Real Estate Dictionary
C Part I
CABINET WORK
Any interior carpentry which will be seen and must be finished with skill and care. One who does this work is called a cabinet maker or, more commonly, a finish carpenter.
CADASTRE
Inventory of real property in a community for tax and assessment purposes.
C.A.E. (CERTIFIED ASSESSMENT EVALUATOR)
An assessor who, through the completion of required courses, experience, and examinations, has earned this designation by the International Association of Assessing Officers.
CAISSON
A watertight chamber in which men work underwater, or in an open excavation where loose soil or sand could cave in on the workers. It may also be filled with concrete after it is used, and become a support.
CALIFORNIA RANCH ARCHITECTURE
A sprawling, one story, ranch-style building, lending itself to interior flexibility in floor plan design.
CALIFORNIA BUNGALOW
Compact, early twentieth-century single-storey house.
CALIFORNIA RANCH
One-storey house, in a post-Second-World-War style, known for its ground hugging design and low, pitched roof.
CALL
In metes and bounds description, the angle and distance of a given line or arc. Each call is usually preceeded by the word "then" or "thence". Example: N 22% E 100' (1 (1st call) call), thence N 80% E 100' (2nd call). (2) To demand payment due to default Also used when a loan payment is not large enough to amortize the loan. Example: A mortgage payment requiring 20 years to pay in full but for a term of 5 years would be referred to as a 20-year amortization with a 5-year call.
CALL DATE
Originally a term used when a bond is redeemed prior to maturity, it is now also used in describing mortgages. [See: Call (2)].
CALL LOAN
A loan payable upon demand.
CALL OPTION (PROVISIONS, RIGHTS)
A lender's right to demand payment of the outstanding balance of the loan at a time specified in the loan agreement.
CAL-VET LOANS
Real estate loans available to armed forces veterans from California, at low interest rates.
CAMBER
A slight bending or arching to a convex angle. Used to prevent beams girders, flooring, ship decks, timbers, and similar load bearing members, from aking a concave shape.
CAMINO
A Spanish word meaning highway.
CAMPANILE
A free standing bell tower.
CANAL
(1) A man made waterway used to connect bodies of water for navigation. (2) An irrigation waterway.
CANCELLATION CLAUSE
A clause in a lease or other contract, setting forth the conditions under which each party may cancel or terminate the agreement. The conditions may be as simple as giving notice or complex and require payment by the party desiring to cancel.
CANDLE
A measure of light, being the luminous intensity of a'/e inch sperm candle burning at 120 grains per hour. An international candle is based on the burning of platinum.
CANDLE HOUR
A measure of light, equal to one candle burning for one hour.
CANDLE POWER
The intensity of a light, expressed in candles.
CANTILEVER
A structural support which itself is supported at one end only and bears its load through its material strength and rigidity.
CANTILEVER BRIDGE
A bridge formed by two cantilevered members extending toward each other and connecting each other or a suspended span.
CAP
(1) A maximum amount of charge. Example: An Adjustable Rate Mortgage with a 5% rate cap could not adjust the interest rate by more than 5°/ . (2) A fitting used to seal, such as by a plumber to seal (cap) a pipe end. (3) A cornice, lintel, or top of a structural member such as a column.
CAP RATE:
Short form for capitalization rate.
CAPACITY
One's ability to carry on normal business transactions. Lack of capacity may be natural (unsound mind) or simply by law (a minor). Restrictions may be full or partial.
CAPE COD HOUSE
An adaptation of the New England cottage. May be one or two stories with sloping roof, usually with dormer windows, cornices, and of frame painted white.
CAPITA
Literally, heads. Commonly, persons individually. (See also: Per Capita).
CAPITAL
Money used to create income, either as investment in a business or income property.
CAPITAL ASSETS
Assets of a permanent nature used to produce income, such as machinery, buildings, equipment, land, etc. Must be distinguished from inventory. A machine which makes pencils, for example, would be a capital asset to a pencil manufacturer, but inventory to the company whose business is to sell such machines.
CAPITAL EXPENDITURES
Money spent on improvements such as land, buildings, machinery, and similar major expenditures which are not inventory.
CAPITAL GAINS
Gains realized from the sale of capital assets. Generally, the difference between cost and selling price, less certain deductible expenses. Used mainly for income tax purposes.
