Real Estate Glossary

Letter C

Cabinet WorkAny interior carpentry which will be seen and must be finished with skill and care. One who does this work is called a cabinet maker or, more commonly, a finish carpenter.

CadastreInventory of real property in a community for tax and assessment purposes.

C.A.E.(Certified Assessment Evaluator)An assessor who, through the completion of required courses, experience, and examination, has earned this designation by the International Association of Assessing Officers.

CaissonA watertight chamber in which men work underwater, or in an open excavation where loose soil or sand cave in on the workers. It may also be filled with concrete after it is used, and become a support.

California Ranch ArchitectureA sprawling, one story, ranch-style building, lending itself to interior flexibility in floor plan design.

CallIn metes and bounds description, the angle and distance of a given line or arc. Each call is usually preceeded by the word "then" or "thence". Example:N 22% E 100' (1st call), thence N 80% E 100' (2nd call). (2) To demand payment due to default. Also used when a loan payment is not large enough to amortize the loan. Example: A mortgage payment requiring 20 years to pay in full but for a term of 5 years would be referred to as a 20-year amortization with a 5- year call.

Call DateOriginally a term used when a bond is redeemed prior to maturity, it is now also used in describing mortgages. [See Call].

Call LoanA loan payable upon demand.

Call ProvisionClause that lets the lender demand full payment of a loan immediately (verb: call a note).

Cal-Vet LoansReal estate loans available to armed forces veterans from California, at low interest rates.

CamberA slight bending or arching to a convex angle. Used to prevent beams, girders, flooring, ship decks, timbers, and similar load- bearing members, from taking a concave shape.

CaminoA Spanish word meaning highway.

CampanileA free standing bell tower.

Canal(1) A man made waterway used to connect bodies of water for navigation. (2) An irrigation waterway.

CancellationTermination of a contract without undoing the acts already performed under it. Compare: Rescission.

Cancellation ClauseA clause in a lease or other contract, setting forth the conditions under which each party may cancel or terminate the agreement. The conditions may be as simple as giving notice or complex and require payment by the party desiring to cancel.

CandleA measure of light, being the luminous intensity of a 7/8 inch sperm candle burning at 120 grains per hour. An international candle is based on the burning of platinum.

Candle HourA measure of light, equal to one candle burning for one hour.

Candle PowerThe intensity of a light, expressed in candles.

CantileverA structural support which itself is supported at one end only and bears its load through its material strength and rigidity.

Cantilever BridgeA bridge formed by two cantilevered members extending toward each other and connecting each other or a suspended span.

CanvassingThe practice of making telephone calls or visiting from door to door to seek prospective buyers or sellers; in the real estate business, generally associated with acquired listings in a given area.

CapacityOne's ability to carry on normal business transactions. Lack of capacity may be natural (unsound mind) or simply by law (a minor). Restrictions may be full or partial.

Capacity Of PartiesThe legal ability of persons to enter into a valid contract. Most persons have fully capacity to contract and are said to be competent parties.

Cape Cod HouseAn adaption of the New England cottage. May be one or two stories with sloping roof, usually with dormer windows, cornices, and of frame painted white.

CapitaLiterally, heads. Commonly, persons individually. See also: Per Capita.

CapitalMoney used to create income, either as investment in a business or income property.

Capital AssetAny asset not specifically excluded by the Internal Revenue Code.

Capital AssetsAssets of a permanent nature used to produce income, such as machinery, buildings, equipment, land, etc. Must be distinguished from inventory. A machine which makes pencils, for example, would be a capital asset to pencil manufacturer, but inventory to the company whose business is to sell such machines.

Capital ExpendituresMoney spent on improvements such as land, buildings, machinery, and similar major expenditures which are not inventory.

Capital ExpenseAn expense incurred to improve property.

Capital GainProfit earned from the sale of an asset.

Capital ImprovementSee: Capital Expenditure.

Capital InvestmentThe initial capital and the long-term expenditures made to establish and maintain a business or investment property.

CapitalizationThe process of converting into present value (or obtaining the present worth of) a series of anticipated future periodic installments of net income. In real estate appraisal, it usually takes the form of discounting. The formula is Income/Rate = Value

Capitalization ApproachSee: Income Approach.

Capitalization RateThe rate of return a property will produce on the owner's investment.

CapitalizeTo determine the present money value of future income, whether estimated or fixed.

Capitalized ValueThe value of the property after use of the capitalization approach of appraisal.

Capital LossLoss from the sale of a capital asset. The difference between the purchase and sale price plus allowable deductions, less depreciation.

Capital Reserve BudgetA budget for expenses that are not fixed (variable).

Capital StockA general term referring to the stock a corporation may issue, the amount actually subscribed by shareholders, the value of the company, liability to the shareholders, etc.

Cap (payment)See: Payment cap.

Cap Rate (appraisal)See: Capitalization Rate.

Capricious ValueIn appraisal, a value based on whim or emotion and not reflective of the fair market value.

Capture RateThe comparison of the rate of sales or leases of real estate developments in a given market area.

CarCalifornia Association of Realtors.

CaravanAn inspection of newly listed properties, either by the entire sales staff of an office or by sales personnel from more than one office in conjunction with a multiple listing group. Generally conducted on a regular basis.

Carbon Monoxide (CO)Colorless, odorless gas that is a natural byproduct of fuel combustion.

Car Float BridgeThe connection (bridge) used to transfer railroad cars to or from land and a barge. The bridge must be vertically mobil to adjust to changing water levels.

CarportA roof supported by pillars or cantilevered which shelters a car. May either extend from a structure (usually a house) or be constructed separately (often to accommodate several cars).

Carryback LoanSee: Purchase Money Mortgage (1).

Carrying ChargesThe costs involved in keeping a property which is intended to produce income (either by sale or rent) but has not yet done so.

Carryover BasisThe tax basis in a tax deferred exchange which is transferred (carried over) from the property given up to the property acquired.

Case(1) An external framework of a structure. (2) A court action.

Case LawSee: Common Law.

Casement WindowA window hinged at its sides, allowing it to swing open vertically.

Cash(1) Money or (2) its equivalent (checks, bank notes, etc.). Ready money.

Cash AccountingSee: Accrual Accounting.

Cash AssetsMoney which is available to meet the requirements of operating a business.

Cash DiscountA discount from a billed amount if paid within a certain period.

Cash Equivalency AnalysisAn appraisal technique by which the price of comparable properties selling at different financing terms are adjusted to find market value. The theory is that terms less advantageous to the seller will cause a higher sale price; cash being most advantageous to the seller.

Cash FlowThe net spendable income from an investment, determined by deducting all operating and fixed expenses from the gross income. If expenses exceed income, a negative cash flow is the result.

Cash Flow RateSee: Cash-On-Cash.

Cashier's CheckA check drawn by a bank on itself rather than on the account of a depositor. A cashier's check is generally acceptable to close a sale without waiting for the check to clear.

Cash-On-CashThe amount of cash received compared to the amount of cash invested. Also called the Equity Dividend Rate, Cash Flow Rate or Equity Capitalization Rate.

Cash On Cash ReturnThe bottom line of any investment expressed as a percentage by dividing the investment's cash flow by the deposit and settlement costs.

Cash On Hand StatementA statement of cash on hand which the buyer intends to apply to closing costs, impounds, and down payment. Also shows the source of the money (savings, gift, etc.).

Cash OutTo take the entire amount of a seller's equity in cash rather than to retain some interest in the property, such as a purchase money mortgage or deed of trust. Also loosely used when paying off anyone having an interest in property, thereby ending the interest.

Cash RentA term used in farm rental to distinguish between money rent and rent paid by giving a portion of the crop to the owner (share crop).

Cash ReservesAn amount of money sometimes required by a lender to be held in reserve in addition to the down payment and closing costs.

Cash SaleA sale for full payment in cash, as opposed to a credit sale. A payment by check is considered cash. May be qualified, as "cash to new loan", "cash to existing loan", etc.

CasingThe exterior surface or covering of a building such as aluminum siding, a roof, etc.

Casualty InsuranceA type of insurance policy that protects a property owner or other person from loss or injury sustained as a result of theft, vandalism, or similar occurrences.

