Call option A clause in a loan
agreement that allows a lender to ask for
the balance at any time.
Can lights Cylindrical chambers
with bulbs recessed into the ceiling.
Cancellation clause A clause
that details the conditions under which each
party may terminate the agreement.
Cantilever A projecting
structure supported on one end, such as a
balcony.
Cap A limit on the amount the
interest rate or monthly payment can
increase in an adjustable-rate mortgage.
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.
Caravan A group of real estate
agents who tour a house that has been
recently listed for sale.
Carport A roof that covers a
driveway or other parking area.
Casement window A window hinged
on its sides to allow it to swing open
vertically.
Cash flow The amount of cash a
rental property investor receives after
deducting operating expenses and loan
payments from gross income.
Cashier's check A check the
bank draws on itself rather than on a
depositor's account.
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.
Cathedral ceiling A high open
ceiling formed by finishing exposed roof
rafters.
Caulk An acrylic or silicon
sealant used to fill cracks, crevices and
holes in a home.
Cavedium A courtyard or atrium.
Caveat A formal notice, that
asks a court to suspend action until the
party which filed the challenge can be
heard.
Caveat emptor Latin.
"Let the buyer
take care."
Ceiling height The standard
height of a ceiling is eight feet.
Central air conditioning A
device that generates cold air through an
outside unit that is connected to ductwork
inside the house.
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
mortgages.
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
property.
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 The official
record that details the ownership history of
a piece of property.
Chair railing Decorative trim
installed on a wall about 32 inches above
the floor, which protects against scuffs
from furniture.
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.
Change frequency The adjustment
schedule on an adjustable-rate mortgage.
Chattel Personal property such
as furniture, appliances, clothing or a car.
Chattel mortgage A lien on
personal property used as collateral for a
loan.
Chimney back The back wall or
lining of a fireplace or furnace chimney.
Chimney flue The passage inside
a chimney that channels smoke and heat to
the outside.
Chimney pot A short pipe at the
top of a chimney that increases ventilation
to the fireplace and reduces smoke.
Cinder block A block made of
ash and cement that is used in construction.
Cinder fill Cinders used below
a basement or around a foundation to promote
drainage.
Circuit breaker An electric
fuse that activates or deactivates a
circuit.
Cistern A tank used to store
rainwater.
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 A document
which details the final financial settlement
between a buyer and seller and the costs
paid by each party.
Cloud on title An invalid
encumbrance on real property.
Cluster development A method of
squeezing more homes into less space.
Codicil A change to a will that
adds or subtracts provisions or clarifies
portions of the document.
Co-housing Individual housing
units that are clustered around a common
building where residents share cooking and
other activities.
Coign The cornerstone of a
building that differs in shape or color from
the rest of the wall.
Co-insurance Coverage that
involves the use of two or more insurers..
Collar beam The structural
element that connects roof rafters.
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.
Column A slender upright
structure that consists of a base, a round
or square shaft and a capital.
Column footing The support base
for a load-bearing column. The footing is
usually made of reinforced concrete.
Co-maker A person who signs a
promissory note with the borrower and
assumes responsibility for the loan.
Combination door An outer door
with interchangeable screen and glass
panels.
Combination window A window
with interchangeable screen and glass
panels.
Commercial bank A financial
institution that provides a broad range of
services, from checking and savings accounts
to business loans and credit cards.
Commercial property An area
that is zoned for businesses.
Commingling The mixing of money
held in trust with other funds.
Commission The
percentage of the sales price of a home that
is paid to the agents of the buyer and
seller.
Commitment A promise by a
lender to make a loan with specific terms
for a specified period.
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-area assessments Fees
paid by the owners of a condominium project
or planned-unit development to maintain,
repair, improve or operate common areas.
Common-interest development A
project composed of individually owned units
that share usage and financial
responsibility for common areas.
Common law A body of laws based
on custom, usage and rulings by courts in
various jurisdictions.
Community property Property
accumulated through the joint efforts of
husband and wife. It is a classification of
property peculiar to certain states.
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.
Concrete tilt-up The process of
pouring concrete into forms on the ground,
allowing the forms to harden and then
raising the material to a vertical position
to form walls.
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 Individual units in
a building or development in which owners
hold title to the interior space while
common areas such as parking lots, community
rooms and recreational areas are owned by
all the residents.
Condominium conversion The
change in title from a single owner of an
entire project or building to multiple
owners of individual units.
Conduit A metal pipe that
houses electrical wiring.
Conflict of interest
An opposition, conflict, or antagonism
between different interests.
Consanguinity
Kinship, blood relative, the connection or
relation of persons.
Consent judgment A binding
written agreement between two parties to
have a judgment entered and recorded.
Conservator A guardian of an
incompetent person's estate.
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 loan Short-term
loans a lender makes for the construction of
homes and buildings. The lender disburses
the funds in stages.
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 A condition
specified in a purchase contract, such as a
satisfactory home inspection.
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.
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 long-term
loan a lender makes for the purchase of a
home.
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 The transfer of
title of property.
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
corporation.
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.
Cornice A horizontal molding
that projects from the top of a structure or
wall.
Corporate relocation An
arrangement by which employers pay to
transfer and move employees.
Co-signer A second party who
signs a promissory note and takes
responsibility for the debt.
Counteroffer A response to an
offer.
Corner bead A reinforcement
placed in the corner where two walls
intersect.
Corner influence The effect on
the value of a property because it is
situated on a corner or near a corner.
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.
Cottage A small, one-story
house.
Covenant A legal assurance or
promise in a deed or other document, or
implied by the law.
Covenants, conditions and
restrictions (CC&R's) Rules and
regulations for a development, such as
acceptable landscaping or improvements that
can be made to individual units.
Craftsman style An
architectural style that evolved as part of
the Arts and Craft movement near the turn of
the century.
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.
Creditor An individual or
institution to whom a debt is owed.
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.
Credit union Nonprofit
cooperative organizations that provide
banking and financial services, including
mortgages, home improvement loans and home
equity loans, to their members.
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.
Cupola A dome-like structure
that sits on top of a roof.
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.
Curtain wall An exterior wall
that encloses a yard or other area but does
not provide any structural support to a
home.
Custom builder A builder who
constructs a home or building based on plans
created by the owner.
Custom home A structure
designed by an architect hired by the owner.
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