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-C-
Calendar
Year
A
12-month period starting on January l and
continuing through December 31 of a specific
year.
California
Bungalow
An
early twentieth-century small, compact, one-story
house.
Called Loan
A
loan that is due and payable at the demand
of the lender usually as a result of an acceleration
or alienation clause becoming effective. See
Acceleration clause and Alienation clause.
Call
Option
A provision in the mortgage that gives the
mortgagee (the lender) the right to call the
mortgage due and payable at the end of a specified
period for whatever reason.
Cancellation
Clause
A provision in a contract
that gives a party the right to terminate
his/her obligations upon the occurrence of
a specified condition or event.
Cap
- Interest
Rate
A provision of an adjustable-rate mortgage
(ARM) that limits how much the interest rate
or mortgage payments may increase or decrease
to protect the borrower from large increases
in the interest rate or the payment level.
Cap
- Payment Rate
The maximum payment amount increase allowable
on an adjustable rate mortgage (ARM) which
may result in negative amortization.
Capital
1. Money used to create income, either as
an investment in a business or long-term assets.
2. Stocks, bonds, or mortgages that can be
sold to raise money to purchase assets, as
well as retained earnings.
3. The accumulated wealth of a person or business.
4. The net worth of a business represented
by the amount by which its assets exceed liabilities.
Capital Appreciation
The appreciation accruing
to the benefit of the capital improvement
to real estate.
Capital
Expenditure
The cost of a capital improvement made to
extend the useful life of a property or to
add to its value. It may be investments in
land, buildings, machinery, or equipment.
Capital Improvement
Any structure or component erected as a permanent
improvement to real property that adds to
its value and useful life.
Capitalism
An economic system based on
the principles of private ownership of property,
equality and personal rights.
Carport
A garage for one or two cars
consisting of a roof supported by poles. It
does not have a door as a garage would have.
Cash
Method
An accounting method that
calls for income and expenses to be booked
when the income is received or the expense
obligation is paid.
Cash-Out
Refinance
A refinance transaction in which the borrower
receives additional cash that can be used
for any purpose. This occurs because the money
received from the new loan exceeds the total
of the money needed to repay the first mortgage,
closing costs, points, and the amount required
to satisfy any mortgage liens.
Casita
A Casita is a Spanish term
meaning a small house, often a guest house.
CBS
(Concrete Block Structure)
CBS refers to a "Concrete
Block Structure", as opposed to the more
common wood frame structure. There are many
reasons why to build CBS homes, but they are
most commonly found in Florida. A concrete
block home can stand up to the perils of fire,
rot, termites, and hurricane force winds when
the concrete is properly reinforced with steel
bars. CBS homes save energy by providing superior
insulation for temperature and sound.
CD
See Certificate of Deposit
Certificate
of Deposit (CD)
A type of savings account that carries a specified
minimum deposit and term and generally provides
a higher yield than traditional savings accounts.
Certificate
of Reasonable Value (CRV)
The Federal VA appraiser's opinion as to the
maximum value of a property.
Certificate
of Sale
A document issued to the highest
bidder at a tax foreclosure sale to indicate
ownership but does not convey actual title.
It indicates that all past due taxes have
been paid and that title will pass upon the
expiration of the statutory redemption period.
Certificate
of Title
A written document issued by an attorney or
a qualified person who has examined the record
of the real estate title reporting the state
of that title.
Chain of Title
The history of all of the documents that transfer
title to a parcel of real property, starting
with the earliest existing document and ending
with the most recent.
Chalet
A vacation cottage or home usually in the
mountains but sometimes at the beach or other
vacation locations. The chalet may be in clusters
with other chalet homes such as at a resort.
A chalet usually has a sloping roof and widely
overhanging eaves.
Chateau
A chateau is an impressive manor house, castle
or fortress in France usually belonging to
nobility or the wealthy. Chateau is also a
neighborhood in Pittsburgh, Pennsylvania.
Chattel
Another name for personal property. Does not
include Real Property.
Circa
When used in date ranges, a circa is applied
before a date, meaning that it is an approximate
date. In real estate, it is important to know
the age of a home, but sometimes much older
homes may not have records of the exact date
and thus it is approximated. For example,
Circa 1904.
Clear Title
A title that is free of encumbrances, liens
or legal questions as to ownership of the
property.
Closing
A meeting at which all parties to a real estate
transaction conclude their details and deliver
the title of the real estate property. The
buyer signs any mortgage documents and payment
is made pursuant to the sales contract.
