· Caveat
emptor A legal principle derived from Latin
than means "let the buyer beware."
· 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
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.
· Change
frequency The adjustment schedule on an
adjustable-rate mortgage.
· 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.
· 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.
· Coign The
cornerstone of a building that differs in shape or color
from the rest of the wall.
· Co-insurance Coverage
that involves the use of two or more insurers..
· 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.
· 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.
· 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-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.
· Common
law A body of laws based on custom, usage and
rulings by courts in various jurisdictions.
· 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.
· 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.
· Co-signer A
second party who signs a promissory note and takes
responsibility for the debt.
· Counteroffer A
response to an offer.
· 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.
· 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.
· 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.
· Creditor An
individual or institution to whom a debt is owed.
· 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.
· 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.
· 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.
· 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.
· Cavedium A
courtyard or atrium.
· Caveat A
formal notice, that asks a court to suspend action until
the party which filed the challenge can be heard
