Introduction to Mortgage Law

This set of flashcards covers key vocabulary and concepts related to mortgage law as discussed in the lecture.

Mortgage

A legal document granting a lender an interest in a property as security for a loan.

Mortgagee

The lender in a mortgage agreement who provides the loan to the borrower.

Mortgagor

The borrower in a mortgage agreement who grants the mortgage to secure the loan.

Equity of Redemption

The right of the mortgagor to repay the mortgage and reclaim ownership of the property.

Foreclosure

The legal process by which a lender takes possession of a property due to the mortgagor's default.

Power of Sale

A provision allowing the mortgagee to sell the mortgaged property upon default without court intervention.

Due on Sale Clause

A clause that prevents a mortgagor from transferring the mortgage without the lender’s consent.

Partial Amortized Mortgage

A mortgage that requires periodic payments of principal and interest but is due in full at a specified date.

Seller Take-Back Mortgage

A type of mortgage where the seller provides financing to the buyer as part of the sale agreement.

Reverse Annuity Mortgage (RAM)

A mortgage where the lender makes payments to the borrower until the loan is due, typically used by retirees.

Interim Blanket Mortgage

A mortgage that covers multiple properties but allows for one payment by the mortgagor.

Agreement for Sale

A contract where the buyer makes installment payments for a property while the seller retains title until paid in full.

Lease with Option to Purchase

An agreement allowing a tenant to lease a property with the option to purchase it later.

Lender Remedies

Actions that lenders can take to recover debts when a mortgagor defaults.

Criminal Rate of Interest

An interest rate that exceeds 60% annually, making the loan illegal by the Criminal Code.

Interest Act

Federal legislation governing interest rates on loans and mortgages in Canada.

Registration of Mortgages

The process of formally recording a mortgage in a land title office to establish legal rights.