Canadian Maple Leaf Licensing Info: Alberta Mortgage #MW-0511205,
FSCO (Ontario) #10315,
Saskatchewan Mortgage #315872, and all other provinces.
 
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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

Clause Terms

abandonment clauseDefinition (Insurance, Legal-contracts)
A clause that allows the insured to abandon damaged or lost property without losing insurance benefits.
acceleration clauseDefinition (Financial-banking, Legal-contracts)
A provision within a document that explains how the lender expects payment for a loan, in due haste.
alienation clauseDefinition (Mortgages, Real-estate, Legal-contracts)
A requirement that the borrower pay the mortgage in full upon transfer of the property.
assumption clauseDefinition (Mortgages, Real-estate, Legal-contracts)
A provision in a mortgage contract that allows a buyer to take responsibility for the loan from the seller.
cancellation clauseDefinition (Legal-contracts)
A provision in a lease or other contract that spells out under what conditions the parties can call off the deal.
clear-space clauseDefinition (Insurance, Legal-contracts)
A clause that requires insured property to be located a minimum distance from surrounding property.
conversion clauseDefinition (Mortgages, Legal-contracts)
A provision that may appear in an adjustable-rate loan agreement allowing the loan to be changed to a fixed-interest rate loan, usually for an additional charge.
due-on-sale clauseDefinition (Mortgages, Financial-banking, Legal-contracts)
A condition of a mortgage that states that the loan must be paid when the house is sold. Commonly used in reverse mortgage lending.
incontestability clauseDefinition (Insurance, Legal-contracts)
A clause that places a time limit on how long an insurer has to void a policy due to a policyholder's accidental misstatement in his or her life insurance application.
loss payable clauseDefinition (Insurance, Legal-contracts)
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.
mortgage acceleration clauseDefinition (Mortgages, Legal-contracts)
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.
non-assumption clauseDefinition (Mortgages, Real-estate, Legal-contracts)
A provision of a home loan that prohibits the transfer of the mortgage to another borrower without the lender's permission.
non-forfeiture clauseDefinition (Insurance, Legal-contracts)
A clause that allows a policyholder to receive partial or full benefits and/or a refund of premiums if the policy lapses due to unpaid premiums.
pre-existing alien abduction clause (PEAAC)Acronym
pre-payment clauseDefinition (Mortgages, Financial-banking, Legal-contracts)
A clause that stipulates the amount of principal a borrower may prepay ahead of schedule without penalty as well as the prepayment penalty for larger prepayments.
valuation clauseDefinition (Insurance, Legal-contracts)
A clause in an insurance contract that states how much an insurer is willing to pay for an asset after an insured event.
water exclusion clauseDefinition (Insurance, Legal-contracts)
A provision that gives an insurer the option to deny coverage for certain kinds of water damage.
work and materials clauseDefinition (Insurance, Legal-contracts)
A provision that allows the policyholder to store certain materials in insured property if needed by their line of work.

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