CapA cap, also referred to as an interest ratecap, is a risk management tool that provides protection against increasing interest rates(...)
Cape Cod StyleA Cape Cod house is a low, broad, single-story frame building with a moderately steep pitched gabled roof, a large central chimney,(...)
Capital AssetA capital asset is an item that you own for investment or personal purposes, such as stocks, bonds or stamp collections. When you sell(...)
Capital ExpenditureCapital expenditure, abbreviated as CAPEX, is any funds used by a company to upgrade or acquire physical assets, including equipment(...)
Capital GainsCapital gains are profits made from the sale of real estate, investments and personal property. The Internal Revenue Service (IRS)(...)
Capital ImprovementCapital improvement is any permanent structure or other asset added to a property that adds to its value.
Capital LossA capital loss occurs when you sell a security or investment for less than the original purchase price or its adjusted basis.(...)
CapitalizationCapitalization has multiple meanings. In accounting, capitalization refers to the process of expensing the costs of attaining an asset(...)
Capitalization RateCapitalization rate is the estimated percentage rate of return that a property will produce on the owner’s investment.
Capitalized Cap CostCapitalized cap cost is the sales price of a car being financed with a lease. It includes the car’s negotiated price plus any(...)
Cash FlowCash flow represents the money coming in and going out of a company or organization during a specific accounting period.
Cash-out RefinanceA cash-out refinance, or “cash-out refi,” is when a mortgage is refinanced for more than what is owed and the borrower takes out the(...)
Casualty and Theft LossA casualty and theft loss is one caused by a hurricane, earthquake, fire, flood, theft or similar event that is sudden, unexpected or(...)
Certificate of OccupancyA certificate of occupancy is a document issued by the local government that gives permission for tenants to live in a building that(...)
Certificate of SaleA certificate of sale is issued to a buyer when she purchases a foreclosed property. Although it doesn’t signify the buyer’s ownership(...)
Certificate of TitleA certificate of title is a statement provided by a title company or attorney stating that the title to the real estate or vehicle is(...)
Certified Passive HousePassive house is a voluntary standard for energy efficiency in a building, which reduces the building's ecological footprint.
Cesspoolan underground container for the temporary storage of liquid waste and sewage.
Chain of TitleThe chain of title is a real estate records search that lists the successive owners of a home or property. The purpose of a chain of(...)
Change FrequencyThe change frequency refers to how often a payment and/or interest rate changes in an adjustable-rate mortgage, or ARM. Also known as(...)
Change OrderA change order is a document that states and defines alterations to a construction plan. The change order acts as an amendment to the(...)
Chapter 11Chapter 11 refers to the bankruptcy code that is used to provide corporate or partnership reorganizations. A Chapter 11 debtor(...)
Chapter 12Chapter 12 is a special type of bankruptcy intended specifically for someone meeting the definition of “family farmer” or “family(...)
Chapter 13Chapter 13 bankruptcy allows private individuals to keep your property but must pay back a portion or the entirety of their debt over(...)
Chapter 7Chapter 7 refers to a chapter of the bankruptcy code that provides for “liquidation.” Under Chapter 7, your debt is discharged, but(...)
Chapter 9Chapter 9 is a chapter in the bankruptcy code that specifically addresses the debts of a municipality, such as a city or town. The(...)
Clapboarda long, thin, flat piece of wood with edges horizontally overlapping in series, used to cover the outer walls of buildings.
Clear TitleA clear title is one in which the owner owns the property outright and without any restrictions, such as liens or levies. With a clear(...)
ClosingClosing is one of the final components to the homebuying process in which the sale of the property takes place. A buyer signs lender(...)
Closing CostsClosing costs are the fees a seller and buyer pay to complete a real estate transaction. The costs paid at closing usually equal(...)
Closing StatementA closing statement, also called a HUD-1 statement or settlement sheet, is a form used in real estate transactions with an itemized(...)
Cloud on TitleA cloud on title is any unresolved claim, lien or other encumbrance on a property that may prevent transfer of ownership from one(...)
Co-housingA co-housing community is a community in which residents have their own private homes, typically built in a cluster, but share certain(...)
COAA COA is specific to owners of condominiums. Owners that are a part of these associations own their specific condominium and then(...)
COFI MortgageA COFI mortgage is a type of mortgage on which interest is calculated based on the cost of funds index, or COFI. These mortgages have(...)
