# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A Certificate of Occupancy (C/O) is an official document issued by a local government authority that allows a newly constructed or renovated property to be legally occupied. It confirms that the building complies with all applicable building codes, zoning laws, and other local regulations ensuring the safety and health of occupants.
A Certificate of Reasonable Value (CRV) is a document issued by the Department of Veterans Affairs (VA) which sets a ceiling on the maximum VA mortgage loan amount based on an approved appraisal.
A Certificate of Satisfaction is a legal document that indicates the fulfillment of the terms and obligations under a lien, mortgage, or loan agreement. It is often required to clear any encumbrances against a property, signifying that the associated debt or obligation has been satisfied in full.
A Certificate of Title is an authoritative opinion rendered by an attorney regarding the status of a property's title based on public records. It ensures the property's title is clear of public record claims.
Certification in real estate refers to an appraiser's formal attestation of freedom from bias in an appraisal report and the official acknowledgment of one's expertise, often mandated by state regulations.
A Certified Commercial Investment Member (CCIM) is a real estate professional who has obtained a prestigious designation awarded by the CCIM Institute, a commercial real estate affiliate of the National Association of Realtors (NAR). This designation signifies a deep understanding of commercial real estate investment and the practical application of industry principles.
A Certified General Appraiser is a professional authorized to appraise any property type under state certification laws, ensuring compliance with the Appraisal Foundation's standards.
A Certified Historic Structure is a building officially recognized for its historical significance by a ratified government authority, enabling it to qualify for specific preservation and restoration incentives.
A Certified Home Inspector is a professional who is credentialed and qualified to perform home inspections in accordance with state-specific requirements. These inspectors evaluate residential properties for safety, structural integrity, and compliance with relevant codes and standards.
The Certified Property Manager (CPM) designation is a professional accreditation awarded by the Institute of Real Estate Management (IREM), recognizing expertise in real estate management.
The Certified Real Estate Brokerage Manager (CRB) is a prestigious designation awarded by the Council of Real Estate Brokerage Managers, an affiliate of the National Association of Realtors (NAR). This certification is designed to recognize professionals who have distinguished themselves as leaders and experts in broker management.
A Certified Residential Appraiser is a professional qualified to appraise residences and up to four units of housing with no limit on the value. This certification requires completion of specific education, experience, and adherence to professional appraisal standards.
The Certified Residential Specialist (CRS) designation is a credential awarded to experienced and highly successful residential real estate agents by the Council of Residential Specialists (CRS). It highlights the agent's dedication to furthering their education and experience in residential sales.
A chain is a linear unit of land measurement historically used in surveying. It is 66 feet in length and consists of 100 links.
A Chain of Title refers to the sequential historical record of documentations pertaining to the ownership and encumbrances of a specific property, tracked back to the earliest available records or original grant.
A change order is an amendment to the construction plans after they have been finalized. This process can often lead to increased costs and timeline extensions.
Chapter 13 Bankruptcy involves a court-approved debt repayment plan that allows a homeowner to keep their property while making installments to creditors over a 3- to 5-year period.
Chapter 7 bankruptcy involves the liquidation of a debtor's non-exempt assets to pay off creditors in exchange for the discharge of most debts.
A charge-off in real estate refers to the portion of principal and interest recognized as a loss when a loan is deemed uncollectible. Lenders resort to charge-offs when they perceive that further collection efforts on a delinquent account will not be fruitful.
Chattel refers to personal property that is tangible and movable, distinguishing it from real estate, which is immovable. It includes items such as furniture, automobiles, and jewelry.
A chattel mortgage involves the pledge of personal, movable property as security for a debt. This arrangement allows borrowers to use specific personal assets to secure financing.
Chronological age refers to the actual age of a property based on the number of years since its construction, regardless of its physical condition or renovations.
A Circuit Breaker is a local program designed to offer rebates or reductions in a homeowner’s property tax based on specific criteria such as age, income status, or other qualifying factors. These programs aim to provide tax relief especially to vulnerable groups like the elderly or low-income residents.
A landmark federal legislation that prohibits discrimination based on race, color, national origin, sex, or religion in various spheres including employment, education, and access to public facilities and accommodations.
The Civil Rights Act of 1968 is a critical federal law designed to eliminate housing discrimination and ensure equitable access to housing opportunities for all individuals, regardless of race, color, religion, sex, or national origin. The best-known segment of this law is Title VIII, known as the Federal Fair Housing Act.