Closing Costs
Miscellaneous Expenses (over and above the
price of the property) incurred by buyers
and sellers in transferring ownership of a
property. Closing costs may include recording
fees, attorney fees, title insurance premium,
origination fee, taxes, escrow , and charges
for obtaining title insurance and a survey.
Closing Statement
A separate accounting of funds to the buyer
and seller as required by law at the completion
of every real estate transaction. See HUD-1
statement.
Cloud on Title
Any outstanding claim, lien, encumbrance,
document or condition revealed by a title
search that adversely affect the title to
real estate. Usually clouds on title cannot
be removed except by a quitclaim deed, release,
or court action.
Cluster
Homes
A community developement of single family
detached homes constructed of lightweight
building materials spaced ten feet or less
apart. They usually have vinyl or wood siding,
zero clearance chimneys and narrow travel
paths separating each home. Cluster homes
are on smaller lots and usually have short
driveways.
Co-ownership
The ownership of the same
property by two or more persons.
Co-venture
Loan
A loan where the lender gets a share of ownership
or income from the property.
Code of Ethics
A writing
by a professional group setting forth a standard
of acceptable conduct about its members in
relationship to each other, to the general
public and to the organization which the members
agree to abide by.
Coffered
Ceiling
A coffered
ceiling is a ceiling that consists of sunken
or recessed panels usually trimmed with ornamental
moldings to enhance the detail. The trimming
may be of a contrasting color to give even
more of a sunken or recessed appearance. These
decorative ceilings may also serve a purpose
such as hiding load-bearing beams.
Coffered Ceiling
Coffered Ceiling
Coinsurance
An insurance-related term that often describes
a splitting or spreading of risk between multiple
parties.
Collateral
Any asset having marketable value (such as
land, home or car) that a borrower pledges
as security in order to obtain a loan. The
borrower risks losing the asset if the loan
is not repaid according to the terms of the
loan contract.
Collection
The efforts used to bring a delinquent loan
current and to file the necessary notices
to proceed with foreclosure if necessary.
Commission
The fee charged by a broker or agent for negotiating
a real estate transaction. A commission is
usually a percentage of the selling price
of the property, a percentage of rentals,
a flat fee, etc.
Commitment Fee
A charge made by a lender
at the time of a loan application to lock
in or guaranty specific terms.
Commitment
Letter
A formal offer by a lender stating the terms
under which it agrees to lend money to a home
buyer and a expiration (or close by) date.
Also known as a "loan commitment."
Common Area
Common interest areas in a
subdivision that are used by all of the unit
owners, who share in the common expenses of
their operation and maintenance. Common areas
include swimming pools, tennis courts, club
houses, playgrounds, parking areas, etc.
Common
Area Assessments
Levies against individual unit owners in a
condominium or planned unit development (PUD)
project for additional capital needed to cover
the costs and expenses and to repair, replace,
maintain, improve, or operate the common areas.
Common Law
An unwritten body of law that grew out of
the customs, practices and court decisions
developed and used in England from as long
as people can remember. They are used to an
extent in the United States.
Community Property
1. Land considered to be public property.
2. A legal term denoting an incorporeal hereditament
consisting of a right of one person in the
land of another.
3. A form of ownership under which property
acquired during a marriage is presumed to
be owned jointly unless acquired as separate
property of either spouse.
Comparables
(Comps)
Short for "comparable properties".
They are properties that are used in the appraisal
process that have recently sold which have
very similar characteristics, may be in close
proximity, and are situated in a similar market
as the subject property. Another example would
be home is an upscale waterfront communities
are compared to homes in another upscale waterfront
community.
Comparative Market Analysis (CMA)
A comparison of recently-sold
homes that are substantially equivalent to
each other in terms of selling price, location,
style and amenities. See Comparables.
Compound
Interest
Interest paid on the original principal balance
and on the accrued and unpaid interest that
has accumulated as the debt matures until
the time it becomes due.
Condemnation
1. The determination that a building is not
unfit for use or is dangerous and must be
destroyed.
2. The act by which property of a private
owner is taken for public use by a political
subdivision without the owner's consent but
with the owner's awareness and with the payment
of just compensation. Called the Right of
Eminent Domain.
Condominium
(Condo)
A real estate project in which each unit owner
has title to a unit in a building, an undivided
interest in the common areas of the project,
and sometimes the exclusive use of certain
limited common areas. The boundaries are described
on a recorded final map, parcel map or condominium
plan.
