Capital Gains
The money gained from the sale of the property. A seller can delay the taxes on the capital gain by two years if they purchase a more expensive home within that time.
Cash Flow
The money accumulated over a given amount of time from an income producing property. The amount of money coming in from the property should be able to cover the cost of the income producing property (mortgage, basic upkeep, etc.).
Caveat Emptor
Actual definition meaning "let buyer beware". Pre-purchasing and examination of the property is done at the buyers own risk. e.g. a property can be shown/represented without the assurance of condition or quality.
Covenants, conditions, and restrictions - CC&Rs.
The basic rules establishing the rights and obligations of owners of real estate in a condominium, townhouse, PUD, subdivision or other tract of land. An association is organized in order to maintain the property commonly owned by the individual owners. The association is typically made up of all of the home owners.
Certificate of Reasonable Value (CRV)
Appraisals given by an approved VA (Veterans Administration) appraiser. They are to set the maximum value on the VA mortgage loan principal.
Certificate of Occupancy
A form that must be given to the lender prior to closing a loan. The document must state the number of people living in one residency and that the home meets public health and building codes.
Certificate of Title
A statement by an attorney stating the status to the title of property. This certificate does not give the same benefits and protection as title insurance.
Clear Title
A retail title, clear of questionable and controversial issues. Some lenders have a clear title as a requirement before closing.
Closing
Changing ownership of land from the current owner to the buyer.
Closing Costs
Expenses incurred by the buyer and seller in a real estate or mortgage transaction. Types of costs are recurring and non-recurring.
- Non-recurring costs are one time costs which include discount and origination points.
- Lender fees - underwriting, processing, document preparations, flood certificate, tax service, wire transfer, courier, etc.
- Title insurance fees
- Escrow, attorney or closing agent fees
- Recording fees
- Inspection and appraisal fees
- Real estate brokerage commissions
- Recurring fees are costs associated with owning the property and they recur month after month. These costs may include hazard insurance, interest, property taxes, mortgage insurance (PMI), and association fees. A pro-rated amount of these fees may have to be paid at closing including Pre-paid interest - interest charges from the date of closing to the end of the month
Cloud on Title
Questionable claims that could jeopardize the owner's title.
Commitment
A lender agreeing or committed to specific terms, on a written document, to a contractor or borrower.
Condemnation
1. Using private property for public use while providing a considerable amount of compensation (usually money) to the owner. The land in turn is usually used for schools, streets and other community projects.
2. A home in violation of housing codes and consequently goes under government regulation.
Conditional Commitment
A lender making a commitment to a loan however, certain conditions must be meet before the closing date of the property.
Condominium
Single ownership of a property unit with a shared interest in commonly owned areas and facilities which appeal to everyone in the condo community.
Construction loan
This type of loan is temporary and used for construction of buildings and homes. A construction loan also gives the contractor small amounts of money over the construction period. It is not till the job is completely finished when a permanent loan is used to pay off the rest of the construction.
Consideration
Anything that would entice a seller into a contract (example: money deposits).
Contingency
Contingencies are conditions usually set forth in the contract that must be met before the buyer will close the purchase of the property. E.G. if the sales contract stated the buyer has 21 days to check all necessary repairs needed to the property and asks the seller to perform them. If the buyer is not pleased with the repairs or if they were not performed the buyer is then allowed to back out of the contract. However, after the 21 days are up the buyer can not back out due to the condition of the property.
Contract
A mutual agreement between the two parties which are involved in buying and selling property. E.G. an acceptable contract for sale contains: an offer, an acceptance, competent parties, consideration, legal purpose, written documentation, description of the property, signatures by principals.
Contract sale or deed
An installment arrangement between the buyer and seller stating that the buyer may reside on the property but the seller holds the title till sale is official and paid.
Conventional Loan
Their are two types of conventional loans: conforming and non-conforming. This is any type of mortgage other then VA and FHA loans.
Conveyance
The change of a real estate title from one party to another.
Co-op - cooperative
In a cooperative, an apartment building is owned by a corporation that holds the title to the property or real estate. A resident however, is able to buy stock from the corporation which in turn allows him to live in the building unit owned by the cooperative. The person owning the stock does not have a title to the property but they are allowed to remain in their unit as long as they still hold stock.
Convertible ARMs
Certain loans are able to be converted to a fixed loan provided it follows a set formula.
Credit Report
A detailed report showing someone's credit history such as credit cards (revolving accounts) and car loans (installment accounts). Some reports will also show detailed descriptions from tax liens and judgments.
