Terms with Category Legal Contracts
- Land Title — Definition,
- The legal document conveying title to a property.
- Lawsuit — Definition,
- A suit brought before a court in order to remedy an alleged injustice.
- Lease Option — Definition,
- A written agreement in which an owner allows an individual to use a property in exchange for rent, and also gives that individual the right to buy the property for a specified price within a specified period
- Legal Description (lgdc) — Abbreviation,
- A way of identifying a piece of property in writing that is acceptable to a court.
- Legal Mortgage — Definition, Important,
- The written geographical description of a property as described in the land register.
- Lessee — Definition,
- The person who signs a lease.
- Lessor — Definition,
- The person who grants a lease.
- Letter of Credit (L/C) — Acronym,
- A letter authorizing a person or company to draw on a bank or stating that the bank will honour the credit up to the stated amount.
- Letter of Intent — Definition,
- A formal notification that a buyer intends to buy property. It is not legally enforceable.
- Levy — Definition,
- A cost imposed on an individual or entity.
- Liability — Definition,
- A situation where one party is found to be legally responsible for something.
- Lien — Definition,
- A legal hold or claim of a creditor on the property of another.
- Lien Holdback — Definition,
- The practice of mortgagees withholding up to 15% of mortgage monies advanced on new construction.
- Lien Waiver — Definition,
- A document in legal form signed by persons or firms which have lien rights, waiving those rights.
- Lis Pendens — Definition,
- A legal document giving notice that an action or proceeding is pending in the courts which affects the title to the designated property.
- Loan — Definition,
- Letting another party use something of value temporarily.
- Loan Term — Definition,
- The period specified in the promissory note for a borrower to pay a loan, such as a mortgage. Most conventional mortgages have a loan term of 5 or 10 years.
- Loss Payable Clause — Definition,
- An insurance policy provision for payment of a claim to someone, other than the insured's interest in the insured property. This clause basically allows an insurer to make payments to a third party in certain circumstances.
- Low-documentation Loan — Definition,
- A mortgage that requires less income or asset verification than conventional loans. Low-documentation loans are designed for the entrepreneur or self-employed, for recent immigrants, or for borrowers who cannot or choose not to reveal their financial information. A substantial down payment and excellent credit history are generally required. This type of loan will also yield a higher interest rate.
- Malpractice — Definition,
- Negligent acts done by a professional that causes injury to a plaintiff.
- Maturity Guarantee — Definition,
- A guarantee that after a certain date a contract, such as a life insurance policy or annuity, will have a minimum dollar value.
- Mediation — Definition,
- A method of resolving a dispute using a neutral party (a "mediator") who actively works to resolve the differences. A mediator cannot make a binding decision, as opposed to an arbitrator, who can.
- Mis-selling — Definition,
- The act of misleading a client into buying a product or service by deliberately misrepresenting the aforementioned product or service.
- Monetary Policy — Definition,
- The Bank of Canada's ability to influence the economy through changes in short-term interest rates and the money supply.
- Mortgage Acceleration Clause — Definition, Important,
- A provision of a loan agreement that lets a lender demand payment of the full balance under specified circumstances, such as sale of the property, default or refinancing. Not commonly used in Canada and/or Canadian lenders.
- Mortgage Application — Definition, Very Important,
- A document in which a prospective borrower details his or her financial situation to qualify for a loan.
- Mortgage Lien — Definition, Important,
- A legal claim against a mortgaged property which must be paid when the property is sold.
- No-documentation Loan — Definition,
- A mortgage in which the applicant provides a minimum of information -- name, address, Social Insurance number (so credit reports can be pulled), and contact information for an employer, if there is one. The underwriter decides on the loan based on the applicant's credit history, the appraised value of the house and size of down payment.
- Non-assumption Clause — Definition,
- A provision of a home loan that prohibits the transfer of the mortgage to another borrower without the lender's permission.
- Non-Cancellable — Definition,
- A contract or section of a contract that cannot be modified.