CAPITALIZATION
Determining a present value of income property by taking the annual net income (either known or estimated) and discounting by using a rate of return commonly acceptable to buyers of similar properties. For example: Net income of a property is $10,000 per year. Capitalizing at a rate of 10%, the property would be worth $100,000.
CAPITALIZATION APPROACH
(See: Income Approach).
CAPITALIZATION RATE
The percentage (acceptable to an average buyer) used to determine the value of income property through capitalization.
CAPITALIZE
To determine the present money value of future income, whether estimated or fixed.
CAPITALIZED VALUE
The value of the property after use of the capitalization approach of appraisal.
CAPITAL STOCK
A general term referring to the stock a corporation may issue, the amount actually subscribed by shareholders, the value of the company, liability to the shareholders, etc.
CAP RATE (APPRAISAL)
(See: Capitalization Rate).
CAPRICIOUS VALUE
In appraisal, a value based on whim or emotion and not reflective of the fair market value.
CAPTURE RATE
A comparison of the sales or leasing rate of a particular real estate development to the sales or leasing rate of all developments in the same market.
CARAVAN
An inspection of newly listed properties, either by the entire sales staff of an office or by sales personnel from more than one office in conjunction with a multiple listing group. Generally conducted on a regular basis.
CAR FLOAT BRIDGE
The connection (bridge) used to transfer railroad cars to or from land and a barge. The bridge must be vertically mobil to adjust to changing water levels.
CARPORT
A roof supported by pillars or cantilevered which shelters a car. May either extend from a structure (usually a house) or be constructed separately (often to accommodate several cars).
CARRYBACK LOAN
(See: Purchase Money Mortgage (1)).
CARRYING CHARGES
The costs involved in keeping a property which is intended to produce income (either by sale or rent) but has not yet done so.
CASE
(1) An external framework of a structure. (2) A court action.
CASE LAW
(See: Common Law).
CASEMENT WINDOW
A window hinged at its sides, allowing it to swing open vertically.
CASH
Money or its equivalent (checks, bank notes, etc.). Ready money.
CASH ACCOUNTING
(See: Accrual Accounting).
CASH ASSETS
Money which is available to meet the requirements of operating a business.
CASH DISCOUNT
A discount from a billed amount if paid within a certain period.
CASH EQUIVALENCY ANALYSIS
An appraisal technique by which the price of comparable properties selling with different financing terms are adjusted to find market value. The theory is that terms less advantageous to the seller will cause a higher sale price; cash being most advantageous to the seller.
CASH FLOW
In investment property, the actual cash the investor will receive after deduction of operating expenses and debt service (loan payment) from his gross income.
CASHIER'S CHECK
A check drawn by a bank on itself rather than on an account of a depositor. A cashier's check is generally acceptable to close a sale without waiting for the check to clear.
CASH ON CASH
The amount of cash received compared to the amount of cash invested. Also called the Equity Dividend Rate or Equity Capitalization Rate.
CASH ON HAND STATEMENT
A statement of cash on hand which the buyer intends to apply to closing costs, impounds, and down payment. Also shows the source of the money (savings, gift, etc.).
CASH OUT
To take the entire amount of a seller's equity in cash rather than to retain some interest in the property, such as a purchase money mortgage or deed of trust. Also, when paying off anyone having an interest in property, thereby ending the interest.
CASH RENT
A term used in farm rental to distinguish between money rent and rent paid by giving a portion of the crop to the owner (share crop).
CASH SALE
A sale for full payment in cash, as opposed to a credit sale. A payment by check is considered cash. May be qualified, as "cash to new loan", "cash to existing loan", etc.
CASING
The exterior surface or covering of a building such as aluminum siding, a roof, etc.
CATTLE GUARD
A grill or grating placed in the ground over which cattle will not cross.
CATWALK
A narrow, elevated walkway along a wall, girders, or over a stage or other area where it may be necessary for a person to go for operation or repair.
CAUSEWAY
A raised roadbed over lowlands. (See also: Levee).
CAVAEDIUM
An atrium, courtyard.
CAVEAT
"Let Him Beware"-A formal notice to a court or officer, given by an interested party, asking that the court suspend proceedings until deciding on the merits of the caveat.
CAVEAT EMPTOR
"Let the buyer beware". Legal maxim stating that the buyer takes the risk regarding quality or condition of the item purchased, unless protected by warranty or there is misrepresentation. Modernly, consumer protection laws have placed more responsibility for disclosure on the seller and broker.
