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Glossary of Real Estate Terms
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| Call option |
| A clause in a loan agreement that allows a lender to ask for the balance at any time. |
| Can lights |
| Cylindrical chambers with bulbs recessed into the ceiling. |
| Cancellation clause |
| A clause that details the conditions under which each party may terminate the agreement. |
| Cantilever |
| A projecting structure supported on one end, such as a balcony. |
| Cap |
| A limit on the amount the interest rate or monthly payment can increase in an adjustable rate mortgage. |
| Cape Cod style |
| A wood-frame or shingled house with a steep roof and several windows projecting from the second floor. |
| Capital |
| Money used to create income, such as funds invested in rental property. |
| Capital expenditure |
| The cost of making improvements on a property. |
| Capital gains |
| Profits an investor makes from the sale of real estate or investments. |
| Capital gains tax |
| A tax placed on the profits from the sale of real estate or investments. |
| Capital improvement |
| Any improvement that extends the life or increases the value of a piece of property. |
| Capitalization |
| A mathematical formula, to compute the value of a property based on net income. |
| Capitalization rate |
| The percentage rate of return estimated from the net income of a piece of property. |
| Caravan |
| A group of real estate agents who tour a house that has been recently listed for sale. |
| Carport |
| A roof that covers a driveway or other parking area. |
| Casement window |
| A window hinged on its sides that allows it to swing open vertically. |
| Cash flow |
| The amount of cash a rental property investor receives after deducting operating expenses and loan payments from gross income. |
| Cashier's check |
| A check the bank draws on itself rather than on a depositor's account. |
| Cash-out refinance |
| The refinancing of a mortgage in which the money received from the new loan is greater than the amount due on the old loan. The borrower can use the extra funds in any manner. |
| Cathedral ceiling |
| A high open ceiling formed by finishing exposed roof rafters. |
| Caulk |
| An acrylic or silicon sealant used to fill cracks, crevices and holes in a home. |
| Caveat |
| A formal notice, that asks a court to suspend action until the party which filed the challenge can be heard. |
| Caveat emptor |
| A legal principle derived from Latin than means "let the buyer beware." |
| Cavedium |
| A courtyard or atrium. |
| Ceiling height |
| The standard height of a ceiling is eight feet. |
| Central air conditioning |
| A device that generates cold air through an outside unit that is connected to ductwork inside the house, |
| Central business district |
| The area of a city where most large businesses are located |
| Certificate of Deposit (CD) |
| A document which shows that the bearer has a specified amount of money on deposit with a bank, stock-brokerage firm or other financial institution. |
| Certificate of deposit index |
| An index based on the interest rates on six-month CDs. It used to determine the interest rate for some adjustable-rate mortgages. |
| Certificate of eligibility |
| A document issued by the Veterans Administration that verifies the eligibility of a veteran for a loan program. |
| Certificate of occupancy |
| A document which states that a home or other building has met all building codes and is suitable for habitation. |
| Certificate of sale |
| A document issued at a judicial sale, which entitles the buyer to receive a deed after court confirmation of the purchase of the property. |
| Certificate of title |
| A written opinion on the status of a piece of property based on an examination of the public record. |
| Chain of title |
| The official record that details the ownership history of a piece of property. |
| Chair railing |
| Decorative trim installed on a wall about 32 inches above the floor, which protects against scuffs from furniture. |
| Change frequency |
| The adjustment schedule on an adjustable rate mortgage. |
| Change order |
| A modification of the construction contract to authorize a change in the work, an adjustment in the amount of the contract or a change in the contract time. The owner, architect and contractor must sign the change. |
| Chattel |
| Personal property such as furniture, clothing or a car. |
| Chattel mortgage |
| A lien on personal property used as collateral for a loan. |
| Chimney back |
| The back wall or lining of a fireplace or furnace chimney. |
| Chimney flue |
| The passage inside a chimney that channels smoke and heat to the outside. |
| Chimney pot |
| A short pipe at the top of a chimney that increase ventilation to the fireplace and reduce smoke. |
| Cinder block |
| A block made of ash and cement used in construction. |
| Cinder fill |
| Cinders used below a basement or around a foundation to promote drainage. |
| Circuit breaker |
| An electric fuse that activates or deactivates a circuit. |
| Cistern |
| A tank used to store rainwater. |
| Classified property tax |
| A tax that varies in rate depending on the use of the property. |
| Clear title |
| A property that does not contain liens, defects or other legal encumbrances. |
| Closing |
| The final procedure in which documents are signed and recorded, and the property is transferred. |
| Closing costs |