CollateralCollateral describes the personal property or assets that a borrower offers to a lender to secure a loan. As part of the loan(...)
Colonial StyleColonial-style homes normally have a square or rectangle shape, with the door located in the exact center and the same number of(...)
Combination RoofUsing various roof designs on one home is called a Combination roof which adds interesting architectural appeal. This style is(...)
Combined Loan-to-Value RatioCombined loan-to-value ratio, or CLTV, is a borrower’s overall mortgage debt load, expressed as a percentage of the home’s fair market(...)
Commercial Real EstateCommercial real estate is land on which a business can be run. As opposed to residential real estate, which can only be used for(...)
CommissionA commission is the fee paid to someone as part of the sale of a particular product. One of the best known commissions involves the(...)
Commitment FeeA commitment fee is a fee that a lender may charge a borrower to whom it has agreed to extend credit. Generally charged for lines of(...)
Common Area AssessmentA common-area assessment is a cost that members of condominium associations and homeowners associations must pay to maintain common(...)
Common AreasCommon areas are elements of a property available for use for all tenants or owners. Common areas can include hallways, sidewalks,(...)
Common-interest DevelopmentA common-interest development (CID) is a housing area in which residents are members of a homeowners association, which allows them to(...)
Community Apartmenta collection of apartment buildings on adjoining pieces of land, generally owned by one entity. The buildings often share common(...)
Community Development TaxThe Community Development Corporation (CDC) Tax Credit program rewards local businesses that contribute to economic development(...)
Comp ValueA comp, which is an abbreviation for comparable sale, is a recently sold home in your area that’s similar to your home in location,(...)
Comparable ValueComparable value is the dollar amount that the seller or retailer considers property or merchandise to be worth. This is a highly(...)
Comparables (Comps)Comparables, sometimes referred to as “comps,” are properties used for comparison in the real estateappraisal process. When a house(...)
Comparative Market Analysis (CMA)Comparative market analysis, or CMA, is the examination, often in the form of a report, of various price points of similar properties(...)
CondemnationCondemnation occurs when a public authority, such as the local government, seizes a piece of private property for public use. The(...)
Conditional CommitmentWhen applying for a mortgage, a homebuyer may receive notice of a conditional commitment. This means the lender is willing to finance(...)
CondominiumA condominium is a building that contains multiple units available for owner occupancy. Each unit in the building has an owner, but(...)
Condominium ConversionCondominium conversion is the process of converting rental apartments, which are leased by the occupants, into condominium units,(...)
Condominium StyleA condominium is a large property complex divided into individual units and sold. Ownership usually includes a nonexclusive interest(...)
Conforming MortgageA conforming mortgage is a one that follows the guidelines of Fannie Mae and Freddie Mac, the two government-sponsored enterprises(...)
ConsiderationIn contract law, consideration refers to an item of value that the parties negotiate as a part of a contract. Consideration is a(...)
Constitutions and BylawsIn most organizations, the constitution describes the purpose of the organization, its principals and its key organizational(...)
Construction BudgetThe construction budget is the amount of money allotted for a specific building or remodeling project. Construction budgets are used(...)
Construction LoanA construction loan is a short-term, interim loan to pay for building a house. As work progresses, the lender pays out the money in(...)
Construction to Permanent LoanA construction to permanent loan is a loan used to finance the construction of a home. When the home is complete, it converts into a(...)
Consumer BankruptcyIf you’ve accumulated debt on personal expenses, then you have consumer debt. Consumer bankruptcy refers to the type of personal(...)
Contemporary StyleThe Contemporary style includes simple, clean lines with large windows devoid of decorative trim. The exteriors are a mixture of(...)
Contiguous LotsContiguous lots are pieces of real estate that are adjoined or adjacent to each other. Contiguous lots share a common boundary, so(...)
ContractAny real estate transaction requires a contract, which can be either written or verbal but must spell out every aspect of the(...)
Contract for DeedA contract for deed is a legal agreement for the sale of property in which a buyer takes possession and makes payments directly to the(...)
Contractual LienThere are many kinds of liens (tax liens, mechanic’s liens, judgment liens and statutory liens, for example), and indeed most of them(...)
Conventional MortgageA conventional mortgage or conventional loan is a plain-vanilla home loan that’s ideal for borrowers with good or excellent credit.(...)
