Nova Scotia RAS key terms

A written contract in which a buyer offers to purchase property and the seller accepts, setting out price, closing date, conditions, and each party's obligations. Once accepted and conditions waived, it binds both sides.

A term making the contract binding only if a stated event occurs, such as financing approval or a satisfactory home inspection. If the condition fails or is waived improperly, the deal may collapse without breach.

Money a buyer pays on signing to show good faith, held in trust by the brokerage or lawyer and credited toward the purchase price at closing. Its forfeiture rules depend on the contract terms and breach.

The day title transfers, funds are exchanged, and the buyer takes possession, as stated in the contract. Also called the closing date, it drives timelines for financing, searches, and document preparation.

A closing document allocating ongoing costs such as property taxes, utilities, and rent between buyer and seller as of the completion date, producing a credit or debit for each party.

Fixtures are items permanently attached to the property and normally included in a sale; chattels are movable personal property normally excluded unless listed. Disputes arise over items like appliances and built-ins.

A legal relationship where a brokerage acts for a client with authority to represent them, creating duties of loyalty, confidentiality, and disclosure. It must be documented in writing before services are provided.

The highest standard of care owed to a client, requiring loyalty, good faith, avoidance of conflicts, full disclosure, and protection of the client's confidential information above all other interests.

A model in which the brokerage appoints one or more licensees to represent a client, so other licensees at the same brokerage may represent an opposing party without automatically creating a conflict.

A situation where the same brokerage represents both buyer and seller in one transaction. Because loyalty is divided, it requires informed written consent from both parties and careful handling of confidential information.

A client has a formal agency agreement and receives fiduciary duties; a customer is served without representation and receives fairness, honesty, and accurate information but not loyalty or confidentiality.

Any circumstance where a licensee's personal, financial, or other interest could improperly influence advice or dealing, such as buying a client's property or referring to a related business. It must be disclosed promptly.

The duty to keep a client's private information, such as motivation to sell, financial position, or acceptable price, from others, including opposing parties, and to protect it after the relationship ends.

Information that could affect a reasonable person's decision to buy, sell, or lease, such as a known defect, zoning change, or environmental problem. It must be disclosed honestly and not concealed.

A false statement of fact, made innocently, negligently, or fraudulently, that induces someone to enter a contract. It can lead to damages, rescission, and disciplinary consequences for the licensee.

A hidden physical problem not readily visible on reasonable inspection, such as a foundation crack behind drywall. Sellers must not conceal known latent defects; licensees should advise buyers to obtain inspections.

A seller's written account of known conditions affecting the property, such as leaks, permits, or disputes. It supplements, but does not replace, the buyer's own inspections and due diligence.

A written contract between seller and brokerage authorizing marketing of the property and setting commission, term, and type of authority. It must state the agency relationship and expiry clearly.

An arrangement giving one brokerage the sole right to market and sell the property during the listing term, with commission payable even if the seller finds the buyer, depending on the contract wording.

A shared database where cooperating brokerages publish listings so other licensees can bring buyers, with rules on compensation offers and timely, accurate data entry.

The practice of one brokerage sharing a listing with another that produces the buyer, and offering that brokerage a share of commission. Terms should be documented and disclosed appropriately.

A written contract in which a buyer engages a brokerage, defining duties, term, geographic area, and compensation. It establishes agency and clarifies that the licensee works for the buyer.

A dedicated bank account where a brokerage holds client money, such as deposits, separate from operating funds. Records, reconciliations, and audits are required to protect the public.

The Nova Scotia regulator that licenses brokerages and individuals, sets standards, investigates complaints, and imposes discipline. Licensees must know its bylaws, codes, and reporting obligations.

Mandatory ongoing learning licensees complete each licensing cycle, covering legal updates, ethics, and practice topics, to maintain registration and competence.

Professional liability coverage protecting licensees and brokerages against claims of negligence or mistake in the course of real estate services. Proof of coverage is typically required to stay licensed.

Ownership of land and buildings without a time limit, including fee simple, the most complete form of private ownership, subject to government powers such as taxation and expropriation.

A right to possess and use property for a set term under a lease, without owning the land. It may be sold or mortgaged subject to lease terms and landlord consent.

A right to use another person's land for a specific purpose, such as a driveway or utility line, without possessing it. Easements run with the land and usually appear on title.

Any claim, lien, charge, easement, or restriction registered against title that limits the owner's use or affects clear transfer. Buyers should review encumbrances before closing.

Ownership free of unexpected liens, claims, or defects that would prevent transfer or reduce value. The seller normally agrees to deliver clear title on closing, subject to permitted exceptions.

A review of registry records to confirm ownership and reveal mortgages, liens, easements, and other registered interests. It supports the lawyer's opinion on title before closing.

Co-ownership with a right of survivorship, so a deceased owner's share passes automatically to the surviving owners. All owners hold equal shares and must act together to sever.

Co-ownership in which each owner holds a distinct, transferable share without survivorship. On death, the share passes through the estate rather than to the other owners.

A charge registered against title securing repayment of a loan, giving the lender rights if the borrower defaults. The borrower keeps ownership while the lender holds security.

The schedule over which a loan is repaid through blended principal and interest payments. A longer amortization lowers payments but raises total interest paid.

The loan amount divided by the property's appraised value or purchase price, expressed as a percentage. Higher ratios generally require mortgage insurance and increase lender risk.

Default is failure to meet mortgage terms, such as missed payments. Power of sale lets the lender sell the property to recover the debt after notice, without a full court foreclosure.

An estimate of value based on recent sales, active listings, and market conditions for similar properties. It guides pricing but is not a formal appraisal.

An independent, professional opinion of value prepared by a qualified appraiser, often for lenders. It relies on market data, property condition, and recognized valuation methods.

The pace at which available properties are sold in a market over a period, indicating whether conditions favour buyers or sellers. It helps licensees advise on pricing and timing.

The most probable price a property should bring in an open, competitive market between willing, informed parties, neither under pressure, with reasonable exposure.