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Fundamentals of Mortgage Brokerage
practice questions
Mortgage - Answer The pledging of real property to a creditor or lender as a security for a debt Mortgage - Answer An interest in land that is created by a contract (mortgage document) that is security for a loan made by the lender to the borrower Mortgage - Answer The security over property given to the lender for repayment of the loan Mortgagee - Answer The individual or entity that lends the funds secured by real property for which they receive specified payments as stated in the mortgage contract Lender - Answer Another name for mortgagee Mortgagor - Answer The individual or entity that borrows the funds secured by real property for which they make specified payments according to the mortgage contract Borrower - Answer Another name for mortgagor Real property - Answer land, substances in or under the land other than mines or minerals and all buildings, fixtures, structures affixed to the land Real property - Answer Examples include acreages, hospitals, houses, garages, sheds, driveways, fences, crops, trees and landscaping Chattels - Answer Personal property is often referred to as this Chattels - Answer May include items such as furniture, clothing, household goods, some appliances, and some window coverings Dealing in mortgages - Answer The activities undertaken by a mortgage brokerage industry member that requires an authorization from RECA
Mortgage financing - Answer Can be broadly divided into 3 specialty areas with each field requiring specific knowledge and expertise Residential mortgages - Answer Occurs where borrowed funds are used for the purchase of real property, for the construction of a new residence, for the purchase of a new or existing residence, to refinance an existing mortgage or to finance a renovation or consolidate a debt Commercial and/ or industrial mortgages - Answer Involve properties associated with commerce or trade Commercial and/ or industrial mortgages - Answer Examples include buildings, retail operation stores, medical and/ or dental buildings and industrial and/ or warehouse facilities Agri-business mortgages - Answer Consists of the production, processing and supply of agricultural goods. It arises from such operations as farming, ranching and feed lot operations and generally finances the acquisition or improvements of ___ operations, purchase of farm property, or allows for the restructure of existing capital Private lenders - Answer Include any individual(s), entity or corporate body other than a financial institution who advances funds Mortgage investment corporations - Answer Investment and lending companies designed specifically for loaning money secured by a mortgage Syndicated mortgages - Answer Two or more investors who participate directly or indirectly as lenders in a debt obligation secured by a mortgage Dominion Housing Act - Answer Canada's first national housing legislation. Originally intended as a job creation measure to reduce unemployment during the depression years, it effectively assisted in the construction of residential housing by increasing the availability of first mortgage financing and effectively enabling the federal government to make join mortgage loans with approved lending institutions National Housing Act - Answer Replaced the Dominion Housing Act. Its purpose was to promote the construction of new houses, the maintenance and upgrade of existing houses and the improvement of housing and living conditions Loan to value ratio - Answer The amount of the mortgage loan compared to the sale value of the property Partially amortized mortgages - Answer Loans with periodic payments of principal and interest but have an amortization period that exceeds the term of the mortgage. At the mortgage term's maturity, the remaining balance must either be paid out or renewed at the interest rate then in effect
Mortgage Investment Corporations (MICs) - Answer Funded pools of mortgages designed specifically for lending money secured by more than one property Disclosure requirements - Answer The Rules require that all mortgage brokerage industry members disclose to borrowers in writing the following information: The nature of their relationship with the borrower, the nature of their relationship with the lender, the range of lenders whose products it offers, how the brokerage will be compensated, the nature of any other benefits RECA's mandate - Answer To protect consumers and to provide services that enhance and improve the industry and the business of industry professionals Real Estate Assurance Fund - Answer Compensates consumers who suffer financial loss as a result of fraud, breach of trust, or a failure to disburse or account for money held in trust by an industry member with respect to a trade in real estate or deal in mortgages. It is funded entirely by industry members and administered by RECA Council - Answer Ultimately accountable for all aspects of RECA's activities. Provides the overall leadership and strategic direction for the organization. It then delegates authority and responsibility to the Executive Director in a manner that provides a broad degree of freedom to exercise creativity and judgment to achieve its goals Alberta Mortgage Brokers Association (AMBA) - Answer Independent, non-profit provincial trade association for mortgage brokerage industry members and lenders Canadian Association of Accredited Mortgage Professionals (CAAMP) - Answer The national trade association and a collective voice of the mortgage industry in Canada. It is the largest network of mortgage professionals in Canada with over 12,000 members represented by mortgage lenders, mortgage brokers, insurers and other industry stakeholders Provincial government - Answer At this level, Service Alberta works to ensure a fair marketplace for consumers. It investigates consumer complaints, enforces consumer protection legislation, licenses and registers regulated businesses and charitable organizations Provincial government - Answer Includes the Fair Trading Act (FTA), the Personal Information Protection Act (PIPA) and the Law of Property Act Fair Trading Act - Answer Protects consumers from unfair business practices before, during or after a consumer transaction Personal Information Protection Act - Answer The legislation governing the collection, use and disclosure of personal information by private sector organizations in a manner recognizing both the right of the individual to have his/ her personal information
