CALIFORNIA RANCH ARCHITECTURE
- A sprawling, one story, ranch-style building, lending itself to
interior flexibility in floor plan design.
CANCELLATION CLAUSE
- A clause in a contract, setting forth the terms and
conditions
under which each party may cancel or terminate the
agreements.
CANDLE POWER
- The intensity of a light, expressed in candles.
CAPITALIZATION
- A present value of income property by taking the annual net income
(either known or estimated) and discounting by using a rate of return
commonly acceptable to buyers of similar properties. Example: Net
Income = $10,000 per year. Capitalizing at a rate of 10%, the property
would be worth $100,000. (10,000 / .1 = 100,000)
CAP RATE - The
percentage (acceptable to an average buyer) used to determine the value
of income property through capitalization.
CARPORT - A roof
supported by pillars or cantilevered which shelters a car.
CASEMENT WINDOW
- A window hinged at its sides, allowing it to swing open vertically.
CASH SALE
- A sale for full payment in cash.
CASING - The
exterior surface covering an item: window, door, roof, etc.
CAVEAT EMPTOR
- "Let the Buyer Beware". Legal maxim stating that the buyer takes the
risk regarding the quality or condition of the item being purchased.
States have enacted laws placing more responsibility for disclosure on
the seller and the real estate broker.
CC&R's -
Covenants, conditions, and restrictions.
CERTIFICATE OF OCCUPANCY
- A certificate issued by a local building department to a builder or
renovator, stating that the building is in proper condition to be
occupied.
CERTIFICATE OF SALE
- Certificate issued by a buyer at a judicial sale (for example a tax
sale), which entitles the buyers to a deed upon confirmation of the
sale by the court under under certain conditions.
CERTIFICATE OF TITLE
- In areas where attorneys examine abstracts or chains of title, a
written opinion, executed by the examining attorney, stating that title
is vested as stated in the abstract.
CERTIFIED COPY - A
true copy, attested to be true by the officer holding the original.
CHAIN OF TITLE
- the chronological order of conveyance of a parcel of land, from the
original owner (usually the government) to the present owner.
CHAINS AND LINKS
- Real estate measurements used in surveying. A chain is 66
feet long or 100 links, each link being 7.92 inches.
CHATTEL -
Personal property.
CHATTEL MORTGAGE - A
lien on personal property.
CHATTEL REAL - All
estates in real property less than fee estates, such as a lease.
CINDER BLOCK
- A building block composed of cinders (ashes) and cement, which does
not have the weight or strength of a cement block.
CIRCLE HEAD WINDOW -
A semicircular window, usually above a door or another window, which
has no moving parts and is used as a decorations as well as a method of
adding light.
CIRCUIT BREAKER
- An electrical device which has taken the place of fuses in
most
homes. the circuit breaks when there is an electrical overload. Rather
than replace a fuse you reset a circuit breaker.
CISTERN - A tank
used to store rain water for use in areas where there is no water
delivered to the property through plumbing.
CLAPBOARD
- Narrow boards used as siding for frame houses, and having one edge
thicker than the other. The boards run horizontal with the thicker edge
overlapping the thinner edge.
CLEAR TITLE
- Usually called "Free and Clear" or without liens or mortgages.
CLIENT
- In real estate it refers to the principal of a real estate
agent, insurance agent, stock broker, etc. Traditional meaning is one
who represented by an attorney.
CLOSING
- The final procedure in a real estate transaction in which documents
are executed and recorded, and the sale or loan is completed.
CLOSING COSTS -
Expenses incidental to the sale of real estate, such as loan fees,
title fees, appraisal fees, etc.
CLOSING STATEMENT
- The statement which lists the financial settlement between buyer and
seller and which costs each must pay at the time of closing.
CLOUD ON TITLE
- An invalid encumbrance on real property, which if valid, would affect
the rights of the owner. For example X buys lot A but by mistake it is
recorded as the purchase of lot B. A cloud now exists on lot B. The
cloud may be removed by quitclaim deed or court order.
CLUSTER HOUSING
- Houses built close together with small yards and shared common lands.
To preserve open spaces governing bodies often allow more houses to on
a parcel of land in a cluster development than it would if each house
was on a standard size lot.
CODE
- A comprehensive set of laws drawn up to cover completely a given
subject. Covers diverse subjects, such as the criminal code, and the
building code.
COLLATERAL - Often
mistakenly used to mean collateral security (see below)..
COLLATERAL ASSIGNMENT
- An assignment of property as collateral security, and not with the
intent to transfer ownership from assignor to assignee.
COLLATERAL SECURITY
- Most commonly used to mean some security in addition to the personal
obligation of the borrower.
COLLUSION
- An agreement of two or more people to do something unlawful.
Generally, an agreement between people who represent different
interests and "sell out" these interests for personal gain.
CO-MAKER
- A security under a loan. The co-maker is equally responsible for
repayment as the borrower (maker). Sometimes referred to as the
"Co-Signer" on a loan.
COMMINGLING
- To mix funds held in trust with other funds. A broker or builder must
open a trust account to hold deposits that are directed to another
party provided certain events take place. It is legal to place more
than one client's funds into the trust account. However, it is illegal
to add these funds to any other account therefore commingling the
funds.
COMMISSION
- An amount, usually a percentage, paid to an agent (real estate
broker) as compensation for services. The amount is generally a
percentage of the sales price or total rental.
