"C" Vocab Flashcards
Cancellation Clause
a provision in a lease that confers on one or all parties to the lease the right to terminate the parties’ obligations, should the occurrence of the condition or contingency set forth in the clause happen
Canvasing
the practice of searching for prospective clients by making unsolicited phone calls and/or visiting homes door–to–door
Cap
the limit on fluctuation rates regarding ARMs. Limitations or caps, may apply to how much the laon may adjust over a six–month period, an annual period, and over the life of the loan
Capital
money used to create income, or the net owrth of a business as represented by the amount by which its assets exceed its liabilities
Capitalization
the process of estimating the present value of an income–producing piece of property by dividing anticipated future income by a capitialization rate
Capitalization Rate
the rate of return a property will generate on an owner’s investment
Cash Flow
the net income produced by an investment property, calculated by deducting operating and fixed expenses from gross income
CC&R
covenants, conditions, and restrictions of a cooperative or condominium development
Certificate of Discharge
a document used when the security instrument is a mortgage
Certificate of Eligibility
document issued by the Veterans Administration that certifies a veteran’s eligibility for a VA loan
Certificate of Reasonable Value
once the appraisal has been performed on a property being bought with a VA loan, the veterans administration issues a CRV
Certificate of Sale
the document given to a purchaser of RE that is sold at a tax foreclosure sale
Certificate of Title
a report stating an opinion on the status of a title, based on the examination of public records
Chain of Title
the recorded history of conbeyances and encumbrances that affect the title to a parcel of land
Chattel
personal property
Chattel Mortgage
a loan in which personal property is pledged to secure the debt
Clear Title
a title that is free of liens and legal questions as to ownership of a property that is a requirement for the sale of RE; sometimes referred to as just title, good title, or free and clear
Closing
The point in a RE transaction when the purchase price is paid to the seller and the deed to the property is transferred from the seller to the buyer
Closing Costs
“1) ‘Nonrecurring closings costs’–– any items paid once as a result of buying the property or obtaining a loan.
2) ‘prepaid items’.––– items that recur over times, such as property taxes and homeowners insurance.”
Closing Date
the date on which the buyer takes over the property
closing statement
a written accounting of funds received and disbursed during a RE transaction. The buyer and seller receive separate closing statements
cloud on title
an outstanding claim or encumbrance that can affect or impair the owner’s title
clustering
the grouping of home sites within a subdivision on smaller lots than normal, with the remaining land slated for use as common areas.
coinsurance clause
a clause in an insurance policy that requires the insured to pay a portion of any loss experienced
collateral
Something of value hypothecated (Real property) or pledged (personal property) by a borrower as security for a debt
collection
when a borrower falls behind, the lender contacts the borrower in an effort to bring the loan current. The laon goes to ‘collection’
color of title
an instrument that gives evidence of title, but may not be legally adequate to actually convey title
commingling
the illegal act of an agent mixing a client’s monies, which should be held in a separate escrow account, with the agent’s personal monies
common law
the body of laws derived from local custom and judicial precedent
common areas
portions of a building, land, and amenities owned by a planned unit development or condominium projects homeowners association or a cooperative projects co–op corporation. These areas are used by all of the unit owners, who share in the common expenses of thier operation and maintenance.
community property
a system of property ownership in which each spouse has equal interest in property acquired during the marriage
Comparable Sales
recent sales of similar properties in enarby areas that are used to help estimate the current market value of a property
Competent Parties
people who are legally qualified to enter a contract, usually meaning that they are of legal age, of sound mind, and not under the influence of drugs or other mind–altering substances
competitive market anylsis
an analysis inteded to assist a seller or buyer in determining a property’s range of value
condemnation
the judicial process by which the gov’t exercises its power of eminent domain
Condomimum
a form of ownership in which an individual owns a specific unit in a multiunit building and shares ownership of common areas with other unit owners
Conformity
an appraisal principle that asserts that property achieves its maximum value when a neighborhood is homogenous in its use of land
Consideration
something of value that induces parties to enter into a contracts, such as money or services
Construction Mortgage
a short–term loan used to finance the building of improvements to RE
Constructive Eviction
action or inaction by a landlord that renders a property uninhabitable, forcing a tenant to move out with no further liability for rent
constructive notice
notice of a fact given by making the fact part of the public record. All persons are responsible for knowing the information, whether or not they have actually seen the record
Contingency
a condition that must be met before a contract is legally binding. A satisfactory home inspection report from a qualified home inspector is an example of a common type of contingency
Contract
an agreement between two or more legally competent parties to do or to refrain from doing some legal act in exchange for consideration
Contract for deed
a contract for the sale of a parcel of RE in which the buyer makes periodic payments to the seller and recieves title to the property only after all, or a substantial part, of the purchase price has been paid, or regular payments have been made for one year or longer.
Conventional Loan
a loan that is neither insured nor guaranteed by an agency of gov’t
Conversion option
an option in an ARM to convert it to a fixed–rate mortgage
conveyance
the transfer of title from the grantor to the grantee
cooperative
a form of property ownership in which a corporation owns a multi–unit building and stock holders of the co. may lease and occupy individual units of the building through a proprietary lease
Correlation
or ‘reconciliation’ is the final step in an appraisal. The appraiser weighs the purpose of the appraisal against the estimated values.
Cost Approach
an appraisal method whereby the value of a property is calculated by estimating the cost of constructing a comparable building, subtracting depreciation, and adding land value.
Credit
an agreement in which a borrower recieves something of value in exchange for a promise to repay the lender
