We are committed to making the purchase or sale of your home as simple and easy as possible. During this process, you may encounter real estate terminology that is new to you. Following is a guideline of real estate terms, as well as financial and architectural terms to help you during the purchase or sale of your home.
A codicil is a supplement or an appendix to a will either adding or changing a bequest.
Collateral is the security put up in exchange for a loan, which can be taken by the bank if the loan goes unpaid. In the case of a mortgage loan,…
Refers to when an owner combines two adjoining apartments into one to enhance the value and the space.
Commercial zones allow usage for retail stores, restaurants, hotels and service businesses.
Commingling is the mixing of money or property of others with personal or business funds or other property.
The commission is the payment to the broker for his or her efforts on marketing and selling the property, and is usually a percentage of the total purchase price.
A commission split is the sharing of commissions between the listing agent and the broker of the buyer.
The commitment fee is a fee paid to the lender for processing, underwriting and originating the mortgage. It is also known as an origination fee.
A letter issued by the lender to the applicant that states funds will be provided subject to written terms and conditions.
The common area is the area in the property or in the building that is available for use by all owners and tenants.
The monthly charge levied by a condominium to cover the cost of maintaining the common areas and services.
Common law is the law set by judicial precedent or tradition as contrasted with a written statute.
Common law dedication is an act by an owner allowing the public use of a property.
Community planning is a master plan for the orderly growth of a city or country to result in the greatest social and economic benefits to the people.
Comps are used in assessing or establishing the fair market value of a property, a property which has been sold recently that is similar in size, condition, location and amenities.
Compensatory damage is the amount of money actually lost, which will be awarded by a court in case of a breached contract.
Competent parties are persons or organizations legally qualified to manage their own affairs, including entering into contracts.
Complete performance is the execution of a contract by virtue of all parties having fully performed all terms.
Condemnation is the exercise of the power of eminent domain or taking private property for public use.
Condemnation Value is the market value of condemned property.
A condition in a contract is any fact or event which, if it occurs or fails to occur, automatically creates or extinguishes a legal obligation.
A condominium is a building in which ownership has been partitioned into unit interests. Each apartment owner receives a unit deed and owns an individual unit, but common areas are…
Condominium declaration is the document that, when recorded, creates a condominium. It is also called a master deed.
A conforming loan is a mortgage issued within the framework of FNMA/FHLMC (Fannie Mae/Freddie Mac) guidelines in terms and amount. In general, any loan which does not meet these guidelines…
Conformity is the homogeneous uses of land within a given area which results in maximizing land value.
A consent decree is a compromise in civil lawsuits where the accused party agrees to stop the alleged illegal activity without admitting guilt or wrongdoing.
Consideration is anything of value, as recognized by law, offered as an inducement to contract.
A construction loan is a short-term loan to obtain funds to construct an improvement.
Constructive eviction results from some action or inaction by the landlord that renders the premises unsuitable for the use agreed to in a lease or other rental contract.
Constructive notice occurs when one of any affected parties are bound by the knowledge of a fact even though they have not been officially notified of such fact.
CPI is an index indicating the change in prices of various commodities and services, providing a measure of the rate of inflation.
Contingency is a condition in a contract relieving a party of liability if a specified event occurs or fails to occur.
A contract is a legally binding agreement between two parties, and in order to have a valid Contract of Sale in real estate there must be: an offer, an acceptance,…
Contract Buyer’s Policy is title insurance that protects the contract buyer against defects in contract seller’s title.
Contract for deed is a contract of sale and a financing instrument wherein the seller agrees to convey title when the buyer completes the purchase price installment payments. It is…
Contract rent is the amount agreed to in a lease.
A contract vendee sale is a transaction in which a seller transfers beneficial rights, including the right of possession and obligations of ownership, to the purchaser and agrees to close…
A conventional mortgage loan is a loan in which the federal government does not insure or guarantee payment to the lender, but is under the amount of a jumbo mortgage.
A conversion is a change in ownership status. For example, rental housing may be converted to cooperative or condominium ownership.
A “convertible apartment” is a one or two bedroom apartment that has space to make another bedroom. The other bedroom can be made from the construction of a wall; however…
Conveyance is the transfer of title to real property.
A cooling-off period is a three-day right of rescission for certain loan transactions.
A cooperative is a building owned by a corporation in which each apartment is allocated shares of stock as well as a proprietary lease. The amount of shares owned is…
A corporation franchise tax is a tax calculated on the net profit of the corporation.
Cost approach is an appraisal method for estimating the value of properties that have few, if any, comparables and are not income-producing.
A counter-offer is a new offer made by either the buyer or seller when rejecting a previous offer.
A covenant is a promise made in writing.
A covenant against encumbrances is a promise in a deed that the title does not cause encumbrances except those set forth in the deed.
Covenant for further assurances is a promise in a deed that the grantor will execute further assurances that may be reasonable or necessary to perfect the title in the grantee.
A covenant of quiet enjoyment is a promise in a deed or lease that the grantee or lessee will not be disturbed in the use of the property because of…