CAVITY WALL
Refers to a brick or stone wall which is actually built as two separate walls, joined only at the top and ends, and so "hollow". Also called a hollow wall.
CC&R'S - COVENANTS, CONDITIONS, AND RESTRICTIONS
By-laws that govern the use of land. Commonly used by land subdividers for newly platted parcels of land.
CEILING
(1) The overhead interior lining of a room, building, etc. (2) A maximum amount.
CELLAR
A storage room or group of rooms, usually under a building, which are used for storage.
CEMENT
A mineral powder which, when mixed with water and allowed to set will dry hard and can be used in construction as floors, walls, etc.
CEMENT BLOCK
A building block, composed of cement, and usually hollow. (See also: Cinder Block).
CEMETERY
Large parcels of land used for burying deceased persons. May be public or private, the private usually being of a specific religious denomination.
CENTRAL ASSESSMENT
An assessment of property under one ownership but located in more than one assessment district. Used for railroads and public utilities to stabilize the assessment value.
CENTRAL BUSINESS DISTRICT
An area of a city where most of the major businesses are located. The "downtown" area. Orlando's downtown area is famous for World Class Amusement Parks.
CENTRAL CITY
(1) The downtown area of a major city. (2) A city which is central to a metropolitan area containing many cities. The name of the central city is used for the whole area. For example: Orlando Metro Area.
CERTIFICATE
A writing, either from a court or other public body, giving assurances of existing conditions or facts, and giving rights or creating obligations.
CERTIFICATE BACKED MORTGAGE
A variation of the buydown. The seller purchases a savings certificate (usually with the proceeds of the sale) from the lender. The lender sets the buyer's interest rate below market (generally 2 percent above the certificate rate). Should the seller withdraw the certificate funds, the buyer's rate goes to market rate.
CERTIFICATE OF DEPOSIT (C.D.)
A specific sum of money deposited into a savings institution for a specified time period, and bearing a higher rate of interest than a passbook account if left to maturity. Does not have withdrawal privileges as does a passbook account. Also called a time certificate of deposit (T.C.D.).
CERTIFICATE OF ELIGIBILITY
A certificate obtained by a veteran from a Veteran's Administration office which states that the veteran is eligible for a V.A. insured loan. There is a list of requirements (when and how long the veteran served, type of discharge, etc.) which also may be obtained from the V.A. office.
CERTIFICATE OF OCCUPANCY
A certificate issued by a local building department to a builder or renovator, stating that the building is in proper condition to be occupied.
CERTIFICATE OF PURCHASE
(See: Certificate of Sale).
CERTIFICATE OF REASONABLE VALUE
A certificate giving the estimate of value on which to base a loan guaranteed by the Veterans Administration.
CERTIFICATE OF REDEMPTION
Evidence of redeeming (buying back) a property by the owner after losing it through a judicial sale. The time limit for redemption is set by statute.
CERTIFICATE OF SALE
Certificate issued to the buyer at a judicial sale (such as a tax sale), which will entitle the buyer to a deed upon confirmation of the sale by the court or if the land is not redeemed within a specified time.
CERTIFICATE OF TITLE
In areas where attorneys examine abstracts or chains of title, a written opinion, executed by the examining attorney, stating that title is vested as stated in the abstract.
CERTIFIED CHECK
A personal check drawn by an individual which is certified (guaranteed) to be good. The bank holds the funds to pay the certified check and will not pay any other checks drawn on the account if such payment would impede payment of the certified check. The bank also will not honor a stop payment of a certified check.
CERTIFIED COPY
A true copy, attested to be true by the officer holding the original.
CERTIORARI
An appellate review of the complete record of a lower court action, rather then simply a review of an appeal for judicial error.
CESSPOOL
A pit or pool which holds raw sewage.
CESTUI QUE TRUST
Latin. One having an equitable interest in property, legal title being vested in a trustee.
CESTUI QUE VIE
The person whose life is used to determine the length of an estate based on a life in being.
CHAIN OF TITLE
The chronological order of conveyancing of a parcel of land, from the original owner to owner.
CHAINS AND LINKS
Measurements. In real estate measurements (surveying) a chain is 66' long or 100 links, each link being 7.92". The measurement may change when used in fields other than surveying.
