WHAT ARE STANDARD CHARGE TERMS?
When an individual or entity acquires a loan or mortgage from a lender, the lender will have their solicitor register the mortgage as a charge on the property. Prior to the registration of the mortgage, the lender will provide the borrower with a document known as the standard charge terms. The standard charge terms generally outline the rights and obligations of the borrower to repay the loan and the rights of the lender in the event the borrower defaults. Typically, most institutional lenders have created their own set of standard charge terms that they use depending on the mortgage or loan transaction circumstances. Institutional lenders may have lengthy and complex standard charge terms, while some private lenders may have their own sets of standard charge terms. In our experience, private lenders generally use the set of standard charge terms filed by Dye and Durham Co. with the filing number 200033. If you are a borrower who has entered into a private or institutional mortgage, it is important to thoroughly review the standard charge terms of your mortgage, so you are aware of your rights and obligations and any penalties in the event of default.
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Disclaimer: The information contained in this article is not to be construed as legal advice. The content is drafted and published only for the purpose of providing the public with general information regarding various real estate and business law topics. For legal advice, please Contact us.
About the Author:
Shahriar Jahanshahi is the founder and principal lawyer at Jahanshahi Law Firm with a practice focus on representing business star-ups and investors in the province of Ontario. For further information about Shahriar Jahanshahi, click here.