Glossary of terms
Caveat: A notice registered against the title to land warning those looking at
the title that a claim has been made.
CCA: Abbreviation of Capital Cost Allowance.
Chattel Mortgage: A document evidencing a debt owed by the borrower
(mortgagor) to the lender (mortgagee). The mortgage is secured by the lender
against personal property owned by the borrower as collateral to ensure the
repayment of the debt. These mortgages are governed by the Personal
Property Security Act.
Closed Mortgages: A mortgage which cannot be fully paid out before expiry of
Completion Date: Date on which the purchase's solicitor undertakes to the
vender that he will pay the balance owing to the vender upon the transfer of
title being accepted for registration.
Compound Interest: Interest which, during the life of the loan is charged or
calculated at regular intervals and if not immediately paid will, in subsequent
period, earn interest itself.
Condition: A fundamental term of a contract, a breach of which allows the
injured party to terminate the contract and/or sue for damages or Specific
Condition Precedent: Legal term for a "subject to" clause. In contract law, a
condition precedent calls for the happening of some event or the performance
of some act the contract shall be binding upon the parties.
Conditional Sale: A contract for the sale of goods by which the seller reserves
ownership (but not possession) of the goods until the price has been
paid(usually by installments) Such contracts are regulated by the Personal
Property Security Act.
Contract: An agreement between two or more persons which create an
obligation to do or not to do a particular thing.
Conventional Mortgage: A traditional mortgage for up to 75 per cent of the
appraised value of a property.
Convertible Mortgage: A mortgage that gives the borrower the flexibility to
change from a short-term to a longer-term mortgage if it seems advantageous
to do so. For example when interest rates appear to have hit bottom.
Conveyance: The process of transferring interest on land from one person to
another way of a transfer document. Conveyancing usually refers to the
transfer of title to land but also includes dealings such as assignments, leases,
Co-Ownership Syndicate: A real estate syndicate organization in which two or
more investors are owner of an undivided interest in real property.
Corporation: A business entity which is owned by shareholders who decide on
the general policies of the company through their elected board of directors. A
corporation is a separated legal entity and therefore has the right and liabilities
of an individual. Shareholders do not share directly in the income of a
corporation, but they may receive Dividends.
Credit Analysis: An investigation of a loan applicant's ability to repay.
Creditor: A person to whom a debt is owed. Contrast to Debtor.
Current Assets: Those assets which will be converted into cash, sold, or
consumed within one year or the normal operating cycle of a business,
whichever is longer, Current Assets may include Cash, Marketable Securities,
Accounts Receivable, Investments, and prepaid expenses.