call option
|
A provision in the mortgage that gives the mortgagee the
right to call the mortgage due and payable at the end of a
specified period for any reason. |
|
cap
|
A provision of an adjustable-rate mortgage (ARM) that places
a limit on how much the interest rate or mortgage payments may
increase or decrease. |
capital gain
|
The increase in value of a capital property (a property other
than a principal residence) upon which tax is payable, either
upon disposition of the property or the deemed disposition of the
property under tax rules. |
cash flow
|
Description of the net income from a property after all
expenses of holding and carrying the property are paid. |
cash-out-refinance
|
A refinance situation in which the borrower receives
additional cash that can be used for any purpose. |
caveat emptor
|
Latin, meaning "Let the Buyer beware". Maxim which applies to
real estate transactions where the onus is on the buyer to
satisfy himself as to the suitability and condition of the
property he is considering for purchase. |
CC&Rs
|
Covenants, codes and restrictions, typically found in
homeowner association communities. |
certificate of eligibility
|
A document issued by the Veterans Administration that
certifies a veteran's eligibility for a VA loan. |
certificate of occupancy
|
Document issued by a local municipality indicating that a new
dwelling is suitable for occupation. Generally confirms that the
dwelling complies with local building, safety and health
by-laws. |
certificate of reasonable value (CRV)
|
A document issued by the Department of Veterans Affairs that
establishes the maximum value and loan amount for a VA
mortgage. |
chattel
|
Personal property |
clear title
|
A title that is free and clear of liens or legal obstacles to
ownership of the property. |
closing
|
A meeting at which the buyer signs the mortgage documents and
pays closing costs. Also called "settlement." In Nevada the deal
is considered "closed" when the deed has been recorded at the
Clark County Recorder's office. |
closing costs
|
Expenses (over and above the price of the property) incurred
by buyers and sellers in transferring ownership of a property.
Closing costs normally include a loan origination fee, taxes, an
amount placed in escrow and charges for obtaining title
insurance. |
closing statement
|
A HUD-1 balance sheet showing all buyer and seller costs
involved in closing |
cloud (on title)
|
Any condition found in a title search that adversely affects
the title to real estate. Usually clouds on title can only be
removed by a quitclaim deed, or court action. |
collateral
|
An asset, like a car or a home, that guarantees the repayment
of a loan. |
commercial real estate
|
Retail, office and other real estate used for commercial
purposes. |
comingling
|
The illegal act of mixing a client's funds with and agent's
or broker's private accounts. |
commision
|
The fee charged by a broker or agent for listing and
negotiating a real estate transaction. A commission is usually a
percentage of the sale price of the home. |
common areas
|
Those portions of a planned unit development or condominium
project, usually managed by a homeowners' association, that are
used by all of the members. Common areas include swimming pools,
tennis courts and other recreational facilities, as well as
common corridors of buildings, parking areas and means of ingress
and egress. |
community property
|
In Nevada, a form of ownership under which property acquired
during a marriage is presumed to be owned jointly unless acquired
as separate property of either spouse. |
comparable sales (comps)
|
Properties used for comparative purposes in the appraisal
process. These "comps" are properties like the property under
consideration; they have reasonably the same size, location and
amenities and have recently been sold. Comparables are used by an
appraiser determine the approximate fair market value of a
subject property. |
competitive market analysis (CMA)
|
A type of "appraisal" offered by realtors. |
condemnation
|
The conclusion that a building is not fit for use or is
dangerous and should be destroyed; the taking of private property
for a public purpose through an exercise of the right of eminent
domain. |
condominium
|
A building in which each owner has title to a unit in the
building, and an undivided interest in the common areas of the
project. |
condominium conversion
|
The conversion of an apartment building into a
condominium. |
conforming loan
|
Generally, a mortgage loan under $203,150. Qualifying ratios
and underwriting methods are standardized to a large degree. |
construction loan
|
A short-term loan for financing the cost of construction.
|
constructive eviction
|
Actions of a landlord (or third party) which interfere with a
tenant's use and enjoyment of the rented premises to such an
extent that the tenant is, at law, considered to have been
improperly forced out of the premises. |
conventional mortgage
|
A mortgage that is not insured by the federal government.
Unlike an FHA or VA mortgage. |
cooperative
|
A type of multiple ownership in which the residents of a
multi-unit housing complex own shares in the "co-op" that owns
the property, giving each resident the right to occupy a specific
apartment or unit. |
cost approach
|
An appraisal method where a property's value is estimated
using the cost of the property plus cost of all improvements,
minus depreciation. |
cost of funds index
|
An index that is used to calculate interest rate changes for
adjustable-rate mortgage. It represents the weighted-average cost
of savings, borrowings and advances of the 11th District members
of the Federal Home Loan Bank of San Francisco. |
counter offer
|
An answer to an offer. If a prospective Purchaser presents an
offer to purchase a property to the owner of the property, that
owner may accept the offer as it stands, reject it outright or
respond with a "counteroffer" which changes certain terms of the
original offer. Upon receipt of a counter offer, the buyer may
answer the counteroffer with a counter offer #2, and so on. |
covenant
|
A clause in a mortgage that, if violated, can result in
foreclosure. |
credit history
|
A history of a borower's open and repaid debts. The credit
history helps a lender to determine whether a potential borrower
has a history of repaying debts in a timely manner. |
credit rating
|
A numerical rating system based on a borrower's credit
history. |
