Difference between revisions of "Glossary Of Terms"

Latest revision as of 21:54, 27 November 2025

A provision in a mortgage which enables the lender to require payment of the outstanding balance at a specific time.


CAP.
Associated with Adjustable Rate Mortgages. A limit on how high monthly payments or just how much rate of interest may change within a specific time period or the life of the mortgage.


CAPE COD COLONIAL.
A single-story home style made popular in New England. Often characterized by a steep roof with gables.


CAPITAL.
Accumulated products and money which is usually utilized to generate extra income.


CAPITAL EXPENDITURE.
An outlay of funds designed to enhance the income-producing abilities of a possession or to extend its economic life.


CASH-OUT REFINANCE.
Refinancing a mortgage at a greater quantity than the current balance in order to change a portion of the equity into money.


CAULKING.
A flexible product used to seal cracks or openings such as around windows.


CAVEAT EMPTOR.
Literally equated: "Let the purchaser beware." A common company tenet whereby the buyer is accountable for verifying any and all claims by the seller of residential or commercial property.


CERTIFICATE OF DEPOSIT.
A document revealing that the bearer has a particular quantity of money, at a particular amount interest, on deposit with a banks.


CERTIFICATE OF DEPOSIT INDEX.
An index based on the rate of interest of 6 month CD's. Used to set rates of interest on some Adjustable Rate Mortgages.


CERTIFICATE OF ELIGIBILITY.
A by the Veterans Administration that accredits eligibility for a VA loan.


CERTIFICATE OF OCCUPANCY.
Issued by a suitable jurisdictional entity, this file accredits that a structure abide by all building codes and is safe for use or habitation.


CERTIFICATE OF REASONABLE VALUE (CRV).
Usually based upon an independent appraisal, a CRV for a particular residential or commercial property develops the optimum quantity which can be protected by a VA mortgage.


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


CERTIFIED GENERAL APPRAISER.
Generally, any expert who has met the regional or state requirements, and passed the proper accreditation examination, and is capable of assessing any kind of residential or commercial property.


CERTIFIED RESIDENTIAL APPRAISER.
A sub-classification of appraiser who is just accredited to appraise house, generally up to four units.


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


CHATTEL.
Any personal residential or commercial property which is not attached to or an essential part of a residential or commercial property. Chattel is not commonly taken into account when appraising the worth of real residential or commercial property.


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


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


CLOSING.
An agonizing process designed to induce cramping in a home purchaser's hands by needing signature on many pieces of documents that no one has ever checked out. Or, the process where the sale of a residential or commercial property is consummated with the buyer finishing all suitable documentation, consisting of signing the mortgage obligation and paying all appropriate costs associated with the sale (CLOSING COSTS).


CLOSING COSTS.
All appropriate expenses created by the sale of residential or commercial property which the celebrations need to pay to finish the transaction. Costs might consist of appraisal charges, origination costs, title insurance, taxes and any points negotiated in the deal.


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


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


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


COLLECTION.
The process a lending institution takes to pursue a borrower who is delinquent on his payments in order to bring the mortgage current once again. Includes documentation that might be used in foreclosure.


CO-MAKER.
A 2nd party who signs a loan, along with the customer, and becomes liable for the debt ought to the customer default.


COMMON LAW.
Rather than statute law. Laws that have actually been developed by custom, use and courts over lots of years.


COMMISSION.
A percentage of the list prices or a fixed cost worked out by an agent to make up for the effort used up to offer or buy 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 discovered in condominium, 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 discovered in condo, PUD or workplace.


COMMUNITY RESIDENTIAL OR COMMERCIAL PROPERTY.
In lots of jurisdictions, any residential or commercial property which has been obtained by a married couple. The ownership of the residential or commercial property is considered equal unless stipulated otherwise by both parties.


COMPARABLES.
A shortened term used by appraisers to explain residential or commercial properties which are similar in size, condition, area and features to a subject residential or commercial property who's value is being identified. The Uniform Standards of Professional Appraisal Practice (USPAP) develop clear guidelines for identifying an equivalent residential or commercial property.


COMPOUND INTEREST.
Interest paid on the principal amount, in addition to any built up interest.


CONCESSIONS.
Additional value granted by a buyer or seller to entice another party 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 transition of water vapor to liquid. Typically forms in areas of high humidity.


CONDOMINIUM.
An advancement where specific systems are owned, however typical locations and amenities 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 unit is owned rather than rented.


CONDOTEL:.
Are Condo-hotels generally situated in touristy locations or structures including both condos and hotel spaces. Condotels usually supply ownership in a vacation-style condos that provide onsite rental management. Often owners of condotels are restricted to a specific variety of days of usage and hence not suitable for main house.


CONDUIT.
The pipe through which electric wiring is run.


CONSTRUCTION LOAN.
A loan made to a builder or resident that finances the preliminary construction of a residential or commercial property, however is replaced by a traditional mortgage one the residential or commercial property is finished.


CONTIGUOUS.
Connected to or touching along an unbroken boundary.


CONTINGENCY.
Something that must occur before something else happens. Often utilized in property sales when a purchaser should offer a current home before buying a brand-new one. Or, when a purchaser makes a deal the requires a total home evaluation before it ends up being main.


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


CONVENTIONAL MORTGAGE.
A traditional, real estate financing mechanism that is not backed by any government or other firm (FHA, VA, etc).


CONVERTIBLE ARM.
A mortgage that begins as and adjustable, that allows the borrower to transform the loan to a fixed rate within a specific timeframe.


COOPERATIVE (CO-OP).
A form of ownership where each local of a multiunit residential or commercial property owns a share in a cooperative corporation that owns the building. With each resident having rights to a specific system within the building.


CORPORATE RELOCATION.
A situation where an individual's employer pays all or some of the costs associated with moving from one place to another, usually over a significant range. Relocation expenses typically include the quantities, such as brokerage fees, sustained in the selling and purchasing of the worker's primary home.


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


COVENANT.
A stipulation in any mortgage that, if not fulfilled, can be trigger for the lending institution 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 RATING.
A record of financial obligation payments, previous and present. Used by mortgage loan providers in figuring out credit value of individuals.


CREDITOR.
A person to whom money is owed.


CREDIT REPORT.
A detailed report of an individuals credit, employment and house history prepared by a credit bureau. Used by lending institutions to determine credit value of people.


CREDIT REPOSITORY.
Large business that collect and store monetary and credit info about people who obtain credit.


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


DATE OF APPRAISAL.
The particular moment as of which an appraiser designates the worth of a home. Often stated as the date of inspection.


DEBT.
An obligation to repay some amount owed. This may or may not be financial.


DEBT EQUITY RATIO.
The ratio of the quantity 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 exceptional mortgage debt.


DEED.
A file showing the ownership of a residential or commercial property.


DEED-IN-LIEU (OF FORECLOSURE).
A document provided by a customer to a loan provider, transferring title of the residential or commercial property. Often utilized to avoid credit-damaging foreclosure treatments.


DEED OF TRUST
A file which transfers title in a residential or commercial property to a trustee, who's commitments and powers are stated. Often utilized in mortgage transactions.


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


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


DEED OF SURRENDER
A file used to give up any claim an individual has to a residential or commercial property.


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


DELINQUENCY.
The state in which an obtain has stopped working to satisfy payment responsibilities on time.


DEPOSIT.
Cash offered together with a deal to acquire residential or commercial property, Also called EARNEST MONEY.


DEPRECIATION.
The natural decrease in residential or commercial property value due to market forces or exhaustion of resources.


DETACHED SINGLE-FAMILY HOME.
A single building improvement meant to function as a home for one household.


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