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REAL ESTATE EXAM > "C" Vocab > Flashcards

"C" Vocab Flashcards

1
Q

Cancellation Clause

A

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

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2
Q

Canvasing

A

the practice of searching for prospective clients by making unsolicited phone calls and/or visiting homes door–to–door

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3
Q

Cap

A

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

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4
Q

Capital

A

money used to create income, or the net owrth of a business as represented by the amount by which its assets exceed its liabilities

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5
Q

Capitalization

A

the process of estimating the present value of an income–producing piece of property by dividing anticipated future income by a capitialization rate

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6
Q

Capitalization Rate

A

the rate of return a property will generate on an owner’s investment

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7
Q

Cash Flow

A

the net income produced by an investment property, calculated by deducting operating and fixed expenses from gross income

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8
Q

CC&R

A

covenants, conditions, and restrictions of a cooperative or condominium development

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9
Q

Certificate of Discharge

A

a document used when the security instrument is a mortgage

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10
Q

Certificate of Eligibility

A

document issued by the Veterans Administration that certifies a veteran’s eligibility for a VA loan

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11
Q

Certificate of Reasonable Value

A

once the appraisal has been performed on a property being bought with a VA loan, the veterans administration issues a CRV

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12
Q

Certificate of Sale

A

the document given to a purchaser of RE that is sold at a tax foreclosure sale

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13
Q

Certificate of Title

A

a report stating an opinion on the status of a title, based on the examination of public records

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14
Q

Chain of Title

A

the recorded history of conbeyances and encumbrances that affect the title to a parcel of land

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15
Q

Chattel

A

personal property

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16
Q

Chattel Mortgage

A

a loan in which personal property is pledged to secure the debt

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17
Q

Clear Title

A

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

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18
Q

Closing

A

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

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19
Q

Closing Costs

A

“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.”

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20
Q

Closing Date

A

the date on which the buyer takes over the property

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21
Q

closing statement

A

a written accounting of funds received and disbursed during a RE transaction. The buyer and seller receive separate closing statements

22
Q

cloud on title

A

an outstanding claim or encumbrance that can affect or impair the owner’s title

23
Q

clustering

A

the grouping of home sites within a subdivision on smaller lots than normal, with the remaining land slated for use as common areas.

24
Q

coinsurance clause

A

a clause in an insurance policy that requires the insured to pay a portion of any loss experienced

25
Q

collateral

A

Something of value hypothecated (Real property) or pledged (personal property) by a borrower as security for a debt

26
Q

collection

A

when a borrower falls behind, the lender contacts the borrower in an effort to bring the loan current. The laon goes to ‘collection’

27
Q

color of title

A

an instrument that gives evidence of title, but may not be legally adequate to actually convey title

28
Q

commingling

A

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

29
Q

common law

A

the body of laws derived from local custom and judicial precedent

30
Q

common areas

A

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.

31
Q

community property

A

a system of property ownership in which each spouse has equal interest in property acquired during the marriage

32
Q

Comparable Sales

A

recent sales of similar properties in enarby areas that are used to help estimate the current market value of a property

33
Q

Competent Parties

A

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

34
Q

competitive market anylsis

A

an analysis inteded to assist a seller or buyer in determining a property’s range of value

35
Q

condemnation

A

the judicial process by which the gov’t exercises its power of eminent domain

36
Q

Condomimum

A

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

37
Q

Conformity

A

an appraisal principle that asserts that property achieves its maximum value when a neighborhood is homogenous in its use of land

38
Q

Consideration

A

something of value that induces parties to enter into a contracts, such as money or services

39
Q

Construction Mortgage

A

a short–term loan used to finance the building of improvements to RE

40
Q

Constructive Eviction

A

action or inaction by a landlord that renders a property uninhabitable, forcing a tenant to move out with no further liability for rent

41
Q

constructive notice

A

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

42
Q

Contingency

A

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

43
Q

Contract

A

an agreement between two or more legally competent parties to do or to refrain from doing some legal act in exchange for consideration

44
Q

Contract for deed

A

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.

45
Q

Conventional Loan

A

a loan that is neither insured nor guaranteed by an agency of gov’t

46
Q

Conversion option

A

an option in an ARM to convert it to a fixed–rate mortgage

47
Q

conveyance

A

the transfer of title from the grantor to the grantee

48
Q

cooperative

A

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

49
Q

Correlation

A

or ‘reconciliation’ is the final step in an appraisal. The appraiser weighs the purpose of the appraisal against the estimated values.

50
Q

Cost Approach

A

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.

51
Q

Credit

A

an agreement in which a borrower recieves something of value in exchange for a promise to repay the lender

REAL ESTATE EXAM (12 decks)

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