CHAIN STORE
A store belonging to a series of similar stores under central ownership and management, and striving for uniformity in design, inventory, and service.
CHANGE
The principle that no physical or economic condition remains the same.
CHANGE FREQUENCY
Term describing the period of time between changes in the interest rate and/or payments of a variable rate (adjustable rate) mortgage or loan (i.e. one week, one month etc.).
CHANGE OF NAME
When there is a name change of a party appearing on a document (deed, etc.), it may be reflected in several ways, such as: (1)Mary Smith, a married woman, W.A.T.A. (who acquired title as) Mary Jones, an unmarried woman. (2) Mary Smith, AKA (also known as) Mary Jones. (3) Mary Smith, formerly Mary Jones. (4) Mary Smith, alias Mary Jones. Each may be applicable in different circumstances (how and why the name was changed).
CHANNEL
(1) An open or closed duct or conduit. (2) A gutter, furrow, or groove. (3) The deepest part of a natural waterway through which the main current flows, and which affords the best passageway for ships.
CHANNELIZATION
The term used to describe traffic direction. Traffic is "channeled" by use of one way streets, signs directing turns, island barriers, etc.
CHAPEL
(1) A place of worship apart from a church, such as a hospital chapel, college chapel, etc. Generally for a small group. (2) A portion of a church secondary and subordinate to the main altar.
CHATTEL
Personal property.
CHATTEL MORTGAGE
A lien on personal property.
CHATTEL REAL
All estates in real property less titian fee estates, such as a lease.
CHECK ROW
A method of planting rows of plants on intersecting lines, forming a "checkerboard" effect. Used for corn, tomatoes, and other vegetables.
CHECK VALVE
A valve to prevent backup of material being carried through a pipe or other conduit.
CHILD CARE STATEMENT
A statement by a working husband and wife showing the amount paid for child care and to whom paid.
CHIMNEY
Any passage through which smoke from a fire passes. Most commonly the passage, constructed of brick, from a fireplace to above the roof of a building.
CHIMNEY BACK
The back wall or lining of a fireplace or furnace chimney.
CHIMNEY FLASHING
(See: Flashing).
CHIMNEY POT
An earthenware or metal pipe or deflector, projecting from the top of the chimney to increase draft and reduce and disperse smoke.
C HORIZON
The horizon (layer) of the Earth below the A and B horizons. Called the substratum, it is usually not affected by rain, change of temperature, or other surface conditions.
CHOSE IN ACTION
A right to an action for recovery of a debt or to possession of anything held by another. The right to possession rather than possession.
CHOSE IN POSSESSION
Something in possession, rather than the right to possession.
CHURCH
A public place of worship, usually Christian worship. (See also: Synagogue; Temple). Please see our Church page.
CIENAGA
A Spanish word meaning a swamp or marsh, formed by hillside springs.
CINDER BLOCK
A building block composed of cinders (ashes) and cement, which does not have the weight or strength of a cement block.
CIRCLEHEAD WINDOW
A semicircular window, usually above a door, which has no moving parts and is used as a decoration as well as to admit light.
CIRCUIT BREAKER
An electrical device which has taken the place of the fuse in most homes. The circuit is broken (electricity shut-off) when there is an overload. The circuit breaker can be reset rather than replaced as a fuse must be.
CIRCULATION PATTERN
The regular traffic pattern, as from a residential area to a business district and back.
CIRCUMFERENTIAL HIGHWAY
A highway which arcs around the central business district of a city. Also called a belt highway or by-pass.
CISTERN
A tank used for storing rain water for use in areas where there is no water brought to the property by plumbing.
CITY
Technically, a municipal corporation having voting by representatives to operate its functions, rather than direct voting, as in a town. Commonly, any large incorporated town is called a city.
CITY PLAN
(See: Master Plan).
CIVIL ACTION
Any action which is not a criminal action.
CIVIL LAW
(1) Roman Law. The legal system derived from the Romans which is prevalent in most of the non-English speaking countries, and, to some degree, in Louisiana. Differs from Common Law of England, from which United States Law is derived. (2) Any laws which are not criminal laws.
CLAIM
An assertion of some right or demand.
CLAPBOARD
Narrow boards used as siding for frame houses, and having one edge thicker than the other. The boards run horizontally with the thicker edge overlapping the thinner edge.
CLARIFIER
Underground system of tanks with filters or chemical agents designed to remove or neutralize harmful wastes from water before emptying said water into a sewer or septic tank.
