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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Contract


Synonyms:agreement, arrangement, commitment, deal, engagement, fine print, guarantee, obligation, pledge, promise, stipulation, understanding
Filed Under: legal-contracts, real-estate
Tags: contract, legal, realty
 

Definition of contract

contract
1. An agreement between two or more parties, especially one that is written and enforceable by law.
2. In real estate parlance, the contract is the legal document by which buyer and seller make offers and counteroffers for a piece of property. The real estate contract describes the property, includes or excludes items in the property, names the price, apportions the closing costs between the parties and sets forth a closing date. When buyer and seller agree on terms and sign the same document, the property is said to be "under contract." More formally known as agreement for sale, purchase agreement or earnest money contract.

Related Terms and Acronyms:

  • bill of sale (BS)   A written document that serves as evidence of the transfer of title to personal property.
  • irrevocable beneficiary   A life insurance or segregated fund beneficiary whose benefit cannot be revoked or modified in any way without his or her consent.
  • lien   A legal hold or claim of a creditor on the property of another.
  • loan commitment   A lender's promise to advance a specific sum on specific terms.
  • modification   A change in terms of the loan agreement.
  • non-disclosure agreement (NDA)   A contract that disallows one or more parties from disclosing information covered by the contract.
  • note   A legal acknowledgement of a debt and an implicit promise to repay. It includes the loan amount, interest rate and term.
  • notice of default (NOD)   The step in the foreclosure process where the lender informs the court that the borrower is in arrears.
  • oral agreement   A spoken, unwritten legal agreement, worth the paper it's printed on.
  • plaintiff   The party who initiates a lawsuit.

More Related Terms and Acronyms

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