A condominium is a type of residential property where individuals own individual units but share ownership of common areas and facilities.
The process of converting rental apartments or other types of multi-unit buildings into individually owned units usually under a condominium structure.
A Condominium Declaration, often referred to simply as a 'Declaration,' is a legal document that establishes a condominium. It outlines the division of property, including both individual units and common areas, and sets forth rules, regulations, and governance structures for the development.
A Condominium Owner's Association (COA) is an organization of all unit owners within a condominium, established to oversee and manage the common elements and enforce the community bylaws.
A condotel is a type of property that combines elements of both condominiums and hotels. Individual units within the property are sold to individual owners who can use the property when they choose and participate in a rental program when they are not using it.
Conduit tax treatment allows income to pass through an entity without additional taxation, making certain entities preferred vehicles for real estate ownership as they distribute income and losses directly to their owners, maintaining the earnings' nature.
Confirmation of Sale refers to the official recognition and approval of the sale of property by a court of law. This process validates that the sale was conducted properly according to legal standards.
Confiscation involves the seizure of private property for public use, primarily by the government, although it can occur under other authorities. It is not the same as eminent domain as it often occurs without compensation to the owner.
A conflict of interest in real estate arises when an individual faces a potential decision in an official capacity from which they stand to benefit personally. This often necessitates the individual stepping down from one role to maintain ethical standards.
A conforming loan is a mortgage that adheres to the guidelines set by government-sponsored entities Fannie Mae and Freddie Mac, including loan limits, borrower credit score, down payment, and debt-to-income ratio requirements.
The conformity principle is an appraisal principle that asserts property values tend to reach their maximum potential when the neighborhood is reasonably homogeneous in terms of social and economic activity.
Congregate housing provides residents with communal living spaces, particularly a shared dining facility, offering a balance of privacy and community living. Often chosen by the elderly who wish to avoid meal preparation, congregate housing supports an independent lifestyle while promoting social interaction.
A consent decree is a judicial ruling that imposes issues and precautions requested by the defendant to rectify alleged illegal activities without admitting fault or guilt.
Consequential damages refer to the loss in value of a property caused by the taking of a nearby property or development on another property. These damages may not be directly caused by an action but occur as a consequence of it.
A conservation easement is a legal agreement, voluntarily entered into between a landowner and a government agency or land trust, that limits the use of land to protect its conservation value.
A conservator is an individual or entity appointed by a court to manage the estate and financial affairs of a person who is unable to do so themselves due to physical or mental limitations. This role is often conferred to ensure that the individual's property is adequately cared for and managed.
Consideration is a fundamental element in contract law that refers to something of value being exchanged between parties when entering into a contract. This exchange can include money, services, products, etc. It is a necessary component for a contract to be deemed valid.
Exploring how consignment functions within the real estate finance domain, particularly focusing on the FSLIC's role in replacing management in insolvent savings and loan associations to ensure continued operations.
A consolidation loan is a new loan that pays off more than one existing loan, generally providing easier repayment terms. It is often used to simplify multiple debts into a single monthly payment with a potentially lower interest rate.
The Constant Annual Percent, also known as the Mortgage Constant, is the ratio of the annual debt service (which includes both principal and interest payments) to the original loan amount.
A constant payment loan is a type of loan structured with equal periodic payments that ensure the loan is paid off by the end of its term. This type of loan is often used in mortgage financing.
Constitutional rights in real estate refer to the guarantees provided by federal or state constitutions, such as the payment of just compensation to property owners in eminent domain proceedings.
Construction lenders specialize in providing construction loans, which are short-term loans used to finance the building or renovation of real estate projects. They differ from permanent lenders who provide long-term financing solutions once a project is completed.
A construction lien is a claim made by contractors, subcontractors, or suppliers who have performed work or provided materials but have not been paid. It ensures they are compensated by securing a legal right against the property where the work was performed or materials supplied.
A construction loan is a short-term loan used to finance the building of a home or other real estate project. It covers costs such as the purchase of land, materials, and labor until the project is completed.
A Construction to Permanent Loan (C2P) is a financing arrangement that transitions seamlessly from a construction phase to a permanent mortgage, eliminating the need for multiple loans and reducing overall costs. This type of loan is crucial for bridging the time gap between the completion of construction and the availability of permanent financing.
Constructive eviction is a legal doctrine in real estate that allows tenants to terminate their lease and vacate the property when a landlord's actions or failure to act substantially interfere with the tenant's use and enjoyment of the premises.
