use.
Common charges
Also called "Common condominium fees", they are the contribution of each co-owner. The CA contributes the owners after determining how much money is needed to meet costs arising from the ownership and operation of the building, and the amounts payable to the fund.
Common Law
The system of law that evolved from the decisions of the English royal courts of justice since the Norman Conquest (1066). Today the common law, considered more broadly to include statutes as well as decisions, applies in most English-speaking countries, including all Canadian provinces except Québec.
Communal Restricted
These are the parts of building or land which are the joint property of all co-owners (Common parts), but are for the exclusive use of one or more co-owners, if the case. For example, balconies, roof terraces and windows are often common restricted parts.
Comparative Factor
In municipal property assessment, the comparative factor brings assessment values from various rolls on a comparable basis. The obtained result from the multiplication of value on the roll by the comparative factor constitutes the uniformed assessment. The median proportion of the roll is the inverse of the comparative factor.
Construction Permit (or Building Permit)
A construction permit or building permit is an administrative document required in most jurisdictions for new construction, or adding onto pre-existing structures, and in some cases for major renovations. Generally, the new construction must be inspected during construction and after completion to ensure compliance with national, regional, and local building codes.
Consumer Price Index (CPI)
A measure of price movements produced by Statistics Canada and obtained by comparing the retail prices of a representative "shopping basket" of goods and services at two different points in time.
Contingent Rent
Rent that is not fixed from month to month, but varies according to the revenues of a tenant or concessionaire.
Convertible Mortgage
Type of mortgage at fixed of variable rate offering similar advantages as a closed mortgage but that can be converted from short-term to long-term, at any time without charge on anticipated instalments.
Corporal Moveable (or tangible)
Objects as set that has a physical form such as: animals, inanimate things, removable and transportable (household furniture, vehicles, etc.), artefacts, antiquities, jewelleries, precious stones, collectibles, machinery, etc.
Cost Approach
The Cost Approach is based on the determination of the cost of replacing a property, with adjustments for depreciation and obsolescence. The value of the land, as if vacant, is then added to the depreciated value of the improvements to produce a total value. The Cost Approach is most pertinent to special use properties with little income orientation or marketplace attention. It is typically a good indication for new properties with minimal depreciation. However, it does not take into consideration investor criteria or operational risks and is therefore usually given the least consideration in the valuation process.
Court of Québec
The Court of Québec is a court of first instance that has jurisdiction in civil, criminal and penal matters as well as in matters relating to young persons. It also has jurisdiction over administrative matters and appeals where provided for by law.
The Court of Québec is made up of a maximum of 270 judges, appointed by the Government of Québec for life. It is under the direction of a chief judge assisted by a senior associate chief judge and four associate chief judges. Ten associate coordinating judges and eight assistant coordinating judges assist the chief judge and the senior associate chief judge in their duties.
Crawl Space
Narrow opening between the ground and the underside of a structure, not tall enough to permit standing but sufficient to give access as needed to wiring, plumbing, and other utilities.
Credit Line
An arrangement in which a bank or vendor extends a specified amount of credit to a specified borrower for a specified time period. The credit line can be secured or not.
Creditor
A creditor is a party (e.g. person, organization, company, or government) that has a claim to the services of a second party. It is a person or institution to whom money is owed. The second party is frequently called a debtor or borrower. The first party is the creditor, which is the lender of property, service or money.
Curable Functional Obsolescence
Must be economically feasible to cure. May be from a deficiency or an excess.
Curable Physical Depreciation
Curable physical depreciation refers to items generally of deferred maintenance. The cost to cure this depreciation qualified as curable cannot be greater than the gained economic plus-value.
Dead-line
A time limit, as for payment of a debt or completion of an assignment.
Debt
The dept designates a right detained by a person known as the creditor toward another person known as the debtor. The debtor is the obliged of the creditor. The object of the debt consists of an obligation to either give or to refrain to give.
A company debt is the financing mode that represents money offered at its disposal by its creditors which has the contractually fixed remuneration and repayment date.
Debt Ratio
Debt capital divided by total assets. This ratio will show how much the company relies on debt to finance assets.
Declaration of Co-Ownership
The declaration of co-ownership divides the property into fractions. It includes the act constituting the co-ownership, the by-laws of the immovable and a description of the fractions.
The constituting act of co-ownership specifies the relative value of each fraction, indicating how that value was determined. It also determines, as a function of the relative value, the contribution of each fraction to the common expenses of the immovable, the contingency fund established by law and the number of votes attached to each fraction. The constituting act defines the destination or purpose of the immovable, i.e. the use the owners may make of it, as well as the destination of the private and common portions. The act also sets out the powers and duties of the board of directors of the syndicate and the general meeting of co-owners.
A detailed by-law stipulates rules on the enjoyment, use and upkeep of the private and common portions. The by-laws also contain rules for the operation and administration of the co-ownership, in particular, the composition of the board of directors and the conditions relating to the office of administrator.
The description of the fractions contains the cadastral description of the private portions and the common portions of the immovable. It also contains a description of the real rights affecting or existing in favour of the immovable
Declared Rent
Rent paid by a lessee to the landlord as stipulated on a lease and linked to the use of the premises or part of them.
Deductible or Share
The portion of each owner corresponding to its share of undivided ownership in the common elements and determines, at the same time, the number of votes it has at general meetings of co-owners.
The relative value of the fraction is also used to calculate the contribution of each of the co-owners for expenses arising from the co-ownership and operation of the property and the reserve fund.
Deed of Sale or Bill of Sale
The real estate deed of sale designate the final contract of sale of a real estate by which a seller agrees to sell and a buyer agrees to buy, under certain terms and conditions spelled out in writing in the document signed by both parties. The transaction becomes public as it is inscribed in the Land Register of Québec.
Depreciation
A loss in property value from any cause.
Discontinuance
The voluntary termination of litigation by a plaintiff who has elected not to pursue it or by both parties pursuant to a settlement.
