|
Word |
Definition |
| Cap Caps |
A maximum amount of charge. Example: An Adjustable Rate Mortgage with a 5% rate cap could not adjust the interest rate by more than 5%. |
| Closing |
The meeting between the buyer, seller, and lender of their agents, where the property and funds legally change hands. Also called a settlement |
| Closing Cost |
Expenses incurred in the closing of a real estate or mortgage transaction. These expenses include loan fees, title fees, appraisal fees, processing fees, etc. |
| Cloud on Title |
An invalid encumbrance on real property which, if valid, would affect the rights of the owner. Example: "A" sells Lot 1, Tract 1 to "B". The deed is mistakenly drawn to read Lot 2, Tract 1. A cloud is created on Lot 2 by the recording of the erroneous deed. The cloud may be removed by quitclaim deed, or, if necessary, by court action. |
| Co-maker |
A surety under a loan. The co-maker is equally responsible for repayment as the borrower. |
| Commitment |
Title insurance term for the preliminary report issued before the actual policy. Said report shows the condition of title and the steps necessary to complete the transfer of title as contemplated by buyer and seller. |
| Comparables |
Properties used as comparisons to determine the value of a specified property. |
| Condominium |
A structure of two or more units, the interior space of which are individually owned; the balance of the property is owned in common by the owners of the individual units. |
| Construction loan |
Short term financing of real estate construction. The lender advance funds to the builder at periodic intervals as the work progresses. Generally followed by long term financing called "take out" loan, issued upon completion of improvements. |
| Contingency |
The dependence upon a stated event which must occur before a contract is binding. |
| Contract of Sale |
Depending on the area of country, it may be a Land Sale Contract or a Purchase Agreement. |
| Conventional loan |
A mortgage or deed of trust not obtained under a government insured program (such as FHA or VA) |
| Credit Report |
A report documenting the credit and payment history, and current status of a borrower's credit standing. |