CLASS ACTION
An action brought on behalf of a group of people having a similar claim. Has become increasingly popular in the consumer movement, and is a strong weapon against unfair pricing when the price of overcharging in one instance would be too minor to bring suit.
CLASSIFIED LOAN
A substandard loan which a bank should not have made.
CLASSIFIED PROPERTY TAX
Property tax which varies in rate depending on the use (zoning classification) of the property.
CLEAN ROOM
A room specially designed to have a controlled atmosphere, for health reasons or experimentation accuracy, such as a germ free room or a dust free room.
CLEARANCE
(1) The removal of structures from an area for urban renewal. (2) The maximum height of a vehicle which may safely pass under a bridge or through a tunnel.
CLEAR HEADWAY
The height of the lowest overhead framing member (usually the top of a door frame) as measured from the floor.
CLEAR LUMBER
High quality lumber "clear" of most defects, particularly knots.
CLEAR SPAN
An interior area which does not use columns or posts to hold up the roof, thereby creating a large, open area with maximum visibility and use of the floor space.
CLEAR TITLE
(See: Free and Clear).
CLERESTORY
A wall or portion of a wall to which the roof attaches at a higher level than the other walls or portions of a wall of a building. Generally found in church construction and contains windows.
CLERESTORY WINDOW
Window in a clerestory.
CLIENT
Traditionally one who employs an attorney. Has loosely been used to refer to the principal of a real estate agent, insurance agent, stock broker, etc.
CLOSE CORPORATION
(1) A corporation not allowing its shareholders to vote for directors or officers. (2) A corporation owned by a small group of shareholders and not having publicly traded stock. Commonly, and incorrectly, called a closed corporation.
CLOSED CORPORATION
(See: Close Corporation).
CLOSED END MUTUAL FUND
A fund (sometimes dealing in real estate or mortgages) which is not accepting new investors. The shares in the fund are bought and sold, either at a premium, par, or a discount, based on the success of the fund. The shares are not sold and redeemed through the fund but on the open market The same technique is used with closed end trusts.
CLOSED MORTGAGE
(See: Lock-in).
CLOSING
The final procedure in which documents are executed and/or recorded, and the sale or loan is completed. Also known as "escrow" or "settlement".
CLOSING COSTS
Expenses incidental to a sale of real estate, such as loan fees, title fees, appraisal fees, etc.
CLOSING STATEMENT
The statement which lists the financial settlement between buyer and seller, and also the costs each must pay. A separate statement for buyer and seller is sometimes prepared.
CLOUD
(See: Cloud on Title).
CLOUDED TITLE
An invalid encumbrance on real property.
CLOVERLEAF
An intersection using loop shaped ramps and grade separation to accomplish the intersecting of traffic without signal lights or stop signs. When viewed from above, the shape of the intersection resembles a cloverleaf.
CLOVERLEAFING
A method of real estate canvassing by looping around a specific property (one listed or sold) in the shape of a cloverleaf, in order to obtain listings or buyers.
CLUSTER HOUSING
Building houses close together with little yard space and a large common area, rather than each house having a large yard. The density is usually greater in the cluster project.
CLUSTER ZONING
Zoning allowing the construction of buildings closer together than normal (clustered) and then requiring the balance of the property to be kept as open space.
CMO
(See: Collateralized Mortgage Obligation).
CO-ADMINISTRATOR
One who shares the duties of administrator with one or more other administrators.
COAST
The seashore or land near it.
COASTAL COMMISSION
A commission set up to control construction in coastal areas.
CODE
A comprehensive set of laws drawn up to cover completely a given subject. Covers diverse subjects, such as the criminal code, and the building code.
CODE OF ETHICS
(See: Ethics).
CODICIL
An addition to a will, which modifies the will by adding to it, subtracting from it, or clarifying it.
CO-EXECUTOR
One who shares the duties of executor with one or more other executors.
COFFERDAM
(See: Caisson).
COGNOVIT NOTE
A note in which a debtor confesses judgement in the event of nonpayment and waives all defenses.
COIGN, COIGNE
A cornerstone, usually differing in size (and sometimes material) from the rest of the wall, also spelled quoin.
COINSURANCE
A sharing of the risk of an insurance policy by more than one insurer. Usually one insurer is liable up to a certain amount; the other liable over that amount.
