Abandonment of Property
To vacate a property with a definite intention never to return.
Accelerated Weekly Payment
A mortgage repayment plan in which the borrower makes 52 payments per year instead of 48 which would be required if the payment plan called for four payments per month. The extra four payments each year have the effect of “accelerating” the repayment of the mortgage.
A clause in a mortgage which provides that where default has occurred in making any mortgage payment, the outstanding mortgage amount becomes due.
The offeree’s consent to enter into a contract and to be bound by the terms of the offer.
Accredited Appraiser Canadian Institute (AACI)
The highest level of designation bestowed by the Appraisal Institute of Canada . It allows the holder to conduct appraisals and consultations on various types of property.
The interest charged for the period of time that has elapsed since the last interest date.
Action for Possession
A legal remedy available to a lender when a mortgage is in default. It allows the lender to take possession of the mortgage property.
Action of Receiver
A legal remedy available to a lender when a mortgage is in default, asking the courts to appoint a receiver who takes possession of the property
Action on the Covenant for Payment
A legal remedy available to a lender when a mortgage is in default. It gives the lender the right to sue the borrower, even if the borrower has since sold the property.
Adjustable Rate Mortgage
See variable rate mortgage .
Adjustment on Sale
A pro-rated division and distribution of prepaid or accrued taxes, prepaid insurance premiums, prepaid rents and other income and expenses. This adjustment usually occurs when a property is sold and is the manner of determining the amounts due to and from the parties.
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 or when Crown property is involved.
A statement or declaration in 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 of oaths.
An agency relationship 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.
One who is authorized to represent and act on behalf of another person or business, the principal in transactions involving a third party. Unlike an employee who merely works for the principal, an agent works in place 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 out in that agreement.
A type of acceleration clause that demands payment of the entire debt upon sale or other transfer of the title.
An agreement between the lender and borrower by the lender in which the terms of the registered mortgage are changed. The amending agreement may or may not be not be registered on title.
This refers to the process of paying off a mortgage in regular payments composed of both interest and principal.
The time over which the mortgage is to be completely repaid, assuming equal payments. This means that when looking, for example, at a mortgage with a 25-year amortization period, it would take 25 years to reduce the balance to zero, if all regular payments were made on time and the terms (payment, interest rate) remained the same.
A table showing the amounts of principal and interest which make up each of the periodic level payments and the outstanding principal balance of the loan after each level payment is made.
A mortgage requiring regular payments which include both principal and interest sufficient to fully repay the loan by maturity.
The same date in each calendar year during the term of the mortgage. The first anniversary date occurs one year from the date interest is adjusted and the periodic repayments begin.
Appointment of a Receiver
A legal remedy available to a lender when a mortgage is in default. The receiver takes possession of the property, collects rents, and pays any expenses as required.
An independent, unbiased report that uses various analysis techniques and market research to determine the realistic value of a property.
An independent assessment of a property by a qualified individual. A statement giving an opinion of value of an adequately described property, as at a specific date and supported by pertinent data.
An appraiser determines the market value of a house based on its condition and the selling price of comparable houses recently sold in the area. The licensing requirement for real estate appraisers varies from province to province.
Arm’s Length Transaction
A transaction between unrelated parties. A transaction freely arrived at in the open market unaffected by abnormal pressures as might be the case in a transaction between related parties.
The determination of a dispute by a disinterested third party.
An overdue payment (in reference to a mortgage for the purposes of this text).
Assessment (assessed value)
A value placed upon property (land and buildings) for taxation purposes.
An annual list of the assessed values of all properties in a municipality. The assessment roll includes the name of the property owners or tenants and their addresses. Assessment rolls are usually delivered to a municipality before the end of the year. The term “roll” comes from ancient times and refers to the way information used to be stored – on paper or parchment, rolled up into cylinders.
Goods of value, either tangible or not, that a borrower or business owns.
One who takes the rights or title of another by assignment .
The act of transferring rights held by one party, the assignor , to another party, the assignee .
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
A contract in which the borrower grants the lender the right to collect future rents on a given occurrence, normally default. This assignment is normally taken as additional security on rental loans.
One who transfers or assigns the rights or title to another.
An existing mortgage that can be taken over (assumed) by the buyer of a property when that property is sold.
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.
The seizure of property by court order.
Attornment of Rents
A legal action available upon default of a mortgage. As a result, tenants are directed to pay their rents to the lender.