protected, and the need of organizations to collect, use or disclose personal information for reasonable purposes Law of Property Act - Answer Provides legal principles in regard to property rights which are subject of instruments such as contracts, conveyances and mortgages Alberta Real Estate Foundation (the Foundation) - Answer Supports real estate initiatives which benefit the industry, the communities and people of Alberta Mandate and authority are derived from the Act and is administered by a board of governors appointed in accordance with the regulations Law Society of Alberta (LSA) - Answer Self governing organization for Alberta's lawyers, whose mandate is to regulate the profession in the public interest. This sets standards and enforces those standards for Alberta lawyers Federal government - Answer At this level, the government of Canada has enacted a number of regulatory statutes that affect the mortgage brokerage industry Federal government - Answer Includes the Competition Act, the Canada Interest Act, the Personal Information Protection and Electronic Documents Act (PIPEDA), the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and the Criminal Code of Canada Competition Act - Answer Contains criminal and civil provisions to prevent anti- competitive practices in the market place A federal legislation governing most business conduct in Canada The purpose of the legislation is to maintain and encourage competition in the marketplace so as to provide for, among other objectives, an efficient and adaptive economy, competitive prices and product choice for consumers and accurate information in the marketplace Canada Interest Act - Answer Imposes requirements on how interest is described and calculated in loan and mortgage documents The statute passed by the federal government that contains the provisions for interest charged on loans secured by mortgages Personal Information Protection and Electronic Documents Act - Answer Canada's legislation governing the collection, use and disclosure of personal information collected through commercial activity applicable to all private enterprises across Canada and all organizations under federal jurisdiction Proceeds of Crime (Money Laundering) and Terrorist Financing Act - Answer Implements specific measures to detect, deter and prevent money laundering, terrorist activity financing and other threats to the security of Canada
Mortgage lenders - Answer Includes any person, group or institution participating as a lender in a debt obligation that is secured by a mortgage. Lenders can range from financial institutions to governments to private individuals. The lender is the entity providing the funding and sets out the legally stipulated criteria needed by borrowers to qualify for a loan Condominium Document Reviewers - Answer Assist with the evaluation and review of the different condominium documents (e.g. condominium bylaws, budget, financial statements, reserve fund report, insurance certificate) and provide the buyer a comprehensive summary of the state of the condominium corporation and any issues the buyer may want to consider before purchasing the property Amortization - Answer The gradual retirement of a debt by means of installment payments which often include principal and interest Amortization period - Answer The length of time required to repay a mortgage by equal installments of periodic constant payments based on a set interest rate. The payments are a combination of principal and interest in "blended" amounts Covenant - Answer A written agreement or promise usually under seal between two or more parties for the performance of an action. In mortgage brokerage, it is a clause in a mortgage agreement that obligates or restricts the borrower and that, if violated, can result in foreclosure. If two people sign a mortgage, there are two covenantors. This means each individual promises to pay the debt Discharge of mortgage - Answer The repayment of a mortgage and the legal document which confirms that the borrower is under no further liability to the lender in respect of the loan. In order to be effective the discharge of the mortgage needs to be registered with the Land Titles Office (LTO) Equity - Answer The difference between the market value of the property, less the outstanding balance of the mortgage, less any other financial obligation registered against the property. For example, a property has a market value of $425,000, an outstanding mortgage balance of $300,000, and a builder's lien for unpaid construction costs of $25,000. Therefore the equity for this property is $100, Foreclosure - Answer The legal process by which the lender (mortgagee) takes possession and ownership of a property due to the borrower's failure to comply with the terms and conditions of the mortgage document (e.g. failure to make payments). It deprives the borrower's equitable right of redemption Guarantor - Answer A person bound by a promise to pay another's debt or perform another's obligation. It is important not to confuse the covenantor with the guarantor. Both make promises; however, the covenantor named in the mortgage document is the