Discounted Cash Flow (DCF)
The Discounted Cash Flow (DCF) methodology is based on the principle of anticipation i.e., value is created by the anticipation of future benefits. The DCF analysis reflects investment value and market value appraisals, as well as for other purposes such as sensitivity tests.
Discounted Cash Flows
Discounting is the calculation of the present value of a future sum. Discounting is thus the inverse to capitalisation. Discounting makes it possible to compare sums received or paid out at different dates. Discounting is calculated with the required rate of return of the investor. The discounting formula runs as follows:
Pv = Fv / (1 + i)n
Where: Vn = Future cash flow or value Pv = Present value i = Discount rate or Rate of return on capital per period n = Number of periods that payment shall be differed
Discounting of bills of exchange
Discounting of bills of exchange is a financing transaction wherein a company remits an unexpired commercial bill of exchange to the bank in return for an advance of the amount of the bill, less interest and fees.
Divided Co-Ownership
The law provides for two types of co-ownership: divided and undivided. Divided co-ownership, as the name implies, permits the division of a building into fractions. A fraction may belong to one or more persons. Each owner of a fraction has the exclusive ownership of a private portion of the immovable and has an undivided right of ownership, that is, a share proportionate to the relative value of his fraction, in the common portions of the immovable. The common portions belong to all the co-owners.
Each owner of a fraction may hypothecate it (give it as security) to guarantee the repayment of the sums borrowed to purchase it. Each hypothec is separate. Condominium owners are not affected by a neighbour’s hypothecary difficulties.
Dividend
Payment made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.
Dominant Tenement
Where an easement is appurtenant, it will typically require the existence of two parcels of land, known as tenements. The dominant tenement is the land which benefits from an easement, while the servient tenement is the one which bears the burden of the easement.
Due Diligence Review
A buyer or a successor has the right to have various areas of to the company verified by his own experts in order to determine if what the seller has said is true, if the goods are truly what he thinks he is buying, and if there are no hidden defects or lawsuits against the company, to name a few. The due diligence review usually covers the following areas: operations, intellectual property, goods, human resources, and the legal, accounting, tax, and environmental aspects.
Duties on transfers of immovables
Duties on transfers of immovables is a tax collected by the municipality for the transfer of any immovable located within its territory under the provincial legislation. The rate of these duties is set as follows: 0,5% on that part of the basis of imposition which does not exceed $50,000 1% on that part of the basis of imposition which is in excess of $50,000 without exceeding $250,000 1,5% on that part of the basis of imposition which exceeds $250,000
Earnings Statement
An Earnings Statement is a standard financial document that summarizes a company's revenue and expenses for a specific period of time.
Economic Life Span
Economic life is the time period during which a construction contributes to the value of the property. Economic life can match the physical life of a construction or be less, but never more.
Economic Obsolescence
Economic obsolescence is caused by external forces such as changes in neighbourhood land uses and governmental ordinances that affect full utilization of the property.
Economic Rent
Difference between what a factor of production (capital, land, labor) is earning, and what it could earn in the next best-paid employment.
Effective Age (or Apparent Age)
Age of an analogue building showing a utility, a state and an equivalent lifespan. The effective age may be longer or shorter than the chronological age depending on the degree of maintenance, of modernization and according the prevailing status of the market offer and demand.
Effective Gross Income (EGI)
Total potential income from property before any expenses are deducted but considering a deduction of a reserve for vacancies and bad debt.
Emphyteusis
Emphyteusis is the right which, for a certain time, grants a person the full benefit and enjoyment of an immovable owned by another provided he does not endanger its existence and undertakes to make constructions, works or plantations thereon that durably increase its value.
Emphyteusis is established by contract or by will.
The term of the emphyteusis shall be stipulated in the constituting act and be not less than 10 nor more than 100 years. If it is longer, it is reduced to 100 years.
Emphyteutic Lease
(See: Emphyteutic Lessee)
Emphyteutic Lessee
The Emphyteutic Lessee is a quasi-owner of the real estate which he is leasing.
Encroachment
An improvement that intrudes illegally on another's property.
Encumbrance
General term for any claim or lien on a parcel of real property. These include: mortgages, deeds of trust, recorded abstracts of judgment, unpaid real property taxes, tax liens, easements and water or timber rights. While the owner has title, any encumbrance is usually on record and must be paid for at some point.
Equity (or Shareholders’ Equity)
Shareholders’ equity is the capital that incurs the risk of the business. This type of financial resource forms the cornerstone of the entire financial system. Its importance is such that shareholders providing it are granted decision-making powers and control over the business in various different ways. Shareholders’ equity is equal to the sum of capital increases by shareholders and annual net income for past years not distributed in the form of dividends plus the original share capital.
Escrow Contract
An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. A trust account held in the borrower's name to pay obligations such as property taxes and insurance premiums.
Estate
The heritage of a deceased person.
Estate Freeze
When a company is sold or transferred, the shares of the owner-manager are valued, and this value is determined and set at a specific time. Following this, a new definition of the owner-manger’s shares and a redistribution of equity among the new owners of the company occurs.
Several methods are used to institute a freeze and each method has its particularities. The “classic” method entails a transfer of the owner-manager’s shares to a management company that becomes the owner of the company. The management company issues new, non-participating shares to the owner-manager in exchange for his old shares. The value of the new, non-participating shares will be equivalent to the value determined for the old shares at the time of the freeze. Usually, the new, non-participating shares are controlling shares. The management company will also issue new participating shares to the designated beneficiaries of the estate. The new participating shares are the shares that will benefit from the increase in the company’s value in the future.
In setting the value of his shares at the time of the freeze, the shareholder sets the amount of the capital gain that he will realize on his new, non-participating shares. The tax on this capital gain will be payable upon disposition of the shares.
Et Ux
Latin abbreviation for "et uxor" meaning "and wife".
Eviction
Dispossession by process of law. The act of depriving a person of the possession of something in pursuance of the judgment of a court.
Exchange rate
The exchange rate is a rate at which nations' currencies are exchanged, that is, the price of one currency in terms of another. A large number of countries now use the American dollar as the standard against which to measure the value of their own currency. As the great majority of Canada's international trade and financial transactions are with the US, the value of the Canadian dollar in relation to the US dollar is of prime importance to Canada.
