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CC & R ' s |
Covenants, Conditions and Restrictions; or the
rights and obligations of individual owners of real property within a
subdivision (or other tract of land where there is more than one owner of
property) in relation to other owners, or to the organized association of
owners, within the same subdivision, relative to the use and maintenance of the
property commonly owned among them |
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Call option |
A provision of a mortgage that allows the
mortgagee, or lender, to require the mortgage to be due and payable for any
reason at the end of a specified period of time |
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Cap |
A limit placed on an adjustable-rate mortgage
(ARM) as to how much the interest rate or mortgage payments may increase or
decrease |
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Capital expenditure |
The expense incurred making an improvement to a
property in order to extend it useful life or to add to its
value |
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Capital gain |
Profit earned from the sale of an
asset |
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Capitalization |
A mathematical formula that estimates the value
of a property, utilizing the rate of return on the investment and the annual
net operating income expected |
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Capitalization rate |
The rate of return a property will produce on
the owner's investment |
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Cash-out refinance |
A loan for refinancing a property which offers
cash over and above what is needed to repay the first mortgage, closing costs,
points and any other mortgage liens due. The additional cash can be used for
any purpose |
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Caveat Emptor |
Translation: "buyer beware", meaning that the
buyer is responsible for inspecting any real estate or property before purchase
for defects, as the seller is not required to disclose any problems to the
buyer, though if asked outright, cannot conceal any defects |
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Certificate of deposit |
A document provided by a bank or financial
institution that is proof of a deposit of funds with that bank or institution,
also promising to return the deposit plus earnings at a specified interest rate
within a specified time period |
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Certificate of
Eligibility |
A document issued by the U.S. government
certifying a veteran's eligibility for a VA guaranteed loan for a home or
business |
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Certificate of occupancy |
A city or county document certifying that a
building is approved for occupancy, often required by insurance companies to
insure the property |
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Certificate of Reasonable Value
(CRV) |
A document issued by the Department of Veterans
Affairs (VA) establishing the maximum loan amount for a VA
mortgage |
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Certificate of
Satisfaction |
A document recorded with land records and signed
by the Noteholder of a property, showing release of a mortgage, deed of trust,
or lien on that property |
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Certificate of title |
A statement of opinion provided by a title
company or attorney, based on examining public records, stating that the title
to a piece of real estate is legally held by the current owner; because this
certification does not cover matters not of record, it is no longer commonly
used |
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Chain |
A unit for measuring land equaling 66 feet in
length |
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Chain of Title |
The series of all historical title documents
showing the succession of owners of a property, as evidenced in the land
records, whereby it is proven that the present owner of that property in fact
holds the title |
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Chattel |
Personal property |
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Clear title |
A document establishing ownership of a property
that is free of any legal questions or controversies as to the current
ownership |
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Closing |
Also known as "escrow" or "settlement". The
process of finalizing the sale of a property via a meeting of the buyer, seller
and lender, at which legally binding documents are executed, money is
dispersed, the deed is prepared, and ownership is formally transferred from the
seller to the buyer |
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Closing costs |
Expenses over and above the price of the
property that are incurred by the buyers and sellers in transferring ownership
of property, usually including property insurance, taxes, attorney's fees, an
origination fee, an amount placed in escrow, title insurance, the mortgage
insurance premium, points, and filing fees |
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Closing statement |
A summary financial accounting of a real estate
transaction disclosing all cash incoming, outgoing, and any charges or credits
made |
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Clouded Title, or Cloud on
Title |
Any conditions revealed by a title search,
usually during the sale of the property, that make the title to a piece of real
estate controversial; can only be removed by a quitclaim deed, release, or
court action |
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Coinsurance |
A sharing of insurance risk between the insurer
and the insured, and it depends on the amount of the policy and the actual
value of the property insured at the time of the loss |
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Coinsurance |
When more than one insurance company shares the
risk of a particular transaction or series of transactions; lenders may require
co-insurance on large commercial projects |
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Collateral |
As asset pledged to secure a loan; collateral
for a mortgage is typically the property itself |
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Co-maker |
A person who takes on equal responsibility for
the repayment of a loan by signing the promissory note along with the
borrower |
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Commission |
The fee charged by a broker or agent for
negotiating a real estate or loan transaction, usually a percentage of the
selling price of the property or amount of the loan |
