REAL ESTATE 101

Canada Mortgage and Housing Corporation (CMHC)
Canada Mortgage and Housing Corporation. A Crown corporation providing information services and mortgage loan insurance.

Chattel
Moveable items of property which are neither land nor permanently attached to land or a building, either directly or vicariously through attachment to real property. A piano is chattel but an apartment building, a tree or a concrete building foundation are not. The opposite of chattel is real property which includes lands or buildings. All property which is not real property is said to be chattel. "Personal property" or "personalty" are other words sometines used to describe the concept of chattel. The word "chattel" came from the feudal era when "cattle" was the most valuable property besides land.

Chattel mortgage
When an interest is given on moveable property other than real property (in which case it is usually a "mortgage"), in writing, to guarantee the payment of a debt or the execution of some action. It automatically becomes void when the debt is paid or the action is executed.

Closed Mortgage
A mortgage which cannot be prepaid, renegotiated or refinanced.

Closing Date
In most cases, the date on which the sale of the property becomes final and the new owner takes possession.

Collateral
Something of value deposited with a lender as a pledge to secure repayment of a loan.

Competitive Market Analysis (CMA)
Document, usually prepeared by a real estate agent in report form, that will give an estimated sales price for a given property based on current market conditions.

Condominium (Condo)
Housing consisting of a complex of dwelling units (as an apartment house) in which each unit is individually owned

Consideration
The price or subject matter, which induces a contract; may be in money, commodity, exchange, or a transfer of personal effort.

Contingency
A condition which must be satisfied before a contract is legally binding

Contract
A legally enforceable agreement to do, or not to do, a particular thing for a consideration.

Contract for deed
A contract for the sale of real estate where the deed (title) of the property is transferred only after all the payments have been made. Also known as a land contract, agreement of sale, conditional sales contract, or installment contract. Buyers should be wary of this type of contract, since they can lose their entire investment if the owner declares brankruptcy, before the deed has been transferred.

Conventional Mortgage (Fixed-rate mortgage)
A mortgage loan which does not exceed 75% of the appraised value or purchase price of the property, whichever is the lesser of the two. Mortgages that exceed this limit must be insured.

Credit insurance
Insurance a lender offers or requires a borrower to purchase to cover the loan. If the borrower dies or becomes disabled before paying off the loan, the policy will pay off the remaining balance. Federal and state consumer protection laws require the lender to disclose to existing and potential borrowers the terms and costs of obtaining credit insurance because it can affect the terms of the loan.