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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.
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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.
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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.
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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.
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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-storey house in the
Latin style, with overhanging eaves and masonry construction.
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