Call option |
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A clause in a loan agreement that allows a lender to ask for the balance at any time. |
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Can lights |
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Cylindrical chambers with bulbs recessed into the ceiling. |
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Cancellation clause |
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A clause that details the conditions under which each party may terminate the agreement. |
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Cantilever |
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A projecting structure supported on one end, such as a balcony. |
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Cap |
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A limit on the amount the interest rate or monthly payment can increase in an adjustable-rate mortgage. |
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Cape Cod style |
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A wood-frame or shingled house with a steep roof and several windows projecting from the second floor. |
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Capital |
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Money used to create income, such as funds invested in rental property. |
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Capital expenditure |
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The cost of making improvements on a property. |
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Capital gains |
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Profits an investor makes from the sale of real estate or investments. |
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Capital gains tax |
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A tax placed on the profits from the sale of real estate or investments. |
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Capital improvement |
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Any improvement that extends the life or increases the value of a piece of property. |
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Capitalization |
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A mathematical formula that investors use to compute the value of a property based on net income. |
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Capitalization rate |
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The percentage rate of return estimated from the net income of a piece of property. |
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Caravan |
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A group of real estate agents who tour a house that has been recently listed for sale. |
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Carport |
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A roof that covers a driveway or other parking area. |
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Casement window |
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A window hinged on its sides to allow it to swing open vertically. |
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Cash flow |
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The amount of cash a rental property investor receives after deducting operating expenses and loan payments from gross income. |
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Cash-out refinance |
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The refinancing of a mortgage in which the money received from the new loan is greater than the amount due on the old loan. The borrower can use the extra funds in any manner. |
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Cashier's check |
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A check the bank draws on itself rather than on a depositor's account. |
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Cathedral ceiling |
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A high open ceiling formed by finishing exposed roof rafters. |
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Caulk |
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An acrylic or silicon sealant used to fill cracks, crevices and holes in a home. |
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Caveat |
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A formal notice, that asks a court to suspend action until the party which filed the challenge can be heard. |
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Caveat emptor |
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A legal principle derived from Latin than means "let the buyer beware." |
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Cavedium |
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A courtyard or atrium. |
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Ceiling height |
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The standard height of a ceiling is eight feet. |
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Central air conditioning |
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A device that generates cold air through an outside unit that is connected to ductwork inside the house. |
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Central business district |
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The area of a city where most large businesses are located. |
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Certificate of Deposit (CD) |
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A document which shows that the bearer has a specified amount of money on deposit with a bank, stock-brokerage firm or other financial institution. |
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Certificate of deposit index |
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An index based on the interest rates on six-month CDs. It used to determine the interest rate for some adjustable-rate mortgages. |
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Certificate of eligibility |
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A document issued by the Veterans Administration that verifies the eligibility of a veteran for a loan program. |
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Certificate of occupancy |
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A document which states that a home or other building has met all building codes and is suitable for habitation. |
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Certificate of sale |
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A document issued at a judicial sale, which entitles the buyer to receive a deed after court confirmation of the purchase of the property. |
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Certificate of title |
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A written opinion on the status of a piece of property based on an examination of the public record. |
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Chain of title |
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The official record that details the ownership history of a piece of property. |
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Chair railing |
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Decorative trim installed on a wall about 32 inches above the floor, which protects against scuffs from furniture. |
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Change frequency |
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The adjustment schedule on an adjustable-rate mortgage. |
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Change order |
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A modification of the construction contract to authorize a change in the work, an adjustment in the amount of the contract or a change in the contract time. The owner, architect and contractor must sign the change. |
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Chattel |
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Personal property such as furniture, clothing or a car. |
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Chattel mortgage |
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A lien on personal property used as collateral for a loan. |
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Chimney back |
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The back wall or lining of a fireplace or furnace chimney. |
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Chimney flue |
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The passage inside a chimney that channels smoke and heat to the outside. |
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Chimney pot |
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A short pipe at the top of a chimney that increases ventilation to the fireplace and reduces smoke. |
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Cinder block |
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A block made of ash and cement that is used in construction. |
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Cinder fill |
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Cinders used below a basement or around a foundation to promote drainage. |
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Circuit breaker |
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An electric fuse that activates or deactivates a circuit. |
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Cistern |
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A tank used to store rainwater. |
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Classified property tax |
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A tax that varies in rate depending on the use of the property. |
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Clear title |
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A property that does not have liens, defects or other legal encumbrances. |
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Closing |
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The final procedure in which documents are signed and recorded, and the property is transferred. |
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Closing costs |
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Expenses incidental to the sale of real estate, including loan, title and appraisal fees. |