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Commitment letter |
A formal document issued by the lender, stating
the terms under which the lender agrees to lend money to a
homebuyer |
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Common area assessments |
Fees levied against individual unit owners in a
condominium or planned unit development project to generate additional capital
to defray homeowners' association expenses, and to pay for repairs, maintenance
and improvements to the common areas of the project |
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Common Interest Community
(CIC) |
An arrangement among property owners whereby
they have mutual ownership of common areas of a property (e.g., condominiums,
townhouses and planned unit developments) often through membership in an
association |
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Common law |
An unwritten body of law or ethical agreements,
originating from general customs in England |
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Community Land Trust Mortgage
Option |
A financing option that enables lower or
moderate-income buyers to purchase housing that has been improved by a
nonprofit Community Land Trust, as well as to lease the land on which the
property stands |
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Community property |
In some US states, a recognized right of
ownership, that any property acquired during a marriage as being jointly owned
by both spouses, except that acquired as specifically personal for either
individual |
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Comparables, or Comparable
Properties |
Properties that are similar in size, style,
location and amenities to the property under consideration in an appraisal,
which are used in the appraisal process to help determine the approximate fair
market value of the subject property |
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Comparative market analysis
(CMA) |
A comparison of the sale prices of similar
properties (e.g., size, style, location, amenities) in a given area, for the
purpose of determining the fair market value of a property |
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Condemnation |
The County or City determination that a building
is dangerous for occupancy and must be demolished |
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Conditional-use permit |
Written governmental permission given to allow a
use of a property that is ordinarily inconsistent with existing zoning laws,
but which is deemed necessary for the common good |
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Condominium |
A system of individual ownership of units within
a multi-unit structure, as well as joint ownership of certain common areas;
each individual may sell or encumber his own unit within the
structure |
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Conservator |
An individual designated by the Court to protect
and preserve the property of someone who is not able to manage his or her own
affairs
See "Guardian" |
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Construction loan |
A short-term loan for financing the cost of
construction of a structure, whereby payments are made to the builder usually
in increments as the work progresses |
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Contingency |
A condition that must be met before a contract
is legally binding, or where one event or agreement is dependent on the
fulfillment or completion of another event |
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Contract |
An oral or written, often legally-binding,
agreement between two parties |
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Contract for Deed, or Land
Contract |
A method of financing whereby the ownership of a
piece of property or real estate remains in the seller's name as security until
the buyer pays the purchase price in full |
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Conventional loan, or Conventional
mortgage |
A real estate loan or mortgage that is not
insured or guaranteed by a government agency, such as the VA or
FHA |
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Convertibility clause |
A provision offered in some adjustable-rate
mortgages giving the borrower the option to change the ARM to a fixed-rate
mortgage at a specified point in time after the loan originated |
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Convertible ARM |
An adjustable-rate mortgage that can be
converted to a fixed-rate mortgage under specified conditions |
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Conveyance |
Any document by which the title to real property
is transferred |
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Cooperative (co-op) |
A system of multiple ownership in which the
residents of a multi-unit housing complex own stock in a corporation that then
owns the property, and whereby each resident is given the right to occupy a
specific unit pursuant to a lease |
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Cost approach |
A method used by appraisers to estimate the
value of a property, in which the appraiser's estimate of the replacement cost
of the building is added to the estimated land value, minus the
depreciation |
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Cost of funds index
(COFI) |
An index used to determine changes in the
interest rate for certain adjustable-rate mortgage plans, determined by the
weighted-average cost of savings, borrowings, and advances of the 11th District
members of the Federal Home Loan Bank of San Francisco |
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Co-tenancy |
Ownership of the same piece of property or real
estate by more than one person |
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Counteroffer |
A new offer, with different terms and
conditions, made in rejection of an original offer received |
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Covenant |
A clause written into mortgages, deeds or other
real estate documents that obligates or restricts the borrower's actions, and
which, if violated, can result in foreclosure of the property |
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Credit history, or Credit
report |
A record, prepared by an independent source, of
an individual's debts and status of their payment, useful to a lender in
qualifying a potential borrower for a loan |
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Credit life insurance |
A type of insurance that can be purchased by
mortgagors that will guarantee payment of the mortgage if the mortgagor dies
while holding the policy |
- NUMBER1EXPERT™ 
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