Glossary: Part 2
Ammoritization: The period of time required to reduce a debt to zero when payments are made regularly. Amortization periods are most often 15, 20, or 25 years long.
Conditional Offer/Sale: An Offer to Purchase that is subject to specified conditions, for example, the arranging of a mortgage. There is usually a stipulated time limit within which the specified conditions must be met.
Easement: A right of way giving persons other than the owner access to or over a property.
Encroachment: An improvement that intrudes illegally on another's property.
Equity: A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.
Mortgagee: The lender who provides the mortgage loan.
Mortgagor: The borrower who pledges the property as security for the loan.
Open Mortgage: A type of mortgage loan where the borrower can make a partial or full payment of the principal amount at any time, without penalty.
Principal: The amount of money borrowed.
REALTOR®: A trademark name for a real estate representative who is a member of an organization of persons engaged in the business of buying and selling real estate, such as the Canadian Real Estate Association.
Survey: A document that illustrates the property boundaries and measurements, specifies the location of buildings on the property, and indicates any easements or encroachments.