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Call Clause |
See Acceleration Clause. |
Caution |
A notice registered on title by a person claiming to have a proprietary interest (i.e. a right to call for or receive a transfer charge) in land or in a charge of which he is not the registered owner to protect his interest. The registered owner of the land or charge cannot deal with the land of charge without consent of the cautioner. |
Capital Cost Allowance |
A deduction from rental income such part of the capital cost of property as is allowed by regulation under the Income Tax Act. |
Capitalization |
1 ) In the appraisal process the conversion of earnings anticipated from the typical operation of a property into a sum of present worth (capital value). 2) In mortgaging, the conversion of interest into a principal sum and the subsequent amortization of that sum with interest. |
Caveat |
See Caution. |
Caveat Emptor |
"Let the buyer beware". The buyer must examine the goods or property he is buying and he, therefore, buys at his own risk. |
Central Bank |
A body established by a national Government to regulate currency and monetary policy on a national-international level. In Canada, it is the Bank of Canada; in the United States, the Federal Reserve Board; in the U.K., the Bank of England. |
Certificate of Charge |
A mortgage document in the Land Titles System. |
Certificate of Location (Quebec) |
See Surveyor's Certificate. |
Certificate of Occupancy |
A certificate provided by the City Building Inspector that a property has been constructed under the authority of the issued building permit and may be occupied. |
Certificate of Search (Quebec) |
See Sheriff's Certificate. |
Cessation of Charge |
A discharge of a mortgage registered under the Land Titles Act. |
Charge |
A mortgage under the Land Titles Act is a charge. Like a mortgage a charge arises by contract. With a charge, however, there is no transfer of the title or possession buy the land is charged with the payment of a debt or the discharge of an obligation. It has certain incidents annexed to it by statue such as the right of foreclosure, which it would not otherwise have. |
Chattels |
Movable possessions, personal property (generally items that may be removed without injury to the freehold estate). |
Chattel Mortgage |
A mortgage given on chattels. Usually given as collateral security to a mortgage on real estate. As an example, a chattel mortgage on refrigerators and stoves in an apartment building. |
Closed-End Fund |
The investment in real estate equities or mortgages on a one-time-only basis. At the "end" of the investment cycle the asset is sold and the proceeds distributed on the basis of the original investment. |
Closed Mortgage |
A mortgage which does not contain any prepayment rights. |
Closing |
The conclusion or consummation or a transaction. |
Cloud on Title |
Any encumbrances or claim that affects title to real property. |
Co-Applicant |
A person applying with another for a loan. |
Co-lnsurance |
A sharing of risk between insurer and insured depending on the relation of the amount of the policy and a specified percentage of the actual value of the property insured at the time of loss. |
Collateral Security |
An additional security, for the better safety of a mortgagee, i.e. a chattel mortgage. |
Commercial Pledge (Quebec) |
Also called Nantissement Commercial. See Chattel Mortgage. |
Commitment |
A contract issued by a lender reciting the basic terms of a loan and accepted by the borrower. |
Completion Bond |
See Performance Bond. |
Completion Loan |
The single disbursement of the total loan following satisfactory completion of the property. |
Compliance Inspection Report |
An inspection report provided by C.M.H.C. that a property is being constructed in reasonable conformity with the residential standards. |
Compound Interest |
Interest charged not only on the principal sum but also on interest amounts charged in preceding periods which accumulate as new principal. In interest law the words compounded, calculated, computed, converted, or convertible are considered to by synonymous terms. |
Condemnation |
See Expropriation. |
Conditional Sales Agreement |
An agreement by which it is provided that the title to the goods (other than building materials) remains in the seller until payment in full of the purchase price, possession being given forthwith and-the price usually being payable in installments. |
Condominium |
The fee ownership of a separate amount of space in a multiple occupancy building with proportioned tenancy in common ownership of common elements used jointly with other owners. For glossary of terms see Section 7 of the Phase 11 manual. |
Constant |
The percentage of the loan paid in equal regular payments that provide principal reduction and interest payments over the life of the loan. Usually expressed annually. |
Contract |
An agreement of two or more persons on a sufficient consideration to do or not to do a particular thing. When real property is involved, a dated, written, signed agreement between two or more competent parties to do or not to do a legal act, for a legal consideration, within a specified time. |
Conventional Mortgage |
A mortgage loan that is not required to be insured as it is less than a statutory percentage of value (75%). |
Convertible Mortgage |
A mortgage loan which can be converted into equity ownership. |
Conveyance |
Means an assignment, appointment, lease, settlement and other assurance and covenant to surrender made by deed on a sale, mortgage, demise, or settlement of any property or on any other dealing with or for any property. |
Co-Operative |
A form of multiple ownership of real estate in which a corporation or business trust entity holds title to a property and grants the occupancy rights to - shareholders by means of proprietary lease or similar arrangements. |
Correspondent |
A company that originates, processes, and administers mortgage loans or other real estate investments on a continuing basis for investors. |
Co-Signor |
See Guarantor. |
Cost Approach (To Value) |
One of the steps in the valuation process. The estimate of value by this approach is reached by estimating the value of the land and adding to this the improvements, less accrued depreciation. |
Coupon Rate |
The contractual interest rate stated in the mortgage document. |
Covenant |
An agreement written into deeds and other instruments promising performance or non performance of certain acts or stipulating certain uses or non-uses of the property. |
Credit Charge |
In respect to a lending transaction, the aggregate of all charges against, and amount paid or payable directly or indirectly by or on behalf of a borrower. |
Creditor |
One to whom a debt is owing. |
Cross Default Clause |
Mutual clauses in two or more mortgages which state that a default under one mortgage constitutes a default under the other(s). |
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