Also referred to as a mortgage loan, is used by purchasers of real property to raise capital for the purchase, or by existing owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is secured on the borrower’s property, putting in place a legal mechanism which will enable the lender to take possession and sell the secured property to pay off the loan in the event that the borrower defaults on the loan or otherwise fails to abide by its terms.

An arrangement where all of the parties involved are each liable up to the full amount of the relevant obligation. If one party dies, disappears or is declared bankrupt the others remain fully liable. The converse is several or proportionate liability, where the parties are liable only for their respective obligations and not for the obligations of any of the other parties.

The responsibility of a person to pay a debt or other financial obligation. If an individual signs a promissory note, that individual usually has full personal liability for the debt. An exception is the unusual situation of a non-recourse individual loan, in which the lender agrees to look only to the collateral for recovery in the event of default.

Refers to the terms of a contract or a judgment or a rule of law which it is possible, where necessary, to make people obey.

An attempt to settle a dispute with the help of a neutral third party where all parties are actively involved in the decision-making process. The individual who intervenes in order to help the other parties settle their dispute is called a mediator.

A legal document, usually in writing, giving details of a formal legally binding agreement, between two or more different people or groups. To be legally binding it must contain certain elements: it must contain an offer made by one party and accepted in its entirety by the other, it must include some form of consideration whether it be money, goods or services, and it must be properly signed by all parties to it, and dated.

The term that describes a duty that is enforced by a court and where non-fulfilment may incur a penalty.

The process whereby a party is made aware of the commencement of legal proceedings affecting their rights, obligations or duties. Although the format may vary, there are strict requirements regarding service of a legal notice which must be adhered to if the legal notice to be effective.