COMMITMENT - A
written promise to make or insure a loan for a specified amount and on
specified terms.
CONDEMNATION - The
taking of private property for public use without the consent of the
owner, but only upon payment of just compensation.
CONDITION
- In real property law, some limiting restriction to a grant or
conveyance of property, stating that upon the happening or failure to
happen of a stated event, the estate shall be changed in some manner.
CONDITIONAL COMMITMENT
- A loan commitment that will become true if what the borrower (buyer)
told the finance company can be verified. Sometimes referred to as a
pre-approval.
CONDITIONAL SALES CONTRACT
- A sale in which the title to property remains with the seller until
the purchaser has fulfilled the terms of the contract, usually payment
in full.
CONDOMINIUM
- A structure of two or more units, the interior space of which is
individually owned; the balance of the property (both land and
buildings) is owned in common by the owners of the individual units.
The size of each unit is measured from the interior surfaces of the
exterior walls, floors, and ceiling. The balance of the property is
called the common area. A new form of condominium agreement is for all
or a portion of the land exclusive of the building, sidewalks, and
driveways.
CONFORMITY, PRINCIPLE OF
- An appraisal term stating that general uniformity of the structures
in an area will produce the highest value.
CONSEQUENTIAL DAMAGES
- Damages created by a change in other property. An owner's right to compensation
varies with state stature.
CONSERVATION -
Preservation, through zoning, of improved areas to maintain the quality
of the area.
C0NSIDERATION -
Anything which is, legal, of value, and induces one to enter into a
contract.
CONSTRUCTION COST -
The total cost of building, including overhead and profits as well as
land, labor, and materials.
CONSTRUCTION LOAN -
Short term financing of real estate construction.
CONTIGUOUS - Near or
close to , whether actually touching or not. Generally refers to touching or
bordering on.
CONTINGENCY
- Commonly, the dependence upon a stated event which must occur before
a contract is binding For example, the sale of a house could
be
contingent on the buyer obtaining financing.
CONTINGENT FEES
- Fees to be paid only in the event of a future occurrence. A
broker's commission is paid only if the property is sold or leased
(unless otherwise agreed upon). A buyer broker may be paid a
fee
that counts toward a commission in the even a property is purchased,
but it may be forfeited if a transaction does not take place within a
time certain.
CONTRACT
- An agreement between two or more persons or entities which creates or
modifies a legal relationship. Generally based upon offer and
acceptance.
CONTRACT OF SALE -
In some areas of the country, synonymous with land contract. In other
areas synonymous with purchase agreement.
CONTRACTUAL LIEN - A
voluntary lien such as a mortgage or deed of trust.
CONVENTIONAL LOAN -
A mortgage or deed of trust not obtained under a government insured
program.
CONVERSION
- 1) Legal term referring to the "legal" changing from real to personal
property (or vice versa), although there is no actual change in the
property. 2) A taking of something for one's own use which was
originally in his possession only to hold for the owner. 3) The
changing of an apartment to a condominium.
CONVEYANCE -
Transfer of title to land. Includes most instruments by which an
interest in real estate is created, mortgaged, or assigned.
COOPERATING BROKER
- The broker who finds the buyer and so shares in the
commission with the listing broker.
CORD - A measure,
usually associated with cut wood. Pile of wood 4' high, 4' wide, and 8'
long equal to 1.28 cubic feet.
CORNICE - The
"crowning" member of a wall. The top molding near the ceiling.
CORPOREAL PROPERTY -
That property which can be touched. An example would be a window glass.
The view through the window is incorporeal.
COST APPROACH
- An appraisal method, estimating the replacement cost of a
structure, less depreciation, plus land value.
COST ESTIMATING
- 1) In construction, the expenditure of building based on a
detailed cost of materials (usually includes the cost of labor). 2) In
appraisal the term is general, referring to replacement cost, but not
limited to a specific method of arriving at the cost.
COST-PLUS CONTRACT -
A building contract setting the builder's profit as a percentage of the
actual cost of labor and materials.
COUNTER OFFER
- An offer (as apposed to an acceptance) in response to a offer. For
example A offers to buy B's house for X dollars. B responds with an
counter that is higher than what A offered. B's response is a counter
offer.
COURTESY OF BROKERS
- Willingness of a seller to pay a commission to any broker supplying a
suitable buyer, or the willingness of a listing broker to share the
commission with any broker supplying a suitable buyer.
COVENANT
- Refers to any written agreement. In real estate the covenant is most
often expressed in a deed by the grantor or implied by law.
COVENANT OF QUIET ENJ0YMENT
- Usually inserted in leases or conveyances whereby grantor
promises that the tenant or grantee shall enjoy possession of the
premises in peace and without disturbance caused by defective title.
CREDIT REPORT - A
report on the past ability of a loan applicant to pay installment
payments.
CRV (Certificate of Reasonable
Value) - An appraisal of property for insurance purposes
required by the Veteran's Administration.
CUL DE SAL
- A street or alley open at one end only. In real estate the term
usually applies to a dead-end street, in a subdivision, with a large
circular area where U turns are permitted.
CURTESY - A common
law interest of a husband in a deceased wife's property. Abolished in
most states.
CUSTOM BUILDER
- One who builds for a specific owner, designing the building or home
to suit said owner's need, rather than building a home speculating that
a buyer can be found.
CUSTOMER - A buyer
of goods or services.