Glossary

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.

Street set up according to the movement of pedestrians as opposed to a temporarily blocked street. It is a specific and permanent public equipment resulting from a clear desire to favor the pedestrian in an overall urban development plan.

A Latin term meaning “by the court”; sometimes the written reasons for the decision of an appeal court are not acknowledged to be the reasons of a particular judge of the court but of the court as a whole and the reasons are given under the heading “per curiam”.

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.

The person who commences an action or “law suit”.

Ordered set of provisions with imperative or repressive character which defines the conditions for organization, planning and management of urban and rural agglomerations.

Increment in the value of land resulting from assemblage of smaller plots into one ownership.

Total potential income from property before any expenses are deducted. Predictable income considering continued occupancy of all dwellings or space.

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.

A meeting between the parties and/or their lawyers and a judge to settle procedural questions and define or narrow the issues to be tried; settlement of trial issues may also occur.

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.

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.

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.

Latin expression meaning first sight, a fact presumed to be true until disproved.

The interest rate banks charge to their preferred credit-worthy (low-risk) customers.

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.

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.

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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

A Latin term meaning “for the good”; used to describe a lawyer’s services that are provided free of charge.

Latin expression meaning in proportion; according to a certain percentage or proportion of a whole.

A tax or surtax that a local municipality or a school board imposes on an immovable or in respect of the immovable if the tax or surtax is imposed regardless of use.

A freehold title gives the holder full and exclusive ownership of land and buildings for an indefinite period of time.

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.

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.