Real Estate Terms Glossary
C
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
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.
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.
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.
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.
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 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.
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.
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.
Coign
The cornerstone of a building that differs in shape or color from the rest
of the wall.
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.
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 negotiable 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 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 areas.
Common-interest development
A project composed of individually owned units that share usage and financial
responsibility for common areas.
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.
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 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.
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.
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.
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.
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 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.
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.
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.
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.