A clause in a mortgage which allows the lender to demand payment of the
outstanding balance at a specific time.
CAP
Associated with Adjustable Rate Mortgages. A limit on how high monthly
payments or how much interest rates may change within a certain time period or
the life of the mortgage.
CAPE COD COLONIAL
A single-story house style made popular in New England. Often characterized by
a steep roof with gables.
CAPITAL
Accumulated goods and money which is most often used to generate additional
income.
CAPITAL EXPENDITURE
An outlay of funds designed to improve the income-producing capabilities of an
asset or to extend its economic life.
CASH-OUT REFINANCE
Refinancing a mortgage at a higher amount than the current balance in order to
transform a portion of the equity into cash.
CAULKING
A pliable material used to seal cracks or openings such as around windows.
CAVEAT EMPTOR
Literally translated: ''Let the buyer beware.'' A common business tenet whereby
the buyer is responsible for verifying any and all claims by the seller of property.
CERTIFICATE OF DEPOSIT
A document showing that the bearer has a certain amount of money, at a
particular amount interest, on deposit with a financial institution.
CERTIFICATE OF DEPOSIT INDEX
An index based on the interest rate of six month CD's. Used to set interest rates
on some Adjustable Rate Mortgages.
CERTIFICATE OF ELIGIBILITY
A document issued by the Veterans Administration that certifies eligibility for a
VA loan.
CERTIFICATE OF OCCUPANCY
Issued by an appropriate jurisdictional entity, this document certifies that a
building complies with all building codes and is safe for use or habitation.
CERTIFICATE OF REASONABLE VALUE (CRV)
Usually based on an independent appraisal, a CRV for a particular property
establishes the maximum amount which can be secured by a VA mortgage.
CERTIFICATE OF TITLE
A document designating the legal owner of a parcel of real estate. Usually
provided by a title or abstract company.
CERTIFIED GENERAL APPRAISER
Generally, any professional who has met the local or state requirements, and
passed the appropriate certification exam, and is capable of appraising any type
of property.
CERTIFIED RESIDENTIAL APPRAISER
A sub-classification of appraiser who is only licensed to appraise residential
property, usually up to four units.
CHAIN OF TITLE
The complete history of ownership of a piece of property.
CHATTEL
Any personal property which is not attached to or an integral part of a property.
Chattel is not commonly taken into consideration when appraising the value of
real property.
CIRCUIT BREAKERS
Electrical devices which automatically open electrical circuits if they are
overloaded.
CLEAR TITLE
Ownership of property that is not encumbered by any counter-claim or lien.
CLOSING
A torturous process designed to induce cramping in a home buyer's hands by
requiring signature on countless pieces of documentation that nobody has ever
read. Or, the process whereby the sale of a property is consummated with the
buyer completing all applicable documentation, including signing the mortgage
obligation and paying all appropriate costs associated with the sale (CLOSING
COSTS).
CLOSING COSTS
All appropriate costs generated by the sale of property which the parties must
pay to complete the transaction. Costs may include appraisal fees, origination
fees, title insurance, taxes and any points negotiated in the deal.
CLOSING STATEMENT
The document detailing the final financial arrangement between a buyer and
seller and the costs paid by each.
CO-BORROWER
A second person sharing obligation on the loan and title on the property.
COLLATERAL
An asset which is placed at risk to secure the repayment of a loan.
COLLECTION
The process a lender takes to pursue a borrower who is delinquent on his
payments in order to bring the mortgage current again. Includes documentation
that may be used in foreclosure.
CO-MAKER
A second party who signs a loan, along with the borrower, and becomes liable
for the debt should the borrower default.
COMMON LAW
As opposed to statute law. Laws that have been established by custom, usage
and courts over many years.
COMMISSION
A percentage of the sales price or a fixed fee negotiated by an agent to
compensate for the effort expended to sell or purchase property.
COMMON AREA ASSESSMENTS
Fees which are charged to the tenets or owners of properties to cover the costs
of maintaining areas shared with other tenets or owners. Commonly found in
condominium, PUD or office spaces.
