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Abandonment of Property |
With tenancies, the leaving of a property with a definite intention never to return. |
Abstract of Title |
Registry System: A condensed history of the title to a parcel of land consisting of a synopsis of every recorded instrument affecting the title to that land arranged in chronological order of recording.
Land Titles System: A chronological listing of every recorded instrument currently affecting the title to that land. |
Acceleration Clause |
A clause in a mortgage which provides that where default has occurred in making any payment of monies due under a mortgage or in the observance of any covenant in a mortgage and under the terms of the mortgage, by reason of such default, all monies secured thereby become due and payable. |
Acceptance |
The offeree's consent to enter into a contract to be bound by the terms of the offer. |
Accrued Interest |
The interest earned for the period of time that has elapsed since interest was last paid. |
Acquittance (Quebec) |
Also called Main-Levee. See Discharge of Mortgage. |
Adjustable Interest Rate Mortgage {C.M.H.C.) |
A mortgage which establishes a rate or series or rates to apply during the initial construction advance stage and for a different rate to apply to the final or repayment stage of the loan. |
Adverse Possession |
The right by which someone occupying a piece of land might acquire title against the real owner, if the occupant's possession has been actual, continuous, hostile, visible, and distinct for a statutory period. Adverse possession is not possible under Land Titles. |
Affidavit |
A statement or declaration reduced to writing and sworn to or affirmed before some officer who is authorized to administer an oath or affirmation such as a notary public, or commissioner for oaths. |
Agency |
An agency is created when one person, called the principal, authorizes another person, called the agent, to act on behalf of and subject to the control of the principal. |
Agreement of Purchase and Sale |
A written agreement between vendor and purchaser in which the purchaser agrees to buy certain real property and the vendor agrees to sell upon terms and conditions as set forth in that agreement. |
Agreement for Sale/Balance of Sale |
A method of financing a sale, but different from a mortgage. The buyer does not receive a deed nor does title pass to him immediately - he receives a contractual interest on a time basis. Payments are made directly to the seller who in turn is still responsible for any outstanding mortgage on the property. |
Alienation |
The transfer of title of property. |
Alienation Clause |
A type of acceleration clause that demands payment of the entire debt upon sale or other transfer of the title. |
Allotment |
An amount of money set aside for future investment in mortgages. |
Amending Agreement |
An agreement between the lender and borrower registered on title by the lender whereby the terms of the registered mortgage are changed. |
Amortization |
The process of retiring debt or recovering a capital investment through scheduled, systematic repayments of principal; a program of periodic contributions to a sinking fund or debt retirement fund; that portion of a fixed mortgage payment applied to reduction of the principal amount owed. |
Amortization Schedule |
A table showing the amounts of principal and of interest comprising each level payment due at regular intervals and the outstanding principal balance of the loan after each level payment is made. |
Amortized Mortgage |
A mortgage requiring periodic payments which include both a partial repayment of the debt and interest on the outstanding balance. |
Anniversary Date |
The same date in each calendar year during the term of the mortgage with the first anniversary date taking place one year from the date interest is finally ad justed. |
Apportionment |
A pro-rated division and distribution of prepaid or accrued taxes, prepaid insurance premiums, prepaid rents and other income and expenses. Apportionment usually occurs when a property is sold, and is the manner of determining the amounts due to and from the parties. |
Appraisal Report |
A verbal or written estimate of value. Usually it is a written statement giving an opinion of value of an adequately described property, as at a specific date and supported by pertinent data. |
Approved Lender |
An institution authorized to lend money on the security of real or immovable property approved by:
a) the Governor-in-Council for the purpose of making loans under the National Housing Act, or
b) a mortgage insurance company for the purposes of making loans insured by that company. |
Appurtenance |
A right used with the land for its benefit. |
Arm's Length |
A transaction freely arrived at in the open market unaffected by abnormal pressures or by the presence of normal competitive negotiation as might be true in the case of a transaction between related parties. |
Arbitration |
The determination of a dispute by a disinterested third party. |
Assessment |
A value placed upon property for taxation purposes. |
Assignee |
One who takes the rights or title of another by assignment. |
Assignment of Lease |
The absolute or conditional transfer of the rights of either party to a lease. |
Assignment of Mortgage |
The transfer of ownership of a mortgage from one party to another. |
Assignment of Rentals |
The enforced diversion from the mortgagor to the mortgagee of the revenue from the mortgaged property. |
Assignor |
One who transfers or assigns the rights or title to another. |
Assumption of Mortgage |
The act of assuming liability for an existing mortgage on a property by the purchaser of that property. With builders' loans, the assumption is usually evidenced by written agreement. |
Attachment |
The seizure of property by court order. |
Attornment |
The creation, by agreement, of the relationship of landlord and tenant where the mortgagor remains in possession of the property as a tenant of the mortgagee. |
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