| CAP | A provision of an A.R.M. limiting how much the interest rate or mortgage payments can increase during a set time period. |
| CASH RESERVE | A requirement of some lenders that buyers have sufficient cash remaining after closing to make a set amount of mortgage payments. |
| CAVEAT EMPTOR | Buyer beware. The buyer must inspect the property and satisfy himself it is adequate for his needs. The seller is under no obligation to disclose defects but may not actively conceal a known defect or lie if asked. |
| CC&R'S | Covenants, Conditions and Restrictions. See Conditions and Restrictions below. |
| CERTIFICATE OF OCCUPANCY | A certificate stating that a building is approved for occupancy issued by the city or county building inspection department. It is important that a certificate has been issued, as some home insurance policies will not pay claims for damage to a property. |
| CERTIFICATE OF SATISFACTION | A document signed by the Noteholder and recorded in the land records evidencing release of a DEED OF TRUST, MORTGAGE or other lien on the property. |
| CERTIFICATE OF TITLE | A written opinion by an attorney setting forth the status of title to the property as shown on the public records. The certificate does not certify as to matters not of record and affords no protection unless the author was negligent. |
| CHAIN | A term of land measurement being 66 feet in length. |
| CHAIN OF TITLE | A term applied to the past series of transactions and documents affecting the title to a particular parcel of land. |
| CLEAR TITLE | A title that is free of liens and legal questions as to ownership of the property. |
| CLOSING | Also known as "escrow" or "settlement." The process of executing legally binding documents such as deeds and mortgages most commonly associated with the purchase of real estate and the borrowing of money to assist in the purchase. |
| CLOSING COSTS | Expenses, above the price of the home, incurred by buyers and sellers in the transfer of ownership of the property. Also, these are called "settlement costs". |
| CLOSING STATEMENT | A financial disclosure giving an account of all funds received and expected at the closing, including the escrow deposits for taxes, hazard insurance, and mortgage insurance. |
| CLOUD ON TITLE | An invalid legal claim to the title of a property that appears during the sale of the property, due to a recording mistake or other error and thus not apparent to the buyer or seller beforehand. |
| CO-OWNERSHIP | The state of two or more people sharing ownership of a property. Can be an important issue in matters such as personal liability or inheritance. |
| CO-SIGNER | A person who assumes joint liability with another person by signing documents (e.g. loan promissory note). A co-signer is not necessarily a co-owner. |
| COINSURANCE | When more than one insurance company shares the risk of a particular transaction or series of transactions. Lenders may require co-insurance on large commercial projects.¾ CLOUDED TITLE |
| COLLATERAL | Personal property pledged as security for a debt. Collateral for a mortgage is usually the property itself. |
| COMMITMENT LETTER | A formal offer by a lender stating the terms under which it agrees to loan money to a home buyer. |
| COMMITMENT TO INSURE | A report issued by a title insurance company,or its agent, committing the title insurance company to issue the form of policy designated in the commitment upon compliance with and satisfaction of requirements set forth in the commitment. |
| COMMUNITY HOME BUYER'S PROGRAM | An alternative financing option that allows households of modest income to qualify for mortgages using non-traditional credit histories. |
| COMPANY LOAN | Loan by employer to facilitate relocation of employee. Usually short term. |
| COMPARATIVE MARKET ANALYSIS | A comparison a sale prices of similar properties in a given area for the purpose of determining the fair market value of a property. |
| CONDEMNATION | Taking of private property for a public use through exercise of the power of EMINENT DOMAIN. The Constitution protects against taking without fair compensation. |
| CONDITION OR CONDITIONS | A proviso in a deed or a will that upon the happening or failure to happen of a certain event, the title of the purchaser or devisee will be limited, enlarged, changed or terminated. |
| CONDITIONS AND RESTRICTIONS | A common term used to designate the uses to which land may not be put and providing penalties for failure to comply. "Commonly used by land subdividers on newly platted areas." |
| CONDOMINIUM | A form of ownership or real property. The purchaser receives title to a particular unit and a proportionate interest in certain common areas. |
| CONSERVATOR | Also called a Commitee or Guardian, a person designated by the Court to protect and preserve the property of someone who is not able to manage their own affairs. Examples include the mentally incompetent, minors and incarcerated persons. |
| CONSOLIDATED MORTGAGE | Occurs in refinancing. Remaining balance from original mortgage is incorporated into new mortgage. |
| CONTINGENCY | A condition that must be met before a contract is legally binding. |
| CONTRACT | A formal agreement between two or more parties that is typically legally binding. |
| CONTRACT FOR DEED | Also known as a Land Contract or Land Installment Contract. A method of financing where title remains in the Seller's name until the Buyer has paid the full purchase price. A Contract for Deed will normally trigger the DUE ON SALE CLAUSE in a DEED OF TRUST. |
| CONVENTIONAL LOAN | Real estate loan that is not guaranteed by a government agency such as the Veterans Administration or Federal Housing Authority. |
| CONVENTIONAL MORTGAGE | A mortgage loan not insured by FHA or guaranteed by VA or Farmers Home Administration. |
| CONVERTIBLE A.R.M | An adjustable rate mortgage that can be converted to a fixed rate mortgage under specified conditions. |
| CONVEY | The act of deeding or transferring title to another. |
| CONVEYANCE | An instrument by which title to property is transferred a deed. |
| COOPERATIVE | A system of individual ownership of stock in a corporation that in turn, owns the structure. Each owner has an exclusive right to use his individual unit and must pay his portion of the debt encumbering the entire building. Compare, CONDOMINIUM. |
| COTENANCY | Ownership in the same land by more than one person. See, TENANCY IN COMMON, JOINT TENANTS, TENANCY BY THE ENTIRETIES. |
| COUNTEROFFER | A rejection of an original offer, combined with a new offer stating different terms and conditions. |
| COVENANT | A written agreement or restriction on the use of land or promising certain acts. Homeowner Associations often enforce restrictive covenants governing architectural controls and maintenance responsibilities. However, land could be subject to restrictive coveants. |
| CREDIT RATING | A rating given to a person to establish willingness to pay obligations based upon one's past history of timely payments. |
| CREDIT REPORT | A report from an independent source outlining the credit history of an individual, including current and previous debts, payment amounts, late payments and past due amounts, defaults, and other related information on every credit source the individual has. |
| CUL DE SAC | The terminus of a street or alley. "Usually laid out by modern engineers to provide a circular turn around for vehicles. In French 'the bottom of the sack.'" |
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