COMMON AREAS
Any areas, such as entryways, foyers, pools, recreational facilities or the like,
which are shared by the tenets or owners of property near by. Commonly found
in condominium, PUD or office spaces.
COMMUNITY PROPERTY
In many jurisdictions, any property which has been acquired by a married
couple. The ownership of the property is considered equal unless stipulated
otherwise by both parties.
COMPARABLES
An abbreviated term used by appraisers to describe properties which are similar
in size, condition, location and amenities to a subject property who's value is
being determined. The Uniform Standards of Professional Appraisal Practice
(USPAP) establish clear guidelines for determining a comparable property.
COMPOUND INTEREST
Interest paid on the principal amount, as well as any accumulated interest.
CONCESSIONS
Additional value granted by a buyer or seller to entice another party to complete
a deal.
CONDEMNATION
The official process by which a property is deemed to be uninhabitable or
unusable due to internal damage or other external conditions.
CONDENSATION
The transition of water vapor to liquid. Typically forms in areas of high humidity.
CONDOMINIUM
A development where individual units are owned, but common areas and
amenities are shared equally by all owners.
CONDOMINIUM CONVERSION
Commonly, the conversion of a rental property such as an apartment complex
into a CONDOMINIUM-style complex where each unit is owned rather than
leased.
CONDUIT
The pipe through which electric wiring is run.
CONSTRUCTION LOAN
A loan made to a builder or home owner that finances the initial construction of a
property, but is replaced by a traditional mortgage one the property is
completed.
CONTIGUOUS
Connected to or touching along an unbroken boundary.
CONTINGENCY
Something that must occur before something else happens. Often used in real
estate sales when a buyer must sell a current home before purchasing a new
one. Or, when a buyer makes an offer the requires a complete home inspection
before it becomes official.
CONTRACT
A legally binding agreement, oral or written, between two parties.
CONVENTIONAL MORTGAGE
A traditional, real estate financing mechanism that is not backed by any
government or other agency (FHA, VA, etc.).
CONVERTIBLE ARM
A mortgage that begins as and adjustable, that allows the borrower to convert
the loan to a fixed rate within a specific timeframe.
COOPERATIVE (CO-OP)
A form of ownership where each resident of a multiunit property owns a share in
a cooperative corporation that owns the building. With each resident having
rights to a specific unit within the building.
CORPORATE RELOCATION
A situation where a person's employer pays all or some of the expenses
associated with moving from one location to another, usually over a substantial
distance. Relocation expenses often include the amounts, such as brokerage
fees, incurred in the selling and buying of the employee's primary residence.
COST OF FUNDS INDEX (COFI)
An index of financial institutions costs used to set interest rates for some
Adjustable Rate Mortgages.
COVENANT
A stipulation in any mortgage that, if not met, can be cause for the lender to
foreclose.
CREDIT
A loan of money for the purchase of property, real or personal. Credit is either
secured by an asset, such as a home, or unsecured.
CREDIT HISTORY
A record of debt payments, past and present. Used by mortgage lenders in
determining credit worthiness of individuals.
CREDITOR
A person to whom money is owed.
CREDIT REPORT
A detailed report of an individuals credit, employment and residence history
prepared by a credit bureau. Used by lenders to determine credit worthiness of
individuals.
CREDIT REPOSITORY
Large companies that gather and store financial and credit information about
individuals who apply for credit.
CUL-DE-SAC
A dead-end street. One with only one entrance/exit.
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Each Office Independently Owned and Operated
Information presented on this website is believed reliable but is not guaranteed
Copyright © 2004-2006 All Rights Reserved
CENTURY 21 Lindsey & Pauley
1745 Hwy 53 West · Jasper, Georgia 30143
Office: 706-692-3533 · Fax: 706-692-2366
info@lindseyandpauley.com
2004 CENTURY 21 Real Estate Corporation © and sm trademark and servicemark of
CENTURY 21 Real Estate Corporation. Equal housing opportunity.
Home Buyers' Guide