person who has direct responsibility to pay while the guarantor makes a promise to pay on the condition that the covenantor does not Interest rate - Answer The amount charged by the lender for the use of borrowed funds calculated as a percentage of the principal Loan to Value (LTV) - Answer A percentage calculation that expresses the amount of the mortgage relative to the appraised value or sale price of the property, whichever is lower. This ratio assists the lender in determining its risk factors and is used as a benchmark for lending on different properties. In addition, this figure determines if mortgage insurance is required. Typically when the loan to value ratio is greater than 80% of the appraised value or selling price, whichever is lower, mortgage insurance is required Maturity - Answer The end of the term, or period of time, for the mortgage loan, at which time the borrower has the option to pay off the mortgage, renew it with the existing lender or transfer it to another lender Mortgage - Answer The pledging of real property to a lender as security for a debt. In other words, a mortgage represents the security over property given to the lender for repayment of the loan Mortgage renewal - Answer The process by which a borrower agrees to another mortgage term with the current lender. When the current terms of the mortgage mature, the lender and borrower may agree to a new term which is often referred to as a renewal and the mortgage is usually placed at then-current interest rates to reflect the current mortgage market. The new term leaves the existing registered mortgage in place and is therefore not considered a new mortgage. The renewed term is secured by the old mortgage document and its provisions are amended to fit the new term Mortgage term - Answer The period of time for which the lender loans funds to the borrower, as specified in the mortgage agreement. At the end of the mortgage term, the principal and unpaid interest becomes due and payable by the borrower to the lender. At that time the borrower may renew or refinance the mortgage. Most terms range from 6 months to 10 years. Over a 25 year amortization period, a borrower may have several different mortgage terms before completely paying off the debt obligation Principal - Answer The amount of funds originally borrowed or the portion still owing on a mortgage Redemption - Answer The act of performing the mortgagor's obligations and consequential release of the mortgage on the property. When the borrower, or another on his or her behalf, pays all the debt as promised, the mortgage is redeemed. Redemption should not be confused with the 'right of redemption' which may occur under a foreclosure process
Mortgage broker channel - Answer While institutional lenders make mortgage funds available to consumers there are certain organizations that will only fund mortgages through mortgage brokers. These institutions partner with mortgage brokers and provide financial solutions to borrowers looking to obtain mortgages for a variety of real estate. Non-institutional lender Government lending agencies - Answer Include Farm Credit Corporation (FCC), Agricultural Financial Services Corporation (AFSC), Canada Mortgage and Housing Corporation (CMHC) Private lenders - Answer Include any individual, group of individuals (syndicated mortgage) or a mortgage investment corporation other than a financial institution that advances funds Sometimes referred to as alternative lenders Do not include chartered banks, treasury branches, credit unions, loan corporations, trust companies, insurance companies and any persons engaged in the business of making loans secured with mortgages or any persons that manage registered pension plans Mortgage Investment Corporation (MIC) - Answer Private investment and lending company designed specifically for loaning money secured by a mortgage Finance purchase - Answer One of the most common reasons a borrower obtains a loan secured by a mortgage is to help finance the purchase of real property such as new or resale residential property, recreational property, commercial or industrial property or agri-business property Finance new construction - Answer Borrowers may also obtain mortgage funds to help finance the construction of new property such as a single family dwelling, multi-family dwelling, industrial/commercial building or investment property Refinance - Answer The process of paying an existing mortgage and any other legal claims against the property and establishing a new mortgage secured by the same property Equity take-out - Answer Canadians have realized that after years of property ownership, substantial equity may have accumulated in their property. As a result, borrowers can leverage (use of borrowed funds) the equity in their property and use the funds for different situations Debt consolidation - Answer In a credit driven environment, this can be one of the best used strategies for improving debt management When using the equity portion of a property to pay off debt, the borrower in essence pays off many loans with one loan
