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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Legal-contracts

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land titleDefinition (Real-estate, Legal-contracts)
The legal document conveying title to a property.
lawsuitDefinition (Legal-contracts)
A suit brought before a court in order to remedy an alleged injustice.
lease optionDefinition (Real-estate, Financial-banking, Legal-contracts)
A written agreement in which an owner allows an individual to use a property in exchange for rent, and also gives that individual the right to buy the property for a specified price within a specified period
legal description (lgdc)Definition (Real-estate, Legal-contracts)
A way of identifying a piece of property in writing that is acceptable to a court.
legal mortgageDefinition (Mortgages, Legal-contracts)
The written geographical description of a property as described in the land register.
lesseeDefinition (Real-estate, Legal-contracts)
The person who signs a lease.
lessorDefinition (Real-estate, Legal-contracts)
The person who grants a lease.
letter of credit (L/C)Definition (Financial-banking, Legal-contracts)
A letter authorizing a person or company to draw on a bank or stating that the bank will honour the credit up to the stated amount.
letter of intentDefinition (Real-estate, Legal-contracts)
A formal notification that a buyer intends to buy property. It is not legally enforceable.
levyDefinition (Taxation, Financial-banking, Legal-contracts)
A cost imposed on an individual or entity.
liabilityDefinition (Insurance, Legal-contracts)
A situation where one party is found to be legally responsible for something.
lienDefinition (Real-estate, Legal-contracts)
A legal hold or claim of a creditor on the property of another.
lien holdbackDefinition (Mortgages, Real-estate, Legal-contracts)
The practice of mortgagees withholding up to 15% of mortgage monies advanced on new construction.
lien waiverDefinition (Legal-contracts)
A document in legal form signed by persons or firms which have lien rights, waiving those rights.
lis pendensDefinition (Real-estate, Legal-contracts)
A legal document giving notice that an action or proceeding is pending in the courts which affects the title to the designated property.
loanDefinition (Investments, Mortgages, Financial-banking, Legal-contracts)
Letting another party use something of value temporarily.
loan termDefinition (Mortgages, Financial-banking, Legal-contracts)
The period specified in the promissory note for a borrower to pay a loan, such as a mortgage. Most conventional mortgages have a loan term of 5 or 10 years.
loss payable clauseDefinition (Insurance, Legal-contracts)
An insurance policy provision for payment of a claim to someone, other than the insured's interest in the insured property. This clause basically allows an insurer to make payments to a third party in certain circumstances.
low-documentation loanDefinition (Mortgages, Financial-banking, Legal-contracts)
A mortgage that requires less income or asset verification than conventional loans. Low-documentation loans are designed for the entrepreneur or self-employed, for recent immigrants, or for borrowers who cannot or choose not to reveal their financial information. A substantial down payment and excellent credit history are generally required. This type of loan will also yield a higher interest rate.
malpracticeDefinition (Insurance, Legal-contracts)
Negligent acts done by a professional that causes injury to a plaintiff.
maturity guaranteeDefinition (Investments, Estate-management, Annuities, Insurance, Financial-banking, Legal-contracts)
A guarantee that after a certain date a contract, such as a life insurance policy or annuity, will have a minimum dollar value.
mediationDefinition (Legal-contracts)
A method of resolving a dispute using a neutral party (a "mediator") who actively works to resolve the differences. A mediator cannot make a binding decision, as opposed to an arbitrator, who can.
mis-sellingDefinition (Investments, Mortgages, Real-estate, Insurance, Financial-banking, Legal-contracts)
The act of misleading a client into buying a product or service by deliberately misrepresenting the aforementioned product or service.
monetary policyDefinition (Investments, Mortgages, Financial-banking, Legal-contracts)
The Bank of Canada's ability to influence the economy through changes in short-term interest rates and the money supply.
mortgage acceleration clauseDefinition (Mortgages, Legal-contracts)
A provision of a loan agreement that lets a lender demand payment of the full balance under specified circumstances, such as sale of the property, default or refinancing. Not commonly used in Canada and/or Canadian lenders.
mortgage applicationDefinition (Mortgages, Financial-banking, Legal-contracts)
A document in which a prospective borrower details his or her financial situation to qualify for a loan.
mortgage lienDefinition (Mortgages, Legal-contracts)
