News Front Page
Real Property Glossary -C-
RETURN TO GLOSSARY PLANET
California Real Estate Inspection
Association
A trade organization of home inspectors whose members must meet defined
education and performance requirements (Also known as CREIA)
Call option
A loan clause allowing a lender to ask for repayment of the entire balance at
any time.
An incandescent light inside a metal can that is mounted flush with the surface.
Can lights
Cylindrical chambers with bulbs recessed into the ceiling.
A clause detailing the conditions under which each party may terminate the agreement.
Cantilever
A projecting structure supported on one end.
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.
Money used to create income. For example, the funds used to purchase investment property.
Capital
The decorative top of a column or pilaster.
The costs of making improvements on a property.
Capital gain
Profit an investor makes from the sale of real estate or investments.
A tax placed on 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.
A mathematical formula investors use to calculate property value based on net income.
Capitalization rate
The rate of return estimated from the net income of a piece of property,
expressed as a percentage.
Caps
(Interest Rate Caps)
Consumer safeguards which limit the amount
the interest rate on an adjustable rate mortgage which may change per year
and/or the life of the loan.
Carport
A roof that covers a driveway or other parking area.
Financing in which a seller agrees to hold back a note for a set amount of the sales price.
Casement window
A window hinged on its sides to allow it to swing open vertically.
The amount of cash a rental property investor receives after deducting operating expenses and loan payments from gross income.
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.
A check the bank draws on itself rather than on a depositor's account.
Casing
The trim that encircles a window or door opening. Used for hiding gaps between
the door or window jamb and the wall's surface.
A high, open ceiling formed by exposed roof rafters.
Caulk
An acrylic or silicon sealant used to fill cracks, crevices and holes.
A formal notice asking a court to suspend action until the filing party can be heard.
Caveat emptor
A legal principle stating that a buyer is responsible for ensuring the quality
of goods purchased. From Latin, "let the buyer beware."
A courtyard or atrium.
Ceiling fan
A large, ceiling-mounted paddle fan. Sometimes referred to as a "Casablanca
fan".
A cabinetry term referring to the vertical piece of wood on the front that divides an opening into two parts.
Central air conditioning
A device that generates cold air through an outside unit connected to ductwork
inside the house.
Certificate of deposit index (CODI)
An index based on interest rates of six-month CDs. Commonly used to determine
interest rates 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.
A document stating that a home or other building has met all building codes and is suitable for habitation.
Certificate of Reasonable
Value (CRV)
An appraisal issued by the Veterans
Administration showing a property's current market value
Certificate of sale
A document issued at a judicial sale that entitles the buyer to receive a deed
after court confirmation of the purchase of the property.
Certificate of veteran
status
The document given to veterans or
reservists who have served 90 days of continuous active duty (including training
time).
An advanced designation issued by the National Association of Realtors (NAR) to members who meet specific performance and education requirements for handling international real estate transactions.
Certified Real Estate Brokerage Manager
(CRB)
An advanced designation issued by the National Association of Realtors (NAR) to
members who meet specific performance and education requirements for real estate
office management.
An advanced designation issued by the National Association of Realtors (NAR) to members who meet specific performance and education requirements for handling residential real estate transactions.
Chain of title
The official record that details the ownership history of a piece of property.
Decorative trim installed on a wall about 32 inches above the floor to protect against scuffs from furniture.
Change frequency
The adjustment schedule for interest rates on an adjustable rate mortgage.
A modification of a construction contract to authorize a change in the work, an adjustment in the amount of the contract or a change in the contract time.
Chase
A shielded vertical shaft that houses various pipes, drains, ducts and flues.
Personal property such as furniture, clothing or jewelry.
Chattel mortgage
A lien on personal property used as collateral for a loan.
The back wall or lining of a fireplace or furnace chimney.
Chimney cap
A concrete cap that surrounds the top of the chimney brick. This cap protects
the masonry from rain and other natural elements.
The passage inside a chimney that channels smoke and heat to the outside.
Chimney pot
A short pipe at the top of a chimney used to increase ventilation and reduce
smoke.
A board made of wood chips glued together under pressure.
Cinder block
A block made of ash and cement. Commonly used in construction.
Cinders used below a basement or around a foundation to promote drainage.
Circuit breaker
A switch-like device designed to shut down the circuit in the event of an
electrical overload or short circuit. Circuit breakers can be usually be found
in main electrical panels.
Cistern
A tank used to store rainwater.
