SALE AGREEMENT:
Also known as "Agreement of Purchase and Sale" or "Purchase Agreement:. The contract that sets out the terms and conditions agreed to by the purchaser and the vendor in the sale of land.
SALE AND LEASEBACK (SALE-LEASEBACK):
Where the vendor sells the property to the purchaser, then leases it back immediately for a long term.
SALE PRICE:
Also known as "purchase price", the amount of money paid by the purchaser to the vendor for the property under the agreement.
SALES COMPARISON APPROACH:
Method of estimating value of a property by comparing similar properties that have been sold recently.
SECOND MORTGAGE:
A mortgage loan which is registered on title after another mortgage (the first mortgage) and, therefore, is behind the first mortgage in priority. In the event of default and sale of the property, the second mortgagee will only be paid if there are funds left after the payment of the first mortgagee.
SECONDARY MARKET:
The purchase and sale of mortgages among lenders.
SELLER FINANCING:
Also known as "vendor take-back mortgage" or "mortgage back", where the seller of a property agrees to payment of part of the purchase price over time with the debt to the seller registered on title as a mortgage.
SELLER-TAKE-BACK:
See "seller financing".
SELLING AGENT:
The real estate professional who brings the eventual purchaser to the property and the vendor. As opposed to "listing agent".
SEMIDETACHED HOUSING:
A dwelling that shares one side wall with another dwelling.
SEPTIC SYSTEM:
A manner of dealing with sewage of a dwelling, through pipes into a septic tank.
SERIOUS DELINQUENCY:
The condition of being far behind in mortgage payments such that mortgage enforcement by the lender is imminent.
SERVICING (THE LOAN):
The act of collecting periodic payments toward a debt.
SETTLEMENT COSTS:
See "closing costs".
SHARED APPRECIATION MORTGAGE (SAM):
A loan arrangement which allows the lender to share, in exchange for a reduced interest rate, in any gain in the value of the property against which the mortgage is secured.
SIMPLE INTEREST:
A charge for the use of money which is calculated on a periodic basis as a percentage of the principal borrowed. No further interest is charged on interest accumulated in earlier periods.
SINGLE-FAMILY RESIDENCE (UNIT):
A property designed for the use and occupancy of one family group.
SITE:
The location of something.
SPEC HOUSE:
A new dwelling which is being built or has been completed by a builder before a purchaser has been found to buy it.
SPECULATOR:
Someone who buys property on the expectation that its value will increase and it will be sold at a profit.
STANDARD MORTGAGE:
A mortgage which has equal periodic payments and is paid out at the end of its term.
STARTER HOME:
A small home, inexpensive, suitable to first-time home buyers.
STATUTORY LIEN:
A claim which may be registered against property and is created by a law.
STREET ADDRESS:
See "municipal address".
SUBDIVISION:
The creation of a number of smaller lots out of one or more large lots for the purposes of developing each smaller lot and selling them.
SUBLEASE:
A rental contract between a tenant and someone who rents from the tenant.
SUBLESSEE:
A tenant's tenant.
SUBLESSOR:
A tenant who leases the premises to another person.
SUBORDINATION CLAUSE:
An agreement by the lender which allows the current mortgage to be "postponed" or placed behind a later mortgage in priority.
TAX LIEN:
A claim registered against a property by a government authority for non-payment of assessed taxes.
TAX ROLL:
Also known as "assessment roll", the listing of all properties in a jurisdiction that are subject to taxation, including owners' names, assessed value of each property, municipal addresses, legal descriptions and assessment roll number.
TAX SALE:
Sale of property by a governmental body for non-payment of taxes, ether by tender or auction.
TEASER RATE:
A lower interest rate charged on an adjustable or variable rate mortgage for a brief, introductory period as an inducement to the borrower to accept the loan from the lender.
TERM LOAN:
A loan that comes due on a given date, often before the periodic payments would pay the loan out.
TERM
The period of time during which the loan contract is active, during which the borrower makes periodic payments to the lender and at the end of which the balance of the loan becomes due and payable.
TERMITE INSPECTION:
The examination of a building for wood destroying insects.
TERMS:
The various clauses that make up a contract. Sometimes used to described the financial portions of the contract only.
TITLE:
The legal term for one's ownership interest in land.
TITLE COMPANY:
Also known as "title insurance company" or "title insurer". A corporation which is in the business of selling policies of insurance guaranteeing the ownership and quality of title to land.
TITLE COVENANTS:
Clauses and promises inserted into instruments of conveyance which are designed to give the Purchaser assurances that she is receiving good title.
TITLE DEFECT:
A claim against or competing interest in a property which affects the title of the registered owner.
INSURANCE POLICY:
A form of insurance contract which guarantees to indemnify an owner or mortgagee of property for damages suffered as a result of undiscovered title defects which arise later.
TITLE REPORT:
A document which sets out the current state of title to a property.
TITLE SEARCH OR EXAMINATION:
The act of examining in detail the public records relating to ownership of a parcel of land to ensure that the current owner has clear title, free of any liens, claims, mortgages or competing and adverse interests. Usually performed by a lawyer, qualified title searcher, or title insurance company on behalf of a proposed purchaser or mortgagee.
TORRENS SYSTEM:
Developed in Australia, a system of the registration of interests in land in which documents are closely regulated, monitored and examined by the recording authority to ensure that they are correct and that title is transferred without flaw. Property may not be transferred if uncorrected title defects exist.
TOTAL INTEREST PAYMENTS:
A calculation of all interest paid on a loan over its life.
TOWN HOUSE:
type of dwelling which shares at least one common wall with neighbouring dwellings.
TRANSACTION FEE:
A charge for making a withdrawal on a line of credit or other bank account.
TRUST DEED:
An instrument of conveyance of title to property wherein the transferee will be holding the title to the property on behalf of another person.
TRUSTEE:
A person who holds title to property on behalf of another (a "beneficiary of the trust").
TRUSTEE'S SALE:
Sale conducted by a trustee (often the lender) under the terms of the deed of trust.
TUDOR:
A heavy looking, fortress-like style of home in the English style. Stone and brick construction, may also feature stucco and exposed timbers. Windows feature stone trim.
TWO-STEP MORTGAGE:
A mortgage contract in which the interest rate changes after a given period of time, such that the rate charged is lower for the first part of the term of the mortgage and then market rate or higher later in the term.
