Glossary Of Terms

A stipulation in a mortgage which permits the lending institution to require payment of the exceptional balance at a particular time.


CAP.
Related To Adjustable Rate Mortgages. A limit on how high regular monthly payments or how much rates of interest might change within a specific time period or the life of the mortgage.


CAPE COD COLONIAL.
A single-story house design made popular in New England. Often characterized by a high roofing with gables.


CAPITAL.
Accumulated goods and cash which is usually utilized to create extra earnings.


CAPITAL INVESTMENT.
An investment of funds developed to enhance the income-producing abilities of an asset or to extend its financial life.


CASH-OUT REFINANCE.
Refinancing a mortgage at a greater amount than the existing balance in order to change a portion of the equity into cash.


CAULKING.
A flexible material utilized to seal fractures or openings such as around windows.


CAVEAT EMPTOR.
Literally translated: "Let the buyer beware." A typical service tenet whereby the purchaser is responsible for validating any and all claims by the seller of residential or commercial property.


CERTIFICATE OF DEPOSIT.
A file revealing that the bearer has a particular quantity of money, at a specific amount interest, on deposit with a financial organization.


CERTIFICATE OF DEPOSIT INDEX.
An index based on the rates of interest of six month CD's. Used to set rates of interest on some Adjustable Rate Mortgages.


CERTIFICATE OF ELIGIBILITY.
A document released by the Veterans Administration that certifies eligibility for a VA loan.


CERTIFICATE OF OCCUPANCY.
Issued by an appropriate jurisdictional entity, this file certifies that a building complies with all structure codes and is safe for usage or habitation.


CERTIFICATE OF REASONABLE VALUE (CRV).
Usually based on an independent appraisal, a CRV for a specific residential or commercial property establishes the optimum quantity which can be secured by a VA mortgage.


CERTIFICATE OF TITLE.
A document designating the legal owner of a parcel of real estate. Usually offered by a title or abstract business.


CERTIFIED GENERAL APPRAISER.
Generally, any expert who has satisfied the regional or state requirements, and passed the suitable certification examination, and can assessing any type of residential or commercial property.


CERTIFIED RESIDENTIAL APPRAISER.
A sub-classification of appraiser who is just licensed to assess domestic property, normally up to four units.


CHAIN OF TITLE.
The complete history of ownership of a piece of residential or commercial property.


CHATTEL.
Any personal residential or commercial property which is not connected to or an integral part of a residential or commercial property. Chattel is not frequently taken into factor to consider when assessing the value of real residential or commercial property.


CIRCUIT BREAKERS.
Electrical gadgets which immediately open electrical circuits if they are strained.


CLEAR TITLE.
Ownership of residential or commercial property that is not overloaded by any counter-claim or lien.


CLOSING.
An agonizing process created to cause cramping in a home purchaser's hands by requiring signature on many pieces of documentation that nobody has ever checked out. Or, the procedure where the sale of a residential or commercial property is consummated with the buyer finishing all applicable documents, including signing the mortgage responsibility and paying all appropriate expenses related to the sale (CLOSING COSTS).


CLOSING COSTS.
All proper costs generated by the sale of residential or commercial property which the parties must pay to complete the deal. Costs may consist of appraisal costs, origination costs, title insurance, taxes and any points negotiated in the deal.


CLOSING STATEMENT.
The file detailing the last financial plan between a purchaser and seller and the expenses paid by each.


CO-BORROWER.
A 2nd person sharing commitment on the loan and title on the residential or commercial property.


COLLATERAL.
A property which is put at danger to protect the repayment of a loan.


COLLECTION.
The process a loan provider takes to pursue a borrower who is overdue on his payments in order to bring the mortgage current again. Includes paperwork that may be used in foreclosure.


CO-MAKER.
A 2nd celebration who signs a loan, together with the debtor, and ends up being liable for the financial obligation should the customer default.


COMMON LAW.
Instead of statute law. Laws that have been established by custom, usage and courts over several years.


COMMISSION.
A percentage of the sales cost or a fixed cost negotiated by a representative to compensate for the effort expended to sell or acquire residential or commercial property.


COMMON AREA ASSESSMENTS.
Fees which are charged to the tenets or owners of residential or commercial properties to cover the costs of keeping locations shared with other tenets or owners. Commonly found in condo, PUD or workplace.


COMMON AREAS.
Any locations, such as entrances, foyers, swimming pools, leisure facilities or the like, which are shared by the tenets or owners of residential or commercial property near by. Commonly found in condominium, PUD or workplace areas.


COMMUNITY RESIDENTIAL OR COMMERCIAL PROPERTY.
In many jurisdictions, any residential or commercial property which has actually been obtained by a married couple. The ownership of the residential or commercial property is thought about equivalent unless stipulated otherwise by both celebrations.


COMPARABLES.
A shortened term utilized by appraisers to explain residential or commercial properties which are similar in size, condition, location and facilities to a subject residential or commercial property who's worth is being figured out. The Uniform Standards of Professional Appraisal Practice (USPAP) establish clear standards for figuring out a similar residential or commercial property.
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COMPOUND INTEREST.
Interest paid on the primary quantity, along with any accumulated interest.