Constructive notice is a legal concept wherein an individual is presumed to have knowledge of a fact when such fact is a matter of public record, even if they do not have actual knowledge of it.
Constructive receipt defines the tax obligation associated with the right to receive income, regardless of whether the income is physically in hand. It influences both cash flows in tax reporting and real estate exchange transactions.
Consulting in real estate involves providing expert advice, information, analysis, and recommendations to aid in making informed real estate decisions.
The Consumer Price Index (CPI) is one of the most widely utilized measures of price levels and inflation. It gauges and compares the total cost of a specified 'market basket' of goods and services consumed by households over different time periods.
The Consumer Price Index (CPI) measures the average change in prices over time that consumers pay for a basket of goods and services. It is a crucial indicator used to assess inflation and the cost of living.
A Consumer Reporting Agency (CRA), also known as a Credit Rating Service, collects, maintains, and provides consumer credit information to third parties to assist in evaluating creditworthiness.
A contaminant is a substance, element, or compound that can cause harm to humans or other forms of life if released into the environment. Contaminants are commonly found in concentrations above acceptable levels or in places where they should not be. This term is particularly relevant in real estate during the due diligence process when evaluating property for purchase or financing.
Contamination refers to the presence of harmful substances in real estate properties, which can significantly impact property value, usage restrictions, and potential health hazards. Identifying and addressing contamination are critical steps in real estate transactions, environmental assessments, and property development.
Contemporary architecture refers to the design and concept of buildings that utilize modern, innovative, and forward-thinking approaches. These structures often depart from traditional styles and feature characteristics like flat roofs, extensive use of glass, curved surfaces, exterior decking, and unconventional façade materials.
In real estate terminology, 'contiguous' refers to properties that share a common boundary. These properties are directly adjacent to each other, and their borders touch at some point. This can be particularly relevant in zoning, development, and legal contexts.
A contingency clause specifies conditions that must be met for a real estate contract to become binding, providing a safeguard for both buyers and sellers.
Contingent interest refers to an interest payment on a loan that is due only if certain pre-specified conditions are met. It often acts as an incentive for the borrower to perform well and achieve specific financial metrics.
A contingent offer in real estate is a bid or offer that is proposed with specific conditions which must be met for the sale to proceed. These conditions, called contingencies, protect the buyer and ensure their interests are safeguarded before finalizing the purchase.
The Continuous Occupancy Clause is a lease provision mandating that tenants, especially anchor ones, must keep their retail spaces open and operational to maintain the shopping center's viability.
A provision in a shopping center lease requiring a store to maintain minimum inventory levels and/or remain open certain hours, be adequately staffed, and keep the store name for a certain period of time.
A contour map is a type of map that highlights the topography of a site using contour lines to indicate various elevations. It helps in understanding the terrain by representing how slopes and elevations are distributed across an area. Often used in real estate and land development, contour maps are crucial for planning before construction and making informed decisions regarding land use.
A contract is a legally binding agreement between two or more competent parties to undertake or refrain from specific actions in exchange for consideration. In real estate, a valid contract typically includes essential elements such as an offer, acceptance, competent parties, consideration, lawful purpose, and documentation.
A Contract for Deed, also known as a Land Contract, is a financing arrangement wherein the seller retains legal title to a property until the buyer completes all payment obligations.
A Contract for Purchase or Sale, also known as an Agreement of Sale, is a comprehensive legal document between a buyer and a seller that outlines the terms and conditions of a real estate transaction.
The contract interest rate, also known as the face interest rate, is the interest rate specified in a loan agreement or mortgage note. This rate is used to calculate the periodic interest payments owed by the borrower throughout the loan term.
A Contract of Sale, also known as an Agreement of Sale, is a legal document that outlines the terms and conditions under which a sale of property will be completed between a seller and a buyer.
In an installment sale, the contract price (tax) is the selling price less any existing mortgages assumed by the buyer. Understanding this term is crucial for accurate tax calculations and compliance.
The contract rate, also known as the face interest rate, is the interest rate specified in a loan agreement or bond contract, stipulating the amount of interest that will be paid by the borrower or issuer.
Contract Rent refers to the amount of rent that has been explicitly agreed upon in a lease or rental agreement between a tenant and a landlord. It remains fixed over the term stated in the contract unless otherwise adjusted according to specified conditions.