Conventional Style"Conventional" styling simply means that it fits the norms that are well-established in most of the Western world. For the most part,(...)
Conversion ClauseA conversion clause is a provision that may appear in an adjustable-rate mortgage, allowing the loan to be changed to a fixed-interest(...)
Convertible MortgageA convertible mortgage is an adjustable-rate loan that gives the borrower the option to convert the loan to a fixed-rate mortgage.(...)
Conveyance TaxConveyance tax is levied on the transfer of real property at the county, municipal or state level. It is computed as a sale price(...)
CooktopA “cooktop” is a cooking appliance that sits on top of your countertops. It offers the same functions as the range, however, a wall(...)
CooperativeA housing cooperative, commonly referred to as a co-op, is a corporation formed to share ownership in a single property among multiple(...)
Cooperative MortgageA cooperativemortgage is a type of loan that allows the borrower to purchase shares of a cooperative housing project. In this type of(...)
Corrective WorkCorrective work consists of any maintenance or repairs a buyer requests to be completed before closing on a house or building.
Cost BasisYour adjusted basis is generally your cost in acquiring your home plus the cost of any capital property improvements that add value or(...)
Cost-plus ContractA cost-plus contract is an agreement that specifies the client will pay the contractor for construction expenses detailed in the(...)
CounterofferA counteroffer is an offer made in response to an initial offer with unfavorable terms. It’s part of the negotiating process and(...)
County Property ReportThe Property Detail report is a comprehensive report that summarizes all the information related to the property, including owner,(...)
Court Order DeedThese deeds include sheriff’s deeds, master deeds, or any other type of deed being created without the consent of the seller.(...)
CovenantA covenant is a promise on the part of businesses that borrow money to uphold certain conditions stated in its loan agreement. They’re(...)
Covenant Lite LoanA covenant lite loan is a loan agreement that has fewer covenants to protect the lender and fewer restrictions on the borrower(...)
Covenants, Conditions and RestrictionsCovenants, conditions and restrictions (commonly referred to as CCRs) are the written rules and restrictions pertaining to the use of(...)
Covered ExpensesCovered expenses refer to what an insurance provider includes as part of its coverage. Every insurance provider outlines specific(...)
Crawl SpaceThe primary purpose of a crawl space is to promote air circulation through the home and also allow easy access to plumbing, electrical(...)
Creative FinancingCreative financing is an innovative or unusual way of structuring a loan that allows a person to buy a home, land or some other major item.
CreditCredit is issued to people who want to obtain something now, but who can’t or don’t want to necessarily pay for it now, based on that(...)
Credit AgreementA credit agreement is a legally binding contract made between a person who borrows money and the lender. It is agreed upon by both(...)
Credit BureauA credit bureau tracks the credit history of borrowers in order to generate credit reports and credit scores. Financial companies buy(...)
Credit HistoryA credit history is the record of how a person has managed his or her credit in the past, including total debt load, number of credit(...)
Credit InsuranceCreditinsurance is an insurance policy that pays off an outstanding debt in the event of the policy holder’s death, disability, or(...)
Credit LineA credit line is a flexible loan option offered by financial institutions to individuals and corporate entities. A credit line always(...)
Credit Monitoring ServiceA credit monitoring service tracks your credit for any significant changes such as new accounts or a dramatic increase in your balances.
Credit RatingA credit rating is a measurement of a person or business entity’s ability to repay a financial obligation based on income and past(...)
Credit ScoreA credit score is a number that represents a person’s creditworthiness. Credit scores are based on a variety of personal financial(...)
Credit Scoring SystemLenders use a credit scoring system, or a numerical system, to measure how likely it is that a borrower will make payments on the(...)
Credit UtilizationCredit utilization refers to the amount of credit you have used compared with how much credit you have been extended by a lender. It(...)
Curved RoofThe Curved roof is very modern and creates a unique roof design. The curve can vary from a slight curve to an arch shape and is(...)
Custom BuilderA custom builder constructs one-of-a-kind homes based on the client’s specifications, instead of building a home and then selling it.(...)
Custom HomeA custom home is a house designed specifically for you by a hired architect. It’s built to your specifications rather than to a(...)
CyberspaceCyberspace is a term used to describe the environment in which all electronic communications and communications via computer networks(...)
