Real Estate Terms

We are committed to making the purchase or sale of your home as simple and easy as possible. During this process, you may encounter real estate terminology that is new to you. Following is a guideline of real estate terms, as well as financial and architectural terms to help you during the purchase or sale of your home.

Carry-Cost Rule

The carry-cost rule is used by banks to evaluate borrowers for loans. It gives the maximum percentage of a borrower’s income that the bank will find acceptable to carry the loan and related housing costs. This rule is used in...

Read More

Cash Flow

Cash flow is the income produced by an investment property after deducting operating expenses and debt.

Read More

Cash Reserve

In a mortgage commitment, some lenders require that the borrower have on deposit in their bank accounts at the time of the closing an amount equal to a predetermined number of months of the cost of principal, interest, taxes, and...

Read More

Caveat

Caveat is a warning or caution that may be an amendment to a contract of sale.

Read More

Caveat Emptor

Caveat emptor in Latin means “let the buyer beware”, which applies in most real estate transactions.

Read More

Certificate of Occupancy (C of O)

The Certificate of Occupancy is a certificate issued by a local governmental entity responsible for the use of land in the community where the property is located stating that the structures on the property or any improvements made to these...

Read More

Certificate of Title Opinion

Certificate of Title Opinion is a report based on a title examination, which states the examiner’s opinion of the quality of a title to real property.

Read More

Cession Deed

A cession deed is used to relinquish real property to a municipality for a road or other public work project.

Read More

Chain

A chain in land measurement is a distance of 66 feet.

Read More

Chain of Title

Chain of Title is a successive conveyance of title to a specific parcel of land.

Read More

Chattel

Chattel is personal property.

Read More

Civil Rights Act of 1866

The Civil Rights Act of 1866 is a federal law that prohibits all discrimination on the basis of race.

Read More

Civil Rights Act of 1964

The Civil Rights Act of 1964 is a federal law that prohibits discrimination in many instances, but in Title VI it prohibits discrimination on the ground of race, color, or national origin under any program or activity receiving federal financial...

Read More

Closing

The closing is when the transfer of ownership of a property from the seller to the buyer occurs according to the sales contract.

Read More

Closing Costs

Closing costs are the expenses incurred in the purchase and sale of real property paid at the time of settlement or closing. Some examples of closing costs are title insurance, attorney fees, appraisal fees, recording fees and taxes.

Read More

Closing Statement

A closing statement is an accounting of the funds received and distributed in a real estate transaction.

Read More

Cluster Zoning

Cluster zoning is a form of zoning that provides for several different types of land use within a zoned area.

Read More

Co-Broke

Co-broke is an arrangement between two brokerage firms to share a commission. Normally used when one broker is the seller’s exclusive listing agent and the other broker represents the buyer.

Read More

Co-ownership

Co-ownership occurs when title to real property is held by two or more persons at the same time; also called concurrent ownership

Read More

Code of Ethics

The Code of Ethics is a standard of conduct required by license laws and by the National Association of Realtors.

Read More

Codicil

A codicil is a supplement or an appendix to a will either adding or changing a bequest.

Read More

Collateral

Collateral is the security put up in exchange for a loan, which can be taken by the bank if the loan goes unpaid. In the case of a mortgage loan, the collateral is the property.

Read More

Combination

Refers to when an owner combines two adjoining apartments into one to enhance the value and the space.

Read More

Commercial Zones

Commercial zones allow usage for retail stores, restaurants, hotels and service businesses.

Read More

Commingling

Commingling is the mixing of money or property of others with personal or business funds or other property.

Read More

Commission

The commission is the payment to the broker for his or her efforts on marketing and selling the property, and is usually a percentage of the total purchase price.

Read More

Commission Split

A commission split is the sharing of commissions between the listing agent and the broker of the buyer.

Read More

Commitment Fee

The commitment fee is a fee paid to the lender for processing, underwriting and originating the mortgage. It is also known as an origination fee.

Read More

Commitment Letter

A letter issued by the lender to the applicant that states funds will be provided subject to written terms and conditions.

Read More

Common Area or Common Elements

The common area is the area in the property or in the building that is available for use by all owners and tenants.

Read More