Expropriation
Expropriation is a compulsory seizure or surrender of real estate for public interest purposes in return for an indemnity to the property's owner.
Expropriation Act
R.S.Q., chapter E-24
Fair Market Rent
The market rent indicates the amount of money that a given property would command, if it were open for leasing on the market at the appraisal date.
Federal Court
The Federal Court is Canada's national trial court which hears and decides legal disputes arising in the federal domain, including claims against the Government of Canada, civil suits in federally-regulated areas and challenges to the decisions of federal tribunals. Its authority derives primarily from the Federal Courts Act.
The Federal Court was created in 1971 under the authority of s. 101 of the Constitution Act, 1867 for the "better administration of the laws of Canada". It is a successor to the Exchequer Court of Canada, established in 1875.
According to the Federal Courts Act, the Court consists of a Chief Justice and 32 other judges.
Federal Court of Appeal
The Federal Court of Appeal is a court established by Parliament in accordance with provision of section 101 of the Constitution Act, 1867, "for the better administration of the laws of Canada". As such, it is an important and integral part of the judiciary in Canada.
Independence of the judiciary, impartiality of the judges and access to justice are fundamental values in the eyes of all Canadians, and represent the very essence of a free and democratic society. The Court is itinerant in that it sits and hears cases anywhere in Canada, in order to be as close as possible to the parties.
Federal Heritage Character Designation
Means the synthesis of a building's heritage values. The heritage value of Crown-owned buildings derives from many sources. These include historical associations, architectural significance and environmental importance.
Government departments must arrange for the Federal Heritage Buildings Review Office to evaluate all buildings 40 years of age or older, in order to determine if they should be designated as federal heritage buildings. A multidisciplinary and inter-departmental advisory committee evaluates the
Financial Institution
A commercial or investment bank, trust company, brokerage house, insurance company, or other institution that participates in financial transactions involving cash or financial products. The primary role of such an institution is to facilitate the financing of investments, from home mortgages to the raising of funds via the issue of debt or equity for mega-projects. It may also provide insurance, take on fiduciary responsibilities, store cash and securities for safekeeping, etc.
Fixed Rate
Loan which interest rate remains unchanged during the term of the loan.
Fixed Rate Mortgage
A fixed rate mortgage is a mortgage loan where the interest rate on the note remains the same through the term of the said loan. The instalments are also fixed. The fixed rate mortgage can be open or closed type.
Floating Rate Mortgage
A variable rate mortgage or floating rate mortgage is a mortgage loan where the interest rate varies to reflect market conditions.
The interest rate will normally vary with changes to the base rate of the central bank and reflects changing costs on the credit markets. This method of variation directly linked to underlying costs benefits lenders and ensures a profit by passing the interest rate risk to the borrower. The borrower benefits from reduced margins to the underlying cost of borrowing compared to fixed or capped rate mortgages. The lender must hedge against potential interest rate changes; the borrower benefits if the interest rate falls and loses out if interest rates rise.
Floating Rate.
Loan which interest rate increases or decreases with fluctuations in market interest rates.
Foreclosure
Foreclosure designates the process activated by a creditor of a party in default to seek the sale of the assets received as security, in order to be reimbursed.
Forfeiture
A loss of money, property, or privileges due to a breach of legal obligation, which serves as compensation for resulting losses.
Fractions of the property
Any property held in divided co-ownership is divided into “fractions”. The fraction represents the right of the owner in the property.
Functional Obsolescence
Functional Obsolescence is recognized as a loss in utility or value caused by factors inherent within a building structure such as changes in construction materials and techniques, which result in excess capital costs in existing facilities; less than full use of space; or inability to expand or update the property. Changes in building designs, clear height and column spacing can also cause functional obsolescence.
Garnishee Summon
Official document indicating the date of a judgement to be enforced and the amount of the condemnation. The garnishee summon is issued by the Court clerk and permits the execution of a judgement on the property of a debtor.
General meeting of co-owners
Composed of all the co-owners in respect of the property, present or represented. A meeting of co-owners is required at least once a year, preceded by a notice to that effect. She has the legislative power. Minutes of each meeting of co-owners must be prepared.
Giving in Payment
Giving in payment is a contract by which a debtor transfers ownership of property to his creditor, who is willing to take it in place and payment of a sum of money or some other property due to him.
Goodwill
An intangible asset which provides a competitive advantage, such as a strong brand, reputation, or high employee morale. In an acquisition, goodwill appears on the balance sheet of the acquirer in the amount by which the purchase price exceeds the net tangible assets of the acquired company
Graphic Matrix
In municipal assessment, main component of graphic elements of the information system. It's a cartographic document representing the territory of a municipality and on which appear assessment units and registration system based on spatial reference.
Gross Domestic Product (GDP)
Gross Domestic Product (prior to 1986 Gross National Product) refers to the money value of all goods and services produced in a nation during a stated period of time, usually a year. Despite its limitations GDP is the best overall measure of economic performance; it is often used to calculate changes in the welfare of a country's residents.
Guaranteed Investment Certificate (GIC)
A GIC is a relatively safe investment issued by most financial institutions vouching that a sum of money has been invested and earns interest, at either a fixed or a variable rate, or based on a pre-determined formula for a given term.
Income Capitalization Approach
The Income Capitalization Approach is based on the notion that the value of a property is indicated by the present value of future benefits. Income producing properties such as hotels traditionally use the income approach when determining their value. Thus we, believe the most appropriate method of valuing a lodging operation is to estimate the maintainable income stream representative of the earning power for the property. Since hotels are generally bought and sold on the basis of future earnings potentials, the Income Approach is considered to provide the best indication of value.
Incorporeal Moveable (or intangible)
A moveable that is not physical in nature. Corporate intellectual property (items such as patents, trademarks, copyrights, and business methodologies), goodwill, mining rights and brand recognition are all common intangible moveables in today's marketplace.