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Closing statement |
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A document which details the final financial settlement between a buyer and seller and the costs paid by each party. |
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Cloud on title |
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An invalid encumbrance on real property. |
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Cluster development |
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A method of squeezing more homes into less space. |
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Co-housing |
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Individual housing units that are clustered around a common building where residents share cooking and other activities. |
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Co-insurance |
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Coverage that involves the use of two or more insurers.. |
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Co-maker |
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A person who signs a promissory note with the borrower and assumes responsibility for the loan. |
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Co-signer |
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A second party who signs a promissory note and takes responsibility for the debt. |
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Codicil |
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A change to a will that adds or subtracts provisions or clarifies portions of the document. |
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Coign |
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The cornerstone of a building that differs in shape or color from the rest of the wall. |
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Collar beam |
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The structural element that connects roof rafters. |
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Collateral security |
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Additional security that a borrower supplies to obtain a loan. |
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Collection |
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The series of steps a lender takes to bring a delinquent mortgage up to date. |
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Collusion |
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The action of two or more people to break the law. |
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Colonia |
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Unincorporated communities along the U.S.-Mexico border. |
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Column |
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A slender upright structure that consists of a base, a round or square shaft and a capital. |
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Column footing |
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The support base for a load-bearing column. The footing is usually made of reinforced concrete. |
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Combination door |
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An outer door with interchangeable screen and glass panels. |
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Combination window |
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A window with interchangeable screen and glass panels. |
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Commercial bank |
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A financial institution that provides a broad range of services, from checking and savings accounts to business loans and credit cards. |
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Commercial property |
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An area that is zoned for businesses. |
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Commingling |
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The mixing of money held in trust with other funds. |
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Commission |
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The negotiable percentage of the sales price of a home that is paid to the agents of the buyer and seller. |
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Commitment |
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A promise by a lender to make a loan with specific terms for a specified period. |
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Commitment fee |
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The fee a lender charges for promising to make a loan. |
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Common area |
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An area inside a housing development that is owned by all residents. |
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Common law |
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A body of laws based on custom, usage and rulings by courts in various jurisdictions. |
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Common-area assessments |
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Fees paid by the owners of a condominium project or planned-unit development to maintain, repair, improve or operate common areas. |
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Common-interest development |
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A project composed of individually owned units that share usage and financial responsibility for common areas. |
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Community Reinvestment Act |
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A federal law that encourages financial institutions to loan money in the neighborhoods where minority depositors live. |
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Community property |
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Property accumulated through the joint efforts of husband and wife. It is a classification of property peculiar to certain states. |
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Commute |
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The distance and time it takes a person to reach the workplace. |
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Comparables |
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Properties used as comparisons to determine the value of a certain property. |
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Comparative market analysis |
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An estimate of the value of a property based on an analysis of sales of properties with similar characteristics. |
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Competent |
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A term for a buyer who is legally fit to enter into a sales contract. |
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Compound interest |
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The interest paid on the principal balance in a mortgage and on the accrued and unpaid interest of the loan. |
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Concrete tilt-up |
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The process of pouring concrete into forms on the ground, allowing the forms to harden and then raising the material to a vertical position to form walls. |
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Condemnation |
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The process the government uses to take private property for public use without the consent of the owner. |
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Conditional commitment |
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A promise by a lender to make a loan if the borrower meets certain conditions. |
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Condominium |
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Individual units in a building or development in which owners hold title to the interior space while common areas such as parking lots, community rooms and recreational areas are owned by all the residents. |
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Condominium conversion |
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The change in title from a single owner of an entire project or building to multiple owners of individual units. |
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Conduit |
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A metal pipe that houses electrical wiring. |
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Consent judgment |
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A binding written agreement between two parties to have a judgment entered and recorded. |
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Conservator |
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A court-appointed guardian. |
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Consideration |
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Anything that is legal, has value and induces a person to enter into a contract. |
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Construction budget |
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The funding that an owner arranges for the construction of a project. |
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Construction documents |
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Drawings and specifications from an architect that provide detailed requirements for the construction of a project. |
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Construction loan |
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Short-term loans a lender makes for the construction of homes and buildings. The lender disburses the funds in stages. |
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Construction to permanent loan |
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The conversion of a construction loan to a longer-term traditional mortgage after construction has been completed. |
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Consumer Credit Counseling Service (CCCS) |
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A nationwide, nonprofit organization that helps consumers get out of debt and improve their credit profile. National headquarters: 8701 Georgia Avenue., Suite 507, Silver Springs, MD 20910. Phone: (800) 388-2227. |
