An agreement which is not reduced to writing but is created,
under the common law, on the basis of the behavior of the parties
which suggests that they are acting under an agreement.
A guarantee of the condition of a thing
or the truth of a statement which is created as a result of
the actions of a party but not written down.
The portion of a borrower's periodic
payment on a loan that is collected to pay for items other
than principal, interest or penalties (such as realty taxes,
insurance premiums, etc.).
The trust account held by a lender
into which payments for insurance, taxes, etc., paid by the
borrower are placed prior to being disbursed by the lender.
Also known as "developed land".
Opposite of "raw or vacant land". Land which someone
has, by dint of their labour, taken out of the state of nature.
Things added to vacant land with the
view to increasing its usefulness and value, such as buildings,
parking areas, drainage works, etc.
A comparison of the value of the improvements
of a property with the value of the property without the improvements.
Interest which is deemed to have been
charged on a loan by a court
Latin term meaning "Against the
thing." Used to describe a legal action which is taken
against land rather than against the land owner, such as a
bank's foreclosure on a defaulted mortgage.
Describes something that has been begun
but never completed or a right that has arisen but is not
yet enforceable (such as Dower rights).
An appraisal technique whereby the
potential of the property to produce income is used to assess
its value.
A property which is owned or developed
specifically to produce income for its owner.
Not capable, usually in the mental
sense. When referring to a contract or will, a person who
is not legally capable of signing and being bound to such
a document.
Real estate in which a person has a
legal interest but no right of possession and occupation.
The presence of a defect in an asset
(i.e. a building) which is too costly to fix.
To take responsibility for the losses
and damages suffered by another person.
A document in which one party agrees
to take responsibility for the losses and damages suffered
by another party or parties.
Similar to a contract. An agreement
between two or more parties, often referring to land.
An estimate of the value of a property
prepared by someone who has no interest in the property or,
if a mortgage is involved, in the lender.
A legal term for a person who is hired
to do work for another person but who is not an employee or
agent of that person. The hiring person is not responsible
for the actions of the Independent Contractor nor does she
owe that Independent Contractor the same legal duties owed
by an Employer to an Employee under labor and employment laws.
Any rate published by an independent
third party (the government, the federal bank, etc.) which
serves as the base for calculating a variable item in a contract.
(A Variable or Adjustable Rate Mortgage may use the Federal
Bank's monthly prime interest rate as the index for the interest
charged under that mortgage).
A rental agreement where the amount
of the rent to be paid changes in accordance with changes
in a specified index (i.e. the cost of living index).
Any loan whose interest rate is adjusted
in accordance with a rate published by an independent third
party (an "index").
Also known as "soft costs",
those costs which are not automatically considered in a construction
project.
:
A parcel of land specifically developed
to provide lots for industrial activities.
A plot of land used for a factory or
other industrial use.
Term for the public-use improvements
made to an area such as sewers, roads, bridges, and public
utility installations.
The right to enter over a parcel of
land not owned by you but not to occupy the land.
An assessment payable to a level of
government based on the value of assets inherited.
The rate chargeable on a mortgage on
the day it is signed.
The period of time for which the "initial
interest rate" is guaranteed on a Variable or Adjustable
Rate mortgage before it begins to change according to its
"index".
An order of a court to stop a party
from committing the act specified in the order.
A slang term for the older, central
residential area of a municipality which, in many cases, has
deteriorated into poverty.
Term for a property that is not on
a corner at the intersection of two roads.
A physical examination of a person,
document or other thing, such as a home.
Any person charged with the task of
making a physical examination of a person, document or other
thing. Could be employed by a government body (i.e. an electrical
inspector, fire inspector) or by a potential purchaser (a
home inspector).
A regular periodic payment.
Same as land contract.
A loan which is paid back in periodic
payments.
The sale of a property with the Vendor
taking back a mortgage from the purchaser and paying the taxes
on the sale proceeds as they are collected.
