A clause in a mortgage which enables the lending institution to demand payment of the outstanding balance at a specific time.

CAP. Connected With Adjustable Rate Mortgages. A limitation on how high month-to-month payments or just how much interest rates might change within a certain period or the life of the mortgage.

CAPE COD COLONIAL. A single-story home design made popular in New England. Often identified by a steep roofing with gables.

CAPITAL. Accumulated products and money which is frequently used to produce extra earnings.

CAPITAL EXPENDITURE. An outlay of funds created to improve the income-producing capabilities of a possession or to extend its economic life.

CASH-OUT REFINANCE. Refinancing a mortgage at a higher amount than the current balance in order to change a part of the equity into cash.

CAULKING. A pliable product used to seal fractures or openings such as around windows.

CAVEAT EMPTOR. Literally equated: "Let the buyer beware." A typical company tenet whereby the buyer is accountable for validating any and all claims by the seller of residential or commercial property.

CERTIFICATE OF DEPOSIT. A document revealing that the bearer has a particular amount of money, at a specific quantity interest, on deposit with a banks.

CERTIFICATE OF DEPOSIT INDEX. An index based on the rate of interest of six month CD's. Used to set interest rates on some Adjustable Rate Mortgages.

CERTIFICATE OF ELIGIBILITY. A file released by the Veterans Administration that certifies eligibility for a VA loan.

CERTIFICATE OF OCCUPANCY. Issued by an appropriate jurisdictional entity, this document accredits that a structure abide by all structure codes and is safe for use or habitation.

CERTIFICATE OF REASONABLE VALUE (CRV). Usually based on an independent appraisal, a CRV for a specific residential or commercial property establishes the maximum quantity which can be secured by a VA mortgage.

CERTIFICATE OF TITLE. A document designating the legal owner of a parcel of genuine estate. Usually provided by a title or abstract business.

CERTIFIED GENERAL APPRAISER. Generally, any professional who has met the regional or state requirements, and passed the appropriate certification examination, and can evaluating any kind of residential or commercial property.

CERTIFIED RESIDENTIAL APPRAISER. A sub-classification of appraiser who is just certified to evaluate residential home, usually up to 4 systems.

CHAIN OF TITLE. The complete history of ownership of a piece of residential or commercial property.

CHATTEL. Any personal residential or commercial property which is not attached to or an integral part of a residential or commercial property. Chattel is not frequently thought about when evaluating the value of real residential or commercial property.

BREAKER. Electrical gadgets which instantly open electrical circuits if they are overwhelmed.

CLEAR TITLE. Ownership of residential or commercial property that is not overloaded by any counter-claim or lien.

CLOSING. A troubling procedure created to induce cramping in a home purchaser's hands by requiring signature on countless pieces of paperwork that nobody has ever checked out. Or, the procedure whereby the sale of a residential or commercial property is consummated with the buyer finishing all suitable documentation, including signing the mortgage obligation and paying all suitable expenses related to the sale (CLOSING COSTS).

CLOSING COSTS. All suitable expenses generated by the sale of residential or commercial property which the parties need to pay to complete the transaction. Costs might consist of appraisal charges, origination costs, title insurance, taxes and any points negotiated in the deal.

CLOSING STATEMENT. The document detailing the final financial plan in between a purchaser and seller and the expenses paid by each.

CO-BORROWER. A second individual sharing responsibility on the loan and title on the residential or commercial property.

COLLATERAL. A possession which is positioned at risk to protect the payment of a loan.

COLLECTION. The procedure a loan provider requires to pursue a borrower who is delinquent on his payments in order to bring the mortgage existing again. Includes paperwork that might be used in foreclosure.

CO-MAKER. A second celebration who signs a loan, along with the debtor, and ends up being responsible for the debt needs to the borrower default.

COMMON LAW. As opposed to statute law. Laws that have actually been developed by custom-made, use and courts over lots of years.

COMMISSION. A percentage of the list prices or a repaired cost worked out by an agent to compensate for the effort expended to sell or acquire residential or commercial property.

COMMON AREA ASSESSMENTS. Fees which are charged to the tenets or owners of residential or commercial properties to cover the costs of keeping locations shared with other tenets or owners. Commonly found in condominium, PUD or workplace.

COMMON AREAS. Any locations, such as entryways, foyers, pools, recreational facilities or the like, which are shared by the tenets or owners of residential or commercial property near by. Commonly found in condominium, PUD or office.

COMMUNITY RESIDENTIAL OR COMMERCIAL PROPERTY. In numerous jurisdictions, any residential or commercial property which has been gotten by a married couple. The ownership of the residential or commercial property is thought about equivalent unless specified otherwise by both celebrations.

COMPARABLES. A shortened term used by appraisers to describe residential or commercial properties which are comparable in size, condition, area and amenities to a subject residential or commercial property who's value is being identified. The Uniform Standards of Professional Appraisal Practice (USPAP) establish clear guidelines for determining a comparable residential or commercial property.