COLD CANVASS
Soliciting door to door without any previous contact, such as a phone canvass. A good method for a salesperson to begin to establish a farm area. [See: Farm (3)].
COLLAPSIBLE CORPORATION
A corporation which is sold instead of its product, in order to create a capital gain rather than ordinary income for tax purposes. For example: A and B (persons) are real estate developers who want to build an office building to sell. They form a corporation which builds the building. Then, rather than selling the building, A and B sell the corporation, claiming capital gain on the stock profit. Federal tax laws regulate such transactions.
COLLAR TIE
(See: Tie Beam).
COLLATERAL
By or at the side, additional or auxiliary. Mistakenly used to mean collateral security.
COLLATERAL ASSIGNMENT
An assignment of property as collateral security, and not with the intent to transfer ownership from assignor to assignee.
COLLATERAL HEIR
One not in a direct line of descent of inheritance. Example: A nephew, not a son.
COLLATERAL NOTE
A promissory note secured by specific property.
COLLATERAL SECURITY
Most commonly used to mean some security in addition to the personal obligation of the borrower.
COLLATERALIZED MORTGAGE OBLIGATION
A mortgage-backed security. CMOs are similar to mortgage-backed securities except that CMOs offer the option of short or long maturity. The future cash flows from a group of mortgages are split into varying length classes to satisfy the needs of investors who seek different maturity lengths. (See: Mortgage-Backed Securities).
COLLUSION
An agreement of two or more people to do something unlawful. Generally, an agreement between people who represent different interests and "sell out" these interests for personal gain.
COLONIAL ARCHITECTURE
Two story houses with windows divided into small panes, usually with shutters. The main facade is detailed and symmetrical, generally with a center entrance. Architecture following the style of New England colonial houses.
COLONNADE
Columns, regularly spaced, which support an architrave. (See also: Peristyle; Portico).
COLOR OF TITLE
That which gives the appearance of good title, but actually contains some defect. For example: A conveyance given without the grantor having good title.
COLUMN
A large vertical support member of a structure. A pillar, usually cylindrical.
COLUMN FOOTINGS
The support bases for load-bearing columns. Generally composed of reinforced concrete.
COLUMN LOTS
Small lots for the placement of columns to support a structure, such as a billboard or other structure which has its largest parts not touching the ground.
COLUMN STEEL
Steel used inside of a column for reinforcement.
CO-MAKER
A surety (see which) under a loan. The co-maker is equally responsible for repayment as the borrower (maker).
COMBED PLYWOOD
An interior paneling, grooved as if by a comb.
COMBINATION DOOR
An outer door using interchangeable panels of glass and screen, depending on the weather.
COMBINATION SEWER
A sewer that is both a sanitary and storm sewer.
COMBINATION WINDOW
A window using interchangeable panels of glass and screen, depending on the weather.
COMMENSURATE PROPERTY
(See: Base Property).
COMMERCIAL ACRE
(See: Net Acre). 36
COMMERCIAL BANK
An institution for savings, loans, checking accounts, and other services not all of which are found in savings and loan institutions. Banks are generally more active in construction loans rather than long term real estate financing.
COMMERCIAL PAPER
Negotiable instruments used in the course of business, such as promissory notes, which are bought and sold (usually at a discount).
COMMERCIAL PROPERTY
Property which is zoned "commercial" (for business use). Property such as stores, restaurants, etc., falling between residential and industrial.
COMMINGLING
To mix funds held in trust with other funds intending to misappropriate the funds. See also: Conversion (2) .
COMMISSION
An amount, usually as a percentage, paid to an agent (real estate broker) as compensaton for his services. The amount to a real estate broker is generally a percentage of the sale price or total rental.
COMMISSION POINT
(See: Point (2)).
COMMISSION SPLIT
The division of the payment made to the listing agent between that agent and her broker, or between the listing agent and agent representing the Purchaser (the selling agent).
COMMITMENT
(1) Title insurance term for the preliminary report issued before the actual policy. Said report shows the condition of title and the steps necessary to complete the transfer of title as contemplated by buyer and seller. (2) A written promise to make or insure a loan for a specified amount and on specified terms.
COMMITMENT FEE
A fee paid for a loan commitment. (See: Commitment (2)).
COMMON AREA
The area owned in common by the owners of condominiums or planned unit development homes in a subdivision.
