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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
Cash reserves
The cash reserves is the money left over for the buyer after the down payment and the closing costs.
Closing
The closing refers to the meeting that takes place where the sale of the property is finalized. At the closing buyers and sellers sign the final documents and the buyer makes the down payment and pays closing costs.
Comparative market analysis
Comparative market analysis (CMA) is a report on comparable homes in the area that is used to derive an accurate value for the home in question.
Contingencies
This term refers to conditions that have to be met in order for the purchase of a home to be finalized. For example there may be contingencies that the loan must be approved or the appraised value must be near the final sale price.
Carrying costs
Cost incurred to maintain a property (taxes interest insurance uti...
Closing costs
In addition to the final price of a home, there are also closing costs, which will typically make up about two to five percent of the purchase price, not including the down payment. Examples of closings costs include loan processing costs, title insurance, and excise tax.
Covenants, conditions & restrictions (CC&Rs)
Usually, these are the rules and regulations placed on real property by a homeowner’s association (HOA), a neighborhood association, a developer, or a builder that sets forth any requirements and limitations of what a homeowner is allowed to do with the property. It may also include monthly and/or annual fees or special assessments.
Condemnation
A judicial or administrative proceeding or process to exercise the power of eminent domain.
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
Comprehensive Environmental Response, Compensation, and Liability Act ( CERCLA)
Federal legislation passed in 1980 requiring owners of contaminated properties to bear the cleanup costs.

Canvassing
The practice of making telephone calls or visiting from door to door to seek prospective buyers or sellers; in the real estate business, generally associated with acquired listings in a given area.
Capacity of parties
The legal ability of persons to enter into a valid contract. Most persons have fully capacity to contract and are said to be competent parties.
Capital gain
Profit earned from the sale of an asset.
Capital investment
The initial capital and the long-term expenditures made to establish and maintain a business or investment property.
Capitalization
The process of converting into present value (or obtaining the present worth of) a series of anticipated future periodic installments of net income. In real estate appraisal, it usually takes the form of discounting. The formula is Income/Rate = Value
Capitalization rate
The rate of return a property will produce on the owner’s investment.
Cash flow
The net spendable income from an investment, determined by deducting all operating and fixed expenses from the gross income. If expenses exceed income, a negative cash flow is the result.
Casualty insurance
A type of insurance policy that protects a property owner or other person from loss or injury sustained as a result of theft, vandalism, or similar occurrences.
Certificate of sale
The document generally given to a purchaser at a tax foreclosure sale. A certificate of sale does not convey title; generally, it is an instrument certifying that the holder may receive title to the property after the redemption period has passed and that the holder paid the property taxes for that interim period.
Certificate of title
The statement of opinion on the status of the title to a parcel of real property, based on an examination of specified public records.
Chain of title
The succession of conveyances from some accepted starting point by which the present holder of real property dervies his or her title.
Charrettes
Community planning tool that welcomes and improves public participation in discussions about a community’s future growth and development.
Chattels
Personal property.
Check
Tracts of land located repetitively every 24 miles from a principal meridian and 24 miles from a defined base line. Guide meridians and correction lines define a check;s boundaries, consisting of 16 townships. A correction line “corrects” for the curvature of the earth, and guide meridians slant to compensate for North Pole directional movement.
City planning commission
A local government organization designed to direct and control the development of land within a municipality.
Claim of right
Used as a factor in determining adverse possession claims. Adversely occupying another’s real estate for a statutory period of time may create a claim of right.
Cloud on title
A claim or encumbrance that may affect the title to land.
CLUE
An insurance company repository for reported claim activity and previous property damage. CLUE is an acronym for Comprehensive Loss Underwriting Exchange. Insurers use the report to ascertain patterns of possible future claims and adjust their insurance premiums according to risk.
Codicil
A testamentary disposition subsequent to a will that alters, explains, adds to, or confirms the will, but does not revoke it.
Coinsurance clause
A clause in insurance policies covering real property that requires the policyholder to maintain fire insurance coverage that is generally equal to at least 80% of the property’s actual replacement cost.
Collateral
Something of value given or pledged to a lender as a security for a debt or obligation.
Color of title
Used as factor in an adverse possession claim when the occupying party actually received title but by a defective or incorrect deed (color of title).
Commercial property
A classification of real estate that includes income-producing property, such as office buildings, restaurants, shopping centers, hotels, and stores.
Commingled property
Property of a married couple that is so mixed or commingled that it is difficult to determine whether it is separate of community property. Commingled property becomes community property.
Commingling
The illegal act of a real estate broker who mixes the money of other people with that of his or her own; brokers are required by law to maintain a separate trust account for other parties’ funds held temporarily by the broker.
Commission
The payment made to a broker for services rendered, such as in the sale or purchase of real property; this is usually a percentage of the selling price of the property.
