Terms with Category Legal Contracts
- Sweat Equity — Definition,
- The value of the work put into a house by its owner. This can be used in place of a full down payment. Up to and including 50% of a down payment.
- Takeover — Definition,
- The purchase of a company by another.
- Tax-sheltered — Definition,
- A savings or investment plan that offers significant tax savings.
- Tenant — Definition,
- One who rents property.
- Term — Definition,
- The length of time you commit to repay a lender or bank at an agreed upon interest rate and payment schedule. The interest rate usually remains constant during this term unless the commitment states otherwise. For example, a five year fixed rate mortgage has a term of five years.
- Title — Definition,
- Evidence of a person's right to possession ownership of a property.
- Title Defect — Definition,
- A legal claim by others to property, or the right to make demands upon an owner.
- Title Report — Definition,
- A report that reveals any competing claims, liens, or other problems relating to a property. A title report is required before title insurance will be issued. Also known as a "Preliminary Title Report" or "Prelim."
- Title Search — Definition,
- A check of public records to make sure that the owner of real property has the right to transfer ownership. A title search is designed to spot gaps in the chain of title, liens, problems with the legal description of the property, judgements against the owner, and the like.
- Tort — Definition,
- An act that causes harm or loss.
- Tort Law — Definition,
- Civil law or the laws that govern civil lawsuits.
- Tortfeasor — Definition,
- A party who commits a tort (a civil wrong).
- Trust Company — Definition,
- A company that acts as a trustee (an entity that controls financial assets on the behalf of another).
- Two-Tier Healthcare — Definition,
- A situation where public healthcare is available to all people, but private healthcare can be purchased by those who want it.
- Underwriting (UW) — Acronym, Important,
- The analysis of risk involved in making a mortgage loan to determine whether the risk is acceptable to the lender. Underwriting involves evaluating the property as outlined in the appraisal report, and also evaluating the borrower's ability and willingness to repay the loan.
- Assessing individuals for eligibility and issuing and distributing a financial product such as insurance, equity capital or credit.
- Uninsured Motorist Coverage — Definition,
- Auto insurance that covers collision damages caused by a driver without auto insurance.
- Unisex Legislation — Definition,
- Laws that prevent insurers from using gender as a factor when calculating premiums.
- Valid — Definition,
- Sufficient in law; effective.
- Valuable Consideration — Definition,
- The granting of some beneficial right, interest, profit, or suffering of some detrimental forbearance, loss or default by one party in exchange for the performance of another.
- Valuation Clause — Definition,
- A clause in an insurance contract that states how much an insurer is willing to pay for an asset after an insured event.
- Verification of Employment (VOE) — Acronym, Important,
- Confirmation that a loan applicant is telling the truth about where he or she works and how much he or she makes.
- Void — Definition,
- Of no legal effect. A nullity.
- Void Cheque — Definition,
- A check with the word "VOID" written on the face that cannot be cashed.
- Voidable — Definition,
- Where one party to a contract is entitled to rescind the contract at his/her option.
- Waiting Period — Definition,
- The amount of time that must pass before something occurs.
- Waiver — Definition,
- The intentional and voluntary renunciation, abandonment, or surrender of some claim, right, or privilege.
- Waiver of Inventory — Definition,
- An option for an insurance company to choose not to inventory undamaged assets after a claim.
- Waiver of Premium — Definition,
- A clause that allows an insurer to waive a policyholder's premiums while still keeping the policy in effect.
- Waiver of Restoration Premium — Definition,
- A provision that frees an insurance policyholder from needing to pay a fee in order to resume coverage after a claim.
- Waiver of Subrogation (WOS) — Acronym,
- A provision that prevents an insurer from pursuing a third party for damages to insured property.
