Real Estate Terms
Cap: The limit on how much an interest rate or monthly payment can change, either at each adjustment or over the life of the mortgage.
Capital: Cash and things of value used to generate income.
Capital Expenditure: investment of capital for the purpose of improving income from an asset.
Capital Gain: A profit "gain" received from the sale of property.
Capitalization: A method for establishing the "present value" of income property.
Capitalization Rate: The percentage used to establish the value of income property.
Caravan: A viewing of newly listed properties for sale by real estate agents usually after a sales meeting.
Carport: A covered area with open sides used for parking a vehicle.
Cash Out: Receiving the full amount of equity at funding when a property is sold.
Cash Reserves: The amount of the buyer's liquid cash remaining after making the down payment and paying all closing costs.
Cash Sale: A sales transaction with no financing contingency.
Catwalk: An open walkway or hallway outside of a building usually leading to several residences.
Caveat Emptor: "Let the Buyer Beware" a common principle in business that states the buyer is responsible for verifying all claims made by a seller.
CC&Rs: Covenants, Conditions and Restrictions. A document that controls the use, requirements and restrictions of a property.
Cement Block: A hollow building block constructed of cement.
Certificate of Commitment: The lender's approval of a VA loan, which is usually good for up to six months.
Certificate of Deposit: A legal document declaring the amount of an investment and interest paid on the investment.
Certificate of Deposit Index: An index that is tied to the interest rate of Certificate of Deposits used to establish interest rates for Adjustable Rate Mortgages (ARMs).
Certificate of Occupancy (CO): A legal document authorizing the occupancy of a building.
Certificate of Reasonable Value (CRV): A document that establishes the maximum value and loan amount for a VA guaranteed mortgage.
Certificate of Title: A legal document establishing the ownership of an asset or property.
Certified General Appraiser: A designation for appraisers who have completed state requirements and passed an exam
Certified Property Manager (CPM): A designation awarded to property managers by the Institute of Real-Estate Management.
Certified Real Estate Brokerage Manager (CRB): A designation awarded to a broker who to qualify must be a member of the National Association of Realtors (NAR) have five years experience as a licensed broker and have completed required Residential Division courses.
Certified Residential Appraiser: A designation licensing an appraiser to appraise Residential Real Estate.
Certified Residential Specialist (CRS): A designation awarded by the Council of Residential Specialists to Real Estate professionals who have completed mandatory courses.
Chain of Title: A detailed account of all the ownerships of a property.
Chattel: Personal property.
Clear Title: A title that is free and clear of any encumbrances.
Closing: The final phase in a Real Estate transaction where all documents are executed, the property is transferred to a new owner and the sale is recorded.
Closing Costs: Costs to buyers and sellers related to a real estate transaction.
Closing Statement: The financial disclosure statement that accounts for all of the funds received and expected at the closing, including deposits for taxes, hazard insurance, and mortgage insurance.
Cloud on Title: A lien or encumbrance on a property affecting marketability.
Cluster Homes: Two or more homes constructed closely together sharing common areas.
Co-Borrower: A person who signs as a borrower on a mortgage loan alongside another borrower.
Co-Ownership: Ownership in property by two or more persons.
Collateral: Assets used to secure a loan.
Commercial Property: Property that is not residential.
Commingling: The mixing of funds held in trust.
Commission: An agreed percentage amount of the sale of property to compensate a real estate professional for securing the sale.
Commitment Period: The period during which a loan approval is valid.
Common Areas: Any area and amenities that are shared amongst owners in a condominium or planned development.
Community Property: In some areas, property which has been acquired by a married couple considered to be divided equally unless otherwise stated.
Comparables: Similar properties used as a comparison to establish the value of a subject property.
Comparative Market Analysis: A report that indicates a property's value by using comparable properties for sale and properties that have sold.
Compound Interest: Interest that is due on the principal amount including any accumulated interest.
Concessions: A point or an agreed upon condition that is later conceded.
Condemnation: The seizure of property that is no longer habitable or seized for public use.
Condition: A provision in a legal document contingent upon an uncertain future event.
Conditional Commitment: An approval by a lender for a loan contingent upon other conditions being met.
Condominium: A form of real estate ownership where the owner receives title to a particular unit and has a proportionate interest in certain common areas. The unit itself is generally a separately owned space whose interior surface (walls, floors and ceilings) serve as its boundaries.
Condominium Conversion (Condo-Conversion): The conversion of rental property into condominium ownership.
Condominium Owners Association: An organization of condominium owners designed to improve and maintain the quality of the condominium.
Conforming Loan: A loan that conforms to the regulations of FHLMC or FNMA.
Construction Loan: A short term loan for real estate construction followed by a long term loan.
Constructive Notice: A public notice in a newspaper or other public medium which legally notifies but may not actually notify.
Contingency: An action or condition that is required to occur before a contract is binding.
Contract: An agreement that is binding on all parties.
Conventional Mortgage: A real estate loan that is not guaranteed by a government program.
Conversion: Unauthorized use another's property. The conversion of real property into personal or vice versa. Converting a rental property into condominium ownership.
Convey: Transfer of property.
Cooperating Broker: A broker in a real estate transaction that is representing the buyer.
Cooperative (Co-Op): Ownership in a building whereby owners do not actually own the apartment, rather they own a share in the corporation (building) and have a proprietary lease on a particular unit.
Cost of Funds Index (COFI): An index of the costs of financial institutions that sets the interest rate for Adjustable Rate Mortgages (ARMS).
Counter Offer: Subsequent offer(s) made on a property after the initial offer.
County Records: Public records.
Credit Line: A line of credit established by a lending institution. The borrower can write checks against the line of credit and is usually not required to repay until the term ends or upon the sale of the property.
Credit Report: A detailed report generated by credit reporting companies to show the credit worthiness and repayment history of individuals.
Custom Builder: A builder who custom builds for a particular buyer.
Cul de Sac: A street with only one way in and out.
Real Estate Terms beginning with B
Real Estate Terms beginning with D