Common elements
The parts of a property that are necessary or convenient to the existence, maintenance, and safety of a condominium, or that are normally in common use by all of the condominium residents. All condominium owners have an undivided ownership interest in the common elements.
Common law
A body of law based on custom, usage, and court decisions.
Community property
A system of property ownership based on the theory that each spouse has an equal interest in the property acquired by the efforts of either spouse during marriage.
Comparables
The sold properties, listed in an appraisal report, which are substantially equivalent to the subect property.
Competent parties
Persons who are recognized by law as being able to contract with others; usually those of legal age and sound mind.
Composite depreciation
A method of determining the depreciation of a multi-building property using the average rate at which all the buildings are depreciating.
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
Federal legislation passed in 1980 requiring owners of contaminated properties to bear the cleanup costs.
Condominium
The absolute ownership of an apartment or a unit, generally in a multi-unit building, based on a legal description of the airspace the unit actually occupies, plus an undivided interest in the ownership of the common elements, which are owned together with the other condominium unit owners. The entire tract of real estate included in a condominium development is called a parcel or development parcel. One apartment or space in a condominium or part of a property intended for independent use and having lawful access to the public way is called a unit. Ownership of one unit also includes a definite undivided interest in the common elements.
Conforming mortgages
Securitized mortgages sold on the secondary market that meet certain requirements established by Fannie Mae and Freddie Mac.
Consideration
Something of value that induces one to enter into a contract. Consideration may be “valuable” (money or commodity) or “good” (love and affection”). Also, an act of forbearance, or the promise thereof, given by one party in exchange for something from the other. Forbearance is a promise not to do something.
Constructive eviction
Acts by the landlord that so materially disturb or impair the tenant’s enjoyment of the leased premises that the tenant is effectively forced to move out and terminate the lease without liability for any further rent. 2. A purchaser’s inability to obtain clear title.
Constructive notice
Notice given to the world by recorded documents. All persons are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property also is considered constructive notice that the person in possession has an interest in the property.
Contingencies
A provision or condition in the purchase of real estate requiring a certain act to be done or an event to happen before the contract becomes binding.
Contract
An agreement entered into by two or more legally competent by the terms of which one or more of the parties, for a consideration, undertakes to do or to refrain from doing some legal act or acts. A contract may be either unilateral (where only one party is bound to act) or bilateral (where all parties to the instrument are legally bound to act as prescribed).
Contract for deed
A contract for the sale of real estate under which the sale price is paid in periodic installments by the purchaser, who is in possession and holds equitable title, although actual title is retained by the seller until final payment.
Contract for exchange of real estate
A contract for sale of real estate in which the consideration is paid wholly or partly in property.
Contributory value
An appraising principle where the value of a property’s component parts are measured by their effect on the selling price of the whole. Appraisers use sold properties as “paired sales” to isolate component parts and to identify their monetary contribution to the whole.
Conventional loan
A loan that is not insured or guaranteed by a government agency.
Conveyance
A written instrument that evidences transfer of some interest to real property from one person to another.
Cooperative
A residential multi-unit building whose title is held by a trust or corporation that is owned by, and operated for, the benefit of persons living within the building. These persons are the beneficial owners of the trust or the shareholders of the corporation, each having a proprietary lease.
Corporation
An entity or organization created by operation of law whose rights of doing business are essentially the same as those of an individual. The entity has continuous existence until dissolved according to legal procedures.
Correction lines
The horizontal provisions in the rectangular survey system made to compensate for the curvature of the earth’s surface. Every fourth township line is used as a correction line on which the intervals between the north and south range lines are remeasured and corrected to a full six miles.
Cost approach
The process of estimating the value of a property by adding the appraiser’s estimate of the reproduction or replacement cost of the building, less depreciation, to the estimated land value.
Counseling
The business of providing people with expert advice on a subject, based on the counselor’s extensive, expert knowledge of the subject.
Counteroffer
A new offer made as a reply to an offer received, having the effect of rejecting the original offer. The original offer cannot be accepted thereafter unless revived by the offeror repeating it.
Covenants, Conditions, and Restrictions (CC&Rs)
Condominium documents that serve as the operational procedures describing the rights and prohibitions of the co-owners in a condominium association.
Credit scoring
A three-digit score that assesses a borrower’s credit risk and the probability of default based on his or her past pay performances, outstanding credit balances, credit mix, time on file, and number of search inquiries.
Cul-de-sac
A dead-end street that widens sufficiently at the end to permit an automobile to make a U-turn.
Curtesy
A life estate, usually a fractional interest, given by some states to the surviving husband in real estate owned by his deceased wife. Most states have abolished curtesy.
Cycle
A recurring sequence of events that regularly follow one another, generally within a fixed interval of time. Real estate terms that begin with D
Closing Costs
Fees that are associated with a home purchase. They apply to both a seller and a buyer, and they are paid at the closing.
Common areas
Areas which are available for use by more than one person.