Definitions of Key Real Estate Terms C
This article provides the definition of key estate terms beginning with the letter C.
Capital
is the money and or property comprising the wealth owned or used by a person or enterprise
Cash on Cash
is the before tax cash flow divided by the capital invested in the property; a method to determine how efficiently capital invested in the property is used.
Capital Gain
is the taxable profit derived from the sale o a capital asset. The difference between the sales price and the basis of the property after making appropriate adjustments for closing cost, capital improvement, and allowable depreciation is the capital gain.
Cash Flow
is the spendable income from an investment after deducting from the gross income all operating and fixed expenses, include=ding principal and interest.
Capital Loss
is a loss derived from the sale of a capital asset, securities, stocks, or bonds,
Cahiers Check
is a bill of exchange drawn buy a bank upon itself as a drawer and payable upon demand.
Capitalization Rate
is the percentage selected fro use in the income approach to valuation of improved property. The CAP rate is designed to reflect the recapture of the original investment over the economic life of the improvement to give investors an acceptable rate of return or their original investments and to provide for the return of the invested equity. The formula is expressed as Income/Rate= Value.
Caveat Emptor
is Latin for let the buyer beware.
Certificate of Occupancy (CO)
is a certificate issued by a government authority indicating that a building is ready and fit for occupancy and that there or no building code violations.
Chain Of Title
is the recorded history of matters that affect the title to a specific parcel of real property such as ownership, encumbrances, and liens, usually beginning with the original recorded source of title. In addition the chain of title shows the successive changes of ownership, each one linked to the next so that a chain is formed.
Clear Title
is title to property that is free from liens, defects or other encumbrances, except those the buyer has agreed to accept.
Client
is the person who employs an agent to perform a service for a fee also called a principal.
Cloud on Title
is any document, claim, unreleased lien, or encumbrance that may impair the title to real property or make the title doubtful.
Closing
is the consummation of a real estate transaction when the seller delivers title to the buyer in exchange for payment by a buyer for the purchase price.
Commission
is payment to a broker for service rendered, such as the sale or purchase property.
Comparables
are properties used in an appraisal report that are substantially equivalent to the subject property.
Competitive Market Analysis (CMA)
is a tool used by brokers to assist consumers in determining a property’s sale price. It is not an appraisal. The CMA consists of information about three types of properties similar to the subject property; prices of those sold, on the market, and expired.
Consideration
is that received by the grantor in the exchange for his or her deed. Something of value that induces a person to enter into a contract.
Construction Loan
is a short term or interim loan to cover the construction costs of a building or development project, with loan proceeds advanced periodically in the form of installment payments as the work progresses.
Contigency
is a provision in a contract that requires the completion of a certain act or the happening of a particular event before that contract is binding.
Contract
is a legally enforceable agreement between competent parties who agree to perform or refrain from performing certain acts for consideration.
Conventional Loan
is a loan made with real estate as security and no involving participation in the form of insuring (FHA) or guaranteeing (VA) the loan. The loan is conventional in the sense that it conforms to accepted standards and that the lender looks solely to the credit of the borrower and the security of the property to ensure payment of the debt.
Cooperative Broker
is a broker who assists another broker in the sale of real property.
Cost Approach
is an approach to the valuation of property based on the improvements reproduction or replacement cost.
Counteroffer
is a new offer made in response to an offer received from an offeror.
Covenants, Conditions, and Restrictions (CC&RS)
are private restrictions on the use of real property.
Conveyance
refers to any document that transfers title to real property.
Credit Report
is a report listing present and past debts, detailing the borrower’s ability to make timely payments and including information found form public records such as tax liens and judgments.
Credit Score
is a financial snapshot of a borrower’s credit history and current usage of credit at a given point in time determined by a mathematical formula based on information maintained by credit bureaus and other sources. Sample scores range from 400 to 900 and the lower the number the greater the risk of default.
Curb Appeal
is the impression gained whether good or ban of a property when it is first seen, usually from the street while driving by.
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Key Real Estate Key Terms C
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