Incurable Functional Obsolescence
A functional obsolescence not physically or economically curable.
Incurable Physical Depreciation
Incurable physical depreciation refers to items generally of deferred maintenance that cannot be practically or economically corrected at present. Incurable physical deterioration must be based on the reproduction or replacement cost of the entire structure after the cost to cure curable components has been deducted.
Indemnity
An expressed or implied contract to compensate an individual for loss or damage.
Index of Immovables
The index of immovables contains one land file for each registered immovable on the cadastral plan for the registration division.
Inflation
Inflation popularly means rising general prices, most frequently calculated by the Consumer Price Index (CPI) - a measure of the cost of a basket of commodities purchased by a typical family. The rate of inflation refers to the percentage increase in the price level and is usually expressed at an annual rate.
Insurance Premium
Amount paid to an insurance company, usually monthly or annually, in exchange for financial protection in defined circumstances.
Intangible Asset
Something of value that cannot be physically touched, such as a brand, franchise, trademark, or patent. Opposite of tangible asset.
Interest
The cost of borrowing money; the price that a lender charges a borrower for the use of the lender's money. Interest is paid on deposits because they are, in effect, loans to the bank or other deposit-taking institutions.
Interest rate
Rate charged or paid for the use of money, normally expressed as a percentage.
Interest-Bearing Current Account
An interest-bearing current account is the simplest way to earn interest on cash. Nevertheless interest paid by financial institutions on such accounts is usually significantly lower than what the money market offers.
Internal Rate of Return (IRR)
The discount rate often used in capital budgeting that makes the net present value of all cash flows from a particular project equal to zero. Generally speaking, the higher a project's internal rate of return, the more desirable it is to undertake the project.
International Financial Reporting Standards (IFRS)
Standards, interpretations and the framework adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). IAS were issued between 1973 and 2001 by the Board of the International Accounting Standards Committee (IASC). On 1 April 2001, the new IASB took over from the IASC the responsibility for setting International Accounting Standards. During its first meeting the new Board adopted existing IAS and SICs. The IASB has continued to develop standards calling the new standards IFRS.
The use of IFRS is required for Canadian publicly accountable profit-oriented enterprises for financial periods beginning on or after 1 January 2011.
Investment
Money put into a form that earns a return or profit. In essence, the money is being used to make money.
Judgement
A formal decision by a court of law.
Jurisprudence
Study of the principles and theories on which a legal system is founded, as opposed to study of the legal system itself.
Land Register
The land register contains one land book for each registration division in Québec. Each land book contains an index of immovables, a register of real rights of State resource development, a register of public service networks and immovables situated in territory without a cadastral survey and an index of names. The index of names comprises all the entries that cannot be made in the index of immovables or the other registers kept by the Land Registrar.
Lease
The lease is a contract by which a person, the lessor, undertakes to provide another person, the lessee, in return for a rent, with the enjoyment of a movable or immovable property for a certain time.
The term of a lease is fixed or indeterminate.
The lessor is bound to deliver the leased property to the lessee in a good state of repair in all respects and to provide him with peaceable enjoyment of the property throughout the term of the lease.
He is also bound to warrant the lessee that the property may be used for the purpose for which it was leased and to maintain the property for that purpose throughout the term of the lease.
The lessee is bound to pay the agreed rent and to use the property with prudence and diligence during the term of the lease.
Legal Description
The description of real estate (property) used to identify real estate in legal transactions.
Legal Release
Document authorizing relinquishment to another of a right, title or claim.
Leverage
The use of debt financing of an investment to maximize the return per dollar of equity invested
Liability
A liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.
Liquidation Value
May be analyzed as either a forced liquidation or an orderly liquidation and is a commonly sought standard of value in bankruptcy proceedings. It assumes a seller who is compelled to sell after an exposure period which is less than the market-normal timeframe.
Liquidity (or cash)
Ability to quickly convert an investment portfolio to cash with little or no loss in value.
Loan
An arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest, at some future point(s) in time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan.
Low-Rent Housing Program
Our low-rent housing program was set up in 1969 as part of a Canada-Quebec framework agreement on public housing. Created during a housing shortage, the program aimed initially to provide municipalities with housing solutions for their citizens, many of whom were displaced by major urban renewal at the time (particularly in Montreal). Later, in the eighties and nineties, rules for granting housing were clarified and modified so that low-rent homes today are reserved for people with low incomes. As soon as the program was launched, the city of Montreal decided to take part and entrusted the OMHM with managing new homes being constructed.
Tenants in this program pay a rent equalling 25% of their income, plus additional fees for electricity and, if needed, a parking space or air conditioner. The operating deficit for such housing is covered by the federal government (55%), provincial government (35%) and CMM (10%).
Management Agent
Representative of co-owners Union designated by the general meeting of the joint co-owners of condominium management.
Mandamus
Latin for "we command." A writ of mandamus is an "Extraordinary Remedy" used by a superior court to require a court or tribunal of inferior jurisdiction to exercise a jurisdiction that it has or to perform a certain act. A writ of mandamus is the opposite of an order to cease and desist, or stop doing something (an injunction).
Market Value on Open Market
(iii) A reasonable turnover period. A quick or forced sale is not assumed. ln addition, a seller could receive "a desired price" if willing to wait an unduly long time to find a buyer. Neither of these cases meets the condition of market value. As of the date of appraisal, the appraiser must ascertain the typical turnover period for properties of the type being appraised.
(iv) Payment consistent with the standards of behavior of the market. Typical or normal financing and payment arrangements are assumed. Usually, this will not involve an all-cash payment by the purchaser, and it does not mean especially favorable financing to attract a buyer to the seller's price.
Median Proportion or Coefficient of Dispersion
In municipal property assessment the median proportion of the actual real estate value of units of assessment to which the values entered on the real estate assessment roll of a municipal corporation correspond is the median of the quotients obtained by dividing by their sale price the value entered on the real estate assessment roll for each unit which was the subject of a sale made in accordance with certain criteria. The comparative factor of the roll is the inverse of the median proportion.