CONCESSIONS.
Additional worth granted by a purchaser or seller to attract another celebration to finish a deal.


CONDEMNATION.
The official procedure by which a residential or commercial property is considered to be uninhabitable or unusable due to internal damage or other external conditions.


CONDENSATION.
The shift of water vapor to liquid. Typically types in areas of high humidity.


CONDOMINIUM.
An advancement where specific systems are owned, but typical areas and facilities are shared similarly by all owners.


CONDOMINIUM CONVERSION.
Commonly, the conversion of a rental residential or commercial property such as an apartment building into a CONDOMINIUM-style complex where each system is owned instead of rented.


CONDOTEL:.
Are Condo-hotels normally located in touristy locations or buildings containing both condominiums and hotel spaces. Condotels usually provide ownership in a vacation-style condos that provide onsite rental management. Often owners of condotels are restricted to a particular variety of days of usage and hence not suitable for main residence.


CONDUIT.
The pipe through which electric circuitry is run.


CONSTRUCTION LOAN.
A loan made to a home builder or property owner that funds the preliminary construction of a residential or commercial property, however is replaced by a standard mortgage one the residential or commercial property is finished.


CONTIGUOUS.
Connected to or touching along an unbroken boundary.


CONTINGENCY.
Something that must happen before something else occurs. Often used in property sales when a purchaser should offer a present home before purchasing a brand-new one. Or, when a purchaser makes a deal the requires a complete home inspection before it ends up being main.


CONTRACT.
A legally binding agreement, oral or composed, in between two parties.


CONVENTIONAL MORTGAGE.
A standard, property funding system that is not backed by any or other firm (FHA, VA, and so on).


CONVERTIBLE ARM.
A mortgage that begins as and adjustable, that enables the customer to convert the loan to a fixed rate within a specific timeframe.


COOPERATIVE (CO-OP).
A type of ownership where each resident of a multiunit residential or commercial property owns a share in a cooperative corporation that owns the structure. With each resident having rights to a particular unit within the structure.


CORPORATE RELOCATION.
A situation where a person's company pays all or some of the expenses related to moving from one area to another, generally over a substantial range. Relocation expenses often consist of the amounts, such as brokerage charges, sustained in the selling and purchasing of the employee's primary house.


COST OF FUNDS INDEX (COFI).
An index of banks expenses used to set interest rates for some Adjustable Rate Mortgages.


COVENANT.
A specification in any mortgage that, if not satisfied, can be cause for the lender to foreclose.


CREDIT.
A loan of money for the purchase of residential or commercial property, real or individual. Credit is either protected by a property, such as a home, or unsecured.


CREDIT REPORT.
A record of financial obligation payments, previous and present. Used by mortgage lenders in determining credit worthiness of individuals.


CREDITOR.
An individual to whom money is owed.


CREDIT REPORT.
A comprehensive report of an individuals credit, employment and house history prepared by a credit bureau. Used by lenders to figure out credit merit of individuals.


CREDIT REPOSITORY.
Large companies that collect and keep monetary and credit information about people who request credit.


CUL-DE-SAC.
A dead-end street. One with only one entrance/exit.


DATE OF APPRAISAL.
The particular time as of which an appraiser designates the value of a home. Often stated as the date of assessment.


DEBT.
A commitment to repay some quantity owed. This might or might not be monetary.


DEBT EQUITY RATIO.
The ratio of the amount a mortgagor still owes on a residential or commercial property to the amount of equity they have in the home. Equity is computed at the fair-market worth of the home, less any impressive mortgage debt.


DEED.
A document suggesting the ownership of a residential or commercial property.


DEED-IN-LIEU (OF FORECLOSURE).
A file given by a customer to a lending institution, transferring title of the residential or commercial property. Often used to avoid credit-damaging foreclosure treatments.


DEED OF TRUST
A document which moves title in a residential or commercial property to a trustee, who's responsibilities and powers are stipulated. Often utilized in mortgage deals.


DEED OF RECONVEYANCE
A document which moves ownership of a residential or commercial property from a Trustee back to a debtor who has satisfied the responsibilities of a mortgage.


DEED OF RELEASE
A file which dismisses a lien or other claim on a residential or commercial property.


DEED OF SURRENDER
A document utilized to give up any claim an individual needs to a residential or commercial property.


DEFAULT.
The condition in which a borrower has actually failed to satisfy the obligations of a loan or mortgage.


DELINQUENCY.
The state in which an obtain has failed to fulfill payment responsibilities on time.


DEPOSIT.
Cash offered in addition to an offer to buy residential or commercial property, Also called EARNEST MONEY.


DEPRECIATION.
The natural decline in residential or commercial property worth due to market forces or depletion of resources.


DETACHED SINGLE-FAMILY HOME.
A single structure enhancement planned to work as a home for one family.


DISCOUNT POINTS.
Points paid in addition to the loan origination charge to get a lower rates of interest. One point amounts to one percent of the loan quantity.