COMPOUND INTEREST. Interest paid on the primary quantity, as well as any accumulated interest.

CONCESSIONS. Additional value granted by a buyer or seller to entice another celebration to finish a deal.

CONDEMNATION. The official procedure by which a residential or commercial property is deemed to be uninhabitable or unusable due to internal damage or other external conditions.

CONDENSATION. The transition of water vapor to liquid. Typically forms in areas of high humidity.

CONDOMINIUM. A development where are owned, but typical areas and facilities are shared similarly by all owners.

CONDOMINIUM CONVERSION. Commonly, the conversion of a rental residential or commercial property such as an apartment or condo complex into a CONDOMINIUM-style complex where each system is owned rather than rented.

CONDOTEL:. Are Condo-hotels usually located in touristy locations or buildings consisting of both condos and hotel spaces. Condotels normally supply ownership in a vacation-style condos that supply onsite rental management. Often owners of condotels are restricted to a certain number of days of use and thus not suitable for main house.

CONDUIT. The pipe through which electrical electrical wiring is run.

CONSTRUCTION LOAN. A loan made to a contractor or resident that finances the initial building of a residential or commercial property, but is changed by a traditional mortgage one the residential or commercial property is completed.

CONTIGUOUS. Connected to or touching along an unbroken boundary.

CONTINGENCY. Something that must occur before something else happens. Often utilized in genuine estate sales when a purchaser must sell a current home before purchasing a brand-new one. Or, when a purchaser makes a deal the requires a total home evaluation before it becomes main.

CONTRACT. A lawfully binding arrangement, oral or written, in between 2 celebrations.

CONVENTIONAL MORTGAGE. A standard, realty funding system that is not backed by any federal government or other company (FHA, VA, and so on).

CONVERTIBLE ARM. A mortgage that begins as and adjustable, that permits the customer to convert the loan to a set rate within a specific timeframe.

COOPERATIVE (CO-OP). A form of ownership where each resident of a multiunit residential or commercial property owns a share in a cooperative corporation that owns the building. With each resident having rights to a particular unit within the structure.

CORPORATE RELOCATION. A situation where a person's company pays all or some of the expenses associated with moving from one area to another, normally over a considerable distance. Relocation expenditures often consist of the quantities, such as brokerage costs, sustained in the selling and purchasing of the employee's primary residence.

COST OF FUNDS INDEX (COFI). An index of banks expenses utilized to set rates of interest for some Adjustable Rate Mortgages.

COVENANT. A terms in any mortgage that, if not fulfilled, can be trigger for the lender to foreclose.

CREDIT. A loan of cash for the purchase of residential or commercial property, real or individual. Credit is either protected by an asset, such as a home, or unsecured.

CREDIT RATING. A record of debt payments, previous and present. Used by mortgage lenders in identifying credit value of individuals.

CREDITOR. An individual to whom money is owed.

CREDIT REPORT. A detailed report of a people credit, work and residence history prepared by a credit bureau. Used by loan providers to determine credit merit of individuals.

CREDIT REPOSITORY. Large business that collect and save monetary and credit info about individuals who get credit.

CUL-DE-SAC. A dead-end street. One with only one entrance/exit.

DATE OF APPRAISAL. The specific moment as of which an appraiser designates the value of a home. Often stated as the date of inspection.

DEBT. An obligation to repay some quantity owed. This may or may not be financial.

DEBT EQUITY RATIO. The ratio of the amount a mortgagor still owes on a residential or commercial property to the amount of equity they have in the home. Equity is calculated at the fair-market worth of the home, less any exceptional mortgage debt.

DEED. A document indicating the ownership of a residential or commercial property.

DEED-IN-LIEU (OF FORECLOSURE). A file given by a customer to a lender, transferring title of the residential or commercial property. Often used to prevent credit-damaging foreclosure treatments.

DEED OF TRUST A file which transfers title in a residential or commercial property to a trustee, who's obligations and powers are stipulated. Often utilized in mortgage deals.

DEED OF RECONVEYANCE A document which moves ownership of a residential or commercial property from a Trustee back to a debtor who has actually fulfilled the obligations of a mortgage.

DEED OF RELEASE A file which dismisses a lien or other claim on a residential or commercial property.

DEED OF SURRENDER A file utilized to surrender any claim a person needs to a residential or commercial property.

DEFAULT. The condition in which a customer has failed to meet the obligations of a loan or mortgage.

DELINQUENCY. The state in which a borrow has failed to fulfill payment responsibilities on time.

DEPOSIT. Cash given together with a deal to acquire residential or commercial property, Also called EARNEST MONEY.

DEPRECIATION. The natural decrease in residential or commercial property worth due to market forces or depletion of resources.

DETACHED SINGLE-FAMILY HOME. A single building improvement planned to function as a home for one household.

DISCOUNT POINTS. Points paid in addition to the loan origination cost to get a lower rates of interest. One point amounts to one percent of the loan quantity.