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Glossary of Terms

A provision in a mortgage which allows the loan provider to require payment of the impressive balance at a specific time.

CAP.
Associated with Adjustable Rate Mortgages. A limitation on how high monthly payments or just how much rates of interest may change within a particular period or the life of the mortgage.

CAPE COD COLONIAL.
A single-story house design made popular in New England. Often identified by a high roofing system with gables.

CAPITAL.
Accumulated products and money which is usually used to create additional earnings.

CAPITAL EXPENDITURE.
An investment of funds created to improve the income-producing abilities of a possession or to extend its economic life.

CASH-OUT REFINANCE.
Refinancing a mortgage at a higher amount than the current balance in order to transform a part of the equity into money.

CAULKING.
A pliable product utilized to seal fractures or openings such as around windows.

CAVEAT EMPTOR.
Literally equated: “Let the buyer beware.” A typical organization tenet whereby the purchaser is accountable for verifying any and all claims by the seller of residential or commercial property.

CERTIFICATE OF DEPOSIT.
A file revealing that the bearer has a specific quantity of cash, at a particular amount interest, on deposit with a monetary organization.

CERTIFICATE OF DEPOSIT INDEX.
An index based upon the rate of interest of six month CD’s. Used to set rates of interest on some Adjustable Rate Mortgages.

CERTIFICATE OF ELIGIBILITY.
A file provided by the Veterans Administration that licenses eligibility for a VA loan.

CERTIFICATE OF OCCUPANCY.
Issued by a suitable jurisdictional entity, this file accredits that a structure adhere to all structure codes and is safe for usage or habitation.

CERTIFICATE OF REASONABLE VALUE (CRV).
Usually based on an independent appraisal, a CRV for a specific residential or commercial property develops the maximum amount which can be protected by a VA mortgage.

CERTIFICATE OF TITLE.
A file designating the legal owner of a parcel of realty. Usually offered by a title or abstract company.

CERTIFIED GENERAL APPRAISER.
Generally, any specialist who has fulfilled the regional or state requirements, and passed the suitable accreditation test, and can evaluating any kind of residential or commercial property.

CERTIFIED RESIDENTIAL APPRAISER.
A sub-classification of appraiser who is only accredited to evaluate home, usually approximately 4 units.

CHAIN OF TITLE.
The total history of ownership of a piece of residential or commercial property.

CHATTEL.
Any personal residential or commercial property which is not connected to or an integral part of a residential or commercial property. Chattel is not typically taken into factor to consider when assessing the value of genuine residential or commercial property.

BREAKER.
Electrical devices which automatically open electrical circuits if they are overwhelmed.

CLEAR TITLE.
Ownership of residential or commercial property that is not encumbered by any counter-claim or lien.

CLOSING.
An agonizing process created to induce cramping in a home buyer’s hands by needing signature on countless pieces of documents that nobody has ever checked out. Or, the procedure whereby the sale of a residential or commercial property is consummated with the purchaser completing all appropriate paperwork, consisting of signing the mortgage responsibility and paying all appropriate expenses related to the sale (CLOSING COSTS).

CLOSING COSTS.
All suitable expenses generated by the sale of residential or commercial property which the parties should pay to complete the transaction. Costs may include appraisal costs, origination costs, title insurance, taxes and any points negotiated in the offer.

CLOSING STATEMENT.
The document detailing the final financial arrangement between a purchaser and seller and the costs paid by each.

CO-BORROWER.
A second person sharing commitment on the loan and title on the residential or commercial property.

COLLATERAL.
A property which is placed at risk to secure the payment of a loan.

COLLECTION.
The procedure a lending institution takes to pursue a debtor who is delinquent on his payments in order to bring the mortgage present once again. Includes paperwork that may be utilized in foreclosure.

CO-MAKER.
A second celebration who signs a loan, together with the debtor, and becomes accountable for the debt must the customer default.

COMMON LAW.
Rather than statute law. Laws that have been established by custom, usage and courts over lots of years.

COMMISSION.
A portion of the list prices or a fixed fee negotiated by a representative to compensate for the effort expended to offer or purchase residential or commercial property.

COMMON AREA ASSESSMENTS.
Fees which are credited the tenets or owners of residential or to cover the costs of preserving areas shown other tenets or owners. Commonly found in condo, PUD or office.

COMMON AREAS.
Any areas, such as entryways, foyers, pools, recreational centers or the like, which are shared by the tenets or owners of residential or commercial property near by. Commonly discovered in condo, PUD or workplace.

COMMUNITY RESIDENTIAL OR COMMERCIAL PROPERTY.
In numerous jurisdictions, any residential or commercial property which has actually been gotten by a married couple. The ownership of the residential or commercial property is thought about equivalent unless specified otherwise by both celebrations.

COMPARABLES.
A shortened term used by appraisers to describe residential or commercial properties which are similar in size, condition, area and facilities to a subject residential or commercial property who’s value is being identified. The Uniform Standards of Professional Appraisal Practice (USPAP) establish clear guidelines for identifying an equivalent residential or commercial property.

