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Here is the "C" page from our dictionary of real estate
terms and definitions beginning with "C.C.I.M" and ending with "customer".
We try to provide as much information
as possible to buyers of Ocala Real Estate. These terms and definitions apply
pretty much nation wide, and we try to update with terms specifically relating
to Florida Real Estate as soon as we come across something we've missed. We
welcome your comments and suggestions!
C.C.I.M.:
Certified Commercial Investment Member.
C.C.& R's:
Covenants, Conditions and Restrictions affecting the use of a property.
CALIFORNIA BUNGALOW:
Compact, early twentieth-century single-storey house.
CALIFORNIA RANCH:
One-storey house, in a post-Second-World-War style, known for its ground
hugging design and low, pitched roof.
CALL OPTION (PROVISIONS, RIGHTS):
A lender's right to demand payment of the outstanding balance of the loan
at a time specified in the loan agreement.
CANCELLATION CLAUSE:
Provision in a contract that gives one or more parties the right to
terminate the contract if a specific event occurs.
CAP:
A limit. In variable rate mortgages, a limit as to how high periodic
payments may go or how much the interest may change within a given time period
or over the life of the mortgage.
CAP RATE:
Short form for capitalization rate.
CAPACITY:
Having legal competence to sign binding contracts.
CAPE COD COLONIAL:
A one-storey house, compact in design and in an early-American-style.
Symmetrical layout with a central entrance. Steep, gable-type roof, usually
shingled, with a low central chimney.
CAPITAL ASSET:
Asset of a permanent nature used in the production of an income, such as
land, buildings, machinery, equipment, etc.
CAPITAL EXPENDITURE:
Money spent to improve a property and enhance its value over an extended
period of time (as opposed to a repair). May be added to the adjusted cost base
of the property improved or depreciated over the useful life of the improvement.
CAPITAL GAIN:
Profit from the sale of property. Used in computing income tax.
CAPITAL IMPROVEMENT:
Value enhancing work carried out on a capital property.
CAPITAL LOSS:
Loss from the sale of property. Used in computing income tax.
CAPITAL:
The working money in a business venture.
CAPITALIZATION:
In appraising, determining value of property by considering net income
and percentage or reasonable return on the investment.
CAPITALIZATION RATE:
The rate which is considered a reasonable return on the investment, and
used in the process of determining value based upon net income.
CAPTURE RATE:
A comparison of the sales or leasing rate of a particular real estate
development to the sales or leasing rate of all developments in the same market.
CARRYING CHARGES
(COSTS):
The expense required to maintain a property over a given period of time,
including property taxes, maintenance, insurance payments, interest charges on
financing, etc.
CASH EQUIVALENT:
The amount a vendor would have realized on the sale of a property had she
not accepted unfavorable (or favorable) financing of the purchaser but received
cash instead.
CASH FLOW:
Cash left at the end of a period of time (usually a year) from the
operation of income property or a business. Do not subtract depreciation when
computing cash flow.
CASH METHOD:
An accounting method, based on actual cash moving in and out of the
company over a given period. See accrual method.
CASH RESERVE:
An amount of money that the purchaser of a property still has after the
transaction closes. Some lenders require a certain level of cash reserve (equal
to two payments) before granting a mortgage.
CASH THROW-OFF:
See cash flow.
CASH-OUT REFINANCE:
When an owner renegotiates or negotiates a new mortgage and the proceeds
of the new financing exceed the money required to pay out the old mortgage and
any other costs, liens or expenses, leaving money for the borrower.
CAVEAT EMPTOR:
Let the buyer beware. The buyer must examine the goods or property and
buy at his own risk.
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CEILING:
The limit over which the interest rate on a variable rate mortgage may
not rise over the life of the loan.
CENTRAL BUSINESS
DISTRICT (CBD):
The business and commercial "core" of a municipality (also known as
"Downtown").
CERTIFICATE OF
ELIGIBILITY:
Document issued by the Department of Veteran's Affairs to qualifying
veterans which entitles them to apply for subsidized or guaranteed loans.
CERTIFICATE OF
INSURANCE:
A document, issued by the insurance company, setting out the particulars
of the insurance coverage for a particular property.