The
major difference between a townhome and a
condo is that a condominium owns his or her
individual unit, but does not own the land
surrounding the living space. The condo does,
however, own a percentage of the surrounding
property, including land and any amenities
on the property which are outlined in deed.
The buyer of a townhome owns the individual
unit, as well as the ground underneath that
unit and any front and back yards. Each townhome
has its own roof, in contrast to condominiums
which may be part of a multiple story building.
Construction Loan
A short-term, interim loan for financing the
cost of construction or improvements on land.
The funds are usually dispersed in payments
(sometimes three) as the construction progresses.
Contingency
A condition that must be met before a contract
is legally binding. For example, the home
buyer may include in the contract that the
purchase is contingent on him/her selling
their current home. Or the buyer may have
a contingency that the contract is not binding
until the purchaser obtains a satisfactory
home inspection report from a qualified home
inspector.
Contract
A contract is an oral or written agreement
to do or not to do certain obligations. A
contract for the sale of real property must
be in writing and signed by the parties who
have agreed to perform to be enforceable.
There are four essential elements:
1. Terms
2. Competent, adult parties and their consent
3. Mutual agreement
4. Consideration - Meaning every party is
conferring a benefit on the other party or
himself. This is usually an amount.
4. A lawful purpose
Conventional
Loan
A type of mortgage loan that is customarily
made by a bank or other financial institution
that is not insured or guaranteed by the federal
government. Contrast with government mortgage.
Convertibility Clause
A provision in some adjustable-rate mortgages
(ARMs) that allows the borrower to change
the ARM to a fixed-rate mortgage at specified
point in time after loan origination.
Convertible
ARM
An adjustable-rate mortgage (ARM) that can
be converted to a fixed-rate mortgage under
specified conditions for a nominal fee and
at a rate that is determined according to
the loan documents.
Cooperative
(Co-Op)
A type of multiple ownership in which the
residents of a multi-unit housing complex
own shares in the cooperative corporation
that owns the property, giving each resident
the right to occupy a specific apartment or
unit. A cooperative places substantial restraints
on the sale of the units as well as their
use.
Corporate Relocation
Arrangements under which an employer moves
an employee to another area as part of the
employer's normal course of business or under
which it transfers a substantial part or all
of its operations and employees to another
area because it is relocating its headquarters
or expanding its office capacity.
Cosigner
A second party who signs a
promissory note together with the primary
borrower.The cosigner promises to pay another
person's debt if the borrower fails to do
so.
Counteroffer
A response to an offer to enter into a contract
which acts as a rejection of the original
offer and introduces a new offer or one with
different terms and conditions.
Covenant
A clause in a mortgage that obligates or restricts
the borrower and that, if violated, can result
in foreclosure.
Crawl space
A narrow opening between the
ground and the underside of a structure which
is usually not tall enough to permit a person
to stand but is sufficient to give necessary
access to wiring, plumbing and other utilities.
The floor is usually dirt.
Credit
1. An agreement in which a borrower receives
something of value in exchange for a promise
to repay the lender at a later date.
2. In lending, the power of an individual
to obtain goods or secure money, based on
the favorable opinion held by a lender or
by the community, as to his/her solvency and
reliability.
Credit
History
A record of a person's repaid and unpaid debts.
A credit history helps a lender determine
whether a potential borrower has a history
of repaying debts in a timely manner or not.
Credit Report
An evaluation of an individual's credit history
prepared by one of the three major credit
associations. Individuals have access to this
report. Lender's use the report to determine
a loan applicant's creditworthiness.
Credit Reporting
Agency
An organization that prepares reports that
are used by lenders to determine a potential
borrower's credit history. The agencies are
Equifax, Experian and TransUnion.
Credit Repository
An organization that gathers, records, updates,
and stores financial and public records information
about the payment records of individuals who
are being considered for credit.
Creditor
A person to whom money is owed.
Cul-de-Sac
A dead-end street (usually
of a subdivision) with a widened circular
area at the end enabling cars to make a U-turn.
Curb
Appeal
The attractiveness of a home
or property when viewed from the sheet.
The
definitions of Real Estate Definitions found
on 10Realty.com are for general information
only. All information is subject to change
and should be independently verified. 10Realty.com
makes no representations or warranties of
any nature with regard to the information
found on the pages therein. 10Realty.com assumes
no responsibility for any liabilities or losses
claimed or incurred as a result of using this
information. (Real Estate Terms, Investment
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