Clapboard
A type of siding, typically cedar, composed of overlapping horizontal boards.
A tax that varies in rate depending on the use of the property.
Cleanout
An opening in the drainage system for the removal of obstructions. (Also
commonly refers to the part of a fireplace from which ashes can be removed)
A Y-shaped fitting with a cap or plug on one of the arms of the Y that can be removed in the event of a drain clog to snake out the drain line.
Clear title
A title to property that does not have liens, defects or other legal
encumbrances.
Part of the assembly needed to raise and lower a sink or tub pop-up. The clevis is a pin that connects to a pivot rod.
Closing
The final procedure in which loan and title documents are signed between the
buyer and seller and their respective representation.
Expenses related to the sale of real estate including loan, title, and appraisal fees. These costs are above and beyond the price of the property and are paid at closing. Most closing costs are one-time expenses however a few are recurring.
Closing statement
A document which details the final financial details of a property sale between
a buyer and seller and the costs paid by each party.
An invalid encumbrance on real property.
Cluster development
A method of squeezing more homes into less space.
Individual housing units clustered around a common area building.
Co-insurance
Insurance coverage that involves the use of two or more insurers.
A person who signs a promissory note with the main borrower and assumes responsibility for the loan.
Co-signer
A second party who also signs a promissory note and takes responsibility for the
debt.
A designation on special light switches and outlets intended to be installed with aluminum wiring.
Codicil
A change to a will that adds or subtracts provisions or clarifies portions of
the document.
COFI Index (Cost of Funds Index)
This index reflects the weighted-average interest rate paid by 11th Federal Home
Loan Bank District savings institutions for savings and checking accounts,
advances from the FHLB, and other sources of funds. The 11th District
represents the savings institutions (savings & loan associations and savings
banks) headquartered in Arizona, California and Nevada. The COFI index is a
popular index used for determining interest rates on adjustable rate mortgages.
The structural element that connects roof rafters.
Collateral security
Additional security that a borrower supplies or pledges to obtain a loan.
The series of steps a lender takes to collect payments on a delinquent mortgage.
Collusion
The action of two or more people to break the law.
Unincorporated communities along the border between the United States and Mexico.
Column
A slender upright structure that consists of a base, a round or square shaft and
a capital.
The support base for a load-bearing column (usually made of reinforced concrete).
Combination door
An outer door with interchangeable screen and glass panels.
A window with interchangeable screen and glass panels.
Combustion gases
The fumes or exhaust from a gas or oil burning appliance such as a water heater
or furnace.
An institution that provides financial services such as checking and savings accounts, business loans and credit cards.
Commercial property
An area that is zoned for businesses.
The mixing of money held in trust with other funds.
Commission
A negotiable percentage of a property's sales price paid to the agents of the
buyer and seller.
A promise by a lender to make a loan with specific terms for a specified period.
Commitment fee
A fee charged by the lender to guarantee a specific set of loan terms to be
honored at some future date.
An area inside a housing development that is owned and accessible by all residents.
Common law
A body of laws based on custom, usage and rulings by courts in various
jurisdictions.
Fees paid by the owners of a planned-unit development or condominium 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.
Property accumulated through the joint efforts of husband and wife.
Community Reinvestment Act
A federal law that encourages financial institutions to loan money in the
neighborhoods where minorities live.
Comparables
Properties used as comparisons to determine the value of a certain property.
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.
The interest paid on the principal balance of a mortgage plus accrued interest.
Compressor
Motorized equipment in a refrigeration (or air conditioning) system that
circulates coolant through the system.
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.
A drain required by a dehumidifier, high-efficiency furnace or similar appliance to carry away condensation.
Condensate pump
A small pump used with high-efficiency furnaces or other appliances that create
significant condensation. It activates when water collects to a certain level
and pumps it out to a drain.
Condenser
Part of a refrigeration (or air conditioning) system that pressurizes
refrigerant to cool it by changing it from a vapor to a liquid. On a
refrigerator, the condenser is the coil on the outside of the unit whereas an
air conditioners condenser is usually outside the house.
Conditional commitment
A promise by a lender to make a loan if the borrower meets certain conditions.
A contract for property sale stating that the title will remain invested in the seller until all the conditions of the contract have been fulfilled.
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.
The change in title from a single owner of an entire project or building to multiple owners of individual units.
Conduit
A metal pipe housing electrical wiring.
A home loan that meets qualifications to be purchased by Fannie Mae or Freddie Mac.