CERTIFICATE OF NO
DEFENSE:
Document which sets out a certain set of facts which the issuer is
agreeing to be bound by. Same as estoppel certificate.
CERTIFICATE OF
OCCUPANCY:
Document issued by the local municipality indicating that a new dwelling
is suitable for occupation. Generally confirms that the dwelling complies with
local building, safety and health by-laws.
CERTIFICATE OF
REASONABLE VALUE (CRV):
The Federal Veterans Administration appraisal commitment of property
value.
CERTIFICATE OF SALE:
A certificate issued to a buyer at a judicial sale (eg. foreclosure of a
mortgage).
CERTIFICATE OF
SATISFACTION:
Document registered on title which provides evidence from the lender that
a loan instrument (deed of trust, mortgage, other lien) has been paid out and
released.
CERTIFICATE OF
TITLE:
A certification of the ownership of land. A forerunner to title
insurance.
CERTIFICATE OF
VETERAN STATUS:
Document issued by Department of Veteran's Affairs confirming that the
person named in the Certificate has served at least 90 days of continuous active
duty (including training time) and is eligible for certain VA benefits (such as
a VA mortgage).
CERTIFIED COPY:
A copy of a document which bears some form of declaration (usually by the
holder of the original document) that it is a true copy of the original.
CERTIFIED GENERAL
APPRAISER:
A person who has met the requirements to be licensed to appraise the
value of property. Qualification requirements may vary from one jurisdiction to
the next.
CERTIFIED HOME
INSPECTOR:
A person who has met the requirements to be "certified" to inspect the
physical condition of homes. Qualification requirements may vary from one
jurisdiction to the next.
CERTIFIED PROPERTY
MANAGER (CPM):
A person who has met the requirements of the Institute of Real-Estate
Management.
CERTIFIED
RESIDENTIAL APPRAISER:
A person who has met the requirements to be licensed to appraise the
value of residential properties of no more than four units.
CERTIFIED
RESIDENTIAL BROKER (CRB):
A person who has met the requirements of the Realtors National Marketing
Institute.
CERTIFIED
RESIDENTIAL SPECIALIST (CRS):
A person who has met the requirements of the Realtors National Marketing
Institute.
CESTUI QUE TRUST:
The beneficiary of a trust, the person who is the beneficial/equitable
owner of the property held in trust for which the trustee holds legal title.
CHAIN OF TITLE:
A history of conveyances and encumbrances affecting the title from the
time the original patent was granted, or as far back as records are available.
CHAIN:
An old unit of measurement of land, measuring 66 feet in length. A chain
equals 100 links, each 0.66 feet in length.
CHANGE FREQUENCY:
Term describing the period of time between changes in the interest rate
and/or payments of a variable rate (adjustable rate) mortgage or loan (i.e. one
week, one month etc.).
CHANGE, PRINCIPLE OF:
Holds that it is the future, not the past, which is of prime importance
in estimating value.
CHATTEL:
Personal property.
CHATTEL MORTGAGE:
A personal property mortgage. (See Security Agreement and Security
Interest).
CHATTELS:
Goods or every species of property movable or immovable which are not
real property.
CHATTELS REAL:
An estate related to real estate such as a lease on real property.
CHOSE IN ACTION:
A personal right recoverable by a court suit.
CLEAR TITLE:
Ownership of land which is marketable and free of competing claims,
liens, mortgages or other encumbrances.
CLAIM:
A right asserted against another party. One might register a claim on
title to the property to which the claim applies, file a claim under an
insurance policy or file a Statement of Claim in court to assert one's rights.
CLASS ACTION:
A legal proceeding which presents the related or similar claims of an
identifiable group against a single or group of defendants, usually by using one
representative claimant to assert the claims on behalf of the group.
CLIENT:
Person with whom the broker has an agency interest.
CLOSED MORTGAGE:
A land loan that cannot be prepaid or re-negotiated before the end of its
term without the payment of an interest penalty.
CLOSED-END MORTGAGE:
A mortgage with a set principal amount which cannot be increased or
extended during the life of the mortgage.