Renovations/ improvements - Answer Often times, borrowers rarely have the available cash to fund the renovations or improvements. It is in these instances that the equity in their property can be used to obtain a mortgage Character, capital, capacity, collateral, credit - Answer 5 C's of borrower credit Gross Debt Service (GDS) ratio - Answer States that monthly housing costs should not exceed 32% of the borrower's gross monthly income. Housing costs include mortgage payments of principle and interest, property taxes and heating expenses (PITH) Total debt service (TDS) ratio - Answer Lenders calculate a borrower's total monthly debt load by including other contractual debts such as car loans, bank loans, credit card payments and other financial commitments to determine the this. This affordability guideline recommends that it should not exceed 40% of the borrower's gross monthly income Loan to value (LTV) ratio - Answer Expresses the amount of the commercial mortgage as a percentage of the appraised value of the property Debt service coverage ratio (DSCR) - Answer Regardless of whether the property is newly constructed or a resale, lenders carefully evaluate the income or potential income the property will generate. Measures the property's ability to cover the mortgage payments and can be defined as the ratio of a property's net operating income to its mortgage payments. The higher this is, the more net operating income is available to service the debt Prime lending - Answer Also referred to as 'A' lending. These are loans made to borrowers with good credit history, good asset and income position and the real property pledged as security are of superior quality. In this instance indicates the lender has a high degree of confidence that the borrower can and will pay the debt obligation and failing that, then the sale of the property will cover the mortgage obligation Near-prime lending - Answer Also referred to as 'B' lending. These are loans made to borrowers who may not meet the traditional lending guidelines Sub-prime lending - Answer Also referred to as 'C' lending. Generally occurs when a borrower and property fail to meet conventional underwriting guidelines but funds are still advanced. Typically have lower credit scores and show data on their credit reports associated with higher default rates, including limited debt experience, excessive debt, failure to pay debts, a history of missed payments, and recorded bankruptcies Alternative lending market - Answer Broadly defined, deals with borrowers who typically do not meet conventional underwriting criteria and represent a segment of the population that may for instance have no credit history, be a recent immigrant to Canada or be currently employed but lack a long job history
Home equity line of credit (HELOC) - Answer Where the funds are advanced in a lump sum. It is a revolving line of credit where the borrower can withdraw multiple advances of the loan proceeds at his or her discretion up to the lender's stipulated maximum Vendor take-back mortgage (VTB) - Answer Ex. If i wanted to buy neigels home but I dont have the entire DP, he will give me what i dont have as a loan Simply means that the seller is willing to provide some, or all, of the mortgage financing for part of the sale price of the property Agreement for sale (AFS) - Answer Just like an offer to purchase. Used in a situation where the buyer of the property does not have sufficient funds for a down payment or when conventional financing cannot be placed for some reason and the seller wishes to dispose of the property Wraparound mortgage - Answer If someone has a mortgage but needs more money, they get a second mortgage and the lender combines them into one mortgage and they will work out the math so the interest rates are blended Sometimes referred to as an umbrella mortgage Can occur when a lender assumes an original first mortgage and provides a new loan that is greater than the original loan amount Blanket mortgage - Answer One mortgage for multiple properties. So if you want to buy 2 properties, you can get one mortgage for the two A builder who is undertaking a large project such as multi-housing developments may not wish to take out a mortgage for each unit that will be built. The builder might arrange a this to cover the entire project Builder's loan - Answer With this, you give them the minimum DP and then they carry the costs of everything (materials, labour, etc.) and you don't pay them until you move in. Also called a completion loan. (Same as a traditional purchase within 120 days) Draw mortgage - Answer With this, it could be with for example a smaller company who doesn't have the money for everything, so you pay then in increments (or %) as the house is built Interim or bridge financing - Answer Typically for a short period of time usually from a few months to a year Provides financing for a developer or builder unable to secure long term financing during the construction period, for a buyer pending the financing of a purchase and to others in need of short term financing Interim or bridge financing - Answer Use this scenario. We sold our home for $500, and are moving into the house across the street which we are paying $600,000 for. We need time to move in so we arent homeless so we are moving in August 15 and the people buying our home are moving in September 1st. The remaining mortgage on our home is $300,000 (what we still owe to the bank). This means that we get $200,000 in
equity (500K - 300K). So that means we can put the $200,000 from our current home towards paying for the house across the street. Since we will be putting the $200K towards the house across the street, we need a $400,000 mortgage for that house (600K - 200K). The problem is that we don't get that $200,000 until the people move into our home, so we are missing $200,000 to give to the sellers of the house across the street. So you get an interim or bridge loan for 2 weeks of $200,000. Then when you get that $200,000, you can pay off that loan. Participating mortgage - Answer Just remember it relates to a commercial/ investment property where the mortgagee (lender) shares in profits Discount mortgage - Answer Occurs when the face value of the loan (principal) less the interest or discount charged by the lender is the amount actually advanced to the borrower The effect of a discount is to increase the yield or effective interest rate. Therefore, a discount generally provides a greater return to the lender Collateral mortgage - Answer When the loan is secured by more than just the property A loan secured by way of a written note of indebtedness (e.g. promissory note, personal guarantee, assignment of some other form of security) which is