Cancellation Clause
A provision, which allows for cancellation by one of the parties. |
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Capital Gain
The amount by which the selling price of an asset exceeds the purchase price; the gain is realized when the property is sold |
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Capital Improvement
An improvement made to extend the useful life of a property or add to its value. Major repairs such as the replacement of a roof are capital improvements. |
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Certificate of Title
A certificate issued by a title company or a written opinion rendered by an attorney that the seller has good marketable and insurable title to the property, which he is offering for sale. A certificate of title does not offer any protection against any hidden defects in the title, which an examination of the records could not reveal. |
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Clear Title
Normally refers to a property with no mortgage, but can also refer to the lack of judgments against a property. |
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Closing
The event when the buyer and seleer have signed all necessary documents and have met all requirements necessary. This also includes the actual recording of the transfer of the property by the county recorder. |
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Closing Costs
All the expenses necessary to complete a real estate transaction, e.g. lender fees, appraisal fees, title insurance, etc. |
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Commission
The agreed-upon amount paid to the broker upon completion of services. It is customarily calculated as a percentage of the selling price, but is not set by law. |
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Common Area
Places held in common and available to all owners of condominiums, planned unit developments or similar ownership arrangements. |
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Community Property
Property acquired during the marriage (except for gifts or inheritances) is owned jointly by both spouses and is divided upon divorce or annulment. |
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Comparables
Properties similar to the property in question, which are used to determine a market value. They can be found in Appraisals and Comparative Market Analyses used by brokers. |
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Conditional Offer
An offer to purchase a property contingent on certain terms and conditions being met. |
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Condominium
A structure (can be residential or business space) where the interior spaces are owned individually. The land and common areas are owned by the association and fees are usually assessed by the association for the maintenance of those common areas. |
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Contiguous
Generally refers to a property, which abuts at some point or points the property in question. |
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Contingency
An event, as described in a contract, which must occur before the contract can be carried out in full, e.g. the buyer must be able to obtain financing. |
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Contract
A written agreement between two or more parties wherein a legal arrangement is created. In real estate certain actions are spelled out to which each party binds themselves to carry out. |
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Conventional Loan
A mortgage loan that is obtained without any additional guarantees for repayment, such as FHA insurance, VA guarantees, or private insurance. This is usually given at an 80% loan-to-value ratio. |
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Convey
Transmit title or interest in a property to another. |
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Conveyance
The act of transferring property title from one person to another. |
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Cooperating Broker
A broker who sells a property, which is listed by another broker. |
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Counter Offer
A proposal in response to an offer made. It generally accepts certain portions of the offer, but makes offers “counter” to others. |
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Covenant
An agreement contained within a contract. |
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Creative Financing
A loan in which requires the use of imagination and is not considered a standard financing option. |
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Credit History
A record of an individual's past borrowing and repaying behavior. It will list personal information, credit lines currently in the person's or company's name, and risk factors such as late payments or a recent bankruptcy. |
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Credit Rating
Borrowers are rated by lenders according to the borrower's credit-worthiness or risk profile. Credit ratings are expressed as letter grades such as A-, B, or C+. These ratings are based on various factors such as a borrower's payment history, foreclosures, bankruptcies and charge-offs. There is no exact science to rating a borrower's credit, and different lenders may assign different grades to the same borrower. |
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Creditor
A person to whom money is owed by a debtor. |
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Cul de Sac
A French term, which in common usage refers to a street which is open only at one end. |
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