A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Cap (interest rate) The maximum interest rate increase allowance on an adjustable rate mortgage. Does not result in negative amortisation. See Negative Amortisation. Cap (payment rate) The maximum payment amount increase allowable on an adjustable rate mortgage. May result in negative amortisation. See Negative Amortisation. Capital Gain The result of selling a capital asset at a higher price than it cost you. Caveat A warning to be aware noted on the C/T. Certificate of Title The document of title to the land held under the Torrens System. It sets out the Crown description of the land, the registered proprietors, registered mortgages, easements, covenants and encumbrances. . Closing The concluding day of the real estate transaction, when title and deed pass from seller to buyer, the buyer signs the mortgage and pays the purchase price and closing costs. Closing Costs Expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. Also called " settlement costs". Closing Statement A financial disclosure giving an account of all funds received and expected at closing, including the escrow deposit for taxes, hazard insurance and mortgage insurance for the escrow account. Commission The fee collected by the broker from the financial institution for the service of introducing the borrower to the lender. Commitment An agreement, frequently in writing, between a lender and a borrower to loan money at a future date, subject to certain conditions. Comparables Refers to similar properties used for comparison purposes in the appraisal process. These properties will be reasonably the same size and location, with similar amenities and characteristics, so that the approximate fair value of the subject property can be determined. Conflict of Interest Arises where a person or persons may have a beneficial interest in an outcome and have the potential capacity to influence both parties to the transaction.