COMMON AREA ASSESSMENTS:
Also known as Common Element Fees. A periodic charge levied against all of the owners of units in a condominium or planned unit development (PUD) project which is used by the condominium corporation or homeowner's association to pay for repair, maintenance and other expenses of the common areas in the development.
COMMON BRICK
A brick having no special surface treatment, making each brick different in color. Used to describe a surface of bricks which are artificially treated so that each is different in color.
COMMON INTEREST COMMUNITY - CIC
Mutual ownership of common areas, either jointly or by membership of an association.
COMMON ELEMENTS:
A common area in a condominium project which is owned by the condominium corporation and for the use of all unit owners.
COMMON LAW
The body of laws, originated and developed in England, which was adopted by most states and still prevails if not superseded by statute. Also referred to as case law.
COMMON LAW MORTGAGE
Any mortgage which contains the elements of a mortgage according to the Common Law.
COMMON OF ESTOVERS
(See: Estovers).
COMMON STOCK
A share of ownership in a corporation.
COMMON WALL
(See: Party Wall).
COMMUNITY ASSOCIATION:
Any organization established and run by property owners in a particular area, often to represent the common interests of the owners in dealings with government, planning bodies, developers or other outside parties.
COMMUNITY HOME BUYER'S PROGRAM:
Program established to find creative ways to finance home purchases for people with modest income.
COMMUNITY PROPERTY
Property owned in common by a husband and wife, which was not acquired as separate property. A classification of property peculiar to certain states.
COMMUNITY REINVESTMENT ACT
Federal legislation of 1977 (and subsequent amendments) for the purpose of encouraging banks and thrifts (savings and loans) to make more loans in their local areas. The act created the National Consumer Cooperative Bank to make loans to local banks and thrifts for community investment (loans) and also to guarantee certain loans made in the local community.
COMMUNITY SHOPPING CENTER
An intermediate size shopping center. May contain a small department store and coordinated small shops. Larger than a neighborhood center and smaller than a regional center.
CO-MORTGAGOR
One who signs a mortgage with another as borrower. The term is often applied to one who intends to guaranty the loan even though co-mortgagors have equal liability.
COMPACTION
The pressing together and joining of sedimentary layers of ground by the pressure of the weight of overlying layers. A report showing the density of the soil and its make-up is required in some areas before permits for construction will be issued.
COMPARABLES
Properties used as comparisons to determine the value of a specific property.
COMPARATIVE ANALYSIS
(See: Market Value Approach).
COMPARATIVE METHOD
A method of estimating replacement construction cost by comparing the property to be built with the cost per square foot or cost per cubic foot of a similar building.
COMPARISON METHOD
(See: Market Value Approach).
COMPENSATING BALANCE
Funds deposited into a bank, saving and loan association, or other lending institution, to induce the lender to make a specific loan or establish a line of credit. The deposit may be made by the party desiring the loan, or a third party.
COMPENSATION
A payment to make amends for the abridgement of rights or an injury. In condemnation, the payment for the taking of a person's property without the owner's consent.
COMPENSATORY DAMAGES
Damages to cover a loss or injury and nothing more. (See also: Exemplary Damages).
COMPETENT
Legally fit. Having the necessary age, ability, and authority to accomplish any given acts or duties.
COMPONENT CONSTRUCTION
Also called modular construction or prefabrication. (See also: Prefabrication).
COMPONENT DEPRECIATION
Allocating separate effective lives to components of a building and depreciating each separately.
COMPONENT PANEL
A modular (prefabricated) wall, fully finished, which is installed as a part of a building.
COMPOSITE RATE
A rate reflecting both the income flow of a building (or other depreciating asset) and the recapture of invested capital.
COMPOSITION
(1) A mixture of gravel or stones embedded in a heavy tar roof shingle, and called a "composition" roof. (2) A creditor's composition, (see which).
COMPOUND AMOUNT OF AN ANNUITY
The total amount at the end of a given period, including investment and reinvestment of the annuity payments.
COMPOUND AMOUNT OF AN INVESTED SUM
The total amount at the end of a given period, including the reinvestment of all interest plus the original amount invested.
COMPOUND INTEREST
Interest paid on accumulated interest as well as on the principal.
COMPOUND SLOPE
A slope composed of two or more separate slopes with different grade angles.
COMPREHENSIVE COMMUNITY PLAN
(See: Master Plan).