Albuquerque NM Real Estate Key Terms
Capital the money and or property comprising the wealth owned or used by a person or enterprise
Capital Gain the taxable profit derived from the sale o a capital asset. The capital gain is the difference between the sales price and the basis of the property after making appropriate adjustments for closing cost, capital improvement, and allowable depreciation.
Capital Loss a loss derived from the sale of a capital asset, securities, stocks, or bonds,
Capitalization Rate 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.
Cash Flow the spendable income from an investment after deducting from the gross income all operating and fixed expenses, include=ding principal and interest.
Cashiers Check a bill of exchange drawn buy a bank upon itself as a drawer and payable upon demand.
Cash on Cash 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.
Caveat Emptor Latin for let the buyer beware.
Certificate of Occupancy CO 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 the recorded history of matters that affect the title to a specific parcel of real property such as ownership, encumbrances, and liens, usually beginning wit the original recorded source of title. The chain of title shows the successive changes of ownership, each one linked to the next so that a chin is formed.
Clear Title title to property that is free from liens, defects or other encumbrances, except those the buyer has agreed to accept.
Client the person who employs an agent to perform a service for a fee also called a principal.
Cloud on Title any document, claim, unreleased lien, or encumbrance that may impair the title to real property or make the title doubtful.
Closing 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 payment to a broker for service rendered, such as the sale or purchase property.
Comparables properties use din an appraisal report that are substantially equivalent to the subject property.
Competitive Market Analysis CMA 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 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 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.
Contingency 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 a legally enforceable agreement between competent parties who agree to perform or refrain from performing certain acts for consideration.
Conventional Loan 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 send 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 a broker who assists another broker in the sale of real property.
Cost Approach an approach to the valuation of property based on the improvements reproduction or replacement cost.
Counteroffer a new offer made in response to an offer received from an offeror.
Covenants, Conditions, and Restrictions (CC&RS) private restrictions on the use of real property.
Conveyance refers to any document that transfers title to real property.
Credit Report 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 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 the impression gained whether good or ban of a property when it is first seen, usually from the street while driving by.
Myers & Myers Real Estate is a full service real estate brokerage located in Albuquerque New Mexico. We help home buyers and home sellers in the Albuquerque metro achieve their real estate goals. Our website has every home for sale in the Southwest Multiple Listing Service. Check out homes for sale in Albuquerque, homes for sale in Rio Rancho, homes for sale in Corrales, homes for sale in East Mountains, homes for sale in Valencia County, and homes for sale in Los Lunas.