Methods Used to Estimate Cost New
Minutes
The very purpose of a report is to highlight the deliberations of the meeting and the results of the voting and counting of votes on each resolution validly presented at the meeting of owners.
Money Market
The market in which short-term capital is raised, invested, and traded using financial instruments such as treasury bills, bankers' acceptances, commercial paper, and bonds maturing in one year or less.
Moratorium
From latin expression moratorius: delay, is a term of law which means a decision granting a delay or a voluntary suspension of an action.
Mortgage or Hypothec
A hypothec (or mortgage) is a real right on a movable or immovable property made liable for the performance of an obligation. It confers on the creditor the right to follow the property into whosever hands it may be, to take possession of it or to take it in payment, or to sell it or cause it to be sold and, in that case, to have a preference upon the proceeds of the sale ranking as determined in the Civil Code.
A hypothec is merely an accessory right, and subsists only as long as the obligation whose performance it secures continues to exist.
The hypothecary rights conferred by a hypothec may be set up against third persons only when the hypothec is published in accordance with the Civil Code or the Book on Publication of Rights.
Municipal Courts of Québec
There are 86 municipal courts located across Québec, established by the Act respecting municipal courts. Each court is presided over by a municipal judge.
Municipal courts have limited jurisdiction in civil matters, exercised mostly in connection with municipal tax claims. They hear cases involving offences under municipal by-laws and Québec statutes such as the Highway Safety Code.
Municipal courts are also authorized to hear and decide cases concerning offences under Part XXVII of the Criminal Code, which are criminal offences punishable on summary conviction.
Net Income
Remaining income to landlord after deduction from the gross income of any expenses necessary to maintain an optimal income such as: municipal and school taxes, insurance premiums and all expenses not reimbursed by the tenants for common services to the property, its surveillance and most of all its maintenance.
Nominal Value (or Face Value)
The nominal value of a loan is a relatively formal value used to calculate interest payments. In the simplest cases, it equals the amount of money the issuer received for each bond and the amount that it will repay upon redemption.
Open Mortgage
A mortgage which you can pay off, renew or refinance at any time. The interest rate for an open mortgage is usually higher than a closed mortgage rate.
Overall Capitalization Rate (OCR)
The overall capitalization rate (OCR) is defined as an income rate for the total property that reflects the relationship between a stabilized single year’s net operating income expectancy and total price or value. Implicit in the definition is that the estimated single year’s net operating income is not constant throughout the investment period.
Ownership
Ownership is the right to use, enjoy and dispose of property fully and freely, subject to the limits and conditions for doing so determined by law.
Ownership may be in various modes and dismemberments
Ownership of property gives a right to what it produces and to what is united to it, naturally or artificially, from the time of union. This right is called a right of accession.
The fruits and revenues of property belong to the owner, who bears the costs he incurred to produce them.
Payments in Lieu of Taxes (PILT)
Under section 125 of the Constitution Act, 1867, the Government of Canada is exempt from local taxation. But as one of the largest property owners in Canada, its facilities can place a heavy demand on municipal services. Therefore, beginning in 1950, the Government of Canada made payments in lieu of property taxes to municipalities to share in the costs of local governments where it owns property. The payments were made under the provisions of the Municipal Grants Act, then the updated Municipal Grants Act, 1980 and more recently under the Payments in Lieu of Taxes Act, 2000.
Physical Depreciation (or Deterioration)
Physical Depreciation is a loss of value caused by such factors as wear and tear, decay, dry rot, cracks, infestation, disintegration, use in service, structural defects, and the action of the elements. It could be considered as curable or incurable.
Plottage Value
Increment in the value of land resulting from assemblage of smaller plots into one ownership.
Potential Gross Income
Total potential income from property before any expenses are deducted. Predictable income considering continued occupancy of all dwellings or space.
Power of Attorney
A legal document that authorizes another person to act on one's behalf. A power of attorney can grant complete authority or can be limited to certain acts and/or certain periods of time.
Prescription
Prescription is a means of acquiring or of being released by the lapse of time and according to the conditions fixed by law: prescription is called acquisitive in the first case and extinctive in the second.
Present Value
The present value, or value of a financial security is the present value of the expected future flows discounted at the rate of return required by investors. Value creation is the objective of any manager. This objective is reached when the investments of company yield more than the return required by providers of funds.
Presumption
A presumption is an inference established by law or the court from a known fact to an unknown fact.
A legal presumption is one that is specially attached by law to certain facts; it exempts the person in whose favour it exists from making any other proof.
A presumption concerning presumed facts is simple and may be rebutted by proof to the contrary; a presumption concerning deemed facts is absolute and irrefutable.
Prima Facie
Latin expression meaning first sight, a fact presumed to be true until disproved.
Prime rate
The interest rate banks charge to their preferred credit-worthy (low-risk) customers.
Principe of Change
In the appraisal of Real Estate the principle of Change (Income Capitalization Approach) asserts that all markets are in a continual state of change. According to this principle, properties generally go through the three stages of integration (development), equilibrium (stasis), and disintegration (decline). In terms of the effects of changes on real property, ordinary physical deterioration and market demand have indicated four stages through which an improved property will pas: growth, when improvements are made and property demand expands; equilibrium or stability, when the property undergoes little change; decline, when the property requires an increasing amount of upkeep to retain its original utility while demand slackens; and revitalization or rehabilitation, which may occur if demand increases, serving to stimulate property renovation. This principle also applies to an entire neighborhood.
Principle of Anticipation
In the Appraisal of Real Estate the principle of Anticipation (Income Capitalization Approach) is that the value of a property today is the present value of the sum of anticipated future benefits.
Principle of Balance
In the appraisal of Real Estate the principle of Balance (Income Capitalization Approach & Direct Comparison Approach) is that the greatest value in property will occur when the type and size of improvements and uses are proportional to each other as well as to the land.
Principle of Conformity (Progression - Regression)
In the appraisal of Real Estate the principle of Conformity states that the value of a group of properties will rise to its highest possible level in an area where architectural styles are reasonably homogeneous and surrounding land uses are compatible with the use of the specified properties. It also states (principle of Progression) that the worth of an inferior property is increased by its proximity to better properties of the same use class vice-versa (principle of Regression).
