Cancellation clause

A clause that details the conditions under which each party may terminate the agreement.

 

CC&R's

Document outlining the conditions, covenants, and restrictions of property.

 

Certificate of eligibility

A document issued by the Veterans Administration that verifies the eligibility of a veteran for a loan program.

 

Certificate of occupancy

A document which states that a home or other building has met all building codes and is suitable for habitation.

 

Certificate of sale

A document issued at a judicial sale, which entitles the buyer to receive a deed after court confirmation of the purchase of the property.

 

Certificate of title

A written opinion on the status of a piece of property based on an examination of the public record.

 

Chain of title

The official record that details the ownership history of a piece of property.

 

Classified property tax

A tax that varies in rate depending on the use of the property.

 

Clear title

A property that does not have liens, defects or other legal encumbrances.

 

Closing

The final procedure in which documents are signed and recorded, and the property is transferred.

 

Closing costs

Expenses incidental to the sale of real estate, including loan, title and appraisal fees.

 

Closing statement

A document which details the final financial settlement between a buyer and seller and the costs paid by each party

 

Cloud on title

An invalid encumbrance on real property.

 

Cluster development

A method of squeezing more homes into less space.

 

Code of Ethics

Written standard of ethical conduct.  Members of the National Association of REALTORS® subscribe to a Code of Ethics.

 

Co-housing

Individual housing units that are clustered around a common building where residents share cooking and other activities.

 

Co-insurance

Coverage that involves the use of two or more insurers.

 

Co-signer

A second party who signs a promissory note and takes responsibility for the debt.

 

Collateral security

Additional security that a borrower supplies to obtain a loan.

 

Collusion

The action of two or more people to break the law.

 

Commercial property

An area that is zoned for businesses.

 

Commingling

The mixing of money held in trust with other funds.

 

Commission

The negotiable percentage of the sales price of a home that is paid to the agents of the buyer and seller.

 

Commitment

A promise by a lender to make a loan with specific terms for a specified period.

 

Commitment fee

The fee a lender charges for promising to make a loan.

 

Common area

An area inside a housing development that is owned by all residents.

 

Common Element

Property that is necessary or convenient for existence, maintenance or safety of a planned development.

 

Common Interest Community

Refers to condominium, cooperative and planned unit development projects.

 

Common law

A body of laws based on custom, usage and rulings by courts in various jurisdictions.

 

Common-area assessments

Fees paid by the owners of a condominium project or planned-unit development to maintain, repair, improve or operate common areas.

 

Common-interest development

A project composed of individually owned units that share usage and financial responsibility for common areas.

 

Community property

Property accumulated through the joint efforts of husband and wife.  It is a classification of property peculiar to certain states.

 

Community Reinvestment Act

A federal law that encourages financial institutions to loan money in the neighborhoods where minority depositors live.

 

Comparables

Properties used as comparisons to determine the value of a certain property.

 

Comparative market analysis

An estimate of the value of a property based on an analysis of sales of properties with similar characteristics.

 

Competent

A term for a buyer who is legally fit to enter into a sales contract.

 

Compound interest

The interest paid on the principal balance in a mortgage and on the accrued and unpaid interest of the loan.

 

Condemnation

The process the government uses to take private property for public use without the consent of the owner.

 

Conditional commitment

A promise by a lender to make a loan if the borrower meets certain conditions.

 

Condominium

Individual units in a building or development in which owners hold title to the interior space while common areas such as parking lots, community rooms and recreational areas are owned by all the residents.

 

Condominium conversion

The change in title from a single owner of an entire project or building to multiple owners of individual units.

 

Consent judgment

A binding written agreement between two parties to have a judgment entered and recorded.

 

Consideration

Anything that is legal, has value and induces a person to enter into a contract.

 

Contingency

A condition specified in a purchase contract, such as a satisfactory home inspection.

 

Contingency listing

A property listing with a special condition attached.

 

Contingent fee

A fee that must be paid if a certain event occurs.

 

Contract

An agreement between two or more parties that creates or modifies an existing relationship.

 

Contract for deed

A contract in which the seller agrees to defer all or part of the purchase price for a specified period of time.

 

Contract to purchase

A contract the buyer initiates which details the purchase price and conditions of the transaction and is accepted by the seller.  Also known as an agreement of sale.

 

Contractor

The individual who contracts for the construction of a home or project.

 

Contractual lien

A voluntary obligation such as a mortgage or trust deed.

 

Conventional loan

A long-term loan a lender makes for the purchase of a home.

 

Conveyance

The transfer of title of property.

 

Convey

To sell or transfer ownership of Property to another party.

 

Conveyance documents

Documents that transfer title or interest in real property.

 

Conveyance tax

A tax imposed on the transfer of real property.

 

Cooperating broker

A real estate broker who finds a buyer for a property that another broker has listed.

 

Cooperative project

A project in which a corporation holds title and sells shares representing individual units to buyers who then receive a proprietary lease as their title.

 

Counteroffer

A response to an offer.

 

Covenant

An agreement with another party promising to do or not to do something.

 

Covenants, conditions and restrictions (CC&Rs)

Rules and regulations for a development, such as acceptable landscaping or improvements that can be made to individual units.

 

Creative financing

Innovative home-financing arrangements that help sell a property.

 

Curable defect

A deficiency in a property that is easy or inexpensive to fix, such as chipping paint.