Cattle GuardA grill or grating placed in the ground over which cattle will not cross.

CatwalkA narrow, elevated walkway along a wall, girders, or over a stage or other area where it may be necessary for a person to go for operation or repair.

CausewayA raised roadbed over lowlands. See also: Levee.

CavaediumAn atrium, courtyard.

CaveatLet Him Beware" - A formal notice to a court or officer, given by an interested party, asking that the court suspend proceedings until deciding on the merits of the caveat.

Caveat EmptorA Latin phrase meaning, “let the buyer beware.”

Cavity WallRefers to a brick or stone wall which is actually built as two separate walls, joined only at the top and ends, and so "hollow". Also called a hollow wall.

CC&R's (Covenants, Conditions, And Restrictions)A term used in some areas to describe the restrictive limitations which may be placed on property. In other areas, simply called restrictions.

Cease And Desist ListList on which property owners in a cease and desist zone can register and once they do, brokers and salespersons are prohibited from soliciting them.

Cease And Desist ZoneCertain areas designated by the New York Department of State in which property owners can file notice indicating they do not want to sell, lease, or list their property.

Ceiling(1) The overhead interior lining of a room, building, etc. (2) A maximum amount.

CellarA storage room or group of rooms, usually under a building, which are used for storage.

CementA mineral powder which, when mixed with water and allowed to set will dry hard and can be used in construction as floors, walls, etc.

Cement BlockA building block, composed of cement, and usually hollow. See also: Cinder Block.

CemeteryLarge parcels of land used for burying deceased persons. May be public or private, the private usually being of a specific religious denomination.

Census TractRelatively small areas used by the U.S. Census Bureau to track the population of the United States.

Central AssessmentAn assessment of property under one ownership but located in more than one assessment district. Used for railroads and public utilities to stabilize the assessment value.

Central Business DistrictAn area of a city where most of the major businesses are located. The "downtown" area.

Central City(1) The downtown area of a major city. (2) A city which is central to a metropolitan area containing many cities. The name of the central city is used for the whole area. For example: Los Angeles metropolitan area.

CERCLA (Comprehensive Environmental Response, Compensation, And Liability Act)See which.

CertificateA writing, either from a court or other public body, giving assurances of existing conditions or facts, and giving rights or creating obligations.

Certificate Backed MortgageA variation of the buydown. The seller purchases a savings certificate (usually with the proceeds of the sale) from the lender. The lender sets the buyer's interest rate below the market (generally 2 percent above the certificate rate). Should the seller withdraw the certificate funds, the buyer's rate goes to the market rate.

Certificate Of Deposit (C.D.)A specific sum of money deposited into a savings institution for a specified time period, and bearing a higher rate of interest than a passbook account if left to maturity. Does not have withdrawal privileges as does a passbook account. Also called a time certificate of deposit (T.C.D.)

Certificate Of JudgmentSummary of the provisions of a court judgment; when recorded, it creates a lien on all the debtor's real property in the county where recorded.

Certificate Of OccupancyA certificate issued by a local building department to a builder or renovator, stating that the building is in proper condition to be occupied.

Certificate Of PurchaseSee: Certificate of Sale.

Certificate Of Reasonable ValueA certificate giving the estimate of value on which to base a loan guaranteed by the Veterans Administration.

Certificate Of RedemptionEvidence of redeeming (buying back) a property by the owner after losing it through a judicial sale. The time limit for redemption is set by statute.

Certificate Of SaleThe document generally given to a purchaser at a tax foreclosure sale. A certificate of sale does not convey title; generally, it is an instrument certifying that the holder may receive title to the property after the redemption period has passed and that the holder paid the property taxes for that interim period.

Certificate Of TitleThe statement of opinion on the status of the title to a parcel of real property, based on an examination of specified public records.

Certificate Of TransferDocument issued by a probate court showing transfer of title from a deceased person to her heirs or devisees.

Certificate Of Veteran StatusThe evidence of eligibility given to a veteran by the VA. The certificate gives the veteran status to obtain certain loans with less money down.

Certified CheckA personal check drawn by an individual which is certified (guaranteed) to be good. The bank holds the funds to pay the certified check and will not pay any other checks drawn on the account if such payment would impede payment of the certified check. The bank also will not honor a stop payment of a certified check.

Certified Commercial Investment Member (CCIM)A designation conferred by the Commercial Investment Real Estate Institute, an affiliate of the NATIONAL ASSOCIATION OF REALTORS. The designation recognizes expertise in many different areas including commercial real estate sales, leasing, property management, appraisal, development, lending and investment counseling.

Certified CopyA true copy, attested to be true by the office holding the original.

Certified Mortgage Banker (CMB)A designation conferred by the Mortgage Bankers Association of America (MBA) to employees of its member companies after experience, educational and testing requirements have been met.

Certified Property Manager (CPM)A professional awarded to real estate managers by the Institute of designation Real-Estate Management, an affiliate of the National Association of Realtors. Address: Institute of Real Estate Management 430 North Michigan Avenue Chicago, IL 60611

Certified Public Accountant (CPA)A designation awarded to accountants by the American Institute of Certified Public Accountants (AICPA) after completing the required education and passing a national exam. Only CPA's may audit HUD programs unless registered before 1970.

Certified Real Estate Brokerage Manager (CRB)A designation conferred by the Real Estate Brokerage Managers Council upon a brokerage owner or manager who is an expert in the field.

Certified Residendial Specialist (CRS)A designation conferred by The Council of Residential Specialists upon those who have successfully completed the required courses and are experts in residential real estate transactions.

CertiorariAn appellate review of the complete record of a lower court action, rather then simply a review of an appeal for judicial error.

CesspoolA pit or pool which holds raw sewage.

Cestui Que TrustOne having an equitable interest in property, legal title being vested in a trustee.

Cestui Que VieThe person whose life is used to determine the length of an estate based on a life in being.

ChainSee: Chain Of Title; Chains And Links.

Chains And LinksMeasurements. In real estate measurements (surveying), a chain is 66' long, or 100 links, each link being 7.92". The measurement may change when used in fields other than surveying.

Chain StoreA store belonging to a series of similar stores under central ownership and management, and striving for uniformity in design, inventory, and service.

ChangeThe principle that no physical or economic condition remains the same.

Change FrequencyThe time between adjustments of interest and payment on a adjustable rate mortgage.

Change Of NameWhen there is a name change of a party appearing on a document (deed, etc.), it may be reflected in several ways, such as (1) Mary Smith, a married woman, W.A.T.A. (who acquired title as) Mary Jones, an unmarried woman. (2) Mary Smith AKA (also known as) Mary Jones. (3) Mary Smith, formerly Mary Jones. (4) Mary Smith, alias Mary Jones. Each may be applicable in different circumstances (how and why the name was changed).

Change OrderIn construction, a written instruction to alter the original construction plan.

Channel(1) An open or closed duct or conduit. (2) A gutter, furrow, or groove. (3) The deepest part of a natural waterway through which the main current flows, and which affords the best passageway for ships.

ChannelizationThe term used to describe traffic direction. Traffic is "channeled" by the use of one way streets, signs directing turns, island barriers, etc.

Chapel(1) A place of worship apart from a church, such as a hospital chapel, college chapel, etc. Generally for a small group. (2) A portion of a church secondary and subordinate to the main alter.

Charge-OffThe unpaid balance of a loan that a lender writes off as a bad debt.

CharrettesCommunity planning tool that welcomes and improves public participation in discussions about a community's future growth and development.

ChattelPersonal property.

Chattel MortgageA lien on personal property. Also called a security interest or financing statement.

Chattel RealAll estates in real property less than fee estates, such as a lease.

ChattelsPersonal property.

CheckTracts of land located repetitively every 24 miles from a principal meridian and 24 miles from a defined base line. Guide meridians and correction lines define a check's boundaries, consisting of 16 townships. A correction line “corrects” for the curvature of the earth, and guide meridians slant to compensate for North Pole directional movement.

CheckerPerson who poses as a customer or client attempting to secure real estate services to ensure fair housing is practiced. Also called: Tester.

