Cancellation Clause - A clause that details the conditions under which parties can terminate the agreement.
Cap - The limit on how much an interest rate or monthly payment can change, either at each adjustment or over the life of the mortgage.
Capital - Money used to generate income, such as funds invested.
Capital Expenditure - The cost of making improvements on a structure.
Capital Gain - Profit earned from the sale of real estate or similar investments.
Cash-out Refinance -The refinancing of a mortgage in which the money received from the new loan is greater than the amount due on the old loan. The borrower can use the extra funds in any manner.
Cashier's Check - A check drawn by a bank on its own funds.
CC&Rs (Covenants, Conditions, and Restrictions) - A document that controls the use, requirements, and restrictions of a property.
Certificate of Eligibility - A document by the Veterans Administration that verifies the eligibility of a veteran for a VA loan.
Certificate of Occupancy - A document issued by a local authority indicating that a building meets building-code requirements.
Certificate of Reasonable Value (CRV) - A document that establishes the maximum value and loan amount for a VA guaranteed mortgage.
Chain of Title - The official record of conveyances of the title to a particular item of real property.
Chattel - An article of movable personal property such as furniture, or a car.
Clear Title - A title that is free of liens, defects, or other legal encumbrances.
Closing - The final procedure in which documents are signed, recorded and the property is conveyed.
Closing Costs - Fees and Expenses incidental to the sale of real estate, title, the loan and appraisal.
Closing Statement (HUD-1) - A document which details the final financial settlement and costs paid in the real estate transaction between a buyer and seller.
Cloud on Title - An invalid encumbrance on the title of real property.
Co-Signer - A second party who takes responsibility for the debt by signing the note.
Commercial Property - An area specifically zoned for businesses.
Commingling - The mixing of money among other funds in a trust.
Comparables - Properties used as comparisons in order to determine the value of another property.
Compound Interest - The interest and accrued interest paid on the principal balance of a mortgage.
Condemnation - The legal seizure of property by the government via eminent domain.
Condominium - A form of real estate ownership. The owner receives title to a particular unit and has a proportionate interest in certain common areas. The unit itself is generally a separately owned space whose interior surfaces (walls, floors, and ceilings) serve as its boundaries.
Construction Loan - A short-term loan for the construction of a home or building.
Contingency - A condition that must be satisfied before a contract is binding. For instance, a sales agreement may be contingent upon the buyer obtaining financing.
Contract - An agreement between two or more parties.
Conventional Loan - A longer-term mortgage loan which is not insured or guaranteed by a governmental agency.
Conversion Clause - A provision in some ARMs that enables you to change an ARM to a fixed rate loan, usually after the first adjustment period. The new fixed rate is generally set at the prevailing interest rate for fixed-rate mortgages. This conversion feature may cost extra.
Conveyance - Transfer of title to property from one party to another.
Cooperative - A form of multiple ownership in which a corporation or business trust entity holds title to a property and grants occupancy rights to shareholders by means of proprietary leases or similar arrangements.
Counteroffer - An offer made in response to another offer.
Certified Residential Broker (CRB) - To be certified, a broker must be a member of the National Association of Realtors, have five years experience as a licensed broker and have completed five required Residential Division courses.
Curb Appeal - The initial impression of a house as seen from the street.
Current Value - The fair market value of a home at the time of appraisal.
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