A 'Claim' is a request for reimbursement for a loss covered by an insurance policy or a demand for something believed to be owed.
Clapboards are long, narrow boards with one edge thicker than the other, overlapped horizontally to cover the walls of frame houses; a type of siding commonly used in construction.
CLARITAS is a demographic information provider offering comprehensive reports and maps to analyze markets, select site locations, and effectively target customers. It addresses questions such as customer and prospect locations, ideal business locations, competition positioning, and market potential.
Class of property is a subjective division of buildings based on desirability among tenants and investors, considering factors like age, location, quality, and maintenance.
Clawback provisions in laws or contracts limit or reverse a payment or distribution for specified reasons, ensuring financial fairness and compliance.
Clear cutting involves felling all the timber within a designated area, in contrast to selectively cutting larger trees or specific species. This practice is often employed to prepare land for redevelopment or reforestation.
Clear span refers to the unobstructed, open area in a building or structure, typically measured height-wise, allowing for more efficient use of space for various applications such as storage, manufacturing, or events.
A clear title, also known as a marketable title, is one that is free of liens, encumbrances, or other legal questions about the ownership of the property. A clear title ensures that the seller actually owns the property and has the right to sell it, allowing the new owner to enjoy full ownership rights.
In the context of real estate, a client is an individual or entity that engages a broker, lawyer, accountant, appraiser, or other professional to represent their interests in a transaction.
A 'Closed Period' is a term in a mortgage agreement that prevents the borrower from prepaying the mortgage before the agreed-upon time period. This is commonly seen in commercial real estate mortgages but rarely in residential mortgages.
A closed-end mortgage is a type of mortgage loan whose principal amount cannot be increased during the payout period. This contrasts with an open-end mortgage, where the loan amount can be revised or increased.
Closing is the final step in executing a real estate transaction where ownership is officially transferred from the seller to the buyer.
A closing agent is a neutral third party who handles the closing of a real estate transaction, ensuring the details of the purchase agreement are fulfilled. They prepare the necessary documentation and may conduct the closing meeting.
Closing costs are the various fees and expenses payable by both the seller and buyer at the time of a real estate closing. These costs can vary widely and include items such as brokerage commissions, lender fees, and title insurance premiums.
The closing date is the date on which the seller delivers the deed and the buyer pays for the property. This is a critical day in real estate transactions as it finalizes the transfer of ownership.
The closing date in real estate is the date upon which the sale of a property is finalized and ownership is officially transferred from the seller to the buyer through the execution of associated legal documents.
A closing statement is an accounting of funds from a real estate sale, made to both the seller and the buyer separately. It details the financial transactions involved in finalizing a real estate transfer.
A closure document, issued by a state environmental agency, indicates the successful remediation of a contaminated site, ensuring no further action or legal liability is required for environmental cleanup.
A 'Cloud on the Title' refers to an outstanding claim, lien, or encumbrance that can potentially impair or affect the owner's title to a property. Resolving this issue is crucial for attaining a clear, marketable title when buying or selling real estate.
Cluster Housing is a subdivision technique where detached dwelling units are grouped closely together, leaving shared open spaces as common areas. This design promotes community interaction while preserving natural land and creating more efficient land use.
A CMO REIT is a type of Real Estate Investment Trust (REIT) that primarily invests in Collateralized Mortgage Obligations (CMOs), deriving its cash flow from interest and principal receipts on these securities.
A co-borrower is an additional person who signs a mortgage loan agreement, sharing responsibility for loan repayment and contributing to the household income used to qualify for the loan.
The terms 'Co-Broker' and 'Co-Broker Commission'—also known as 'Cooperating Broker' and 'Commission Split,' refer to the collaborative efforts between two or more real estate brokers to sell a property and the shared commission earned from the sale.
A co-maker, also known as a cosigner, is a person who jointly signs a loan agreement with the primary borrower, taking on equal responsibility for the loan repayment.
A co-mortgagor is an individual who signs a mortgage contract along with other parties, making them jointly responsible for repaying the loan and often granting them part ownership in the encumbered property.
A co-occupant arrangement is an agreement between two or more unrelated individuals to share a dwelling unit. This document typically delineates the financial responsibilities, rights, and obligations of each tenant to avoid disputes.