Principle of Contribution
In the appraisal of Real Estate the principle of Contribution (Income Capitalization Approach) requires an appraiser to measure the value of any improvement to a property by the amount it contributes to market value, not by its cost.
Principle of Externalities
In the appraisal of Real Estate the principle of Externalities states that influences outside a property may have positive or negative effect on its value. Values of real properties are directly affected by government action or inaction (interest rate controls, mortgage loan guaranties…) crime rates, population density, and income level. External influences affecting value exist at regional, city and neighborhood levels.
Principle of Highest and Best Use
In the appraisal of Real Estate the principle of Highest and Best Use of land is defined as "that reasonable and probable use that supports the highest present value" of property.
Principle of Substitution
In the appraisal of Real Estate the principle of Substitution (Cost, Income Capitalization & Comparison Approaches) states that a potential owner will pay no more for a property than the amount for which a property of like utility may be purchased; that a property's value tends to be set by the cost of acquiring an equally desirable substitute. The principle of substitution states that no buyer will pay more for a good than he or she would have to pay to acquire an acceptable substitute of equal utility in an equivalent amount of time.
Principle of Supply & Demand
In the appraisal of Real Estate the principle of Supply & Demand refers to the ability of buyer to pay for property coupled with the relative scarcity of real estate. For any type of good or service to have value in any marketplace, it must possess four characteristics: demand, utility, transferability and scarcity. Demand is a need or desire coupled with the purchasing power to fill it, whereas utility is the ability of a good or service to fill that need. Scarcity means there must be a short supply relative to demand. Finally, a good or service must be transferable to have value to anyone other than the person possessing it.
In evaluating a property's value or potential worth, attention must be given to such matters on the demand side as population growth, personal income, and the tastes and preferences of people. On the supply side, one must look at the available supply of real estate and its relative scarcity. When the supply of real estate property is limited and demand is great, the result is rising land or property value prices. Conversely, where land is abundant and there are relatively few buyers, supply and demand will be in check or balanced.
Principle of Surplus Productivity
In the appraisal of Real Estate the principle of Surplus Productivity states that if the expenses of ownership (capital, labor and management) are deducted from net income, the remaining amount is termed surplus productivity and is considered the investor's return on the use of the land, or land rent. The expectation of profit is also expressed as the entrepreneurial incentive that motivates a developer to assume the risks involved with taking on a project.
Private Parts
The various portions of the building owned by a specific co-owner, and that has the exclusive use. Although the owner of a private unit can only be expected to be the master at home, this freedom is limited by the provisions of the declaration of co-ownership and the destination of the said building.
Private Writing or Agreement
A private writing is a writing setting forth a juridical act and bearing the signature of the parties; it is not subject to any other formality.
Document signed by the parties without the intervention of a public officer.
Pro Rata
Latin expression meaning in proportion; according to a certain percentage or proportion of a whole.
Property Title
A freehold title gives the holder full and exclusive ownership of land and buildings for an indefinite period of time.
Prospectus
A prospectus is a legal document that institutions and businesses use to describe the securities they are offering for participants and buyers. A prospectus commonly provides investors with material information about mutual funds, stocks, bonds and other investments, such as a description of the company's business, financial statements, biographies of officers and directors, detailed information about their compensation, any litigation that is taking place, a list of material properties and any other material information.
Publication of Rights
The publication of rights is effected by their registration in the register of personal and movable real rights or in the land register, unless some other mode is expressly permitted by law.
Registration benefits the persons whose rights are thereby published.
The acquisition, creation, recognition, modification, transmission or extinction of an immovable real right requires publication.
Quantum Meruit
Quantum meruit is a Latin phrase meaning "as much as is deserved" the actual value of services performed.
Quebec Bar
Lawyers practiced their profession in Québec well before the constitution of the Bar of Lower-Canada by a law passed on May 30, 1849 (the Upper-Canada Bar had obtained its charter in 1797).
In New France, justice was rendered without the assistance of barristers, and from 1765, Governor James Murray bestowed a lawyer's authority on three notaries and a shopkeeper. The Québec community of lawyers, precursor to the bar, was created in 1779. This society demonstrated loyalty in its concern for affirming the independence of political and judicial powers, and in its will to improve the competence and morality of its members.
The law of 1849 limited the practice of law to members of the bar who had to ensure that they were capable of fulfilling the duties with honour and integrity. To this end, the bar could adopt rules for the admission and discipline of its members. In the early days, the bar was made up of three districts (Montréal, Québec, Trois-Rivières), which held the essentials of power. The number of districts increased progressively (today there are 15 sections), and in 1967, a reform of the bar's structure centralized the majority of powers, which until then had been carried out by the sections. This reform enabled the bar to set up a permanent secretariat, a Bureau of Trustees, a centralized disciplinary process, and to found a professional school.
Québec Court of Appeal
The Court of Appeal is the general appeal court for Québec and as such, is the highest court in Québec. It is made up of 20 judges appointed by the Government of Canada. It sits in the cities of Québec and Montréal.
In civil matters, the Court hears appeals from final judgments of the Superior Court and the Court of Québec where the amount in dispute is $50,000 or more.
Québec Superior Court
The Superior Court has jurisdiction throughout Québec and sits in all the judicial districts. It is made up of 144 judges, including a chief judge, a senior associate chief judge and an associate chief judge, all appointed by the federal government.
In civil matters, the Superior Court generally hears cases in first instance where the amount at issue is at least $70,000. It has exclusive jurisdiction in family matters such as divorce, support, and child custody. Proceedings are heard in private with the parties’ names remaining confidential. It also hears applications regarding class actions and probate (homologation) of wills. The Superior Court may issue injunctions to stop certain activities (for example, it can stop construction work on property that does not belong to the person performing the work).