Check RowA method of planting rows of plants on intersecting lines, forming a "checkerboard" effect. Used for corn, tomatoes, and other vegetables.

Check ValveA valve to prevent backup of material being carried through a pipe or other conduit.

Child Care StatementA statement by a working husband and wife showing the amount paid for child care and to whom paid.

ChimneyAny passage through which smoke from a fire passes. Most commonly the passage, constructed of brick, from a fireplace to above the roof of a building.

Chimney BackThe back wall or lining of a fireplace or furnace chimney.

Chimney FlashingSee: Flashing.

Chimney PotAn earthenware or metal pipe or deflector, projecting from the top of the chimney to increase draft and reduce and disperse smoke.

Chlorofluorocarbons (CFCs)Chemical compounds containing chlorine, fluorine, and carbon atoms. Sold under the trademarked name of Freon for many years and used as a coolant in refrigerators, air conditioners, and dehumidifiers. Now known to contribute to the depletion of the ozone.

C HorizonThe horizon (layer) of the Earth below the A and B horizons. Called the substratum, it is usually not affected by rain, change of temperature, or other surface conditions.

Chose In ActionA right to an action for recovery of a debt or to possession of anything held by another. The right to possession rather than possession.

Chose In PossessionSomething in possession, rather than the right to possession.

ChurchA public place of worship, usually Christian worship. See also: Synagogue; Temple.

CIDSee: Common Interest Development.

CienagaA Spanish word meaning a swamp or marsh, formed by hillside springs.

Cinder BlockA building block composed of cinders (ashes) and cement, which does not have the weight or strength of a cement block.

Circlehead WindowA semicircular window, usually above a door, which has no moving parts and is used as a decoration as well as to admit light.

Circuit BreakerAn electrical device which has taken the place of the fuse in most buildings. The circuit is broken (electricity shut-off) when there is an overload. The circuit breaker can be reset rather than replaced as a fuse must be.

Circulation PatternThe regular traffic pattern, as from a residential area to a business district and back.

Circumferential HighwayA highway which arcs around the central business district of a city. Also called a belt highway or by-pass.

CisternA tank used for storing rain water for use in areas where there is no water brought to the property by plumbing.

CityTechnically, a municipal corporation having voting by represen-tatives to operate its functions, rather than direct voting, as in a town. Commonly, any large incorporated town is called a city.

City CouncilMunicipal legislative body responsible for public policy including approving budgets, and passing laws, ordinances, and resolutions.

City PlanSee; Master Plan .

City Planning CommissionA local government organization designed to direct and control the development of land within a municipality.

Civil ActionAny action which is not a criminal action.

Civil Law(1) Roman Law. The legal system derived from the Romans which is prevalent in most of the non-English speaking countries, and, to some degree, in Louisiana. Differs from Common Law of England, from which United States Law is derived. (2) Any laws which are not criminal laws.

Civil LitigationLawsuit in which one person sues another for compensation.

Civil PenaltiesWhen a government body seeks financial compensation for damages. These are not considered punishment but restitution.

Civil RightsFundamental rights guaranteed to all persons by law. The term is primarily used in reference to constitutional and statutory protections against discrimination.

Civil Rights Act Of 1866The first major legislation to directly affect equal rights to ownership of real property.

Civil Rights Act Of 1964An act passed to strengthen the Civil Rights Act of 1866. The act, among other things, prohibits discrimination in housing.

ClaimAn assertion of some right or demand.

Claim Of RightUsed as a factor in determining adverse possession claims. Adversely occupying another's real estate for a statutory period of time may create a claim of right.

ClapboardNarrow boards used as siding for frame houses, and having one edge thicker than the other. The boards run horizontally with the thicker edge overlapping the thinner edge.

ClarifierUnderground system of tanks with filters or chemical agents designed to remove or neutralize harmful wastes from water before emptying said water into a sewer or septic tank.

Class ActionAn action brought on behalf of a group of people having a similar claim. Has become increasingly popular in the consumer movement, and is a strong weapon against unfair pricing when the price of overcharging in one instance would be too minor to bring suit.

Classified LoanA substandard loan which a bank should not have made.

Classified Property TaxProperty tax which varies in rate depending on the use (zoning classification) of the property.

Clean Air Act (CAA)Government Act requiring the EPA to develop air quality standards for existing pollutants, along with establishing air standards for new sources of pollution. Also regulates air pollutant emissions, determines acceptable levels for emissions, and sets deadlines for compliance.

Clean RoomA room specially designed to have a controlled atmosphere, for health reasons or experimentation accuracy, such as a germ free room or a dust free room.

Clean Water ActA federal act, first adopted in 1977, to stop pollution of waterways and protect wildlife and recreational areas.

Clearance(1) The removal of structures from an area for urban renewal. (2) The maximum height of a vehicle which may safely pass under a bridge or through a tunnel.

Clear HeadwayThe height of the lowest overhead framing member (usually the top of the door frame) as measured from the floor.

Clear LumberHigh quality lumber "clear" of most defects, particularly knots.

ClearspanOpen distance between inside faces of support members.

Clear SpanAn interior area which does not use columns or posts to hold up the roof, thereby creating a large, open area with maximum visibility and use of the floor space.

ClerestoryA wall or portion of a wall to which the roof attaches at a higher level than the other walls or portions of a wall of a building. Generally found in church construction and contains windows.

Clerestory WindowWindow in a clerestory.

ClientTraditionally one who employs an attorney. Has loosely been used to refer to the principal of a real estate agent, insurance agent, stock broker, etc.

Close Corporation(1) A corporation not allowing its shareholders to vote for directors or officers. (2) A corporation owned by a small group of shareholders and not having publicly traded stock. Commonly, and incorrectly, called a closed corporation.

Closed CorporationSee: Close Corporation.

Closed End MortgageA mortgage that does not allow the borrower to increase the amount borrowed over the term of the mortgage. See also: Open End Mortgage.

Closed End Mutual FundA fund (sometimes dealing in real estate or mortgages) which is not accepting new investors. The shares in the fund are bought and sold, either at a premium, par, or a discount, based on the success of the fund. The shares are not sold and redeemed through the fund but on the open market. The same technique is used with closed end trusts.

Closed MortgageSee: Lock-in.

CloudSee: Cloud on Title.

CloverleafAn intersection using loop shaped ramps and grade separation to accomplish the intersecting of traffic without signal lights or stop signs. When viewed from above, the shape of the intersection resembles a cloverleaf.

CloverleafingA method of real estate canvassing by looping around a specific property (one listed or sold) in the shape of a cloverleaf, in order to obtain listings or buyers.

ClueAn insurance company repository for reported claim activity and previous property damage. CLUE is an acronym for Comprehensive Loss Underwriting Exchange. Insurers use the report to ascertain patterns of possible future claims and adjust their insurance premiums according to risk.

Cluster HousingBuilding houses close together with little yard space and a large common area, rather than each house having a large yard. The density is usually greater in the cluster project.

ClusteringSee: Cluster Housing.

Cluster ZoningZoning allowing the construction of buildings closer together than normal (clustered) and then requiring the balance of the property to be kept as open space.

CMBSee: Certified Mortgage Banker.

CMOSee Collateralized Mortgage Obligation.

Co-AdministratorOne who shares the duties of administrator with one or more other administrators.

CoastThe seashore or land near it.

Coastal CommissionA commission set up to control construction in coastal areas.

CodeA comprehensive set of laws drawn up to cover completely a given subject. Covers diverse subjects, such as the criminal code, and the building code.

Code Of EthicsSee: Ethics.

Code Of Ethics And Standards Of PracticeReferred to simply as the Code of Ethics; a standard of conduct required by New York State license law and the National Association of REALTORS®.

CodicilA testamentary disposition subsequent to a will that alters, explains, adds to, or confirms the will but does not revoke it.

CodificationCollection and organization of various laws into a comprehensive statutory code.

CoercionAn act of force used to get a person to comply.

Co-ExecutorOne who shares the duties of executor with one or more other executors.

CofferdamSee: Caisson.

COFI (Cost of Funds Index)One of the many indexes used to determine rate changes for an adjustable rate mortgage. COFI is considered a good index for the borrower.

