Genesis Associates Mortgage Definitions "S" (866) 410.4410

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Definitions of Mortgage Terms

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Sale Holdback - A percentage of the principal amount of the mortgage held back by the mortgage until the property in question has been sold to a party satisfactory to the mortgagee who has assumed the responsibility of the mortgage by the appropriate legal document.

Sale Leaseback - A technique in which a seller deeds property to a buyer and the buyer simultaneously leases the property back to the seller, usually on a long- term basis.

Seasonal Deficiencies - Work necessary to finish a property that cannot be completed immediately because of seasonal or climatic conditions.

Secondary Financing - Financing real estate with a loan, or loans, that is subordinate to a first mortgage.

Secondary Mortgage Market - A market where existing mortgages are bought and sold.

Second Mortgage - A mortgage placed on real property which is already encumbered with one mortgage. Determination of first, second, third mortgage is by priority or registration (time and date).

Seller Selling Under Power of Sale -An OREA schedule to be attached to the agreement of purchase and sale attesting to the seller's authority to sell the property under power of sale.

Seller Take Back -A mortgage taken back by the seller typically to facilitate the sale and/or further the seller's investment objectives.

Servicing Agreement - A written agreement between an investor and mortgage loan correspondent stipulating the rights and obligations of each party regarding the origination and continuing administration of the loans.

Servient Tenement - The parcel of land over or through which an easement runs.

Severance - The subdivision of a parcel of land.

Shareholder's Equity - The difference between the assets and liabilities of a corporation, sometimes called net worth. Refers to ownership interest in common and preferred shareholders in a company.

Sheriff's Certificate - A signed statement from the sheriff's office certifying that there are no Writs of Execution in the sheriff's hands against specific land and that he or she has not sold the land within a specified period.

Simple Interest -Interest charged for a specific period with no compounding.

Sole Proprietor -An unincorporated business owned by an individual.

Spread - The difference between the cost of money and the yield on the investment.

Specific Performance - An equitable remedy to compel performance of a real estate or mortgage contract according to the specific terms of the contract.

Standby Commitment - An agreement by a lender to provide a certain amount of takeout mortgage financing on specific terms in the future. This commitment enables the borrower to arrange construction financing from other sources. The commitment is issued for a fee and the lender is willing to disburse the committed funds in the event that a permanent loan on more favourable terms is not obtained.

Standard Charge Terms -Mortgage terms/provisions set out by separate schedule and filed in the land registration office and included by way of numerical reference in a Charge/Mortgage of Land document.

Standby Fee - A sum of money given by the borrowers to the lender to hold a mortgage commitment for a certain period of time. The fee is normally non-refundable.

Standby Loan -A pre-construction loan commitment obtained prior to securing permanent financing.

Standing Mortgage - A mortgage that provides for equal, regular lump-sum payments of principal, usually quarterly, plus accrued interest.

Statement of Claim -A statement setting out the mortgagee's claim in a foreclosure action including specifics regarding the defaulted mortgage and amounts due.

Statement of Mortgage -A prescribed form under the Mortgage Brokers Act that must be provided by a mortgage broker to every prospective borrower.

Statutory Power of Sale -Power of Sale proceedings based on statutory provisions set out in Part II of the Mortgages Act, as distinct from contractual statutory provisions detailed in the mortgage document.

Straw Buyer -A buyerwho purchases a property for another, thereby concealing the real buyer's identity.

Subordinate - Subject to, or junior to.

Subordination - The act of a party acknowledging by written recorded instrument that a debt due is inferior to the interest to another in the same property. Subordination may apply not only to mortgages but also to leases, real estate rights, and any other type of debt instrument.

Subrogation - A doctrine adopted in favour of the insurer in order to prevent the insured from recovering more than a full indemnity.

Subscription Policy - An insurance policy that states two or more insurance companies are sharing the risk.

Sue for Payment -A legal remedy available to the mortgagee upon the mortgagor's default, typically combined with other actions, e.g., payment, possession and foreclosure.

Sue for Possession -A legal remedy available to the mortgagee upon the mortgagor's default, typically combined with other actions, e.g., payment, possession and foreclosure.

Surety - The guarantee given for the performance of someone else.

Survey - A property survey is a process by which land boundaries and areas are determined and defined and improvements may be plotted thereon. Surveys are also used for locating and identifying property lines, improvements on the land and easements on the land.

Surveyor's Certificate - A formal statement signed, certified, and dated by a surveyor giving the pertinent facts about a particular property and any easements or encroachments affecting it. These are no longer available in Ontario.

Switch Financing -The transfer of an existing mortgage balance from one mortgagee to another.

Syndication - A group of lenders that share in the principal disbursement of a loan to spread risk or to comply with statutory restrictions on a loan size.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z