CLOSING:
The culmination of any transaction in which the interested parties (or
their representatives) meet to exchange documents, funds, and property and, if
necessary, to register the transfer of title.
CLOSING COSTS:
Moneys expended by a party in completing a transaction, over and above
the purchase price, including: legal fees, taxes, mortgage application charges,
interest adjustments, registration fees, appraisal fees, etc.
CLOSING DATE:
Also known a Completion Date. The date set in the Agreement of Purchase
and Sale upon which the transaction is to be completed, the purchase price paid
and the transfer of title registered.
CLOSING STATEMENT:
The final accounting of a sale given by escrow to the buyer and seller.
CLOUD ON TITLE:
Any conditions revealed by a title search which affect the title to
property; usually relatively unimportant items which can be removed with a
quitclaim deed or court action.
CLUSTER HOUSING:
Development design which places attached dwelling in close proximity to
each other, with nearby open spaces set out for common use of the dwelling
owners.
CODE:
A group of laws.
CODE OF ETHICS:
Rules of an organization used as a guideline by members of the
organization (eg. NAR Code of Ethics).
COINSURANCE:
A technique used to share the risk of a larger development between
several insurance companies, each company covering a certain percentage of the
total value of the insured property. Each policy may include a clause setting a
minimum percentage of the total value of the insured property which the owner
must keep insured in order to be eligible for payment under the policy.
COLD CANVASS:
Also known as "Cold Call". Contacting home owners out of the blue to
solicit business or, in the case of a real estate broker or agent, listings.
COLLATERAL:
This is the property subject to the security interest. (See Security
Interest)
COLLATERAL MORTGAGE:
A loan which is secured by some sort of written note of indebtedness
(such as a Promissory Note) which is secondarily secured by a mortgage
registered against a property.
COLLATERAL SECURITY:
A separate obligation attached to contract to guarantee its performance;
the transfer of property or of other contracts or valuables to insure the
performance of a principal agreement.
COLLECTION:
The act of pursuing a debtor who is delinquent on his loan payments.
COLLUSION:
An agreement between two or more persons to defraud another of his rights
by the forms of law, or to obtain an object forbidden by law.
COLOR OF TITLE:
That which appears to be good title but which is not title in fact.
CO-MAKER:
Also known a "Guarantor". Someone who signs a loan document along with
the principal borrower, pledging to be responsible for the loan should the
borrower fail to pay it.
COMMERCIAL ACRE:
A term applied to the remainder of an acre of newly subdivided land after
the area devoted to streets, sidewalks, curbs, etc., has been deducted from the
acre.
COMMERCIAL BROKER:
A real estate professional who deals in properties with commercial
(business, retail, etc.) uses.
COMMERCIAL PAPER:
Bills of exchange used in commercial trade.
COMMERCIAL PROPERTY:
As opposed to residential or industrial property. Property zoned,
designed or intended for use retail, office, or similar users.
COMMINGLE:
To mix client's money or property with the agent's.
COMMISSION:
An agent's compensation for performing the duties of his agency; in real
estate practice, a percentage of the selling price of property, percentage of
rentals, etc.
COMMISSION SPLIT:
The division of the payment made to the listing agent between that agent
and her broker, or between the listing agent and agent representing the
Purchaser (the selling agent).
COMMITMENT:
A pledge or a promise or firm agreement.
COMMITMENT FEE:
The fee charged by the lender to commit itself to a mortgage or loan on
specific terms.
COMMON AREA
ASSESSMENTS:
Also known as Common Element Fees. A periodic charge levied against all
of the owners of units in a condominium or planned unit development (PUD)
project which is used by the condominium corporation or homeowner's association
to pay for repair, maintenance and other expenses of the common areas in the
development.
COMMON AREAS:
Portions of the property and buildings owned by a condominium corporation
or planned unit development (PUD) homeowners' association, or a cooperative
development's association that are available for the use of all unit owners.
Also used in rental properties to refer to those facilities for the use of all
tenants.
COMMON ELEMENTS:
A common area in a condominium project which is owned by the condominium
corporation and for the use of all unit owners.
COMMON LAW:
The body of law that grew from customs and practices developed and used
in England "since the memory of man runneth not to the contrary".