Cognovit NoteA note in which a debtor confesses judgement in the event of nonpayment and waives all defenses.

Coign, CoigneA cornerstone, usually differing in size (and sometimes material) from the rest of the wall, also spelled quoin.

CoinsuranceA sharing of the risk of an insurance policy by more than one insurer. Usually one insurer is liable up to a certain amount; the other liable over that amount.

Coinsurance ClauseA clause in insurance policies covering real property that requires the policyholder to maintain fire insurance coverage that is generally equal to at least 80% of the property's actual replacement cost.

Cold CanvassSoliciting door to door or by phone without any previous contact. A good method for a salesperson to begin to establish a farm area. See: Farm (3).

Collapsible CorporationA corporation which is sold instead of its product, in order to create a capital gain rather than ordinary income for tax purposes. For example: A and B (persons) are real estate developers who want to build an office building to sell. They form a corporation which builds the building. Then, rather than selling the building, A and B sell the corporation, claiming capital gain on the stock profit. Federal tax laws regulate such transactions.

Collar TieSee: Tie Beam.

Collateral AssignmentAn assignment of property as collateral security, and not with the intent to transfer ownership from assignor to assignee.

Collateral HeirOne not in a direct line of descent of inheritance. Example: A nephew, not a son.

Collateralized Mortgage ObligationA mortgage-backed security. CMOs are similar to mortgage-backed securities except that CMOs offer the option of short or long maturity. The future cash flows from a group of mortgages are split into varying length classes to satisfy the needs of investors who seek different maturity lengths. (See: Mortgage-Backed Securities).

Collateral NoteA promissory note secured by specific property.

Collateral SecurityMost commonly used to mean some security in addition to the personal obligation of the borrower.

CollusionAn agreement of two or more people to do something unlawful. Generally, an agreement between people who represent different interests and "sell out" these interests for personal gain.

Colonial ArchitectureTwo story houses with windows divided into small panes, usually with shutters. The main facade is detailed and symmetrical, generally with a center entrance. Architecture following the style of New England colonial houses.

ColonnadeColumns, regularly spaced, which support an architrave. See also: Peristyle; Portico.

Color Of TitleUsed as a factor in an adverse possession claim when the occupying party actually received title but by a defective or incorrect deed (color of title).

ColumnA large vertical support member of a structure. A pillar, usually cylindrical.

Column FootingsThe support bases for load-bearing columns. Generally composed of reinforced concrete.

Column LotsSmall lots for the placement of columns to support a structure, such as a billboard or other structure which has its largest parts not touching the ground.

Column SteelSteel used inside a column for reinforcement.

Co-MakerA surety (see which) under a loan. The co-maker is equally responsible for repayment as the borrower (maker).

Combed PlywoodAn interior paneling, grooved as if by a comb.

Combination Advance Reverse MortgageUnder this arrangement, the borrower receives a lump sum. This is most commonly used to pay off an existing mortgage, make repairs to the property, or pay consumer debt. The balance of the loan is paid in periodic (monthly) payments. See also: Reverse Mortgage.

Combination DoorAn outer door using interchangeable panels of glass and screen, depending on the weather.

Combination SewerA sewer that is both a sanitary and storm sewer.

Combination WindowA window using interchangeable panels of glass and screen, depending on the weather.

Commensurate PropertySee: Base Property.

Commercial AcreSee: Net Acre.

Commercial BankAn institution for savings, loans, checking accounts, and other services not all of which are found in savings and loan institutions. Banks are generally more active in construction loans rather than long term real estate financing

Commercial BanksFinancial institutions that provide a variety of financial services.

Commercial BrokerA licensed real estate broker specializing in improved commercial property or offices.

Commercial Inestment Real Estate InstituteAn affiliate of the NATIONAL ASSOCIATION OF REALTORS which strives to improve the level of competency of those engaged in Commercial-Investment real estate, and which confers the designation of Certified Commercial Investment Member (CCIM).

Commercial PaperNegotiable instruments used in the course of business, such as promissory notes, which are bought and sold (usually at a discount).

Commercial PropertyA classification of real estate that includes income-producing property, such as office buildings, restaurants, shopping centers, hotels, and stores.

Commingled PropertyProperty of a married couple that is so mixed or commingled that it is difficult to determine whether it is separate of community property. Commingled property becomes community property.

ComminglingThe illegal act of a real estate broker who mixes the money of other people with that of his or her own; brokers are required by law to maintain a separate trust account for other parties' funds held temporarily by the broker.

Commission PointSee: Point (2).

Commitment(1) Title insurance term for the preliminary report issued before the actual policy. Said report shows the condition of title and the steps necessary to complete the transfer of title as contemplated by the buyer and seller. (2) A written promise to make or insure a loan for a specified amount and on specified terms.

Commitment FeeA fee paid for a loan commitment. See: Commit-ment (2).

Commitment LetterSee: Commitment (2).

Common AreaThe area owned in common by the owners of condominiums or planned unit development homes in a subdivision.

Common BrickA brick having no special surface treatment, making each brick different in color. Used to describe a surface of bricks which are artificially treated so that each is different in color.

Common ElementsThe parts of a property that are necessary or convenient to the existence, maintenance, and safety of a condominium, or that are normally in common use by all of the condominium residents. All condominium owners have an undivided ownership interest in the common elements.

Common GrantorPerson who owned two or more neighboring properties then sold them to different buyers.

Common Interest DevelopmentA general term used to describe any type of clustered building with shared land ownership, such as condominiums and planned developments. CID's, as they are called, must have individual ownership or an exclusive right to occupy, combined with shared ownership.

Common Law DedicationDedication resulting from the owner's intention to donate land for public use, along with the government's acceptance of the donation. Common law dedication is actually involuntary in some cases; if an owner acquiesces to public use of his property, an intention to dedicate the property may be implied.

Common Law MortgageAny mortgage which contains the elements of a mortgage according to the Common Law.

Common Of EstoversSee: Estovers.

Common StockA share of ownership in a corporation.

Common WallSee: Party Wall.

Community ApartmentA form of common interest development under which title to the entire development is shared, with an exclusive right to occupy each unit given to the various title holders.

Community AssociationSee: Home Owner's Association.

Community Home Improvement MortgageA loan for low to moderate income buyers to borrow more than the usual 80% loan to value when a portion of the funds will be used to improve or make repairs on the property. The theory is that improvement of individual properties will benefit the whole community.

Community Reinvestment ActFederal legislation of 1977 (and subsequent amendments) for the purpose of encouraging banks and thrifts (savings and loans) to make more loans in their local areas. The act created the National Consumer Cooperative Bank to make loans to local banks and thrifts for community investment (loans) and also to guarantee certain loans made in the local community.

Community Second MortgageA junior mortgage subsidized by a state or local government agency or nonprofit organization enabling low to moderate income buyers to purchase a home with less of a down payment. The mortgage will have a below market interest rate and the principal may not have to be repaid if the buyer stays in the home for a certain period. The details of this type of loan vary by location.

Community Shopping CenterAn intermediate size shopping center. May contain a small department store and coordinated small shops. Larger than a neighborhood center and smaller than a regional center.

Co-MortgagorOne who signs a mortgage with another as borrower. The term is often applied to one who intends to guaranty the loan even though co-mortgagors have equal liability.

CompactionThe pressing together and joining of sedimentary layers of ground by the pressure of the weight of overlying layers. A report showing the density of the soil and its make-up is required in some areas before permits for construction will be issued.

ComparablesThe sold properties, listed in an appraisal report, which are substantially equivalent to the subect property.

Comparative AnalysisSee: Market Value Approach.

Comparative Market AnalysisSee: Market Data Approach.

Comparative Market Analysis (CMA)A method of determining the approximate market value of a home by comparing the subject property to other homes that have sold, are presently for sale, or did not sell in a given area. Also called: Competitive Market Analysis and Comparable Market Analysis.

Comparative MethodA method of estimating replacement construction cost by comparing the property to be built with the cost per square foot or cost per cubic foot of a similar building.

Comparative Negligence RuleWhen parties share liability based on partial fault or negligence in causing the injury or tort.

Comparison MethodSee: Market Data Approach.