| Expenses incidental to the sale of real estate, including loan, title and appraisal fees. |
| Closing statement |
| A document which details the final financial settlement between a buyer and seller and the costs paid by each party. |
| Cloud on title |
| An invalid encumbrance on real property. |
| Cluster development |
| A method of squeezing more homes into less space. |
| Codicil |
| A change to a will that adds or subtracts provisions or clarifies portions of the document. |
| Co-housing |
| Individual housing units that are clustered around a common building where residents share cooking and other activities. |
| Coign |
| The cornerstone of a building that differs in shape or color from the rest of the wall. |
| Co-insurance |
| Coverage that involves the use of two or more insurers. |
| Collar beam |
| The structural element that connects roof rafters. |
| Collateral security |
| Additional security a borrower supplies to obtain a loan. |
| Collection |
| The series of steps a lender takes to bring a delinquent mortgage up to date. |
| Collusion |
| The action of two or more people to break the law. |
| Colonia |
| Unincorporated communities along the U.S.-Mexico border. |
| Column |
| A slender upright structure that consists of a base, a round or square shaft and a capital. |
| Column footing |
| The support base for a load-bearing column. The footing is usually made of reinforced concrete. |
| Co-maker |
| A person who signs a promissory note with the borrower and assumes responsibility for the loan. |
| Combination door |
| An outer door with interchangeable screen and glass panels. |
| Combination window |
| A window with interchangeable screen and glass panels. |
| Commercial bank |
| A financial institution that provides a broad range of services, from checking and savings accounts to business loans and credit cards |
| Commercial property |
| An area that is zoned for businesses. |
| Commingling |
| The mixing of money held in trust with other funds. |
| Commission |
| The negotiable percentage of the sales price of a home that is paid to the agents of the buyer and seller. |
| Commitment |
| A promise by a lender to make a loan with specific terms for a specified period. |
| Commitment fee |
| The fee a lender charges for promising to make a loan. |
| Common area |
| An area inside a housing development that is owned by all residents. |
| Common law |
| A body of laws based on custom, usage and rulings by courts in various jurisdictions. |
| Common-area assessments |
| Fees paid by the owners of a condominium project or planned-unit development to maintain, repair, improve or operate common areas. |
| Common-interest development |
| A project composed of individually owned units that share usage and financial responsibility for common areas. |
| Community property |
| Property accumulated through the joint efforts of husband and wife. It is a classification of property peculiar to certain states. |
| Community Reinvestment Act |
| A federal law that encourages financial institutions to loan money in the neighborhoods where minority depositors live. |
| Commute |
| The distance and time it takes a person to reach the workplace. |
| Comparables |
| Properties used as comparisons to determine the value of a certain property. |
| Comparative market analysis |
| An estimate of the value of a property based on an analysis of sales of properties with similar characteristics. |
| Competent |
| A term for a buyer who is "legally fit to enter into a sales contract". |
| Compound interest |
| The interest paid on the principal balance in a mortgage and on the accrued and unpaid interest of the loan. |
| Concrete tilt-up |
| The process of pouring concrete into forms on the ground, allowing the forms to harden and raising the material to a vertical position to form walls. |
| Condemnation |
| The process the government uses to take private property for public use without the consent of the owner. |
| Conditional commitment |
| A promise by a lender to make a loan if the borrower meets certain conditions. |
| Condominium |
| Individual units in a building or development in which owners hold title to the interior space while common areassuch as parking lots, community rooms and recreational areas are owned by all the residents. |
| Condominium conversion |
| The change in title from a single owner of an entire project or building to multiple owners of individual units. |
| Conduit |
| A metal pipe that houses electrical wiring. |
| Consent judgment |
| A binding written agreement between two parties to have a judgment entered and recorded. |
| Conservator |
| A court-appointed guardian. |
| Consideration |
| Anything that is legal, has value and induces a person to enter into a contract. |
| Construction budget |
| The funding that an owner arranges for the construction of a project. |
| Construction documents |
| Drawings and specifications from an architect that provide detailed requirements for the construction of a project. |
| Construction loan |
| Short-term loans a lender makes for the construction of homes and buildings. The lender disburses the funds in stages. |
| Construction to permanent loan |
| The conversion of a construction loan to a longer-term traditional mortgage after construction has been completed. |
| Consumer Credit Counseling Service (CCCS) |
| A nationwide, nonprofit organization that helps consumers get out of debt and improve their credit profile. National headquarters: 8701 Georgia Avenue, Suite 507, Silver Springs, MD 20910. Phone: (800) 388-2227. |
