Canadian Financial, Real Estate and Mortgage Glossary

Contract Terms

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Abandonment Clause — Breach of Warranty
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BrokerContractual Lien
abandonment clauseDefinition (Insurance, Legal-contracts)
A clause that allows the insured to abandon damaged or lost property without losing insurance benefits.
abstract of judgementDefinition (Legal-contracts)
A court document that states how much the loser of a lawsuit owes, and which creates a lien, or a claim on property, when filed with the county recorder where the property is owned.
abstract of title (ab)Definition (Mortgages, Real-estate, Abbreviation, Legal-contracts)
A written history of all the transactions that bear on the title to a specific piece of land. An abstract of title covers the time from when the property was first sold to the present.
  ➥  AB is a common abbreviation for Abstract of Title when used in property listings and real estate classifieds.
acceleration clauseDefinition (Financial-banking, Legal-contracts)
A provision within a document that explains how the lender expects payment for a loan, in due haste.
acceptanceDefinition (Mortgages, Real-estate, Legal-contracts)
A property seller's formal, written approval of a buyer's offer.
accident and indemnity (A&I)Acronym
  ➥  An insurance liability agreement.
accidental damage waiver (ADW)Acronym
account agreementDefinition (Financial-banking, Legal-contracts)
An agreement that you sign and which lists your rights and responsibilities and the bank's rights and responsibilities for the bank account.
accrueDefinition (Mortgages, Financial-banking, Legal-contracts)
To gather together an amount often over a period of time.
act of god (AOG)Definition (Insurance, Legal-contracts)
When used in insurance policies, an event caused by natural forces such as hail, rain, tornado, lightning, floods or earthquakes, which results in damage to property.
addendumDefinition (Legal-contracts)
A change made to a contract.
administrative service contract (ASC)Acronym
adverse possessionDefinition (Real-estate, Legal-contracts)
A means of getting title to land by using it without the objection of the title holder.
adverse useDefinition (Real-estate, Legal-contracts)
Use of someone's property without permission.
affidavitDefinition (Legal-contracts)
A written statement sworn to before an authorized official such as a notary public, or commissioner for oaths.
agency (agcy)Definition (Investments, Mortgages, Real-estate, Insurance, Financial-banking, Abbreviation, Legal-contracts)
A relationship between two parties -- a client and an agent -- in which the agent represents the client in transactions with a third party.
agency closingDefinition (Mortgages, Real-estate, Financial-banking, Legal-contracts)
The use of a title company to supervise the meeting where the property is transferred and mortgage is settled.
agreed boundaryDefinition (Real-estate, Legal-contracts)
Property lines that are drawn to settle a dispute between neighbouring property owners.
agreement of sale (AOS)Definition (Real-estate, Legal-contracts)
A document in which a property's buyer and seller approve the price and other terms of the transfer of title.
alienation clauseDefinition (Mortgages, Real-estate, Legal-contracts)
A requirement that the borrower pay the mortgage in full upon transfer of the property.
alimonyDefinition (Taxation, Financial-banking, Legal-contracts)
Monthly payments received by an ex-spouse. Payments must be received continuously for one year to be counted toward qualifying income for a loan.
annexDefinition (Real-estate, Financial-banking, Legal-contracts)
To add one thing onto another.
annual administrative feeDefinition (Mortgages, Insurance, Financial-banking, Legal-contracts)
An annual (yearly) fee charged for the administration of a service.
annuity and supplementary contract (ASC)Acronym
anticipatory breachDefinition (Legal-contracts)
A notification that one party to a contract plans to renege, releasing the other party from having to fulfill its end of the agreement.
arbitrationDefinition (Financial-banking, Legal-contracts)
A dispute-resolution method in which an impartial third party, agreed upon by all sides beforehand, makes a decision.
as is where isDefinition (Real-estate, Legal-contracts)
The buyer must examine the goods or property and buy at his or her own risk.
assessmentsDefinition (Real-estate, Taxation, Legal-contracts)
Special and local taxes imposed upon property which benefits from an improvement that has been made in the vicinity.
assetDefinition (Mortgages, Insurance, Financial-banking, Legal-contracts)
Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
asset caseDefinition (Financial-banking, Legal-contracts)
A bankruptcy proceeding where there are non-exempt assets that might be accessible to pay creditor's claims.
assigneeDefinition (Estate-management, Real-estate, Insurance, Legal-contracts)
A person appointed to acquire (take) an item, such as a property.
assignorDefinition (Estate-management, Real-estate, Insurance, Legal-contracts)
assumption clauseDefinition (Mortgages, Real-estate, Legal-contracts)
A provision in a mortgage contract that allows a buyer to take responsibility for the loan from the seller.
assumption feeDefinition (Mortgages, Real-estate, Legal-contracts)
A lender's charge for updating records when a buyer takes responsibility for a mortgage from the seller.
auditDefinition (Taxation, Financial-banking, Legal-contracts)
An examination of a taxpayer's income tax return or other transactions bearing tax consequences. Audits range from a simple letter from the agency to a detailed review of individual or business tax filings and records.
authorized userDefinition (Financial-banking, Legal-contracts)
Any person to whom you give permission to use a credit card account.
aviation easementDefinition (Real-estate, Legal-contracts)
An agreement that grants the right to fly airplanes over property, even if the practice causes damage, inconvenience, or loss of property value. Such an agreement usually restricts the property owner from building or growing anything over a specified height.
back title letterDefinition (Real-estate, Insurance, Legal-contracts)
A document that a title insurance company gives to an attorney specifying condition of the title.
backflip takeoverDefinition (Investments, Financial-banking, Legal-contracts)
A form of takeover where the purchasing company becomes a subsidiary of the purchased company.
bank investment contract (BIC)Acronym
bargain and sale deed (BSD)Acronym
bilateral contractDefinition (Real-estate, Financial-banking, Legal-contracts)
A legal agreement in which both parties promise to give each other something. A purchase agreement in which the buyer promises to give money and the seller promises to transfer property is a bilateral contract.
bill of sale deed (BSD)Acronym
binderDefinition (Real-estate, Legal-contracts)
An agreement to consider the purchase of real estate. The agreement is secured and backed by a cash deposit as evidence of good faith on the part of the purchaser.
boilerplateDefinition (Legal-contracts)
Standard, routine language in legal documents.
bona fideDefinition (Real-estate, Legal-contracts)
In good faith. In real estate, a bona fide purchaser or seller has the legal right to give or receive title.
book valueDefinition (Real-estate, Insurance, Financial-banking, Legal-contracts)
The value of a property, item or company as a capital asset based on its cost plus any additions, subtracting depreciation.
breach of contract (BOC)Definition (Legal-contracts)
Failure to abide by terms of a legal agreement without a legal excuse.
breach of covenantDefinition (Real-estate, Legal-contracts)
Violation of a promise made in a contract or property deed.
breach of warrantyDefinition (Real-estate, Legal-contracts)
A determination that a seller cannot pass clear title of property to a buyer.
  Currently Displayed — Page 1
Abandonment Clause — Breach of Warranty
  Next Page
BrokerContractual Lien

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Index of Contract Terms

Page 1: Abandonment Clause
Breach of Warranty
Page 2: Broker
Contractual Lien
Page 3: Contributory Negligence
First Lien
Page 4: First Mortgage
Master Land Services...
Page 5: Master Promissory Note
Page 6: Renewable Term
Unisex Legislation
Page 7: Valid

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