Compensating BalanceFunds deposited into a bank, savings and loan association, or other lending institution, to induce the lender to make a specific loan or establish a line of credit. The deposit may be made by the party desiring the loan, or a third party.

CompensationA payment to make amends for the abridgement of rights or an injury. In condemnation, the payment for the taking of a person's property without the owner's consent.

Compensatory DamagesDamages to cover a loss or injury and nothing more. See also: Exemplary Damages.

CompetentLegally fit. Having the necessary age, ability, and authority to accomplish any given acts or duties.

Competent PartiesPersons who are recognized by law as being able to contract with others; usually those of legal age and sound mind.

CompetitionThe appraisal principle that states that excess profits generate competition.

Competitive Market Analysis (CMA)See: Market Data Approach.

ComplainantParty that files a formal charge in a court of law.

ComplaintDocument a plaintiff files with the court to begin a lawsuit.

Completion BondA bond protecting against failure to complete construction.

Component ConstructionAlso called modular construction or prefabrication. See also: Prefabrication.

Component DepreciationAllocating separate effective lives to components of a building and depreciating each separately.

Component PanelA modular (prefabricated) wall, fully finished, which is installed as a part of a building.

Composite DepreciationA method of determining the depreciation of a multi-building property using the average rate at which all the buildings are depreciating.

Composite RateA rate reflecting both the income flow of a building (or other depreciating asset) and the recapture of invested capital.

Composition(1) A mixture of gravel and stones embedded in a heavy tar roof shingle, and called a "composition" roof. (2) A creditor's composition, (see which).

Compound Amount Of An AnnuityThe total amount at the end of a given period, including investment and reinvestment of the annuity payments.

Compound Amount Of An Invested SumThe total amount at the end of a given period, including the reinvestment of all interest plus the original amount invested.

Compound InterestInterest paid on accumulated interest as well as on the principal.

Compound SlopeA slope composed of two or more separate slopes with different grade angles.

Comprehensive Community PlanSee: Master Plan.

Comprehensive Environmental Response, Compensation, And Liability ActThe federal legislation which established the Superfund to hasten the cleanup of contaminated property. The strength of the act is that there is strict liability, joint and several liability, and liability is retroactive. See also: Joint and Several Liability; Strict Liability; Superfund.

Comprehensive Environmental Response, Compensation, And Liability Act (CERCLA)Federal legislation passed in 1980 requiring owners of contaminated properties to bear the cleanup costs.

Comprehensive PlanWritten document prepared by a city's planning board that identifies the goals, objectives, principles, guidelines, policies, standards, and strategies for growth and development of a community. Also called: Master Plan.

CompsSee: Comparables.

Computer ListingA system of processing listings through a computer so that anyone belonging to the service may learn of the listing through a telephone call directly into the computer. The listings are coded by area, number of bedrooms, and other features of the property.

ConcaveHaving an angle or curvature less than 180 degrees.

Concealed HeatingSee: Radiant Heating.

ConcessionA granting of a right, by government or privately, usually for use of land or area in a building to carry on a business.

ConcreteA cement mixture containing sand and gravel which is combined by mixing with water, poured to a desired shape, and hardens as it dries. See also: Poststressed Concrete; Prestressed Concrete; Reinforced Concrete.

Concrete ConstructionSee: Architectural Concrete Construc-tion; Reinforced Concrete Construction.

Concrete (plain)A concrete which has not been prestressed, poststressed, or reinforced in any way except possibly to hinder shrinkage or expansion caused by temperature changes.

Concrete SlabA foundation made from a layer of poured concrete reinforced with steel rods.

Concrete Slab FoundationA poured foundation consisting of concrete beams at the perimeter and center of a reinforced slab, which gives the slab support. See: Floating Slab; Monolithic Slab; Rebar.

Concrete Tilt-UpAn inexpensive method of constructing walls by pouring concrete into forms flat on the ground, allowing to harden, then raising the forms by a crane or block and tackle to a vertical position, thereby forming the wall.

ConcretionA mineral mixture which forms, generally in rock of a different composition, various size grains or modules.

Concurrent ExchangeAn exchange of properties under section 1031 of the Internal Revenue Service Code that close (transfer) simultaneously.

Concurrent JurisdictionWhen more than one court has jurisdiction over a case and a plaintiff may choose in which court to file suit. Compare: Exclusive Jurisdiction.

Concurrent OwnershipOwnership by more than one person; co-ownership.

CondemnationA judicial or administrative proceeding or process to exercise the power of eminent domain.

Condemnation ValueMarket value paid upon condemnation.

CondemneeThe owner of property taken by condemnation (eminent domain).

CondemnerThe party taking property by condemnation (eminent domain).

CondensationThe forming of water on a barrier from warm air meeting cooler air, as in air conditioning units.

Condensation DuctA duct which carries away the water given off by condensation from an air conditioning unit.

ConditionIn real property law, some limiting restriction to a grant or conveyance of property, stating that upon the happening or not happening of a stated event, the estate shall be changed in some manner.

Conditional CommitmentA loan commitment given before a borrower (buyer) is obtained, and subject to approval of the buyer by the lender.

Conditional FeeA type of defeasible fee; title may be terminated by the former owner if conditions stated in deed are not met. Former owner has a power of termination. Also called: Fee Simple Subject to a Condition Subsequent. Compare: Fee Simple Determinable.

Conditional OfferAn offer conditioned upon some event, such as the buyer being approved for a loan, an appraisal above a certain amount or a favorable termite report.

Conditional Sale Of Real PropertySee: Land Contract.

Conditional Sales ContractA sale in which the title to property or goods remains with the seller until the purchaser has fulfilled the terms of the contract, usually payment in full. See also: Land Contract.

Conditional UseLand use that does not comply with the general zoning rules for the zone in which it is located, but is permitted because it benefits the public; for example, a hospital in a residential neighborhood. Also called: Special Exception.

Conditional Use PermitApproval by the government body that controls zoning of a use not permitted by the zoning. The procedure is less complicated than applying for a change of zoning.

Condition PrecedentA condition to be performed before an agreement becomes effective or some right vests or accrues.

Condition SubsequentA condition following an agreement, the happening of which changes the estate.

Condominium ActNew York State law governing the establishment of condominiums.

Condominium DeclarationDocument filed for record when property is developed as, or converted to, a condominium.

Condominium Map (plan)A recorded map showing the condominium units and common area. The map includes both horizontal and vertical measurements of the units. It is important that the map agree with the declaration of restrictions (recorded at the same time).

Condominium Owner's AssociationSee: Home Owner's Association(2).

CondopA building that has been divided into at least two condominiums. The first is the co-op residential units considered one condominium unit. The second unit is the professional and commercial units. Compare: Condominium or Cooperative.

ConductionTransmission of electricity or heat through a conductor.

ConductorA material (usually metal) which can transmit electrical current or heat.

ConduitA natural channel for the flow of water, or artificial channel, such as a pipe, used for conveying and protecting water, wires, or other materials.See Which: Real Estate Mortgage Investment Conduit.

Conduit, ElectricalA metal pipe, usually flexible, through which electrical wiring is installed.

Conduit SystemA system of metal casings (conduits) containing wiring and conductors.

Confession Of JudgmentThe written, voluntary, submission of a debtor to a judgment by a creditor for a specified amount.

ConfigurationOutline of a shape.

Confirmation DeedSee: Rerecording.

Confirmation Of SaleSee: Order Confirming Sale.

Conforming LoanA mortgage loan that follows the requirements for sale in the secondary market to FHLMC or FNMA.

Conforming LoansLoans that meet Fannie Mae/ Freddie Mac standards and, thus, can be sold on the secondary market.

Conforming MortgagesSecuritized mortgages sold on the secondary market that meet certain requirements established by Fannie Mae and Freddie Mac.

ConformityTheory that a particular home (or neighborhood) achieves maximum value when it is surrounded by homes similar in style and function.

Conformity, Principle OfAn appraisal term stating that general uniformity of structures in an area produces highest value.

CongruousSuitable or appropriate. In appraisal, a property which conforms to the area.

ConsanguinityBlood relationship, rather than legal relationship (through marriage).See also: Affinity.