COMMUNITY:
A part of a metropolitan area that has a number of neighborhoods that
have a tendency toward common interests and problems.
COMMUNITY APARTMENT PROJECT:
A subdivision where the buyer receives a deed to the whole property and
the right to use an apartment. Each owner is a tenant in common.
COMMUNITY
ASSOCIATION:
Any organization established and run by property owners in a particular
area, often to represent the common interests of the owners in dealings with
government, planning bodies, developers or other outside parties.
COMMUNITY HOME
BUYER'S PROGRAM:
Program established to find creative ways to finance home purchases for
people with modest income.
COMMUNITY PROPERTY:
Property accumulated through joint efforts of husband and wife.
COMPACTION:
Whenever extra soil is added to a lot to fill in low places or to raise
the level of the lot, the added soil is often too loose and soft to sustain the
weight of the buildings. Therefore, it is necessary to compact the added soil so
that it will carry the weight of buildings without the danger of their tilting,
settling, or cracking.
COMPARABLES or
COMPARABLE SALES:
Sales which have similar characteristics as the subject property and are
used for analysis in the appraisal process.
COMPARISON APPROACH:
A means of appraising by comparing recent sales prices of similar
properties.
COMPETENT PARTIES:
Legally qualified.
COMPLETION DATE:
See closing date.
COMPETITION, PRINCIPLE OF:
Holds that profits tend to breed competition and excess profits tend to
breed ruinous competition.
COMPONENT
DEPRECIATION:
For tax purposes, allocating a portion of the total cost of renovation to
each component of the renovation (roof, plumbing, electrical, foundation, etc.)
and then depreciating the cost of each component separately.
COMPOUND INTEREST:
Interest paid on original principal and also on the accrued and unpaid
interest which has accumulated.
CONCESSIONS:
Sacrifices made by a party to convince another party to enter a contract.
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CONDEMNATION:
The act of taking private property for public use by a political
subdivision; declaration that a structure is unfit for use.
CONDITION(S):
Provision(s) that the transfer of property depends upon another uncertain
event.
CONDITION PRECEDENT:
A condition that must be fulfilled before title can be transferred.
CONDITION SUBSEQUENT:
A condition which provides that if the owner fails to do something, his
title may be defeated and he may lose his property.
CONDITIONAL COMMITMENT:
A commitment of a definite loan amount for some future unknown purchaser
of satisfactory credit standing.
CONDITIONAL SALE CONTRACT:
A contract for the sale of property stating that delivery is to be made
to the buyer, title to remain vested in the seller until the conditions of the
contract have been fulfilled.
CONDITIONAL OFFER:
An offer to purchase a property which is contingent on the fulfillment of
certain conditions before it becomes firm and binding. Also known as
"Conditional Sales Contract".
CONDOMINIUM:
A system of individual fee ownership of units in a multi-family
structure, combined with joint ownership of common areas of the structure and
the land.
CONDOMINIUM OWNERS
ASSOCIATION:
An organization made up of unit owners in a condominium development
established to govern relations between the owners and to administer the rules,
by-laws and covenants of the condominium.
CONFIRMATION OF SALE:
A court approval of the sale of property by an executor, administrator,
guardian or conservator.
CONFORMITY, PRINCIPLE OF:
Holds that the maximum value is realized when a reasonable degree of
homogeneity of improvements is present.
CONFORMING:
Complying with the requirements of a certain statute, by-law or
organization.
CONSENT:
Agreement. Mutual consent is one of the four essential elements of a
contract.
CONSERVATOR:
Also called a Committee, Personal Representative or Guardian, a person
appointed by the Court to administer the property of a person who is not capable
of managing his own affairs.
CONSIDERATION:
Anything of value given to induce entering into a contract; it may be
money, personal services, or even love and affection.
CONSTANT PAYMENT
LOAN:
A type of loan which requires equal, periodic payments over a certain
term, at the end of which the amount owing under the loan will be completely
paid out.
CONSTRUCTION LOAN:
Loan made for the construction of homes or commercial buildings. Usually
funds are disbursed to the contractor-builder during construction and after
periodic inspections. Disbursements are based on an agreement between borrower
and lender.
