C
CAP
Refers to a maximum interest rate increase for a mortgage.
CAPITALIZATION RATE
The rate of return anticipated by an investor in property.
CAPITALIZED VALUE
The value of a property based on the net income.
CAVEAT EMPTOR
Let the buyer beware. A buyer must examine fully before the purchase is made.
CERTIFICATE OF CHARGE
A mortgage document in the Land Titles System.
CERTIFICATE OF TITLE
The sequence of conveyances and encumbrances affecting a title to land from the time that the original patent was granted or as far back as records are available.
CHARGE
The name given to a mortgage document when title is registered under the Land Titles Act.
CHARGE ON TITLE
Any encumbrance or claim that affects title to property.
CHATTEL MORTGAGE
An encumbrance against moveable possessions, or personal property that may be removed without damage to the property, (e.g. appliances).
CHATTELS
Moveable possessions and personal property that may be removed without damage to the property, (eg. appliances).
CLOSED MORTGAGE
A reference to the absence of the privilege to accelerate repayment during the term of a mortgage either by bulk payment(s) or increase to scheduled remittances.
CLOSING
See Date of Completion
CMHC
The Canada Mortgage and Housing Corporation a Canadian Crown Corporation which administers the National Housing Act. CMHC services include the insuring of high ratio mortgage loans for lenders.
COLLATERAL MORTGAGE
A mortgage which secures a loan given by way of a promissory note.
COLLATERAL SECURITY
An additional form of security, pledged to reduce the risk of a mortgagee.
COMMITMENT
A written notice from a lender who advises of approval to advance a specified amount of funds under certain conditions.
COMMON LAW
That part of the law formulated, developed and administered by the old common law courts, based originally on unwritten common customs.
COMPLETION LOAN
A mortgage loan disbursed following the satisfactory completion of construction.
COMPOUND INTEREST
Interest on both the principal and on interest that has accrued.
CONDITION PRECEDENT
An event or action necessary before an agreement becomes binding. (Subject Clause)
CONDITION SUBSEQUENT
A condition referring to a future event upon the happening of which the contract becomes no longer binding on the parties.
CONDOMINIUM
The ownership of a separate amount of space in a multiple dwelling or other multiple-ownership of common elements used jointly with other owners.
CONSIDERATION
Something of value given to make a promise of repayment enforceable.
CONSTRUCTION ADVANCE
Moneys advanced to the borrower under a construction loan.
CONSTRUCTION LIEN
A claim against property pursuant to labour, services, or materials supplied. (Builders Lien)
CONSTRUCTION LOAN
A short term loan made to a builder for construction of buildings, usually to be paid out by another mortgage upon final completion. Also, a description used in reference to a mortgage which is advanced in pre-determined stages, according to the amount of work completed.
CONSTRUCTION LOAN AGREEMENT
An agreement between a lender and a builder setting out terms of an agreement - loan amount, rate, method of drawing funds, conditions for advancing.
CONTRACT
An agreement between two or more parties given receipt of lawful consideration to do or refrain from doing some act.
CONVENTIONAL MORTGAGE
A mortgage loan which does not exceed 75% of the lending value of the property. Mortgages that exceed this limit must be insured by CMHC (or similar insurance provider).
CONVEYANCE
The transfer of property ownership. Also, the written instrument whereby such transfer is effected. Conveyance includes a mortgage, charge, and lease, etc.
CO-OPERATIVE
The ownership of a separate amount of space in a multiple dwelling or multiple-occupancy building with proportioned tenancy in common ownership of common elements. Used jointly with other owners, however, the owner does not have clear title to a specific unit, but becomes a shareholder of the corporation which owns all the property and occupies by way of a tenancy agreement subject to shareholders agreement administered by an elected board of directors.
COVENANT
An agreement contained in an instrument creating an obligation. It may be positive, stipulating the performance of some act. It may be negative or restrictive, forbidding the commission of some act.
CROSS-COLLATERALIZATION
A reference to security involving various liens held in support of one or more advances made by a lender to a borrower.