Consensual Dual AgencyOccurs when 1. the broker and all licensees are dual agents for both parties in the transaction, or 2. the buyer and seller each appoint a designated agent, who fully represents them. The broker, however, would (with consent) act as a dual agent in the transaction.

Consent JudgmentA written agreement between plaintiff and defendant to have a judgment entered and recorded. Although the court does no actual finding for one party or the other, the judgment, once approved by the court, is binding on both parties.

Consequential DamagesDamages created by a change in other property. An owner's right to compensation varies with state statutes. See also: Lateral Support: Inverse Condemnation.

Conservation(1) Care and preservation of natural resources. (2) Preservation, though zoning, of improved areas to maintain the quality of the area.

Conservation Advisory CouncilStudies matters affecting the environment, preservation, development, and use of a city's natural and physical features and conditions regarding ecologic integrity, aesthetic appeal, and quality.

ConservatorA guardian, court appointed.

ConsiderationSomething of value that induces one to enter into a contract. Consideration may be “valuable” (money or commodity) or “good” (love and affection”). Also, an act of forbearance, or the promise thereof, given by one party in exchange for something from the other. Forbearance is a promise not to do something.

Consolidation(1) The coming together, either through merger or partial ownership, of two or more companies. (2) The solidification of loose material or liquid, usually under pressure.

ConstantSee: Loan Constant.

Constant Payment LoanSee: Interest Included Note.

ConstitutionFundamental document establishing a government's structure and setting limits on its power.

Constitutional1. Pertaining to or based on a constitution. 2. Not in violation of the U.S. Constitution or a state constitution.

Constitutional LawLaw derived from the Constitution.

Construction CostThe total cost of building, including overhead and profits as well as land, labor, and materials.

Construction MortgageTemporary loan used to finance a construction project.

Constructive AnnexationPersonal property associated with real property in such a way that the law treats it as a fixture, even though it is not physically attached to the real property.

Constructive Eviction1. Acts by the landlord that so materially disturb or impair the tenant's enjoyment of the leased premises that the tenant is effectively forced to move out and terminate the lease without liability for any further rent. 2. A purchaser's inability to obtain clear title.

Constructive FraudA negligent misrepresentation or concealment of a material fact; when a person carelessly fails to disclose material information, or makes false or misleading statements. Also called: Negligent Misrepresentation.

Constructive MortgageSee: Equitable Mortgage.

Constructive NoticeNotice given to the world by recorded documents. All persons are charged with knowledge of such documents and their contents, whether or not they have actually examined them. Possession of property also is considered constructive notice that the person in possession has an interest in the property.

Constructive ReceiptThe controlling by the taxpayer of funds from the sale of the relinquished property under a 1031 exchange rather than direct reinvestment into the replacement property. This will cause the taxpayer to lose the tax free status.

Constructive TrustA trust created by operation of law to change an inequitable situation. If one acquires title to property through fraud, the court will hold that the legal owner holds in trust for those who really should have ownership. Also called an involuntary trust.

Consumer LendingLoans made for personal property, such as automobiles, appliances, etc.

Consumer Price IndexSee: Cost of Living Index.

Consumer Price Index (CPI)An index published monthly by the United States Bureau of Labor Standards (BLS) considered by many to be the basic indicator of inflation in the U.S.

Consumer Reporting BureauSee: Credit Bureau.

Contemporary ArchitectureA general term encompassing any number of modern designs which do not conform to any traditional architectural styles.

ContiguousNear or close to, whether actually touching or not. Generally refers to actual touching or bordering on.

ContingenciesA provision or condition in the purchase of real estate requiring a certain act to be done or an event to happen before the contract becomes binding.

Contingency ClauseProvision in a contract or deed that makes the parties' rights and obligations depend on the occurrence (or nonoccurrence) of a particular event. Also called: Condition.

Contingent BeneficiaryOne who, under the terms of a will or trust, may or may not share in the estate upon the happening of an uncertain event. Example: A leaves property to B when B reaches 30, stipulating that if B dies before 30, property goes to C. C is the contingent beneficiary.

Contingent FeesFees to be paid only in the event of a future occurrence. A broker's commission is paid only if the property is sold or leased (unless otherwise agreed upon). Attorneys (especially in negligence cases) may be paid based on winning the suit and collecting damages.

Contingent InterestAn interest subject to the occurrence of a specified but uncertain event.

Contingent RemainderA remainder interest uncertain as to the persons in interest or the occurrence of an event. Example: A grants to B for life, then to the children of C. At the time of the grant C has no children but may have when B dies.

Contour FurrowsFurrows plowed laterally across a slope to control water running down the slope.

Contour Line(1) A line showing the shape (outline) of a parcel of land or body of water. (2) A line on a topographical map connecting all portions of the property which have the same elevation.

Contour MapA map which uses lines (most always curved) to outline the configuration and elevation of surface areas.

Contract For DeedA contract for the sale of real estate under which the sale price is paid in periodic installments by the purchaser, who is in possession and holds equitable title, although actual title is retained by the seller until final payment.

Contract For Exchange Of Real EstateA contract for sale of real estate in which the consideration is paid wholly or partly in property.

Contract Of SaleIn some areas of the country, synonymous with land contract. In other areas synonymous with purchase agreement.

ContractorSee: General Contractor; Subcontractor.

Contractor's OverheadExpenses over and above labor and materials, such as return on money invested, carrying costs of land, office expense, interest on loans, etc.

Contractor's ProfitPrice at which property is sold, less costs of land, labor and materials, and overhead.

Contract RateThe interest rate on a specific note as opposed to the market rate.

Contract RentRent paid under a lease. The actual rent as opposed to the market rental value of the property.

Contractual LienA voluntary lien such as a mortgage or deed of trust.

Contribution(1) The right of one who pays a common liability to recover from the others who share the liability. Example: A, B and C own property. A pays the property tax. A may recover from B and C that portion which B and C should have paid. (2) Decreasing the gifts in a will to pay creditors of the estate or those entitled to a portion of the estate who have been omitted. See also: Abatement.

Contributory ValueAn appraising principle where the value of a property's component parts are measured by their effect on the selling price of the whole. Appraisers use sold properties as “paired sales” to isolate component parts and to identify their monetary contribution to the whole.

ControlReferring to traffic, the term is used to indicate a traffic light or stop sign at an intersection, which slows (controls) traffic. A retail site, such as a gas station or fast food restaurant, prefers a corner location with control.

Controlled Access HighwaySee: Limited Access Highway.

ControlsIn government projects such as urban renewal, the limits on use, density, and other limits which would be contained in zoning laws in a private venture.

ConvectionIn heating, the motion created by the gravitational pull on air or water at different temperatures, and therefore, different densities.

Conventional LoanA loan that is not insured or guaranteed by a government agency.

Conversion(1) A legal term referring to the "legal" changing from real to personal property (or vice versa), although there is no actual change in the property. (2) A taking of something for one's own use which was originally in his possession only to hold for the owner. (3) The changing of an apartment to a condominium.

Conversion OptionBorrower's right to convert from an adjustable rate mortgage to a fixed rate mortgage one time during the loan term, provided certain conditions are met.

Convertibility ClauseThe provision in a convertible adjustable rate mortgage giving the borrower the option of changing to a fixed rate at specified times during the term of the mortgage.

Convertible Adjustable Rate MortgageAn adjustable rate mortgage that gives the borrower the option to change to a fixed rate at specified times during the term of the loan.

Convertible MortgageA mortgage which enables the lender to take (convert to) an equity (ownership) position in the collateral security (real estate) as opposed to that of a lienholder.

ConvexHaving an angle or curvature greater than 180 degrees.

ConveyTo transfer title to property. See also: Conveyance.

ConveyanceA written instrument that evidences transfer of some interest to real property from one person to another.

Conveyance TaxSee: Transfer Tax.

CoopA structure to shelter chickens.

Co-OpSee: Cooperative apartment.

Cooperating BrokerThe broker who finds the buyer and so shares in the commission with the listing broker.

Cooperation ClauseA clause in the purchase agreements of both the relinquished and replacement properties in a 1031 exchange stating that the parties agree to do what is required (cooperate) by the IRS rules.