A contractor is an individual or company that agrees to supply goods or services under a contract, usually related to the development or renovation of a property. Contractors play essential roles in various aspects of construction projects, such as landscaping, carpentry, plumbing, and architecture.
The principle of contribution states that the value of a property component is determined by the value it adds to the entire property.
Control Premium refers to the additional amount paid over the market price of shares to gain ownership control to set policies, direct operations, and make significant decisions for a business.
A Controlled Business Arrangement allows real estate brokerage offices to provide related services such as financing, title, and hazard insurance through subsidiary companies without violating the Real Estate Settlement Procedures Act (RESPA).
A Controller’s Deed is a legal document that serves as evidence of property ownership, issued by a governmental unit after the property is sold at a public auction, often as a result of unpaid property taxes.
Restrictions, either public or private, placed on the use of private property.
A conventional home refers to a dwelling constructed on-site from the ground up as opposed to mobile homes or modular housing, which are typically prefabricated elsewhere.
A Conventional loan is a type of mortgage that is not guaranteed or insured by any government agency. They typically require higher credit scores and a higher down payment than government-backed loans.
Conversion in real estate refers to various forms of changing the use, ownership, or financing structure of a property. This can include transforming rental apartments into condominiums, involuntary taking of property, changing the ownership structure of financial institutions, or altering the terms of a mortgage.
A converter is an active real estate entrepreneur who changes the ownership and/or physical configuration of property. Converters often transform properties into different usage types or upgrade them to increase their value.
A Convertible ARM is an Adjustable Rate Mortgage (ARM) that gives the borrower the ability to change the payment schedule to a fixed-rate at specific points during the loan term, commonly for a nominal fee, with an interest rate determined by the original loan agreement.
To convey means to transfer ownership or interest in a property from one party to another, typically through the execution of a deed or other legal document.
Conveyance refers to the transfer of the title of real estate from one party to another through a legally binding instrument. It typically involves documentation that deeds property from a seller to a buyer during a recognized transaction.
A cooperating broker is a real estate professional who agrees to share the commission with another broker, usually the one representing the other party in a property transaction.
A cooperative, or co-op, is a type of corporate ownership of real property where stockholders of the corporation are entitled to use certain dwelling units or other spaces. Special income tax laws allow tenant stockholders to deduct their share of interest and property taxes paid by the corporation.
Core Space refers to the central areas of a building that house essential services like elevator banks, restrooms, stairwells, electrical services, and janitorial closets. This space is crucial for the functionality and accessibility of the building.
A Core-Based Statistical Area (CBSA) is a geographical region defined by the Office of Management and Budget (OMB) that centers around an urban area with a population of at least 10,000, encompassing the urban core and its adjacent territories with strong socio-economic ties.
A Core-Based Statistical Area (CBSA) is a census bureau term applied to all statistical area designations based on a central city of at least 10,000 population. It includes both Metropolitan Statistical Areas and Micropolitan Statistical Areas.
CoreLogic is a leading provider of data and analytics for real estate, offering comprehensive information on property value, mortgage, risk assessment, and more. CoreLogic's REALQUEST platform delivers detailed reports and insights critical for real estate professionals.
CoreNet Global is an esteemed organization that was established in 2002 through the merger of the National Association of Corporate Real Estate (NACORE) and the International Development Research Council (IDRC). It functions as a network for sharing global, regional, and local corporate real estate knowledge and practice.
A corner lot is a land parcel that is bounded on at least two sides by the intersection of two roads. Corner lots are valued both for their accessibility and visibility in commercial real estate and may present unique benefits and challenges for residential development.
A corporation is a legal entity properly registered with the secretary of state, characterized by limited liability, perpetual life, freely transferable shares, and centralized management.
Corporeal refers to tangible, visible physical property. It encompasses both real and personal property that can be seen and touched, such as buildings, fences, and pavement, as opposed to intangible assets like easements.
A correction deed is a legal document used to amend or correct an error or omission in a previously recorded deed, ensuring the property's title is accurately represented and legally sound.
A corridor in real estate refers to a long, narrow strip of land dedicated to a specific purpose such as transportation routes, utility lines, or communication cables. The use of corridors is critical in infrastructure development, providing a streamlined and organized space for essential services.
The Cost Approach is a real estate appraisal method that estimates the value of a property by calculating the cost of reconstructing the structure on the same piece of land. This approach considers the depreciated reproduction or replacement cost of improvements, plus the market value of the site.