COMPOUND INTEREST.
Interest paid on the principal amount, in addition to any built up interest.

CONCESSIONS.
Additional value approved by a buyer or seller to attract another party to finish a deal.

CONDEMNATION.
The official procedure by which a residential or commercial property is considered to be uninhabitable or unusable due to internal damage or other external conditions.

CONDENSATION.
The shift of water vapor to liquid. Typically kinds in areas of high humidity.

CONDOMINIUM.
An advancement where specific units are owned, but typical locations and facilities are shared similarly by all owners.

CONDOMINIUM CONVERSION.
Commonly, the conversion of a rental residential or commercial property such as an apartment building into a CONDOMINIUM-style complex where each unit is owned rather than leased.

CONDOTEL:.
Are Condo-hotels typically situated in touristy locations or buildings containing both condos and hotel rooms. Condotels normally provide ownership in a vacation-style condominiums that supply onsite rental management. Often owners of condotels are limited to a specific variety of days of use and therefore not appropriate for primary house.

CONDUIT.
The pipe through which electrical wiring is run.

CONSTRUCTION LOAN.
A loan made to a builder or home owner that funds the preliminary building and construction of a residential or commercial property, however is changed by a standard mortgage one the residential or commercial property is completed.

CONTIGUOUS.
Connected to or touching along an unbroken border.

CONTINGENCY.
Something that must occur before something else happens. Often utilized in realty sales when a buyer must sell a current home before acquiring a new one. Or, when a buyer makes an offer the requires a total home inspection before it becomes official.

CONTRACT.
A legally binding arrangement, oral or written, in between two celebrations.

CONVENTIONAL MORTGAGE.
A conventional, real estate funding system that is not backed by any government or other firm (FHA, VA, etc).

CONVERTIBLE ARM.
A mortgage that begins as and adjustable, that allows the borrower to convert the loan to a fixed rate within a particular timeframe.

COOPERATIVE (CO-OP).
A kind of ownership where each local of a multiunit residential or commercial property owns a share in a cooperative corporation that owns the building. With each resident having rights to a specific unit within the building.

CORPORATE RELOCATION.
A situation where an individual’s employer pays all or some of the expenditures associated with moving from one area to another, typically over a significant range. Relocation expenditures frequently include the amounts, such as brokerage charges, sustained in the selling and buying of the staff member’s main residence.

COST OF FUNDS INDEX (COFI).
An index of monetary organizations costs used to set rate of interest for some Adjustable Rate Mortgages.

COVENANT.
A specification in any mortgage that, if not met, can be cause for the loan provider to foreclose.

CREDIT.
A loan of cash for the purchase of residential or commercial property, genuine or individual. Credit is either protected by a possession, such as a home, or unsecured.

CREDIT HISTORY.
A record of financial obligation payments, past and present. Used by mortgage lenders in identifying credit worthiness of people.

CREDITOR.
A person to whom cash is owed.

CREDIT REPORT.
A comprehensive report of a people credit, employment and house history prepared by a credit bureau. Used by lenders to figure out credit value of individuals.

CREDIT REPOSITORY.
Large companies that collect and store monetary and credit information about people who request credit.

CUL-DE-SAC.
A dead-end street. One with only one entrance/exit.

DATE OF APPRAISAL.
The specific moment since which an appraiser designates the value of a home. Often stipulated as the date of assessment.

DEBT.
An obligation to pay back some amount owed. This may or might not be monetary.

DEBT EQUITY RATIO.
The ratio of the quantity a mortgagor still owes on a residential or commercial property to the amount of equity they have in the home. Equity is determined at the fair-market value of the home, less any outstanding mortgage financial obligation.

DEED.
A file indicating the ownership of a residential or commercial property.

DEED-IN-LIEU (OF FORECLOSURE).
A file offered by a borrower to a loan provider, moving title of the residential or commercial property. Often utilized to prevent credit-damaging foreclosure procedures.

DEED OF TRUST
A document which transfers title in a residential or commercial property to a trustee, who’s commitments and powers are stipulated. Often utilized in mortgage transactions.

DEED OF RECONVEYANCE
A file which moves ownership of a residential or commercial property from a Trustee back to a borrower who has actually fulfilled the commitments of a mortgage.

DEED OF RELEASE
A document which dismisses a lien or other claim on a residential or commercial property.

DEED OF SURRENDER
A document utilized to give up any claim a person needs to a residential or commercial property.

DEFAULT.
The condition in which a debtor has actually failed to meet the responsibilities of a loan or mortgage.

DELINQUENCY.
The state in which a borrow has actually stopped working to satisfy payment responsibilities on time.

DEPOSIT.
Cash offered along with a deal to purchase residential or commercial property, Also called down payment.

DEPRECIATION.
The natural decline in residential or commercial property value due to market forces or deficiency of resources.

DETACHED SINGLE-FAMILY HOME.
A single structure enhancement planned to act as a home for one household.

DISCOUNT POINTS.
Points paid in addition to the loan origination charge to get a lower rates of interest. One point amounts to one percent of the loan amount.