| Contemporary style |
| A design that features streamlined shapes, large unadorned windows and industrial materials. |
| Contiguous lots |
| Pieces of property that are adjoined. |
| Contingency |
| A condition specified in a purchase contract, such as a satisfactory home inspection. |
| Contingency listing |
| A property listing with a special condition attached. |
| Contingent fee |
| A fee that must be paid if a certain event occurs. |
| Contract |
| An agreement between two or more parties that creates or modifies an existing relationship. |
| Contract for deed |
| A contract in which the seller agrees to defer all or part of the purchase price for a specified period of time. |
| Contract to purchase |
| A contract the buyer initiates which details the purchase price and conditions of the transaction and is accepted by the seller. Also known as an agreement of sale. |
| Contractor |
| The individual who contracts for the construction of a home or project. |
| Contractual lien |
| A voluntary obligation such as a mortgage or trust deed. |
| Controlled growth |
| Any restrictions imposed on the amount or type of new development in an area. |
| Conventional loan |
| A long-term loan a lender makes for the purchase of a home. |
| Convertible adjustable rate mortgage |
| A mortgage which starts as an adjustable rate loan, but allows the borrower to convert the loan to a fixed rate mortgage during a specified period of time. |
| Conveyance |
| The transfer of title of property. |
| Conveyance tax |
| A tax imposed on the transfer of real property. |
| Cooperating broker |
| A real estate broker who finds a buyer for a property that another broker has listed |
| Cooperative corporation |
| A business trust that holds the title to a cooperative residential building and grants occupancy rights to shareholders in the corporation. |
| Cooperative mortgages |
| Any loans related to a cooperative residential project. |
| Cooperative project |
| A project in which a corporation holds title and sells shares representing individual units to buyers who then receive a proprietary lease as their title. |
| Corner bead |
| A reinforcement placed in the corner where two walls intersect. |
| Corner influence |
| The effect on the value of a property because it is situated on a corner or near a corner. |
| Cornice |
| A horizontal molding that projects from the top of a structure or wall. |
| Corporate relocation |
| An arrangement by which employers pay to transfer and move employees. |
| Corrective work |
| Necessary or desired repairs to remedy problems uncovered by a home or specialized inspection. |
| Cosigner |
| A second party who signs a promissory note and takes responsibility for the debt. |
| Cost-plus contract |
| A construction contract that determines the builder's profit based on a percentage of the cost of labor and materials. |
| Cottage |
| A small, one-story house. |
| Counteroffer |
| A response to an offer. |
| Covenant |
| A legal assurance or promise in a deed or other document, or implied by the law. |
| Covenants, conditions and restrictions (CC&Rs) |
| Rules and regulations for a development, such as acceptable landscaping or improvements that can be made to individual units. |
| Craftsman style |
| An architectural style that evolved as part of the Arts and Craft movement near the turn of the century. |
| Crawl space |
| The space between the ground and the first floor of a home, usually no higher than four feet. |
| Creative financing |
| Innovative home-financing arrangements that help sell a property. |
| Credit |
| The money a lender extends to a buyer for a commitment to repay the loan within a certain time frame. |
| Credit history |
| A record of current and past debt payments of an individual. |
| Credit life insurance |
| Insurance that pays off a mortgage in the event of the borrower's death |
| Credit rating |
| The degree of credit worthiness assigned to a person based on credit history and financial status. |
| Credit report |
| A credit bureau report that shows a loan applicant's history of payments made on previous debts. Several companies issue credit reports, but the three largest are Trans Union Corp., Equifax and Experian (formerly TRW). |
| Credit repository |
| Large companies that gather financial and credit information from various sources about individuals who have applied for credit. |
| Credit union |
| Nonprofit cooperative organizations that provide banking and financial services, including mortgages, home improvement loans and home equity loans, to their members. |
| Creditor |
| An individual or institution to whom a debt is owed. |
| Cross-bridging |
| The strengthening of a structure by bracing cross members between beams. |
| Cul de sac |
| A street or alley that is closed at one end. |
| Cupola |
| A dome-like structure that sits on top of a roof. |
| Curable defect |
| A deficiency in a property that is easy or inexpensive to fix, such as chipping paint. |
| Curb appeal |
| The first impression of a house as seen from the street. |
| Curtain wall |
| An exterior wall that encloses a yard or other area but does not provide any structural support to a home. |
| Custom builder |
| A builder who constructs a home or building based on plans created by the owner. |
| Custom home |
| A structure designed by an architect hired by the owner. |
