In the second part of this three-part series, we discussed a document referred to as the Acknowledgement and Direction. For more information on Acknowledgement and Directions, please visit: http://touchstonelawgroup.com/kelowna-lawyers/conveyancing-documents-101-acknowledgment-direction-part-2/.
For our final post of the series, we will cover the Receipt of Terms. This document is frequently signed by purchasers obtaining mortgage financing.
Financial institutions often have their own filed form of standard mortgage terms that attach to their mortgages. These terms may depend on the mortgage product the lender has provided to the borrower/purchaser. There is also a prescribed set of terms that apply under the Land Title Act of British Columbia which can be found here (if of interest): http://www.bclaws.ca/civix/document/id/loo61/loo61/53_90_03. The prescribed set of terms may be used by lenders to specify additional terms associated with their mortgage.
The mortgage terms cover various aspects of the mortgage applicable to the borrower/purchaser and property, including ongoing obligations the borrower/purchaser must abide by to remain in compliance with their mortgage. Accordingly, it is important that the borrower/purchaser review the terms associated with their mortgage financing. While many sets of mortgage terms are similar in substance, there are differences between the various filed and standard documents and the borrower/purchaser should be cognizant of the specific terms that govern their mortgage financing.
A Receipt of Terms is signed by the borrower/purchaser to confirm to their lender that they have received the Form B Mortgage that will be submitted for registration as well as the associated standard mortgage terms. If there is a dispute about the mortgage, the Receipt of Terms provides evidence that the borrower/purchaser has been provided with these documents for their records and they have had an opportunity to review same to ensure compliance.
Similar to our prior posts in this series, we have included a sample Receipt of Terms below (note that dates, signing blocks, etc. have been removed for simplicity):
ACKNOWLEDGMENT OF RECEIPT OF STANDARD MORTGAGE TERMS
I/We acknowledge receipt from ___________ and _______________ of:
- a true copy of the set of ______________________
- a copy of the Mortgage – Part 1 (Form B Land Title Act) and any Schedule(s) referred to therein
at or before the time that I/we executed the Form B Mortgage Part 1.
DESCRIPTION OF MORTGAGE
|NAME OF LENDER:|
|DATE OF EXECUTION BY BORROWER:|
|LEGAL DESCRIPTION AND PARCEL IDENTIFIER NO.:|
Author: Una Gabie
This information is general in nature only. You should consult a lawyer before acting on any of this information. This information should not be considered as legal advice. To learn more about your legal needs, please contact our office at (250)448-2637 or any of our lawyers practicing in the area of real estate law at the following: