Word | Definition |
C.C. & R.’s (Covenants, conditions and restriction | Usually applied to Condominims: Those matters that inhibit the use or other regulations placed against properties by an inclusion on a prior deed.
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Call option | A clause in a loan agreement that allows a lender to ask for the balance at any time. |
Cancellation clause | A clause that details the conditions under which each party may terminate the agreement. |
Cape Cod style | A wood-frame or shingled house with a steep roof and several windows projecting from the second floor. |
Capital | Money used to create income, such as funds invested in rental property. |
Capital expenditure | The cost of making improvements on a property. |
Capital gains | Profits an investor makes from the sale of real estate or investments. |
Capital gains tax | A tax placed on the profits from the sale of real estate or investments. |
Capital improvement | Any improvement that extends the life or increases the value of a piece of property. |
Capitalization | A mathematical formula that investors use to compute the value of a property based on net income. |
Capitalization rate | The percentage rate of return estimated from the net income of a piece of property. |
Cash flow | The amount of cash a rental property investor receives after deducting operating expenses and loan payments from gross |
Cash-out refinance | The refinancing of a mortgage in which the money received from the new loan is greater than the amount due on the old loan. The borrower can use the extra funds in any manner. |
Cashier's check | A check the bank draws on itself rather than on a depositor's account. |
Caveat | A formal notice, that asks a court to suspend action until the party which filed the challenge can be heard. |
Caveat emptor | A legal principle derived from Latin than means "let the buyer beware." |
Cavedium | A courtyard or atrium. |
Central business district | The area of a city where most large businesses are located. |
Certificate of Deposit (CD) | A document which shows that the bearer has a specified amount of money on deposit with a bank, stock-brokerage firm or other financial institution. |
Certificate of deposit index | An index based on the interest rates on six-month CDs. It used to determine the interest rate for some adjustable-rate |
Certificate of eligibility | A document issued by the Veterans Administration that verifies the eligibility of a veteran for a loan program. |
Certificate of occupancy | A document which states that a home or other building has met all building codes and is suitable for habitation. |
Certificate of sale | A document issued at a judicial sale, which entitles the buyer to receive a deed after court confirmation of the purchase of the |
Certificate of title | A written opinion on the status of a piece of property based on an examination of the public record. |
Chain of title | A chronological list of documents comprising the record history of title to a specific parcel of real property.
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Change frequency | The adjustment schedule on an adjustable-rate mortgage. |
Change order | A modification of the construction contract to authorize a change in the work, an adjustment in the amount of the contract or a change in the contract time. The owner, architect and contractor must sign the change. |
Chattel | Personal property such as furniture, clothing or a car. |
Chattel mortgage | A lien on personal property used as collateral for a loan. |
City Reports | The requirement of a special report to be issued in connection with the sale of property, usually processed through the Department of Building and Safety Some-times, but not often an inspection is involved.
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Classified property tax | A tax that varies in rate depending on the use of the property. |
Clear title | A property that does not have liens, defects or other legal encumbrances. |
Closing | The final procedure in which documents are signed and recorded, and the property is transferred. |
Closing costs | Expenses incidental to the sale of real estate, including loan, title and appraisal fees. |
Closing Statement | Settlement of the escrow. (1) The seller’s statement gives an accounting of the sales price paid less the charges assessed to the seller and any pay-offs made on behalf of the seller. (2) The buyers statement shows the deposits made, the loan(s) received or assumed, and any credits less the sales price, loan costs, insurance, pro-rata items and charges usually paid for by the buyer.
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Cloud on title | An invalid encumbrance on real property. |
Cluster development | A method of squeezing more homes into less space. |
Co-housing | Individual housing units that are clustered around a common building where residents share cooking and other activities. |
Co-insurance | Coverage that involves the use of two or more insurers.. |
Co-maker | A person who signs a promissory note with the borrower and assumes responsibility for the loan. |
Co-signer | A second party who signs a promissory note and takes responsibility for the debt. |
Codicil | A change to a will that adds or subtracts provisions or clarifies portions of the document. |
Collateral security | Additional security that a borrower supplies to obtain a loan. |
Collection | The series of steps a lender takes to bring a delinquent mortgage up to date. |
Collusion | The action of two or more people to break the law. |
Colonia | Unincorporated communities along the U.S.-Mexico border. |
Commercial bank | A financial institution that provides a broad range of services, from checking and savings accounts to business loans and |
Commercial property | An area that is zoned for businesses. |
Commingling | The mixing of money held in trust with other funds. |
Commission | The negotiable percentage of the sales price of a home that is paid to the agents of the buyer and seller. |
Commitment | A pledge, promise, or firm agreement, such as a title insurer’s contractual obligation to insure title to real property.
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Commitment fee | The fee a lender charges for promising to make a loan. |
Common area | An area inside a housing development that is owned by all residents. |
Common law | A body of laws based on custom, usage and rulings by courts in various jurisdictions. |
Common-area assessments | Fees paid by the owners of a condominium project or planned-unit development to maintain, repair, improve or operate common |
Common-interest development | A project composed of individually owned units that share usage and financial responsibility for common areas. |
Community Property | Property acquired after marriage by either a husband and/or wife, other than by gift, or as in heir, legatee or devisee. |
Community Reinvestment Act | A federal law that encourages financial institutions to loan money in the neighborhoods where minority depositors live. |
Commute | The distance and time it takes a person to reach the workplace. |
Comparables | Properties used as comparisons to determine the value of a certain property. |
Comparative market analysis | An estimate of the value of a property based on an analysis of sales of properties with similar characteristics. |
Competent | A term for a buyer who is legally fit to enter into a sales contract. |
Compound interest | The interest paid on the principal balance in a mortgage and on the accrued and unpaid interest of the loan. |
Condemnation | The process the government uses to take private property for public use without the consent of the owner. |
Conditional commitment | A promise by a lender to make a loan if the borrower meets certain conditions. |
Condominium | A multifamily or other structure in which units are individually owned and in which owners of the units also own an undivided interest in common areas.
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Condominium conversion | The change in title from a single owner of an entire project or building to multiple owners of individual units. |
Consent judgment | A binding written agreement between two parties to have a judgment entered and recorded. |
Conservator | A court-appointed guardian. |
Consideration | Anything that is legal, has value and induces a person to enter into a contract. |
Construction budget | The funding that an owner arranges for the construction of a project. |
Construction documents | Drawings and specifications from an architect that provide detailed requirements for the construction of a project. |
Construction to permanent loan | The conversion of a construction loan to a longer-term traditional mortgage after construction has been completed. |
Consumer Credit Counseling Service (CCCS) | A nationwide, nonprofit organization that helps consumers get out of debt and improve their credit profile. National headquarters: 8701 Georgia Avenue., Suite 507, Silver Springs, MD 20910. Phone: (800) 388-2227. |
Contemporary style | A design that features streamlined shapes, large unadorned windows and industrial materials. |
Contiguous lots | Pieces of property that are adjoined. |
Contingency | Dependent upon conditions or events specified but not yet accomplished.
A property may be sold contingent upon the seller or buyer meeting a predetermined condition mutually agreed upon. |
Contingency listing | A property listing with a special condition attached. |
Contingent fee | A fee that must be paid if a certain event occurs. |
Contract | An agreement between two or more parties that creates or modifies an existing relationship. |
Contract for deed | A contract in which the seller agrees to defer all or part of the purchase price for a specified period of time.
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Contract of sale | An agreement entered into for the purchase of real property where title remains in the seller’s name until all conditions of the contract have been fulfilled. |
Contract to purchase | A contract the buyer initiates which details the purchase price and conditions of the transaction and is accepted by the seller. Also known as an agreement of sale. |
Contractor | The individual who contracts for the construction of a home or project. |
Contractual lien | A voluntary obligation such as a mortgage or trust deed. |
Controlled growth | Any restrictions imposed on the amount or type of new development in an area. |
Conventional Loan | A mortgage loan not connected by a guarantee by the Veterans Administration (VA) or insured by the Federal Housing Administration(FHA).
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Convertible adjustable-rate mortgage | A mortgage which starts as an adjustable-rate loan, but allows the borrower to convert the loan to a fixed-rate mortgage during a specified period of time. |
Conveyance | A written document that transfers title to an asset from one person to another. A deed and an assignment are both conveyances, as is a bill of sale. |
Conveyance tax | A tax imposed on the transfer of real property. |
Cooperating broker | A real estate broker who finds a buyer for a property that another broker has listed. |
Cooperative corporation | A business trust that holds the title to a cooperative residential building and grants occupancy rights to shareholders in the |
Cooperative mortgages | Any loans related to a cooperative residential project. |
Cooperative project | A project in which a corporation holds title and sells shares representing individual units to buyers who then receive a proprietary lease as their title. |
Corner influence | The effect on the value of a property because it is situated on a corner or near a corner. |
Corporate relocation | An arrangement by which employers pay to transfer and move employees. |
Corrective work | Necessary or desired repairs to remedy problems uncovered by a home or specialized inspection. |
Cost-plus contract | A construction contract that determines the builder's profit based on a percentage of the cost of labor and materials. |
Counteroffer | A response to an offer. |
Covenant | A legal assurance or promise in a deed or other document, or implied by the law. |
Covenants, conditions and restrictions (CC&Rs) | Rules and regulations for a development, such as acceptable landscaping or improvements that can be made to individual |
Crawl space | The space between the ground and the first floor of a home, usually no higher than four feet. |
Creative financing | Innovative home-financing arrangements that help sell a property. |
Credit | The money a lender extends to a buyer for a commitment to repay the loan within a certain time frame. |
Credit history | A record of an individual's current and past debt payments. |
Credit life insurance | Insurance that pays off a mortgage in the event of the borrower's death. |
Credit rating | The degree of credit worthiness assigned to a person based on credit history and financial status. |
Credit report | A credit bureau report that shows a loan applicant's history of payments made on previous debts. Several companies issue credit reports, but the three largest are Trans Union Corp., Equifax and Experian (formerly TRW ). |
Credit repository | Large companies that gather financial and credit information from various sources about individuals who have applied for |
Credit union | Nonprofit cooperative organizations that provide banking and financial services, including mortgages, home improvement loans and home equity loans, to their members. |
Creditor | An individual or institution to whom a debt is owed. |
Cross-bridging | The strengthening of a structure by bracing cross members between beams. |
Cul de sac | A street or alley that is closed at one end. |
Curable defect | A deficiency in a property that is easy or inexpensive to fix, such as chipping paint. |
Curb appeal | The first impression of a house as seen from the street. |
