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6/27/2012

Glossary REAL ESTATE Terms Letter C



Capital Assets

Assets of a permanent nature used in the production of income, such as land, buildings, machinery. Under income tax law they are different than inventory

Capital Gain

Income form the sale of an asset rather than from general business activites, these are taxes at a lower rate

Capitalization

Re: APPRAISALS is the net income and the percentage of reasonable return on the investment, the value of an income property being annual net income by the CAP Rate

Capitalization Rate

Rate of interest that is a good/reasonable return on the investment – also called YIELD RATE necessary to attract an investor. This amortization factor is determined in a couple different ways: for example the straight line depreciation method.

Casement Window

Frames of wood or metal that swing outward from the building

CASH FLOW

Net income generated by a property before depreciation and any noncash expenses

Caveat Emptor

Let the buyer beware, the buyer must investigate and purchase at their own risk

CBD

Central Business District

Certificate of Reasonable Value

The Department of Veterans Affairs appraisal commitment of property value

CHAIN

Unit of measurement used by surveyors, for example a chain is 100 links equal to 66 feet

CHANGE, principle of

The future, not the past is of prime importance in determining appraised value

CHATTEL Mortgage

Claim on personal property used to secure or guarantee a note

CHATTEL real

An estate related to real estate such as a lease

CHATTELS

Goods moveable or not that are not real property

CLAPBOARDS

Siding boards thicker than one inch

Cloud on Title

Conditions that negatively affect the title to property, sometimes must go to court to remove or quitclaim

COLLAR BEAM

A beam that connects the pairs of opposite roof rafters above the attic floor

Collateral Security

A separate obligation attached to a contract to guarantee its performance- transfer property or contracts to ensure the performance of a principal agreement

Collusion

An agreement between persons to defraud another’s rights or to obtain an object forbidden by law

Commercial Acre

The remainder of an acre of recently subdivided land devoted to curbs, gutters etc

Commercial Paper

Bills of exchange used in commercial trade

Common Interest Developments

A project with individual ownership of the buildings but common or joint ownership of the land- condos or PUD

COMMON LAW

Body of law from customs of England

Community Property

Property accumulated through joint efforts of a married couple or registered domestic partners

Competition Principle of

Profits tend to breed competition and excess profits breed ruinous competition

Component

One of the features making up the whole property

Compound Interest

Interest paid on principal and also on the accrued and unpaid interest accumulated

Condemnation

Taking private property for public use, claiming the property is unfit or unsafe

Condition

A qualification of an estate granted that can be imposed only in conveyances. Conditions precedent and conditions subsequent

Condition Precedent

A condition that requires certain action or an event to occur before the estate granted can take effect. Most installment sales state that before a buyer can require transfer of title, all payments must be made by a prescribed date

Condition Subsequent

Re: deeds. Title immediately vests in the grantee, but if the condition is breached grantor has the right to terminate the estate. For example a seller puts a restriction on allowing a bar on the location

Conditional Commitment

A Lender makes a definite loan offer

Conditional Sales Contract

A contract for the sale of property stating that delivery is to be made to the buyer but title is to remain vested in the seller until the conditions of the contract have been fulfilled

Confession of Judgment

An entry of judgment upon the debtor’s voluntary admission or confession

Confirmation of Sale

A court approval of the sale of property by an executor or administrator a guardian or a conservator

Conformity, Principle of

The maximum of value is realized when a reasonable degree of homogeneity of improvements is present

Consideration

Anything of value paid to start the entering into a contract

Constant

The percentage when applied to the face value of a debt develops the annual amount of money necessary to pay a certain net rate of interest on the reducing balance and to liquidate the debt in a specific number of years, IE: a 6% loan amortized over 20 years has a constant of 8.5% and $10000 over 20 years has an annual payment of $850

Constructive EVICTION

Breach of a covenant of warranty of quiet enjoyment. The lessee can take back possession because of some defect in title or hazardous property creation

Constructive NOTICE

Notice given by the public records

Contribution, Principle of

The maximum real estate value are created by the improvements on the site producing the highest net return.

Conventional Mortgage

A  loan without governmental Underwriting standards not FHA insured or VA guaranteed.

Conversion

Change from one character or use to another

Cooperative Ownership

Apartment ownership of shares in a cooperative venture that entitles owner to rent, use or sell an apartment unit

Corner Influence Table

Statistical table to estimate the added value of a corner lot

Corporeal Rights

Possessory rights in real property

Correction Lines

A method to correct inaccuracies in the government rectangular survey system due to the curve of the earth. Every 4th township line, 24 mile intervals is used as a correction line on which the intervals between the north and south range lines are re-measured and corrected to a full six miles

Correlate the Findings

To interpret data and valuations – combine them to make a final conclusion of appraised value

Cost approach

A method used by appraisers by analyzing the value by estimating the cost to replace the improvements, then deduct from accrued depreciation and add back the value of the land

Counter Flashing

Flashing on chimneys at the roofline to cover shingle flashing preventing rain and moisture to enter

CPM

Certified property manager designated by the Institute of Real Estate Management

CUBAGE

The number or product resulting from the multiplication of the width of a thing by its heght nad by its debt and length

CURABLE DEPRECIATION

Items of physical deterioration that are repaired or replaced by a good property owner

CURTAIL SCHEDULE

List of the amounts by which the principal sum of an obligation is to be reduced by partial payments and the dates these are due

CURTESY

The right of a husband in his wife’s estate at her death













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