Caveat emptor A legal principle derived
from Latin than means "let the buyer beware."
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 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.
Change frequency The adjustment schedule on
an adjustable-rate mortgage.
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 increases ventilation to the fireplace and
reduces smoke.
Cinder block A block made of ash and cement
that is 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 have
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
that 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-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.
Common law A body of laws based on custom,
usage and rulings by courts in various jurisdictions.
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 then 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 areas such 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.
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.
Co-signer A second party who signs a
promissory note and takes responsibility for the debt.
Counteroffer A response to an offer.
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.
Corrective work Necessary or desired
repairs to remedy problems uncovered by a home or
specialized inspection.
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.
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 an individual's
current and past debt payments.
Creditor An individual or institution to
whom a debt is owed.
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.
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.
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 that
investors use 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 to allow 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.
Cavedium A courtyard or atrium.
Caveat A formal notice, that asks a court
to suspend action until the party which filed the
challenge can be heard.