Cost basis refers to the original value of a property for tax purposes, adjusted over time for improvements, deprecation, and other related factors. This concept is fundamental in real estate transactions for determining capital gains or losses upon the sale of the property.
Cost estimating in construction involves predicting the total costs of labor, materials, capital, and professional fees required to construct a proposed project.
Cost new rent refers to the minimum market rental rate needed to justify new construction projects in a real estate market.
The cost of capital is the rate that must be paid to attract sufficient funds for an investment venture. It is crucial for decision-making in finance, reflecting the opportunity cost of using funds over some alternatives.
The Cost of Funds Index is a published data series that reflects the average interest expense incurred by savings institutions for borrowing funds. Known for its use in determining rates for adjustable-rate mortgages, COFI is a significant benchmarking tool for lenders.
The Cost of Living Adjustment (COLA) is an increase in income or benefits, such as social security, to offset the reduction in purchasing power caused by inflation. COLA is often tied to the Consumer Price Index (CPI).
The Cost of Living Adjustment (COLA) refers to an increase in payment amounts, such as rent or salaries, based on the rate of inflation. It ensures that individuals or entities maintain their purchasing power as the cost of living changes.
The Cost of Living Index is an indicator that measures the relative expense of living in a specific area by comparing the prices of goods and services to a baseline, often representing an earlier year or different location.
Cost segregation is a tax strategy that helps businesses and property investors accelerate depreciation deductions. By identifying personal property assets and separating them from real estate, businesses can apply shorter depreciation periods to these assets, thereby realizing greater tax depreciation deductions in the early years.
The 'Cost to Cure' is the amount of money required to remedy a cause of depreciation in a property. A curable defect is one for which the cost to correct is less than the value added by the correction.
Cost-Benefit Analysis (CBA) is a decision-making process used to evaluate the financial and economic feasibility of a project or policy by comparing all direct and indirect positive and negative effects in monetary terms. This technique is often applied in public finance, environmental and business regulation assessment.
A cost-plus-percentage contract is a construction agreement in which the contractor is compensated with a specified percentage profit over and above the actual construction costs. This type of contract can lead to increased project costs due to the lack of incentive for the contractor to minimize expenses.
A leading provider of commercial real estate information, analytics, and online marketplaces, delivering real-time data on comparable sales, lease rates, absorption, and construction across various geographic markets.
Cotenancy refers to any arrangement of multiple ownership in real estate, including Tenancy in Common and Joint Tenancy, where two or more parties hold title to a property together.
A Cotenancy Agreement in a shopping center lease allows a tenant to reduce rent, decrease payments for common area maintenance, or terminate the lease if other named tenants cease operations, also known as 'going dark'.
The term coterminous in real estate refers to two or more arrangements, such as leases or agreements, that have the same period or ending date.
The Council of Real Estate Brokerage Managers (CRB) is an affiliate of the NATIONAL ASSOCIATION OF REALTORS® (NAR) and part of the Realtors National Marketing Institute (RNMI). It offers career-enhancing education and designation for real estate professionals.
The Council of Residential Specialists (CRS) is an affiliate of the National Association of Realtors (NAR) that offers educational and promotional resources for its members who are primarily involved in real estate sales or brokerage. The organization also offers the Certified Residential Specialist (CRS) designation.
Counseling in real estate entails advising clients on a wide range of investment or development matters. This can include selecting properties, structuring investments legally, and maximizing after-tax returns among other aspects.
The term 'Counselor' is commonly used interchangeably with 'attorney' or 'lawyer' to refer to an attorney at law. In a broader context within the real estate industry, it can also refer to an individual who provides specialized services required for specific loan programs or offers advice on financial matters related to real estate transactions. Comparable terms include Counselor of Real Estate.
A Counselor of Real Estate (CRE) is a professional designation granted to individuals who are recognized for their expertise, experience, and high ethical standards in the field of real estate. This designation is awarded by The Counselors of Real Estate organization, an international group of real estate professionals.
The Counselors of Real Estate (CRE) is a professional organization of real estate investment counselors and consultants. Affiliated with the National Association of REALTORS®, it awards the designation of Counselor of Real Estate and publishes the journal 'Real Estate Issues.'
A counteroffer involves the rejection of an initial offer to buy or sell a property, accompanied by a substitute offer with different terms. It is a critical component in real estate negotiations, encompassing factors like price, financing arrangements, closing costs, and more.