Quorum
A quorum is constituted by a minimum number of co-owners representing a majority of votes at the meeting, as indicated in the notice. A quorum is expressed in terms of votes and not in terms of number of co-owners present or represented. In the absence of quorum, after a certain time, the meeting is adjourned to another date. It is essential to have a quorum for that meeting takes place.
Rate
A rate is a relationship between two quantities, often expressed as a percentage.
Ratio
Le ratio est le rapport de deux grandeurs (ex: chiffre d'affaires et frais financiers) issues d'une même entité (ex: société) qui donne une indication particulière sur le niveau d'endettement ou de rentabilité d'une société
Recession
Recession, technically, 2 or more successive quarters of declines in real Gross Domestic Product, calculated by adjusting for price changes.
Reference Number
In municipal assessment, geographical coordinates of an assessment unit based on the registration system prescribed by the regulation. The reference number is the numerical designation of each assessment unit and the reference to any related documents.
Remaining Economic Life Span
Period of time from the date of appraisal until the expiration of the economic life span of the construction.
Rental Value
Income that can reasonably be expected to have in exchange of the right of use of a real estate. Generally, the competition establishes the rental value.
Replacement Cost
Cost to construct, at current prices, a building with utility equivalent to the building being appraised, using modern materials and current standards, design and layout."
Reproduction Cost
Cost to construct, at current prices, an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design, layout and quality of workmanship, and embodying all the deficiencies, superadequacies, and obsolescence of the subject building.
Reserve Fund
Reserve Fund Study completed to provide financial planning advice. The consulting service should consider the stated policies in the Declaration of Co-Ownership defining those components to be covered by the study and incorporate a comprehensive benchmark analysis including life cycle analysis, current and future rep1lacement costs and future reserve fund accumulations. The Study should provide comments on any apparent deficiency in the reserve fund account or in future reserve fund accumulation, along with a cash flow model covering an appropriate time frame.
Residual Value (or Salvage Value)
Residual value is the expected value of the assets at the end of their life cycle.
Retained Earnings
Retained earnings refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. Similarly, if the corporation takes a loss, then that loss is retained and called variously retained losses, accumulated losses or accumulated deficit. Retained earnings and losses are cumulative from year to year with losses offsetting earnings.
Right of first refusal
A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he or she offers it for sale or lease to others.
Right of ownership
Ownership is the right to use, enjoy and dispose of property fully and freely, subject to the limits and conditions for doing so determined by law. Ownership may be in various modes and dismemberments
Right of Way
An easement, a privilege to pass over the land of another, whereby the holder of the easement acquires only a reasonable and usual enjoyment of the property and the owner of the land retains the benefits and privileges of ownership consistent with the easement.
Sale-Lease-back
In a sale-leaseback transaction, one of the off-balance sheet financing techniques, a seller deeds property to a buyer for a consideration and the buyer simultaneously leases the property back to the seller.
Security Deposit
A landlord may request that a tenant pay a security deposit at the beginning of a tenancy. The security deposit is intended to compensate a landlord for:
Servient Tenement
Where an easement is appurtenant, it will typically require the existence of two parcels of land, known as tenements. The dominant tenement is the land which benefits from an easement, while the servient tenement is the one which bears the burden of the easement.
Servitude or Easement
Servitude is a charge imposed on an immovable, the servient land, in favour of another immovable, the dominant land, belonging to a different owner.
Under the charge the owner of the servient land is required to tolerate certain acts of use by the owner of the dominant land or himself abstain from exercising certain rights inherent in ownership.
Servitudes are either apparent or unapparent. A servitude is apparent if it is manifested by an external sign; otherwise it is unapparent.
Servitude extends to all that is necessary for its exercise.
Shareholding
Shareholding designates both the shareholders of a company and the share classes (common, preferred, voting, and controlling).
Straight Capitalization
V = NR/OCR Where: V = value RN = Net Revenu OCR = Overall Capitalization Rate
Sublease
Lease from one tenant (lessee) to another (called subtenant or sublessee). The agreement between the landlord (the lessor) and the first lessee remains in force and governs the terms of the sublease. Also called sublet.
Subpoena
A legal order addressed to a person to appear before a tribunal.
Subrogation
The substitution of one person in the place of another with reference to a lawful claim, demand, obligation or legal right.
Superficies
Superficies is ownership of the constructions, works or plantations situated on an immovable belonging to another person, the owner of the subsoil.
Superficies results from division of the object of the right of ownership of an immovable, transfer of the right of accession or renunciation of the benefit of accession.
The right of the superficiary to use the subsoil is governed by an agreement. Failing agreement, the subsoil is charged with the servitudes necessary for the exercise of the right. These servitudes are extinguished upon termination of the right.
The superficiary and the owner of the subsoil each bear the charges encumbering what constitutes the object of their respective rights of ownership. Superficies may be perpetual, but a term may be fixed by the agreement establishing its conditions.
Supreme Court of Canada
The Supreme Court of Canada is Canada's final court of appeal, the last judicial resort for all litigants, whether individuals or governments. Its jurisdiction embraces both the civil law of the province of Quebec and the common law of the other provinces and territories.
The Supreme Court of Canada stands at the apex of the Canadian judicial system. The Canadian courts may be seen as a pyramid, with a broad base formed by the provincial and territorial courts whose judges are appointed by the provincial and territorial governments. At the next level, there are the provinces' and territories' superior courts whose judges are appointed by the federal government. Judgments from the superior courts may be appealed to the next level, the provincial or territorial courts of appeal. As well, there are the Federal Court of Appeal, the Federal Court, the Tax Court of Canada and the Court Martial Appeal Court.
Syndicate or Owners’ Association
The syndicate ensures that the property is preserved, maintained and administered. It is created when condominium ownership is established. The board of directors is the administrative arm of the syndicate. The directors adopt the budget for the condominium property.
The general meeting of co-owners examines issues involving all the condominium owners. Each owner is entitled to vote at this meeting, according to the number of votes he or she has.
Tangible Asset
An asset that has a physical form such as machinery, buildings and land.
Tax
Tax is an enforced contribution exacted pursuant to legislative authority in order to raise revenue for a public purpose.