CONSTRUCTIVE
EVICTION:
A disturbance or a tenant's possession by the landlord.
CONSTRUCTIVE NOTICE:
Notice given by the public records or by possession.
CONSUMER GOODS:
These are goods used or bought for use primarily for personal, family or
household purposes.
CONSUMER REPORTING
AGENCY (OR BUREAU):
Also known as Credit Bureau. The source to which the banks or other
lenders turn for information on the credit history of an applicant.
CONTIGUOUS:
Touching at any point. Contiguous lots. Also see Abutting.
CONTINGENCY:
An event which may (or may not) happen in the future, a condition that
must be fulfilled before a contract becomes firm and binding.
CONTINGENT:
Dependent upon an uncertain future event.
CONTOUR:
The surface configuration of land.
CONTRACT:
An agreement to do or not to do a certain thing. A legally binding
agreement (oral or written) between two or more persons regarding an exchange of
some sort. A legally binding contract must include consideration passing between
the parties, an intention on the part of all parties to be bound to the
contract, a meeting of the minds of the parties as to the contents of the
contract, and an element of clarity such that the terms of the contract may be
interpreted, understood and enforced by a court.
CONTRACT FOR DEED:
Also known as a Land Contract or Land Installment Contract. Transfer of a
property where the title remains in the Vendor's name until the Purchaser makes
the final payment to the Vendor of the Purchase Price.
CONTRACT OF SALE:
Also known as Agreement of Purchase and Sale, Offer to Purchase, Contract
of Purchase. The written agreement between the Vendor and Purchaser for the sale
of property which contains all of the terms, conditions and financial details of
the transaction.
CONTRACT RENT:
The periodic rental payment as set out in the lease contract.
CONTRACTOR:
A tradesman who works in the construction industry under a contract with
the owner of the property. See also "sub-contractor".
CONTRIBUTION, PRINCIPLE OF:
An appraising principle used when considering proposed improvements.
Considers the income that would be contributed by the proposed improvements.
CONVENTIONAL LOAN:
A loan made without government backing.
1. A loan or mortgage to which the normal rules of such transactions apply
without the inclusion of a government program (i.e. VA or FHA insurance).
2. A loan or mortgage with a fixed interest rate, fixed payments and a fixed
term.
CONVERSION CLAUSE:
A provision in a variable rate mortgage (adjustable rate mortgage) which
allows the borrow to change the mortgage to a fixed rate mortgage upon the
occurrence of certain events.
CONVERSION:
Change from one character or use to another.
1. a change in the use of a property, or in the way a property is owned (i.e.
from private to condominium ownership)
2. the improper taking of the property of another for one's own use;
3. In Ontario, the transfer of a property from the Registry System of land
registration to the new Land Titles Conversion Qualified (LTCQ) computerized
system by the agents of the Ontario government.
CONVERTIBILITY
CLAUSE:
See Conversion Clause.
CONVEY:
To transfer title to (or any other interest in) a property to someone
else.
CONVEYANCE:
The transfer of the title of land from one to another. It denotes an
instrument which carries from one person to another an interest in land.
CO-OP:
Short for Cooperative, a mode of land ownership where the occupiers of
individual units in a building own an interest in the Cooperative Corporation
that owns the whole property.
COOPERATING BROKER:
A Broker who is involved in a real estate transaction and is, therefore,
entitled to share in the commission from the transaction.
COOPERATIVE (CO-OP):
See Co-Op.
CORNER INFLUENCE:
The added value of a corner lot.
CORPORATE
RELOCATION:
The movement of an employee of a corporation to a new city (or other
location) as part of the normal business of the corporation. The employee's
moving expenses (including the costs of selling and buying a home) may be paid
by the corporation and are tax deductible.
CORPORATION:
A group or body of persons established and treated by law as an
individual or unit with rights and liabilities of both, distinct and apart from
those of the persons composing it.
CORPOREAL:
Tangible.
CORRELATION:
To bring the indicated values developed by the three approaches used in
the appraisal process into mutual relationship with each other.
COST:
The price a buyer pays for property.
