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