Term
The length of time during which a mortgage loan is in force. The term could vary from a few months to many years.
Termination
The act of nullifying; making null and void; counteracting or overriding the effect or force of something. The act of ending something
Topography
Nature of the surface of land; topography may be level, rolling, mountainous. Variation in earth's surface.
Tract of land
A specified or limited but very large area of land. Piece of land for future development.
Transferor or Transferee
The expressions "transferor" and "transferee" include their heirs, successors, assigns, executors and administrators and any other legal representative.
Treasury Bill
A short-term debt instrument issued by a government in large denominations and sold at a discount.
The difference between the issue price of the treasury bill and its par value (i.e., the principal amount stated on the face of the bill and redeemable at maturity) represents the investor's return in lieu of interest.
Tribunal administratif du Québec (TAQ)
The Tribunal administratif du Québec was established under the Act respecting administrative justice. It has jurisdiction to make determinations in respect of proceedings brought against administrative decisions rendered by public authorities such as government departments, boards, commissions, municipalities, health care establishments, etc.
The Tribunal consists of four divisions.
The Social Affairs Division is chiefly responsible for proceedings in such matters as income security, welfare and family allowances, the protection of patients with mental illnesses, health and social services, immigration, pension plans and certain compensation plans.
The Immovable Property Division hears cases involving municipal property evaluations, rental value, and compensation following expropriation.
The Territory and Environment Division hears proceedings relating to the preservation of agricultural land and environmental protection.
Last, the Economic Affairs Division rules on proceedings relating to permits and authorizations under various economic, industrial, professional or commercial Acts.
Trust
A trust results from an act whereby a person, the settlor, transfers property from his patrimony to another patrimony constituted by him which he appropriates to a particular purpose and which a trustee undertakes, by his acceptance, to hold and administer.
The trust patrimony, consisting of the property transferred in trust, constitutes a patrimony by appropriation, autonomous and distinct from that of the settlor, trustee or beneficiary and in which none of them has any real right.
Undivided Co-Ownership
The law provides for two types of co-ownership: divided and undivided. A property of this type belongs to several individuals, called undivided co-owners. No one owner owns an exclusive portion of the property; rather, they each own a fraction.
Undivided co-ownership of a property begins informally when several persons, the undivided co-owners, acquire ownership of the same property. However, where an immovable is involved, it is in the interests of the undivided co-owners to draw up and register a formal agreement among themselves. The indivision agreement must be published to be enforceable against third persons.
Use of Premises
Right of the tenant or landlord to use the premises without being disturbed.
Useful life
The period during which a construction is used for the end to which it was indented until its decommissioning, closure or its demolition.
Usufruct
Usufruct is the right of use and enjoyment, for a certain time, of property owned by another as one's own, subject to the obligation of preserving its substance.
Usufruct, like use, servitude and emphyteusis are dismemberments of the right of ownership and are real rights.
Utilisation optimale
Usage raisonnablement probable et légal du bien immobilier qui est physiquement possible, adéquatement soutenu, financièrement faisable et qui conférerait au bien immobilier la valeur marchande la plus élevée possible.
L’utilisation optimale d’un bien est une notion économique qui permet de mesurer l’interaction de quatre critères : la permissivité selon la loi, la possibilité physique, la viabilité financière et la rentabilité maximale.
Valeur de convenance et/ou valeur spéciale à l’exproprié
La valeur de convenance et/ou la valeur spéciale à l’exproprié est la valeur d’un bien ou d’un droit pour son propriétaire-utilisateur. Il s’agit d’une valeur qui dépasse généralement la valeur marchande, dans la mesure où elle contient cette dernière, plus une valeur particulière pour le propriétaire-utilisateur.
On parlera généralement de valeur spéciale à l’exproprié lorsque cette valeur peut être un avantage économique particulier à l’exproprié, tenant compte des conditions suivantes :
Valeur en continuité d'opération
Le montant pour lequel un actif trouverait preneur à la suite d'une transaction ayant lieu en toute équité entre des parties consentantes et bien informées des faits. L'actif est évalué en présumant que les lieux sont propices à maintenir l'usage présent comme faisant partie d'une entreprise en opération selon la convention de l'entreprise (going concern) ou pour une utilité similaire exigeant des modifications mineures seulement. Cette notion de valeur ne se veut pas une estimation de la valeur que l'entreprise pourrait rapporter si elle était mise en vente sur le marché libre. Ici encore, le délai de vente doit être raisonnablement suffisant pour trouver un acquéreur.
De manière implicite, cette définition présuppose une vente à une date donnée et/ou un transfert des titres du vendeur à l'acquéreur suivant les conditions qui suivent:
Le vendeur et l'acquéreur sont typiquement motivés;
Les parties sont bien informées et/ou bien avisées;
Chacune agit selon ce qu'elle considère être de son meilleur intérêt;
Le règlement se fait en espèces ou l'équivalent;
Le financement qui s'applique normalement à ce genre de propriété peut être obtenu suivant des conditions normales sur le marché monétaire à la date spécifiée;
Le prix déterminé représente une considération adéquate de la propriété vendue et ne tient pas compte de financement spécial et/ou conditionnel, de frais de services, de coûts ou de crédits contractés au cours de la transaction.
Cette valeur représente l'opinion de l'évaluateur sur un item d'une utilité effective pour la période de sa vie économique restante. Même si la dépréciation augmente avec le temps, ce facteur temps n'en est point le seul facteur la contrôlant; c'est un contraste avec la dépréciation comptable.
Wildlife preserve
A wildlife preserve is an area of land or water set aside from development or recreational use to protect wildlife and their habitats. Wildlife preserves are found, under extremely varied conditions, in virtually every part of the world.
Will
The legal declaration of a person's mind as to the manner in which he would have his property or estate disposed of after his death; the written instrument, legally executed, by which a person makes disposition of his estate, to take effect after his death.
Yield
The income or profit arising from such transactions as the sale of land or other property usually expressed in percentage.
Zoning Bylaw
Municipal or regional laws that specify or restrict land use.