secondarily secured by a mortgage registered against the subject property Reverse mortgage - Answer Targets people that own their home... they have no mortgage. Basically you get money in increments and the money is coming from your equity (what you own) of your home. Then you have to pay that back when you sell the home. Usually the interest rate is 3-4% higher than a mortgage. As soon as they give you money, you accumulate interest on it as well A loan that is designed for residential property owners 60 years of age and older (the age qualification applies to both spouses) that allows them to convert the equity in their house to cash, without selling the property or having to make payments Purchase plus improvements mortgage - Answer A financing option for borrowers who are looking to consolidate the cost of a residential purchase with the cost of property improvements all in the same mortgage It eliminates the need to obtain secondary financing to pay for the improvements after the initial mortgage is advanced Leasehold mortgage - Answer When your home is on land that you don't own (like university district, jasper, indian reservations - They own the land you want to build on) (The person who owns the land is the person who has the mortgage on it usually, but not in these cases because you are building on owned land) then if for example you pay off your mortgage and you own your home now (let's say you built on the indian reserve), and the indian reserve suddenly comes and tells you that they want the land back because we own it, then you have to get out, whether you leave the home behind or literally bring it with you, you just can't stay on the land anymore
Cash back - Answer The borrower receives a percentage of the mortgage in cash usually at the time of closing, in some cases in return for a higher interest rate than the borrower would have paid without the feature Blended payment - Answer Combines payments of principal and interest (PI) or principal, interest and taxes (PIT) The mortgage payment remains constant while the portion attributed to interest and principal changes In the early years of the amortization period, a greater portion of the payment pays the interest on the mortgage while toward the end of the amortization period, a greater portion of the mortgage payment pays the principal Periodic payment - Answer Consists of regular payments of principal plus periodic payments of interest on the outstanding principal balance Overtime, the interest payments diminish as the principal diminishes Interest only payment - Answer Allows the borrower to pay only the portion of interest during the term of the mortgage At the expiration of the mortgage the entire principal must be repaid At no time during the term of the mortgage is the principal balance of the mortgage reduced by the payments processed 3-month interest penalty - Answer A charge applied by the lender based on three months' worth of interest It is calculated using the present mortgage balance multiplied by the annual interest rate of the mortgage, divided by 12 and then multiplied by 3 Interest rate differential (IRD) - Answer A compensation charge due to the lender paid by the borrower for early prepayment of all or part of a mortgage outside of its agreed upon payment terms It is usually calculated as the difference between the annual rate of the mortgage and current rate for the term remaining, divided by twelve then multiplied by the principal amount outstanding and the balance of the term in months 3-month interest rate penalty calculation - Answer Mortgage balance × (annual interest rate / 12 months) × 3 months Interest rate differential (IRD) calculation - Answer Mortgage balance × annual interest rate / 12 - current rate for remaining term × remaining term in months Higher of the two amounts - Answer How should a lender choose between applying the 3-month interest rate penalty or the IRD Statute law - Answer The legislation or regulations that are enacted within a jurisdiction. They are typically enacted at a municipal, provincial or federal level
Case law - Answer The decisions where the court has interpreted legislation when applying it to a specific set of facts. They can be made at various levels within the jurisdiction Common law - Answer A system of historical customs and accumulated court decisions that has evolved through the English legal system to become a body of law Fee simple - Answer A person with this is considered to be the absolute owner of the land. This is subject to the interests of the Crown (government), when acting in the public good The most common type of real estate May also be referred to as a freehold estate Possession, use, enjoyment, sale of the land - Answer What are the bundle of rights of ownership for a fee simple Leasehold - Answer Created by means of a least. The lease is an agreement between the owner of the land (lessor) and the other party (tenant or lessee) that grants an interest in the land for a fixed and determinable period of time (term) for consideration (rent) Life estate - Answer The holder of the life interest (life tenant) has an interest in the land for the duration of his or her lifetime. Pursuant to the death of the life tenant, the land reverts to the fee simple owner. This is less common Dower Act in Alberta - Answer Confers a life interest to a spouse who has lived on the property during the course of the marriage, but who is not listed on title as an owner. Therefore, upon the death of titled spouse, the non-titled spouse acquires the life interest in the matrimonial home Only applies in a legal marriage where one of the spouses is not on the title of the property and the property is the matrimonial residence Statute of frauds - Answer Requires that certain contracts be in writing and that such contracts be signed by all of the parties who will be bound by that contract Can vary by jurisdiction Contract - Answer A binding agreement, enforceable by the courts, made between two or more persons, competent at law to enter into such agreement, for consideration or value, to do or refrain from doing some lawful and genuinely intended act Capacity, legal object, intent to contract, consideration, mutual agreement, genuine consent - Answer What are the essential elements that must be present in a contract in order to make it valid or legally enforceable
