GENERAL CONTRACTOR:
The central figure in most construction pyramids, the person hired by the owner to plan and oversee the entire job. Often hires subcontractors who specialize in the various trades required for the job (i.e. plumbers, electricians, framers, carpenters, etc.).
GENERAL LIEN:
A registered claim against property which, instead of attaching just to one property, attaches to all properties owned by the party against whom the claim has been made.
GENTRIFICATION:
The process in which a neighbourhood is transformed from low-value to high-value properties.
GEORGIAN:
A classic looking, English-style house, rectangular in shape, large, with two or three storeys complemented by classic lines.
GOOD AND MARKETABLE TITLE:
Ownership of a property which is free of competing claims and interests.
GRACE PERIOD:
The time a borrower is allowed after a payment is due to make that payment without incurring penalties.
GRADUATED LEASE:
A rental agreement in which the periodic rental payments increase at specified points in time.
GRADUATED PAYMENT MORTGAGE (GPM):
A land loan in which the periodic payments increase at a stated rate over a stated period of time before leveling off for the remainder of the term of the loan.
GRANDFATHER CLAUSE:
A provision in a law that ensures that the law is not retroactive, that it does not render a previously legal thing illegal. For example, a new zoning by-law requiring all houses to be at least five feet from the side lot line would not render illegal a 20-year-old house that stands three feet from the side lot line. The property would be described as "legal non-conforming".
GROSS AREA:
The total floor space of a building, including unusable space, measured from the outside walls.
GROUND LEASE:
A long-term lease of land (often 99 years) in which the tenant is allowed to improve the land and use it for the term of the lease at the end of which the land and all improvements revert to the control and occupancy of the owner.
GROWING-EQUITY MORTGAGE (GEM):
A mortgage with a fixed interest rate which has periodic payments which increase at intervals, the added money per payment being applied directly to the outstanding principal on the mortgage.
GUARANTEE:
An agreement by a third party to a loan transaction to join in the transaction and to be held liable for the moneys secured by the loan instrument should the principal debtor fail to pay.
GUARANTOR:
The person who signs a mortgage and assumes responsibility for it despite the fact that he receives no benefit from the loan.
HAZARD INSURANCE:
A type of insurance designed to cover damage caused by a peril specified in the policy of insurance (i.e. fire, flood, etc.).
HEIGHT ZONING:
The establishment of local by-laws or ordinances which restrict the height of buildings in a certain area. May be used in areas near airports (for safety reasons) or natural attractions (to maintain the view) or simply to allow the flow of air or sunlight.
HISTORICAL COST:
A term describing the original cost of a project, stated in dollars of the time in which the project was completed, with no adjustment for inflation.
HOME EQUITY CONVERSION MORTGAGE (HECM):
Also known as a "reverse mortgage", a loan designed specifically for people without income but with a great deal of equity in their home (i.e. retired people). The loan may require periodic payments or may simply accumulate interest on the original principal until the property is sold (by the borrower or after the death of the borrower).
HOME EQUITY LINE OF CREDIT:
A special kind of loan (also known as a "revolving loan") which is secured against a property and allows the owner to borrow and repay money at her leisure. Periodic payments of at least accumulated interest are required but the loan is fully open: may be paid out in whole or in part at any time and, if there is still money available under the loan ceiling, the borrower may take more money for her use.
HOME IMPROVEMENT LOAN:
A loan made for the purposes of making improvements to a property.
HOME INSPECTION (REPORT):
The written statement of the results of the inspection of a given property by a professional home inspector. Will show problems and potential problems with the property not always visible to an average purchaser (i.e. a deteriorating roof, an ancient furnace, termites, wood rot, basement seepage). Many purchasers make their offer to purchase conditional upon obtaining a satisfactory Home Inspection report.
HOME OWNER ASSOCIATION (HOA):
A cooperative effort by property owners in a given neighbourhood aimed at improving quality of life, providing a unified political voice or combating identified ills.
HOME OWNER'S INSURANCE:
Liability coverage for property owners covering both loss/damage to property or dwelling and personal liability.
HOUSING EXPENSE RATIO:
A comparison of a family's monthly gross income with the carrying costs of their home.
HOUSING STARTS:
An economic indicator, the number of dwelling units (including apartments) on which construction is begun in a given period of time.
HYPOTHECATE:
To pledge as security for a mortgage an asset of which the pledgor retains possession (i.e. the dwelling upon which a mortgage is registered).
