Document background
The Third Party Mortgage Agreement is a crucial document in Canadian real estate financing where one party's property is used to secure another party's debt obligations. This arrangement is commonly used in family situations, business relationships, or corporate structures where the borrower and property owner are different entities. The agreement must comply with federal legislation such as the Bank Act and Interest Act, as well as provincial property and consumer protection laws. It includes essential elements such as property details, payment terms, security arrangements, and parties' obligations. This document is particularly important in scenarios involving corporate guarantees, family property arrangements, or business expansion where separate legal entities are involved in the borrowing and security arrangement.