Consent judgment
A written agreement between two (2) parties to have a judgment entered and
recorded.
A court appointed guardian.
Consideration
Anything that is legal, has value and induces a person to enter into a contract.
Funding arranged by an owner for the construction of a project.
Construction documents
Drawings and specifications from an architect and/or engineer providing detailed
requirements for the construction of a project.
A short term loan for construction. Lenders usually disburse funds from construction loans in draws according to completion of defined stages throughout the construction process.
Construction-to-permanent loan
A construction loan that is converted to a longer term traditional mortgage
after construction has been completed.
A nationwide, nonprofit organization that helps consumers get out of debt and improve their credit rating.
Contiguous lots
Pieces of property that are adjoined.
Contingency
Conditions specified in a purchase contract, such as a satisfactory home
inspection.
A property listing with a special condition attached.
Contingent fee
A fee that must be paid if a certain event occurs.
A simple, battery-powered tool that indicates whether an electrical circuit is complete or incomplete by lighting or buzzing when you touch its two probes to the wires.
Contract
An agreement between two or more parties that creates or modifies an existing
relationship.
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. Also known as an agreement of sale.
The individual who contracts for the construction of a home or project.
Contractual lien
A voluntary obligation such as a mortgage or trust deed.
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.
The exchange of personal or real property of one character for another.
Convertible adjustable-rate mortgage
A mortgage which starts as an adjustable rate loan, but contains a provision
that allows the borrower to convert the loan to a fixed-rate mortgage during a
specified period of time.
The transfer of title of property.
Conveyance tax
A tax imposed on the transfer of real property.
A real estate broker who finds a buyer for a property listed by another broker.
Cooperative corporation
A business trust that holds the title to a cooperative residential building and
grants occupancy rights to shareholders in the corporation.
Any loan 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.
A short block or bracket projecting from a wall and providing support for a horizontal member.
Corner bead
A reinforcement placed in the corner where two walls intersect.
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.
Corrective work
Repairs made to fix problems identified by a home inspection.
A construction contract that determines the builders profit based on a percentage of the cost of labor and materials.
Cottage
A small, one-story house.
A hole drilled to recess the head of a screw.
Counteroffer
A response to an offer.
Fee charged at closing to cover the delivery of documents between lenders, escrow companies, and other third parties during a real estate transaction.
Covenant
A legal assurance or promise in a deed or other document, or implied by law.
Rules and regulations for a development, such as those pertaining to acceptable landscaping or improvements that can be made to individual units.
Craftsman style
An architectural style that evolved as part of the Arts and Crafts movement near
the turn of the century.
The space between the ground and the first floor of a home - usually no higher than four feet.
Credit
Money a lender extends to a buyer for a commitment to repay the loan within a
certain time period.
Credit history
A file detailing an individual's current and past debt payments and financial
obligations.
Insurance that pays off a mortgage in the event of the borrower's death.
Credit rating
The degree of creditworthiness assigned to a person based on their credit
history and financial status.
A detailed account of an individual's credit, employment, and residence history. A lender uses this report to determine a loan applicant's creditworthiness. The three largest credit bureaus are Trans Union, Equifax and Experian.
Credit repository
Large companies that gather financial and credit information from various
sources about individuals who have applied for credit.
Credit Risk Score
A credit risk score is a statistical
summary of the information contained in a consumer's credit report. The most
well known type of credit risk score is the Fair Isaac or FICO score. This
score represents the answer from a mathematical formula that assigns numerical
values to various pieces of information in a credit report.
A nonprofit cooperative organization that provides banking and financial services such as mortgages, home improvement loans and auto loans to its members.
Creditor
An individual or institution to whom a debt is owed.
Abbreviation for "California Real Estate Inspection Association" A trade organization of home inspectors whose members must meet defined education and performance requirements.
Cross-bridging
The strengthening of a structure by bracing cross members between beams.
A piece of molding around the top of a room.
CU/AL
A designation on standard light switches and outlets that intended to be
installed with copper wiring.
A street or alley that is closed at one end.
Cupola
A dome-like structure that sits on top of a roof.
A deficiency in a property that is easy or inexpensive to fix (i.e. chipping paint)
Curb appeal
The first impression of a home or property as viewed from the street.
The value of a home at the time of appraisal.
Curtain wall
An exterior wall that encloses a yard or other area but does not provide any
structural support to a home.
A builder who constructs a home or building based on plans created by the owner.
Custom home
A home designed by an architect hired by the owner.