A legal claim against a mortgaged property which must be paid when the property is sold.
no-documentation loanDefinition (Mortgages, Financial-banking, Legal-contracts)
A mortgage in which the applicant provides a minimum of information -- name, address, Social Insurance number (so credit reports can be pulled), and contact information for an employer, if there is one. The underwriter decides on the loan based on the applicant's credit history, the appraised value of the house and size of down payment.
non-assumption clauseDefinition (Mortgages, Real-estate, Legal-contracts)
A provision of a home loan that prohibits the transfer of the mortgage to another borrower without the lender's permission.
non-cancellableDefinition (Insurance, Financial-banking, Legal-contracts)
A contract or section of a contract that cannot be modified.
non-disclosure agreement (NDA)Definition (Legal-contracts)
A contract that disallows one or more parties from disclosing information covered by the contract.
non-forfeiture clauseDefinition (Insurance, Legal-contracts)
A clause that allows a policyholder to receive partial or full benefits and/or a refund of premiums if the policy lapses due to unpaid premiums.
not-for-profitDefinition (Taxation, Financial-banking, Legal-contracts)
An Organization operated solely for: social welfare, civic improvement, pleasure or recreation, or any other purpose except profit.
noteDefinition (Investments, Financial-banking, Legal-contracts)
A legal acknowledgement of a debt and an implicit promise to repay. It includes the loan amount, interest rate and term.
Notice of Assessment (NOA)Canada
A form the federal government issues when personal taxes are complete. A notice of assessment shows a breakdown of the given years income along with the balance owing or refund.
  ➥  Canada Revenue Agency's T451 tax form.
notice of default (NOD)Definition (Mortgages, Real-estate, Financial-banking, Legal-contracts)
The step in the foreclosure process where the lender informs the court that the borrower is in arrears.
occurrenceDefinition (Insurance, Legal-contracts)
An event that triggers the need for insurance coverage.
offerDefinition (Real-estate, Legal-contracts)
To propose or give something.
optionDefinition (Financial-banking, Legal-contracts)
A legal agreement giving someone the right to buy, sell or lease a property or item at specified terms for a specified period.
oral agreementDefinition (Legal-contracts)
A spoken, unwritten legal agreement, worth the paper it's printed on.
penaltyDefinition (Mortgages, Financial-banking, Legal-contracts)
In mortgage terms, a penalty is a set rate or length of time the penalty will be charged based on the remaining loan amount. The penalty is usually three months interest or interest rate differential.
perilDefinition (Insurance, Legal-contracts)
Anything that poses a risk of loss, which may or may not be insurable depending on the potential for risk.
period of indemnityDefinition (Insurance, Legal-contracts)
The amount of time where insurance benefits are required to be paid by an insurance policy.
plaintiffDefinition (Legal-contracts)
The party who initiates a lawsuit.
policyDefinition (Insurance, Financial-banking, Legal-contracts)
An insurance contract.
policy declarationsDefinition (Insurance, Legal-contracts)
The section of the insurance policy that declares the specifics of the insurance policy including premiums, named perils, and policy limits, amongst others.
power of attorney (PA, POA)Definition (Financial-banking, Legal-contracts)
A document in which the signer authorizes someone to conduct business in his or her name -- signing title documents and cheques, for example.
power of saleDefinition (Mortgages, Financial-banking, Legal-contracts)
The right of a mortgagee to force the sale of the property without judicial proceedings should default occur.
pre-approval letterDefinition (Mortgages, Financial-banking, Legal-contracts)
A document from a lender or broker, estimating how much a potential home-buyer could borrow, based on current interest rates and a preliminary look at credit history.
pre-payment clauseDefinition (Mortgages, Financial-banking, Legal-contracts)
A clause that stipulates the amount of principal a borrower may prepay ahead of schedule without penalty as well as the prepayment penalty for larger prepayments.
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Document Needs ListLand Contract
 
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Land Title — Pre-payment Clause
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Pre-payment PenaltyTort

Search the Glossary

Index of Legal-contracts Terms

Page 1: Abandonment Clause
Bundle of Rights
Page 2: Burden of Proof
Division of Property
Page 3: Document Needs List
Land Contract
Page 4: Land Title
Pre-payment Clause
Page 5: Pre-payment Penalty
Tort
Page 6: Tort Law
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Notable Terms

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