CooperativeA residential multi-unit building whose title is held by a trust or corporation that is owned by, and operated for, the benefit of persons living within the building. These persons are the beneficial owners of the trust or the shareholders of the corporation, each having a proprietary lease.

Cooperative ApartmentAlso called a stock cooperative or a co-op. A structure of two or more units in which the right to occupy a unit is obtained by the purchase of stock in the corporation which owns the building. Difficult to obtain financing because there is not individual ownership of each unit. A forerunner of the condominium.

Cooperative Policy Statement #1 (CPS-1)Applicable to cooperatives, condominiums, and homeowners associations and is used to test the market, explore the venture, and determine the needs to meet a variety of conditions.

Co-OrdinatesA general term encompassing a number of methods to determine the position of intersecting lines, planes, points, etc.

Co-OwnershipOwnership by two or more persons or entities. See also: Equitable Ownership; Legal Owner.

CopingThe top or "cap" of a wall, usually convex to permit the runoff of water.

CopseA small wooded area. A thicket of trees or bushes.

CorbelA timber or stone, set in and projecting from a wall, and used to support a load.

CordA measure, usually associated with cut wood. 128 cubic feet of cut wood, or a pile 4' high, 4' wide, and 8' long.

CornerMost commonly, the acute angle formed by intersecting streets or walls.

Corner BeadA reinforcement placed in corners before plastering. Commonly a strip of iron with metal lath.

Corner BoardsThe boards (trim) covering the outside corners of a frame building.

Corner BracesBraces nailed diagonally to the studs as a reinforcement at corners.

Corner InfluenceIn appraisal, the effect on the value of a property because it is on a corner or near a corner.

Corner LotA lot contiguous to two intersecting streets, and, for purposes of value, having access to both streets.

CorniceThe "crowning" member of a wall. The top molding or facade, generally of a decorative nature.

Corporate ResolutionAn action taken by vote of the directors of a corporation. A title insurance company may require a corporate resolution before insuring a sale or loan made by a corporation.

CorporationAn entity or organization created by operation of law whose rights of doing business are essentially the same as those of an individual. The entity has continuous existence until dissolved according to legal procedures.

CorporealConcerning material objects or property, rather than non-material things, such as ideas. A machine would be corporeal; the patent for it would be incorporeal.

Corporeal PropertyThat property which can be touched. For example: A window (glass) is corporeal. The view through the window is incorporeal.

CorpusA body; of people, laws, etc.

Correction DeedSee: Rerecording.

Correction LinesThe horizontal provisions in the rectangular survey system made to compensate for the curvature of the earth's surface. Every fourth township line is used as a correction line on which the intervals between the north and south range lines are remeasured and corrected to a full six miles.

Corrective MaintenanceRepairing or restoring broken or failed equipment to a specified condition. Compare: Cosmetic Maintenance, Preventive Maintenance.

CorrelationThe use of different appraisal methods to reach an estimate of value of a property. The methods must be weighed as to relative value in each specific appraisal.

Corridor(1) A hallway or passageway. (2) A strip of land used as a passageway, such as an inland country's outlet to the sea, or between heavily populated areas.

Co-SignatorySee: Co-maker.

CosignerSee: Co-Maker.

Cosmetic MaintenanceMaintenance that increases a property's appeal. Compare: Corrective Maintenance, Preventive Maintenance.

CostTechnically, the original amount paid for anything. The term is generally used as a synonym for value or the total amount invested, including expenses after the original purchase.

Cost ApproachThe process of estimating the value of a property by adding the appraiser's estimate of the reproduction or replacement cost of the building, less depreciation, to the estimated land value.

Cost Estimating(1) In construction, the expenditure of building based on a detailed cost of materials to be used. (2) In appraisal the term is general, referring to replacement cost, but not limited to a specific method of arriving at said cost.

Cost InflationAn increase in the cost of goods or services. Compare: Demand Inflation.

Cost ManualsBooks that give estimated construction costs for various types of buildings/ structures in different regions of the country.

Cost Manuals MethodCost approach appraisal method that uses cost manuals to arrive at an estimate of value for property.

Cost Of Living EscalationSee: Escalation Clause (2).

Cost Of Living IndexA government indicator of the increase or decrease of living costs for the average person on a monthly basis. See also: Escalation Clause (2).

Cost Of MoneyThe interest rate people or businesses pay to use another's money for their own purposes.

Cost Of OccupancyCost (usually monthly) of a business to occupy its property exclusive of any costs of doing business.

Cost Of RemodelingExpense of alterations to raise the value of a property, rather than to make repairs.

Cost Of RepairsExpenses to maintain the value of a property by restoring the worn- out or broken parts of the structure.

Cost-Plus ContractA building contract setting the builder's profit at a set percentage of actual cost of labor and materials.

Cost RecoverySee: Depreciation (2).

CotenancyA general term covering both joint tenancy and tenancy in common.

Co-TenantAnyone who shares ownership of a property with another. Forms of co-ownership include joint tenancy, statutory survivorship tenancy, tenants in common, tenant by the entireties, or tenant in partnership.

Co-TrusteeOne who shares the duties of trustee with one or more other trustees.

CottageOriginally, a house with no surrounding land belonging to it. Modernly, a small house, perhaps used as a summer home.

CoulombA measure of electricity equal to a one second electrical charge in a current having a constant flow of one ampere.

CounselingThe business of providing people with expert advice on a subject, based on the counselor's extensive, expert knowledge of the subject.

Counselor (counsellor)(1) A lawyer. (2) One designated as a real estate counselor by the American Society of Real Estate Counselors. The designation indicates an extremely high standard of knowledge and experience on the part of the conferee.

Counselor Of Real Estate (CRE)A designation conferred by the Counselors of Real Estate, an affiliated association of the NATIONAL ASSOCIATION OF REALTORS. The designation is not just for those in the real estate business but includes lawyers, accountants, financial firms, government employees and educators.

Counselors Of Real EstateAn association affiliated with the NATIONAL ASSOCIATION OF REALTORS. Its members provide counseling in various aspects of real estate. The association offers publications and courses in counseling and confers the designation of Counselor of Real Estate.

Counter FlashingFlashing (tar substance) used on chimneys at the roofline to prevent entry of moisture, and cover the metal sheet flashing.

Counter-LetterIn civil law (Louisiana), when a deed is given to a lender as security, an agreement to reconvey (counter-letter) upon payment of a certain amount is given by the lender.

CounterofferA new offer made as a reply to an offer received, having the effect of rejecting the original offer. The original offer cannot be accepted thereafter unless revived by the offeror repeating it.

Counter OfferAn offer (instead of acceptance) in response to an offer. For example: A offers to buy B's house for X dollars. B, in response, offers to sell to A at a higher price. B's offer to A is a counter offer.

CountyA political division within a state, usually encompassing one or more cities or towns. There are exceptions, such as New York City, which contains more than one county. Louisiana uses the word parrish instead of county; New York uses both borough and county, as in Kings County (the borough of Brooklyn).

County Health DepartmentA human service and regulatory agency responsible for public health programs.

County MortgageA mortgage placed on property by the county to secure aid given to indigent persons. Generally paid upon the sale of the property. Also called an indigent mortgage.

County RecordsPublic recorded documents by which notice is given of changes of title, liens, and other matters affecting real estate.

County Road(1) A road lying entirely in one county. (2) Any road or portion of a road under the jurisdiction and maintenance of the county. (3) Loosely, any road not a federal or state road.

Course(1) The path or direction of a river. (2) Something designed so that it must be used by following a certain direction, such as a golf course or race course. (3) A continuous row or layer of wood, bricks, masonry, etc.

Courses And DistancesTerminology used in surveying, meaning metes and bounds. See also: Metes and Bounds.

Court(1) A totally uncovered space, wholly or partly surrounded by walls or buildings. (2) A blind alley, short street, or short cul de sac. (3) A courtroom.

Courtesy To BrokersWillingness of a seller to pay a commission to any broker supplying a suitable buyer; or the willingness of a listing broker to share the commission with any broker supplying a suitable buyer.

Cove(1) An arched, rather than square angle, meeting of a ceiling and wall. (2) An inlet or small bay.

