Real Estate Glossary C

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 beam or overhanging portion supported at one end only.

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. rate mortgage.

Cap rate (capitalization rate) - The percentage selected for use in the income approach to valuation of improved property. The cap rate is designed to reflect the recapture of the original investment over the economic life of the improvement, to give the investor an acceptable rate of return (yield) on the original investment, and to provide for the return on borrowed capital.

Cape cod style - A wood frame or shingled house with a steep roof and several windows projecting from the second floor. 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 improvement - Any improvement that extends the life or increases the value of a piece of property.

Capital improvement - Any structure, which is erected as a permanent improvement to real property; any improvement, which is made to extend the useful life of a property, or to add to the value of the property.

Capitalization rate - The percentage rate of return estimated from the net income of a piece of property.

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.

Cavaedium - In architecture, is the Latin name for the central hall or court within a Roman house, of which five species are described by Vitruvius.

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 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 reasonable value (crv) - A certificate issued by the Veterans Administration setting forth a property's current market value estimate, based upon a VA approved appraisal.

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.

Certified check - A check which the bank guarantees to be good, and against which a stop payment is ineffective.

Certified property manager - A professional property manager who has qualified for membership in and is a member of the Institute of Real Estate Management, and is designated a CPM.

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. 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.

Client trust account - An account set up by a broker to keep client's monies segregated from the broker's general funds.

Code of ethics - A written system of standards of ethical conduct. The Code of Ethics of the National Association of Realtors, first written in 1913, establishes the high standards of conduct for members of the Realtor community.

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. 

Co-insurance - Coverage that involves the use of two or more insurers.

Collar beam  - The structural element that connects roof rafters.

Collateral - Something of value given or pledged as security for a debt or obligation. The collateral for a real estate mortgage loan is the mortgaged property itself, which has been hypothecated.

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.

Color of title - A condition which has the appearance of good title, but which in fact is not valid title, as where title is founded on some written document, which on its face appears valid and effective, but which is actually invalid.

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. 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.

Commitment fee  - The fee a lender charges for promising to make a loan.

Common elements - Parts of the property, which are necessary or convenient to the existence, maintenance and safety of the condominium, or are normally in common use by all of the condominium residents.

Common wall - A wall separating two living units.

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 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.

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.

Concessions - Discounts given by landlords to prospective tenants to induce them to sign a lease.

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. 

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.

Condominium ownership - An estate in real property consisting of an individual interest in an apartment or commercial unit, and an undivided common interest in the common areas such as the land, parking areas, elevators, stairways, and the like.

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. appointed guardian.

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. 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.

Constructive eviction - Acts done by a landlord which so materially disturb or impair the tenant's enjoyment of the leased premises that a tenant is effectively forced to move out and terminate the lease without liability for any further rent.

Constructive notice - Notice of certain facts, which are implied bylaw to a person because he could have discovered the fact by reasonable diligence or by inquiry into public records.

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) 3882227 2227

Contemporary style - A design that features streamlined shapes, large unadorned windows and industrial materials.

Contiguous lots - Pieces of property that are adjoined.

Contingency listing - A property listing with a special condition attached.

Contingent fee - A fee that must be paid if a certain event occurs.

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   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 tax - A tax imposed on the transfer of real property.

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 ownership - Cooperative ownership of an apartment unit means that the apartment owner has purchased shares in a corporation, which holds title to the entire apartment building.

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 - 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.

Cosign  - The cornerstone of a building that differs in shape or color from the rest of the wall.

Co-signer - A second party who signs a promissory note and takes responsibility for the debt. 

Cost-plus contract - A construction contract that determines the builder's profit based on a percentage of the cost of labor and materials.  

Co-tenancy - A form of concurrent property ownership in which two or more persons own an undivided interest in the same property. 

Cottage - A small, one-story house. story house.

Counter-offer - A new offer made as a reply to an offer received from another; this has the effect of rejecting the original offer, which cannot thereafter be accepted unless revived by the offeror's repeating it.

Courtesy to brokers - The practice of sharing commissions with cooperating brokers.

Covenants and conditions - Covenants are promises contained in contracts, the breach of which would entitle a person to damages. Conditions, on the other hand, are contingencies, qualifications or occurrences upon which an estate or property right would be gained or lost.

Covenants running with the land - Covenants, which become part of the property and benefit or bind successive owners of the property.

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. 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.

Cupola - A domelike structure that sits on top of a roof. 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.

Customer trust fund (ctf) - An impound account maintained for the purpose of setting up a reserve to pay certain periodic obligations such as real property taxes, insurance premiums, lease rent, and maintenance fees.

Cynic - Someone who knows the cost of everything and the value of nothing.

 

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