An accredited financial organization
(i.e. a bank, trust company, credit union, etc.) which offers
loans.
A loan secured against real property
offered to the land owner by a bank, credit union, trust company
or other accredited financial organization. Opposite of "private
mortgage".
A legal document in written form setting
out certain rights of parties to it.
A legal right to a property which results
in the holder of that right suffering damages in the event
of the destruction of the property.
Ownership of land which a Title Insurance
Company is willing to insure.
The cost of replacement of all improvements
to a property which could conceivably be destroyed.
A contract in which one party agrees
to compensate another party for any losses or damages caused
by risks identified in the contract in exchange for the payment
of a lump sum or periodic amounts of money to the first party.
Written evidence that insurance is
in effect with regard to the property and the risks set out
in the binder. Temporary in nature, the binder assures coverage
until permanent coverage can be arranged.
Term to describe the monetary limits
and risks covered as set out in a contract or policy of insurance.
A promise by a Title Insurance Company
to a lender to pay for all costs and losses to the lender
which might result from the actions of the Company's closing
agent while closing a transaction.
A loan secured against land for which
an insurance policy exists promising to compensate the lender
for all losses and costs resulting from the borrower's failure
to meet her obligations under the loan agreement.
Latin meaning "during life".
Used to describe a gift made during a person's lifetime (as
opposed to a bequest in a will) or a trust.
1. A person's legal right to an asset
or property.
2. The cost of borrowing money, charged as a percentage of
the outstanding amount owed.
The date upon which the borrower is
required to pay accrued interest on the borrowed principal
under a mortgage, which date falls one full payment interval
before the first payment date as set out in the agreement.
For example, if a mortgage is advanced on May 15 to be paid
on the first day of each month, June 1 would be the interest
adjustment date and July 1 the first payment date. On June
1, the borrower would be required to pay the interest that
has accrued on the principal since the date of the advance
(May 15).
The rate, stated as a percentage, at
which interest accumulates on a mortgage.
The portion of each periodic payment
on a loan, expressed in dollars, which is allocated toward
accrued interest.
The length of time between changes
in interest rate on an Adjustable or Variable Rate Mortgage.
A method of reducing the effective
interest charged to a borrower. A third party (often a vendor)
deposits a lump sum into an account, portions of which are
then used to reduce the amount required from the borrower
for each periodic payment over a set period of time.
A clause in an Adjustable or Variable
Rate Mortgage which limits the change in the interest rate
charged. May limit change within a single adjustment period
or over the life of the mortgage.
The highest rate of interest chargeable
under a Variable or Adjustable Rate Mortgage, as set out in
the mortgage contract.
The lowest rate of interest chargeable
under a Variable or Adjustable Rate Mortgage, as set out in
the mortgage contract.
A debt for which the periodic payments
are enough to pay only the interest which accumulates on the
principal over the payment period. Principal is due at maturity.
1. A construction loan to pay for costs
up to completion;
2. Another name for a bridge loan, a short-term loan designed
to cover a gap of time between the purchase of a new home
and the sale of the old when equity becomes available.
Simple style of house, with little
or no ornamentation.
Federal law administered by HUD regulating
the practice of the sale of land between people in different
states.
Where title in a property is shared
among a group of people, each of whom is entitled to occupation
of the property for a specified period of time each year.
Also known as "time-sharing".
1. A person who dies without leaving
a will.
2. A description of having died without leaving a will.
A court remedy for a private land owner
whose interest or ownership in land has been interfered with
or taken away outright by a governmental body.
A piece of real estate that is owned
for the purposes of financial gain, either through appreciation
in value or through income from the property
Loss of land through natural forces
or through government action.
A claim registered against a property
without the consent (and sometimes without the knowledge of)
the owner of the land.
Time and day specified in an offer
until which the offeror may not retract the offer, until which
the offeree may accept the offer.
Unchangeable. Not able to be recalled.
A large, two- or three-story house
in the Latin style, with overhanging eaves and masonry construction.
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