Glossary

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.

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.

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.

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 buildings against a set of established criteria. The FHBRO Evaluation Criteria are based on international conservation principles. Classified federal heritage building - means a federal building to which the Minister of Environment has assigned the highest heritage designation. Recognized federal heritage building - means a federal building to which the Minister of Environment has assigned the second highest heritage designation.

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.

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.

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.

Area may be occasionally flooded.

Quantitative ratio between the total floor area of a building in relation with that of the piece of land upon which it is built. The calculation of the FAR includes the floor area of all buildings erected on the piece of land.

The floor area ratio is a computation determined by dividing the total gross building floor area by the area of the lot on which the building is located.

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.

A loss of money, property, or privileges due to a breach of legal obligation, which serves as compensation for resulting losses.

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.