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Contemporary style |
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A design that features streamlined shapes, large unadorned windows and industrial materials. |
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Contiguous lots |
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Pieces of property that are adjoined. |
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Contingency |
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A condition specified in a purchase contract, such as a satisfactory home inspection. |
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Contingency listing |
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A property listing with a special condition attached. |
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Contingent fee |
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A fee that must be paid if a certain event occurs. |
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Contract |
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An agreement between two or more parties that creates or modifies an existing relationship. |
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Contract for deed |
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A contract in which the seller agrees to defer all or part of the purchase price for a specified period of time. |
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Contract to purchase |
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A contract the buyer initiates which details the purchase price and conditions of the transaction and is accepted by the seller. Also known as an agreement of sale. |
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Contractor |
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The individual who contracts for the construction of a home or project. |
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Contractual lien |
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A voluntary obligation such as a mortgage or trust deed. |
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Controlled growth |
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Any restrictions imposed on the amount or type of new development in an area. |
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Conventional loan |
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A long-term loan a lender makes for the purchase of a home. |
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Convertible adjustable-rate mortgage |
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A mortgage which starts as an adjustable-rate loan, but allows the borrower to convert the loan to a fixed-rate mortgage during a specified period of time. |
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Conveyance |
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The transfer of title of property. |
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Conveyance tax |
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A tax imposed on the transfer of real property. |
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Cooperating broker |
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A real estate broker who finds a buyer for a property that another broker has listed. |
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Cooperative corporation |
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A business trust that holds the title to a cooperative residential building and grants occupancy rights to shareholders in the corporation. |
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Cooperative mortgages |
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Any loans related to a cooperative residential project. |
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Cooperative project |
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A project in which a corporation holds title and sells shares representing individual units to buyers who then receive a proprietary lease as their title. |
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Corner bead |
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A reinforcement placed in the corner where two walls intersect. |
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Corner influence |
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The effect on the value of a property because it is situated on a corner or near a corner. |
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Cornice |
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A horizontal molding that projects from the top of a structure or wall. |
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Corporate relocation |
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An arrangement by which employers pay to transfer and move employees. |
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Corrective work |
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Necessary or desired repairs to remedy problems uncovered by a home or specialized inspection. |
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Cost-plus contract |
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A construction contract that determines the builder's profit based on a percentage of the cost of labor and materials. |
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Cottage |
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A small, one-story house. |
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Counteroffer |
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A response to an offer. |
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Covenant |
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A legal assurance or promise in a deed or other document, or implied by the law. |
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Covenants, conditions and restrictions (CC&Rs) |
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Rules and regulations for a development, such as acceptable landscaping or improvements that can be made to individual units. |
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Craftsman style |
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An architectural style that evolved as part of the Arts and Craft movement near the turn of the century. |
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Crawl space |
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The space between the ground and the first floor of a home, usually no higher than four feet. |
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Creative financing |
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Innovative home-financing arrangements that help sell a property. |
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Credit |
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The money a lender extends to a buyer for a commitment to repay the loan within a certain time frame. |
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Credit history |
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A record of an individual's current and past debt payments. |
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Credit life insurance |
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Insurance that pays off a mortgage in the event of the borrower's death. |
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Credit rating |
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The degree of credit worthiness assigned to a person based on credit history and financial status. |
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Credit report |
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A credit bureau report that shows a loan applicant's history of payments made on previous debts. Several companies issue credit reports, but the three largest are Trans Union Corp., Equifax and Experian (formerly TRW ). |
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Credit repository |
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Large companies that gather financial and credit information from various sources about individuals who have applied for credit. |
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Credit union |
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Nonprofit cooperative organizations that provide banking and financial services, including mortgages, home improvement loans and home equity loans, to their members. |
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Creditor |
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An individual or institution to whom a debt is owed. |
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Cross-bridging |
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The strengthening of a structure by bracing cross members between beams. |
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Cul de sac |
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A street or alley that is closed at one end. |
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Cupola |
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A dome-like structure that sits on top of a roof. |
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Curable defect |
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A deficiency in a property that is easy or inexpensive to fix, such as chipping paint. |
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Curb appeal |
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The first impression of a house as seen from the street. |
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Curtain wall |
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An exterior wall that encloses a yard or other area but does not provide any structural support to a home. |
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Custom builder |
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A builder who constructs a home or building based on plans created by the owner. |
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Custom home |
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A structure designed by an architect hired by the owner. |
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Cynic |
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Someone who knows the cost of everything and the value of nothing. |
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