Vocab: C

Question 1

California Land Title Association (CLTA)

Answer 1

The standard title insurance policy

Question 2

CalVet

Answer 2

A program administered by the State Department of Veterans Affairs for the direct financing of farm and home purchases by eligible California veterans of the armed forces.

Question 3

capable parties

Answer 3

Parties who can be held responsible for the performance of their obligations under a contract. One of the essential elements needed to form a contract.

Question 4

capitalization approach

Answer 4

An appraisal method used by an appraiser to arrive at a property’s value based on the present worth of a property’s future net operating income.

Question 5

Civil Rights Act

Answer 5

a federal law which provides broad protections to numerous classes of individuals in the United States against discriminatory activities.

Question 6

Closing

Answer 6

The process by which all the parties to a real estate transaction perform their obligations in the sale or mortgage of the property, including the execution of documents and distribution of funds.

Question 7

Closing costs

Answer 7

The miscellaneous expenses buyers and sellers normally incur in the transfer of ownership of real property over and above the price paid and received for the property.

Question 8

Closing statement

Answer 8

An accounting of funds made to the buyer and seller separately, made at the completion of real estate sales and mortgage transactions.

Question 9

Cloud on Title

Answer 9

A claim, encumbrance or condition which impairs the title to real property until disproved or eliminated by, for example, a quitclaim deed or a quiet title action.

Question 10

Collateral

Answer 10

Tangible assets securing a loan which are worth more than the principal balance of the loan.

Question 11

Color of Title

Answer 11

Title that has the appearance of validity but has a fatal defect and is ineffective.

Question 12

Commingling

Answer 12

The mixing of personal funds with client or third-party funds held in trust

Question 13

Common Area

Answer 13

An entire common interest subdivision except the separate interests therein.

Question 14

Community Property

Answer 14

All property acquired by the husband or wife during a marriage when not acquired as the seperate property of either spouse.

Question 15

Comparison Approach

Answer 15

A method for comparing a given property with similar or comparable surrounding properties; also called market comparison.

Question 16

Comparitive Market Analysis

Answer 16

a worksheet used by an agent to prepare an estimate of a property’s value for review with a property owner for the purpose of a listing presentation. The analysis represents the value of property for sale based on prices recently paid similar properties.

Question 17

Condemnation

Answer 17

The act of taking private property for public use by the government with payment to owner to compesate for the taking, or the government declaration that a structure is unfit for use.

Question 18

Conflict of Interest

Answer 18

When a broker or agent has a positive or negative bias toward a party in a transaction which is incompatible with the duties owed to their client.

Question 19

Consideration

Answer 19

Anything given or promised by a party to induce another to enter into a contract. It may be a benefit conferred upon one party or a detriment suffered by the other.

Question 20

Consumer Financial Protection Bureau

Answer 20

An independant federal agency responsible for regulating consumer protection in the financial services and products market.

Question 21

Contiguous

Answer 21

Adjoining lots which share a common border

Question 22

Conversion

Answer 22

The unlawful appropriation of another’s property, as in the conversion of trust funds.

Question 23

Covenants, conditions, and restrictions (CC&R’s)

Answer 23

Recorded rules, limitations, and restrictions on use mutually agreed to by all property owners in a subdivision or common interest development.