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     The Real-Estate Glossary

          This glossary is for informational purposes only and should not be used without
          legal counsel for the purpose of reading and understanding a contract.

           A    B    C    D-E    F-K    L-M    N-R    S-Z

- C -

Capital Gains 
       A term used for income tax purposes which represents the gain realized from the sale 
       of an asset less the purchase price and deductible expense. 

Capitalization 
       An appraising term used in determining value by considering net operating income 
       and a percentage of reasonable return on investment. 

Cash Flow 
       The owner's spendable income after operating expenses and debt service is deducted 

Certificate of Title 
       A certificate issued by a title company or a written opinion rendered by an attorney 
       that the seller has good marketable and insurable title to the property which he is 
       offering for sale. A certificate of title offers no protection against any hidden defects 
       in the title which an examination of the records could not reveal. The issuer of a 
       certificate of title is liable only for damages due to negligence. The protection offered 
       a homeowner under a certificate of title is not as great as that offered in a title insurance policy. 

Chain Of Title 
       A history of conveyances and encumbrances affecting the title as far back 
       as records are available 

Client 
       One who employs another's services, as in an attorney, real estate agent, 
       insurance agent, etc. 

Closing 
       In the sale of real estate it is the final moment when all documents are executed 
       and recorded and the sale is complete. Also a general selling term where a sales 
       person is attempting to sell something and the buyer agrees to purchase 

Closing Costs 
       The numerous expenses which buyers and sellers normally incur to complete a transaction 
       in the transfer of ownership of real estate. These costs are in addition to price of the 
       property and are items prepaid at the closing day. 

Closing Statement 
       A list of the final accounting of all Moines of both buyer and seller prepared by an escrow 
       agent which notes all costs each must pay at the completion of a real estate transaction. 

Cloud (On Title) 
       An outstanding claim or encumbrance which adversely affects the marketability of title. 

Commission 
       Money paid to a real estate agent or broker by the seller as compensation for finding a 
       buyer and completing the sale. Usually it is a percentage of the sale price.

Common Area 
       That area owned in common by owners of condominiums and planned sight development 
       homes within a subdivision. 

Community Property 
       Both real and personal property accumulated by a husband and wife after marriage 
       through joint efforts of both living together. 

Condemnation 
       A declaration by governing powers that a structure is unfit for use. 

Conditional Sales Contract 
       A contract for the sale of property where the buyer has possession and use, 
       but the seller retains title until the conditions of the contract have been fulfilled. 
       Also known as a land contract. 

Condominium 
       Individual ownership of a dwelling unit and an individual interest in the common areas 
       and facilities which serve the multi- unit project. 

Consideration 
       Anything of value given to induce someone into entering into a contract. 

Construction Loan 
       The short-term financing of improvements on real estate. Once the improvements are 
       completed a 'take out' loan for a longer term is usually issued. 

Contingency 
       A condition upon which a valid contract is dependent. For example; the sale 
       of a house is contingent upon the buyer obtaining adequate financing. 

Contract 
       An agreement between tow or more parties, written or oral, to do or not to do certain things. 

Contractor 
       In the construction industry, a contractor is one who contracts to erect buildings 
       or portions of them. There are also contractors for each phase of construction: 
       heating, electrical, plumbing, air conditioning, road building, bridge and dam erection, 
       and others. 

Conventional Mortgage 
       A mortgage loan not insured by HUD or guaranteed by the Veterans' Administration. 
       It is subject to conditions established by the lending institution and State statutes. 
       The mortgage rates may vary with different institutions and between States. 
       (States have various interest limits.) 

Conveyance 
       The transfer of the title to land from one to another. 

Counter Offer 
       An offer in response to an offer. 'A' offers to by 'B's' house for $20,000 which is listed for 
       $22,000. 'B' counter offers 'A's' offer by stating that he will sell the house to 'A" for $21,000. 
       The $21,000 is the counter offer. 

Covenants 
       Agreements written into deeds and other instruments stating performance or 
       non-performance of certain acts or noting certain uses or non-uses of property. 

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