Conditions precedent - Answer In Alberta, we use this for real estate purchase contracts. Have a specified expiry date. The party would need to waive, or remove the conditions before a specified timeline expires in order for the contract to proceed Conditions precedent - Answer An example of this regarding new financing that might be included in a real estate purchase contract: A borrower purchases a residential property subject to securing financing. The written financing condition, which is part of the contract, has an expiry date. If the borrower secures financing before that date, he or she will need to waive the financing condition in order for the purchase contract to proceed Conditions subsequent - Answer The conditions are presumed to be met by the deadline if no notice is provided to the contrary. In this case, if the party does not intent to waive the conditions he or she must communicate this before the expiry timeline and in the manner perscribed in the contract Contract terms - Answer These are not impediments to the contract itself. They are are essential details of the contract and represent the points of agreement For example, the date a contract takes effect or the duration of the contract are both examples of these Performance, mutual agreement, frustration, operation of law, breach - Answer What are the five common methods to terminate or discharge a contract by Performance - Answer A party who performs a contract in accordance with its terms is discharged from his or her obligations under it. When both parties have obligations to be performed, performance by both discharges the contract in its entirety Frustration - Answer A contract may be discharged because of impossibility of performance, or frustration due to supervening and unanticipated circumstances, which are beyond the control of the parties and arise after the making of the contract. In such cases, the courts may release both parties from their obligations under the contract Operation of law - Answer A contract may be discharged by operation of law such as by bankruptcy of one of the parties or by alteration of the contract by one party without the consent of the other party Breach - Answer Whenever one party breaches or fails to fulfill an obligation under a contract, the other party may have the right to seek legal recourse through the courts if he or she suffered a damage. That is, the injured party may have a right to damages Breach of contract - Answer Some remedies for this are: Monetary damages (monetary usally means to do with money), quantum merit, specific performance, injunction Monetary damages - Answer The usual remedy granted by the court for breach of contract is monetary compensation or damages
The object of awarding damages is to place the injured party in the same position, as far as money is concerned, as if the contract had not been breached. This merely establishes the maximum amount the injured party would be entitled to recover and, although he or she might claim that sum, he or she can only recover such part of his or her loss as was reasonably foreseeable by the party guilty of the breach at the date the contract was entered into Quantum merit - Answer If the contract has been discharged by breach, and the injured party has done part but not all of what was promised under the terms of the contract, the injured party is entitled to the reasonable value (quantum meruit) of what he or she has already done for the party who committed the breach Specific performance - Answer Under certain circumstances and where damages are inadequate, the party guilty of the breach can be compelled by the court to carry out his or her promise It is a discretionary remedy, which the court may or may not grant depending upon the circumstances Injunction - Answer Where the contractual promise was to refrain from doing something, the court may award an injunction to restrain the offending party from doing that act. A common case is the breach of a covenant not to use premises in a particular way Real estate - Answer Land and fixed improvements to the land The land also includes everything securely affixed to it (such as building, garage, shed or fence. These are known as fixtures) Personal property or chattels - Answer Items not securely affixed to the land or building(s) such as furnishings and appliances Mortgaged premises - Answer Describes what is considered security for the loan in the mortgage document. This is typically the physical land and everything that is part of that land, or becomes part of that land Sole ownership - Answer Only 1 individual (or company) registered as the owner on the property title. In this case, the 1 owner holds the rights to the land. However, if the 1 owner is married, there are spousal rights to the property that must be considered Joint tenancy - Answer Involves two or more owners with each owner having the right of survivorship; when one owner dies, that person's interest automatically passes to the surviving owner(s). As such, a joint tenant cannot will his or her interest to anyone else They are co-owners with each owning an equal interest in the property as a whole Tenancy in common - Answer Involves two or more property owners When a tenant in common dies, that person's share in the land goes to his or her estate and does not automatically transfer to the other co-owner(s) of the property. There is no
