Real Estate Terms

The monthly charge levied by a condominium to cover the cost of maintaining the common areas and services.

Common law is the law set by judicial precedent or tradition as contrasted with a written statute.

Common law dedication is an act by an owner allowing the public use of a property.

Community planning is a master plan for the orderly growth of a city or country to result in the greatest social and economic benefits to the people.

Comps are used in assessing or establishing the fair market value of a property, a property which has been sold recently that is similar in size, condition, location and amenities.

Compensatory damage is the amount of money actually lost, which will be awarded by a court in case of a breached contract.

Competent parties are persons or organizations legally qualified to manage their own affairs, including entering into contracts.

Complete performance is the execution of a contract by virtue of all parties having fully performed all terms.

Condemnation is the exercise of the power of eminent domain or taking private property for public use.

Condemnation Value is the market value of condemned property.

A condition in a contract is any fact or event which, if it occurs or fails to occur, automatically creates or extinguishes a legal obligation.

A condominium is a building in which ownership has been partitioned into unit interests. Each apartment owner receives a unit deed and owns an individual unit, but common areas are shared with the other unit owners of the building.

Condominium declaration is the document that, when recorded, creates a condominium. It is also called a master deed.

A conforming loan is a mortgage issued within the framework of FNMA/FHLMC (Fannie Mae/Freddie Mac) guidelines in terms and amount. In general, any loan which does not meet these guidelines is a non-conforming loan. A loan which does not meet guidelines specifically because the loan amount exceeds the guideline limits is known as a jumbo loan. The Office of Federal Housing Enterprise Oversight (OFHEO) set the criteria on what constitutes a conforming loan limit that Fannie Mae and Freddie Mac can buy. Criteria include debt-to-income ratio limits and documentation requirements. The maximum loan amount is based on the October-to-October changes in median home price, above which a mortgage is considered a jumbo loan, and typically has higher rates associated with it.

Conformity is the homogeneous uses of land within a given area which results in maximizing land value.

A consent decree is a compromise in civil lawsuits where the accused party agrees to stop the alleged illegal activity without admitting guilt or wrongdoing.

Consideration is anything of value, as recognized by law, offered as an inducement to contract.

A construction loan is a short-term loan to obtain funds to construct an improvement.

Constructive eviction results from some action or inaction by the landlord that renders the premises unsuitable for the use agreed to in a lease or other rental contract.

Constructive notice occurs when one of any affected parties are bound by the knowledge of a fact even though they have not been officially notified of such fact.

CPI is an index indicating the change in prices of various commodities and services, providing a measure of the rate of inflation.

Contingency is a condition in a contract relieving a party of liability if a specified event occurs or fails to occur.

A contract is a legally binding agreement between two parties, and in order to have a valid Contract of Sale in real estate there must be: an offer, an acceptance, competent parties, consideration, legal purpose, written documentation, description of the property, and signatures of the principals.

Contract Buyer’s Policy is title insurance that protects the contract buyer against defects in contract seller’s title.

Contract for deed is a contract of sale and a financing instrument wherein the seller agrees to convey title when the buyer completes the purchase price installment payments. It is also called installment land contract and installment plan.

Contract rent is the amount agreed to in a lease.

A contract vendee sale is a transaction in which a seller transfers beneficial rights, including the right of possession and obligations of ownership, to the purchaser and agrees to close at a future date under definite terms. Ownership can be transferred for tax purposes prior to the transfer of title.

A conventional mortgage loan is a loan in which the federal government does not insure or guarantee payment to the lender, but is under the amount of a jumbo mortgage.

A conversion is a change in ownership status. For example, rental housing may be converted to cooperative or condominium ownership.

A “convertible apartment” is a one or two bedroom apartment that has space to make another bedroom. The other bedroom can be made from the construction of a wall; however the new bedroom must have a window in order for it to be legally considered an additional room.