A 'CO-OP' (Cooperative) is a dual concept in real estate that can refer to a cooperative arrangement between agents for splitting commissions, or more commonly, a type of housing where residents own shares in a corporation that owns the property.
Co-ownership refers to any of several legal arrangements by which property is owned by more than one person. This includes forms such as Tenancy in Common, Joint Tenancy, Community Property, Partnership, LLP, and LLC.
A co-signer is a person who signs a credit application alongside another individual, agreeing to be equally responsible for the repayment of the loan. This involves providing additional assurance to the lender that the loan will be repaid.
A Code of Ethics in real estate is a set of guidelines designed to establish fair practice behavior between agents, clients, and other parties in the real estate transaction process.
The Cost of Funds Index (COFI) is a commonly used benchmark for adjusting interest rates on adjustable-rate mortgages (ARMs) in the United States. It reflects the average cost of funds deriving from savings institutions in Western 11th Federal Reserve District, including California, Arizona, and Nevada.
Coinsurance is a provision in an insurance policy that requires the policyholder to bear a portion of the risk. For property insurance, it is typically expressed as a percentage that the insured must maintain relative to the property's value in order to collect the full amount of compensation for any loss.
Cold canvassing in real estate involves the process of contacting homeowners who are previously unknown to the agent, with the aim of soliciting new property listings. This technique is employed to identify potential sellers and to generate more listing opportunities.
A collapsible corporation refers to a specific type of corporation that is dissolved typically within three years, with the IRS treating any gain from the sale or liquidation as ordinary income rather than capital gain for the stockholders.
In real estate, collateral refers to property or assets that a borrower offers to a lender as security for a loan. It reduces the lender’s risk by providing a way to recoup the loan amount if the borrower defaults.
Collateral Underwriter® (CU™) is a proprietary appraisal risk assessment application developed by Fannie Mae to enhance appraisal quality. CU™ provides automated risk assessment and supports proactive management of appraisal quality.
Collateralized Debt Obligation (CDO) is a complex financial product that is structured and sold to investors, leveraging various types of debt instruments like bonds, mortgages, and loans as collateral.
CMO, or Collateralized Mortgage Obligation, is a type of mortgage-backed security that pools together a large number of mortgages and issues several classes or tranches with varying degrees of risk and returns.
A collateralized mortgage obligation (CMO) is a type of security backed by a pool of mortgage loans that are structured into different classes, each with distinct maturities. CMOs, often using Real Estate Mortgage Investment Conduits (REMICs) as a standard investment vehicle, provide investors with specified periodic interest and principal payments.
Colonias are rural community settlements in the United States, particularly in the border regions of Texas, New Mexico, Arizona, and California, characterized often by substandard infrastructure and housing conditions.
Color of Title refers to a condition in which a claim to title appears on the surface to be valid but is fundamentally void due to some defect.
A Combined Statistical Area (CSA) as defined by the U.S. Census Bureau is a aggregation of adjacent metropolitan and micropolitan statistical areas that are economically and socially interconnected. CSAs are used for providing a more comprehensive view of the larger regions in which residents live and work, transcending administrative boundaries to better illustrate the multi-faceted nature of these urban clusters.
A commercial bank is a financial institution that offers a broad range of financial services such as business loans, consumer loans, checking and savings accounts, and credit cards. Most deposits at these banks are insured by the Federal Deposit Insurance Corporation (FDIC).
A commercial broker is a real estate professional specializing in listing and selling commercial properties, such as shopping centers, office buildings, industrial complexes, and apartment projects. They differ from residential brokers primarily in the type of properties they handle.
A commercial mortgage banker is a professional in the business of originating commercial mortgage loans, typically earning a commission based on a small percentage of the loan amount.
A Commercial Mortgage Loan is a loan secured by real estate that generates business or rental income, typically used in transactions involving commercial properties like office buildings, shopping centers, or warehouses.
Commercial Mortgage-Backed Securities (CMBS) are a type of mortgage-backed security that is secured by mortgages on commercial properties rather than residential real estate.
Commercial property refers to buildings or land intended to generate a profit, either from capital gain or rental income. This category includes a diverse array of properties such as shopping centers, office buildings, hotels, resorts, and restaurants.
The Commercial Real Estate Financial Council (CREFC) is an organization of professionals involved in commercial real estate finance that holds conferences, publishes newsletters, and provides advocacy for the industry.