Cove MoldingA small, concave faced molding, used to cover a narrow gap or angle.

CovenantGenerally, almost any written agreement. Most commonly in real estate, assurances set forth (expressed) in a deed by the grantor or implied by law. Example: Covenant against encumbrances, covenant of right to convey, etc.

Covenant Not To CompeteA promise (covenant) usually by a seller of a business, not to operate a competitive business after the sale. The more specific the restriction (time limit, distance, etc.), the more easily it is enforceable.

Covenant Of Quiet EnjoymentUsually inserted in leases or conveyances whereby lessor or grantor promises that the tenant or grantee shall enjoy possession of the premises in peace and without disturbance caused by defective title.

Covenants, Conditions, And RestrictionsSee: CC&R's.

Covenants, Conditions, And Restrictions (CC&RS.)Guarantee that a buyer or tenant has the right to exclusive, undisturbed possession of a leasehold estate and will not be disturbed by the previous owner, lessor, or anyone else claiming interest in the property.

Covenants, Conditions, And Restrictions (CC&RS)Condominium documents that serve as the operational procedures describing the rights and prohibitions of the co-owners in a condominium association.

Covenants Running With The LandSee: Running With The Land.

CPASee: Certified Public Accountant.

CPMSee: Certified Property Manager.

CRASee: Community Reinvestment Act.

Cradle(1) A framework or support, built to shield or protect its contents. (2) The path prepared to catch a falling tree to prevent damage to the tree.

CramdownA term used in chapter 13 (wage earner restructuring debt) bankruptcy. A secured loan is reduced when the loan balance exceeds the reasonable value of the collateral security. The amount above that value becomes unsecured. Used mainly for personal property loans but now starting to be used for mortgage loans. A portion of the mortgage, if it exceeds the value of the property, can become an unsecured loan.

Crawl SpaceA space between the ground and the first floor of a structure (usually a house). Repair of utilities under the house may be made by a person crawling through the shallow space.

CRBSee: Certified Real Estate Brokerage Manager.

Creative FinancingA general term which encompasses any method of financing property going beyond traditional real estate lending.

Credit BureauA company that compiles information on a person's credit history. Also called a Consumer Reporting Bureau.

Credit Bureau ScoreA number representing the credit worthiness of a potential borrower.

Credit EnhancementThe requirement of additional collateral security, such as mortgage insurance, to protect a lender against loss.

Credit Life InsuranceSee: Mortgage Life Insurance.

Credit Line Reverse MortgageA maximum amount is established as a line of credit. The borrower can write checks up to this amount. This loan allows repayment and reborrowing during the life of the loan, but does not require repayment until the loan ends. This occurs either at the borrower's sale of the property or the borrower's death. See also: Reverse Mortgage.

Creditor's CompositionAn agreement by creditors to take a portion of a debt as satisfaction for the total due. Generally done to avoid a debtor having to declare bankruptcy.

Creditor's Position(1) The portion of the value of property which is mortgaged, rather than the equity. (2) The portion of the value of property upon which a first mortgage could be obtained.

Credit ScoringA three-digit score that assesses a borrower's credit risk and the probability of default based on his or her past pay performances, outstanding credit balances, credit mix, time on file, and number of search inquiries.

Credit UnionA non-profit financial institution owned and operated entirely by its members. By depositing money in a credit union, the depositor becomes a member and has partial ownership in the institution.

Creek(1) An inlet, going deeper into the land than a cove. (2) A stream which empties into a river or bay.

CricketA small, convex roof, placed on a larger roof or surface, to promote drainage in areas of the surface which have barriers to said drainage.

Criminal LitigationLawsuit in which the government sues someone to punish the wrongdoer and protect society.

CroftAn obsolete term referring to a small farm or area to be farmed.

CropA specific harvest in a single growing season, such as the corn crop, apple crop, etc.

Cropland(1) Any land suited for farming (the growing of crops). (2) Land upon which crops are actually grown or growing.

Crop RotationThe planting of crops such as peas and beans (leguminous plants), which add nitrogen to the soil, on an alternating basis with crops such as corn, wheat, etc., which take nitrogen from the soil.

Cross-BridgingStrengthening a structure by bracing cross members between the joists, thereby spreading the weight over a larger area.

Cross Connecting RoadA road connecting two parallel roads, usually at a right angle.

Cross SectionThe surface exposed by cutting at a right angle to an axis (usually the longer axis) of an object.

Crown MoldingA large molding used on a cornice or to cover a wide gap or angle.

CRSSee: Certified Residential Specialist.

CruiseA surveying report showing the amount and type of timber in a given area or stand.

CRVSee: Certificate of Reasonable Value.

Cubic ContentThe number of cubic feet in a building, measured from the exterior surfaces of the exterior walls and roof, and the interior surface of an unfinished floor or six inches below the finished surface of the floor.

Cubic Feet Per MinuteAn air flow measure used to grade the efficiency of ventilating fans.

Cubic FootSee: Cubic Measure.

Cubic Foot CostThe cost of construction of a structure, divided by the number of cubic feet of the structure. See: Cubic Content.

Cubic Foot MethodSee: Comparative Method.

Cubic Foot Per SecondA flow of water of one cubic foot per second. Used as a measurement term in determining the flow of a river or stream.

Cubic InchSee: Cubic Measure.

Cubic MeasureA system of measuring volume or space by using cubic units. One cubic inch is 1 inch long by 1 inch wide by 1 inch high; 1728 cubic inches equals 1 cubic foot; 27 cubic feet equals 1 cubic yard.

Cubic YardSee: Cubic Measure.

Cul De SacA street or ally open at one end only. Modernly, a street in a subdivision, open at one end, and having a large, rounded, closed end to facilitate U turns.

Cul-De-SacA dead-end street that widens sufficiently at the end to permit an automobile to make a U-turn.

CulturaA parcel of land which can be cultivated.

Cultural FeaturesA term denoting man made changes to land.

CulvertA waterway or drainage ditch which crosses under a road.

Cupola(1) A structure, usually domelike, atop a roof. (2) A type of foundry furnace for melting iron.

Curable DepreciationRepairs which an owner of real estate should make to retain a high value, but which have not been made.

Curable Functional ObsolescenceSee: Functional Obso-lescence.

Curable Physical DeteriorationSee: Physical Deterioration.

Curb CutsThe part of a curb which lowers to street level to form the apron of a driveway.

Curb LineThe line between the right of way for automobiles (road) and the right of way for pedestrians (sidewalk).

CureTo remedy a default by paying overdue money or by fulfilling other obligations.

Current AssetsAn accounting term meaning cash or those things which can be readily converted to cash, such as short term accounts receivable.

Current LiabilitiesShort term debts.

Curtail ScheduleThe schedule of partial principal payments (both amounts and due dates) to reduce and retire an indebtedness.

Curtain WallAn outside wall which lends no structural support to a building, but acts merely to enclose.

CurtesyA life estate, usually a fractional interest, given by some states to the surviving husband in real estate owned by his deceased wife. Most states have abolished curtesy.

CurtilageThe grounds and secondary buildings surrounding a house which are commonly used in connection with the everyday use of the house.

CurvilinearHaving boundaries of curved lines; may refer to architecture, streets, etc.

Custodian(1) One who is entrusted with the care and keeping of real or personal property. See also: Custody. (2) A janitor.

CustodyThe care and keeping of property (real or personal). For example: An escrow agent has custody of documents and funds until closing.

Custom BuilderOne who builds for a specific owner, designing the building to suit said owner's need, rather than building and then looking for a buyer.

CustomerA buyer of goods or services.

Cut-Over LandLand from which the original growth has been cut away by logging.

CutsIn construction, the excavation of land into a terrace or terraces, to control flooding, locate a highway, building, or affect the grade for some other purpose.

CycleA recurring sequence of events that regularly follow one another, generally within a fixed interval of time.

Cyclical MovementA term in economics describing the business cycle of the national economy, from good to bad to good again.

Cy PresAs nearly as possible. A doctrine used to carry out the intent of the donor when a specific charitable gift fails. Example: Land is left in a will to the X Blood Bank. When the will is probated, X Blood Bank no longer exists. The land is given to the Red Cross.