COST APPROACH:
One of three methods in the appraisal process. An analysis in which a
value estimate of a property is derived by estimating the replacement cost of
the improvements, deducting therefrom the estimated accrued depreciation, then
adding the market value of the land.
COST BASIS:
The price a buyer pays for a property or its value at time of
acquisition. Used in computing profit for income tax.
COST ESTIMATING:
Predicting the total cost of a construction project by estimating, in
advance, the actual costs of all elements in the project, including legal fees,
labor, permits, materials etc.
COST PLUS CONTRACT:
An agreement with a contractor or builder which sets the contractor's
compensation for the project as a percentage of the total cost of all labor and
materials.
CO-TENANCY:
When more than one person owns a piece of property. Title will be held by
the owners as Joint Tenants (each owns the land equally and, in the event of the
death of one of the owners, the survivors continue to share title equally by
right of survivorship) or as Tenants in Common (each owner has title to a
specific percentage of the land and may sell, mortgage, or bequeath her interest
to a third party without consent of the other owners).
COUNTEROFFER:
An answer to an offer. If a prospective Purchaser presents an offer to
purchase a property to the owner of the property, that owner may accept the
offer as it stands, reject it outright or respond with a "counteroffer" which
changes certain terms of the original offer. Making a counteroffer, at law,
entails rejection of the original offer. The Purchaser may then counteroffer
back, making changes to the owner's counteroffer. Sometimes, the process of
counteroffering is referred to as "signing back" the offer.
COUNTY:
A territorial division of land in a geographic region (state or
province). Similar to Regions and Regional Municipality.
COVENANT:
Agreements written into deeds and other instruments promising performance
or nonperformance of certain acts or stipulating certain uses or nonuses of the
property.
COVENANT RUNNING
WITH THE LAND:
A covenant that is literally attached to the land and binds present and
future owners to the requirements of the covenant. In new developments, such
covenants may be restrictive: the owner is not allowed to alter grading patterns
of the land, or erect new fences, or put up TV aerials, or to change the color
of the exterior of the house. Such restrictive covenants may be enforced by a
Homeowners' Association.
C.P.M.:
Certified Property Manager; a member of the Institute of Real Estate
Management (IREM) of the National Association of Realtors.
C.R.E.:
Counselor of Real Estate. Member of American Society of Real Estate
Counselors.
CREATIVE FINANCING:
An arrangement for the financing of the purchase of a property which is
outside the normal practice of residential financing.
CREDIT:
1. The ability to access money, to use money prior to earning it.
2. The accounting term for a liability or for equity, entered on the right side
of the ledger.
3. As a verb, to allot for the benefit of a person (i.e. You must credit the
Purchaser on closing for the deposit paid).
CREDIT HISTORY:
A statement of the debts and obligations, whether current or past, of a
person which helps a lender to assess the risk of a loan to that person.
CREDIT LIFE
INSURANCE:
A form of insurance which is designed specifically to pay out the debts
of the insured person in case of their death.
CREDIT LIMIT:
The maximum amount available to a person under a loan, credit card or
other borrowing arrangement.
CREDIT RATING:
Based on an analysis of a person's credit history, an evaluation of that
person's ability to manage a new debt or debts overall.
CREDIT RISK:
The potential for a borrower to fail to live up to her obligations under
a loan arrangement.
CREDITOR:
Any person to whom money is owed. May be secured (the debt has been
registered against the property of the debtor) or unsecured.
CUL-DE-SAC:
French term for a "dead end street". A street open at one end only. It
usually has a circular turnaround. A street which meets another street at one
end but is closed at the other, such that little traffic will travel down it and
the property owners enjoy excellent privacy.
CUMULATIVE INTEREST:
The total amount charged as interest on a loan or mortgage to a certain
date.
CURABLE DEPRECIATION:
Items of physical and functional obsolescence which are customarily
repaired or replaced by a prudent property owner.
CURTESY:
The right which a husband has in a wife's estate at her death.
CUSTOM BUILDER:
A builder or developer who specializes in creating homes to the
specifications and requirements of individual land owners.
CUSTOMER:
Third party with whom the broker does not have an agency contract
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