Commingle refers to the act of mixing or blending, for example, combining client funds with a broker's personal funds. This practice is prohibited under most state laws, especially concerning earnest money deposits.
Commission is the amount earned by a real estate broker for services performed, typically calculated as a percentage of the property's sale price.
A Commission Split refers to the arrangement of sharing commissions earned between a sales agent and sponsoring broker, or between the selling broker and listing broker. This arrangement ensures that all parties involved in the transaction are compensated according to their contribution.
The Commissioner is the head administrator of the state Real Estate Commission, responsible for overseeing the real estate licensing process, enforcing real estate laws, and ensuring ethical standards are maintained in the real estate industry.
In the context of real estate, 'commitment' refers to a pledge or promise, particularly regarding financial arrangements or agreements, such as a firm's agreement to provide a loan or mortgage to a borrower, thus ensuring the progress and completion of a transaction.
A commitment fee is a charge required by a lender to lock in specific terms on a loan at the time of application, ensuring that the terms agreed upon will be honored and the funds will be available when needed.
A commitment letter is an official notification from a lender to a borrower indicating that the borrower’s loan application has been approved, detailing the terms of the prospective loan.
An advance commitment is a financial pledge or guarantee from a lender to a borrower, often used to ensure future funding for a project under specified conditions.
Common Area Maintenance (CAM) charges are fees paid by tenants to landlords for the upkeep of shared spaces such as hallways, restrooms, and parking lots. These charges are typically calculated on a pro-rata basis and are essential for the maintenance and functionality of commercial properties.
Common areas are portions of a property that are accessible and used by all owners or tenants. They play a crucial role in the overall functionality and value of residential, commercial, and mixed-use properties.
Common Areas Assessments (HOA Fees) are special fees assessed by a Homeowners' Association against its members for a one-time expense, such as the construction of a community facility.
In a condominium, 'common elements' refer to the portions of the property not owned individually by unit owners but in which an indivisible interest is held by all unit owners. These generally include the grounds, parking areas, recreational facilities, and external structure of the building.
Common law refers to a body of law that has developed based on judicial decisions and precedents established by courts, as opposed to legislative statues or statutory laws. Originating from England and forming a significant part of the legal framework in many Commonwealth countries, common law evolves based on the practices, customs, and judicial precedents over time.
Common Property refers to property owned equally by all members of a group, which can include areas within a cooperative apartment building or municipal parks.
A Community Association is an organization of property owners dedicated to managing common interests and elements within a residential community, such as condominiums or subdivisions.
The Community Associations Institute (CAI) is a not-for-profit educational and research organization dedicated to addressing the challenges of managing homeowners’ associations and other community associations, such as condominium owners' associations. CAI provides educational seminars, resources, and publications to promote effective community management.
Community Property refers to the principle under which property accumulated through the joint efforts of spouses is considered equally owned by both. This legal doctrine exists in several U.S. states and impacts how assets are divided in events such as divorce or death.
A federal law that mandates financial institutions to meet the credit needs of the communities they serve, particularly focusing on low- and moderate-income neighborhoods.
A community shopping center, also known as a community center, is a retail property designed to serve a larger area than a neighborhood center, providing a wider array of goods and services.
Comparables, or comparable sales, refer to properties that are similar to the one being sold or appraised. These properties are typically used in the sales comparison approach to estimate the value of the subject property.
An estimate of the value of property using select indicators from sales of comparable properties, usually provided by a broker or salesperson, to help clients set listing and selling prices.
A Comparative Market Analysis (CMA) is a crucial process in real estate that involves evaluating similar, recently sold properties ('comparables') to derive an estimated market value for a subject property. This aids in setting a realistic price for selling or buying real estate.
The Comparative Sales Approach, also known as the Sales Comparison Approach, is a real estate appraisal method that estimates the value of a property by comparing it to similar properties that have recently sold in the same area.
The Comparative Unit Method is an appraisal technique used to determine the value of a property by comparing it against standardized units.
The Comparison Method, also known as the Sales Comparison Approach, is a real estate appraisal method that bases the value of a property on the sales prices of similar properties in the same area.
Compensating factors are criteria used to enhance a borrower’s creditworthiness by considering elements beyond the standard qualifying ratios. These factors help lenders make informed decisions when traditional metrics don't tell the whole story.
