A provision in a mortgage which allows the loan provider to demand payment of the outstanding balance at a specific time.

CAP.
Associated with Adjustable Rate Mortgages. A limit on how high regular monthly payments or how much interest rates may change within a particular period or the life of the mortgage.

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

CAPITAL.
Accumulated items and money which is most frequently utilized to produce additional income.

CAPITAL INVESTMENT.
An investment of funds designed to enhance the income-producing abilities of an asset or to extend its economic life.

CASH-OUT REFINANCE.
Refinancing a mortgage at a greater amount than the present balance in order to transform a part of the equity into money.

CAULKING.
A pliable product utilized to seal cracks or openings such as around windows.

CAVEAT EMPTOR.
Literally translated: "Let the buyer beware." A typical service tenet whereby the buyer is responsible for verifying any and all claims by the seller of residential or commercial property.

CERTIFICATE OF DEPOSIT.
A file revealing that the bearer has a certain amount of cash, at a specific quantity interest, on deposit with a financial organization.

CERTIFICATE OF DEPOSIT INDEX.
An index based on the interest rate of 6 month CD's. Used to set rate of interest on some Adjustable Rate Mortgages.

CERTIFICATE OF ELIGIBILITY.
A document issued by the Veterans Administration that licenses eligibility for a VA loan.

CERTIFICATE OF OCCUPANCY.
Issued by an appropriate jurisdictional entity, this file accredits that a structure adhere to all building regulations and is safe for usage or habitation.

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

CERTIFICATE OF TITLE.
A file designating the legal owner of a parcel of property. Usually supplied by a title or abstract company.

CERTIFIED GENERAL APPRAISER.
Generally, any specialist who has satisfied the local or state requirements, and passed the proper accreditation examination, and is capable of appraising any type of residential or commercial property.

CERTIFIED RESIDENTIAL APPRAISER.
A sub-classification of appraiser who is only accredited to assess house, typically up to 4 systems.

CHAIN OF TITLE.
The total 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 essential part of a residential or commercial property. Chattel is not frequently thought about when assessing the value of real residential or commercial property.

BREAKER.
Electrical devices which immediately open electrical circuits if they are overloaded.

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

CLOSING.
An agonizing process designed to induce cramping in a home purchaser's hands by needing signature on numerous pieces of documentation that nobody has ever checked out. Or, the process where the sale of a residential or commercial property is consummated with the purchaser finishing all applicable documentation, including signing the mortgage obligation and paying all proper expenses associated with the sale (CLOSING COSTS).

CLOSING COSTS.
All proper expenses generated by the sale of residential or commercial property which the parties need to pay to finish the deal. Costs may include appraisal costs, origination charges, title insurance, taxes and any points worked out in the deal.

CLOSING STATEMENT.
The document detailing the last monetary arrangement between a buyer and seller and the expenses paid by each.

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

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

COLLECTION.
The process a lending institution takes to pursue a borrower who is delinquent on his payments in order to bring the mortgage current again. Includes paperwork that might be used in foreclosure.

CO-MAKER.
A 2nd celebration who signs a loan, in addition to the debtor, and ends up being liable for the debt must the customer default.

COMMON LAW.
Instead of statute law. Laws that have actually been developed by customized, use and courts over many years.

COMMISSION.
A percentage of the sales rate or a fixed charge worked out by an agent to compensate for the effort expended to sell or purchase residential or commercial property.

COMMON AREA ASSESSMENTS.
Fees which are credited the tenets or owners of residential or commercial properties to cover the costs of maintaining locations shared with other tenets or owners. Commonly found in condo, PUD or office spaces.

COMMON AREAS.
Any areas, such as entrances, foyers, pools, leisure centers 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 many jurisdictions, any residential or commercial property which has been obtained by a couple. The ownership of the residential or commercial property is considered equal unless specified otherwise by both celebrations.

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

COMPOUND INTEREST.
Interest paid on the principal amount, along with any built up interest.

CONCESSIONS.
Additional value given by a buyer or seller to lure another party to complete a deal.

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

CONDENSATION.
The transition of water vapor to liquid. Typically kinds in locations of high humidity.

CONDOMINIUM.
An advancement where private systems are owned, but typical locations and amenities 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 instead of leased.

CONDOTEL:.
Are Condo-hotels normally situated in touristy areas or structures including both condos and hotel rooms. Condotels normally offer ownership in a vacation-style condominiums that provide onsite rental management. Often owners of condotels are restricted to a particular number of days of use and hence not suitable for primary house.

CONDUIT.
The pipeline through which electrical circuitry is run.

CONSTRUCTION LOAN.
A loan made to a home builder or property owner that finances the initial building and construction of a residential or commercial property, however is changed by a conventional mortgage one the residential or commercial property is completed.

CONTIGUOUS.
Connected to or touching along an unbroken limit.

CONTINGENCY.
Something that should happen before something else happens. Often utilized in property sales when a buyer should offer a current home before buying a new one. Or, when a buyer makes a deal the requires a total home assessment before it ends up being official.

CONTRACT.
A legally binding agreement, oral or written, between two parties.

CONVENTIONAL MORTGAGE.
A standard, property funding mechanism that is not backed by any government or other firm (FHA, VA, and so on).

CONVERTIBLE ARM.
A mortgage that begins as and adjustable, that enables the customer to transform the loan to a fixed rate within a specific timeframe.

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

CORPORATE RELOCATION.
A situation where an individual's employer pays all or a few of the expenditures related to moving from one location to another, normally over a substantial distance. Relocation expenses typically include the quantities, such as brokerage costs, sustained in the selling and purchasing of the staff member's main home.

COST OF FUNDS INDEX (COFI).
An index of banks costs used to set rate of interest for some Adjustable Rate Mortgages.

COVENANT.
A stipulation in any mortgage that, if not satisfied, can be cause for the lending institution to foreclose.

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

CREDIT REPORT.
A record of debt payments, past and present. Used by mortgage lending institutions in figuring out credit value of people.

CREDITOR.
A person to whom cash is owed.

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

CREDIT REPOSITORY.
Large business that gather and keep monetary and credit details about individuals who get credit.

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

DATE OF APPRAISAL.
The specific point in time since which an appraiser designates the value of a home. Often stated as the date of examination.

DEBT.
A responsibility to repay some quantity owed. This might or might 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 financial obligation.

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

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

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

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

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

DEED OF SURRENDER
A document used to surrender any claim an individual needs to a residential or commercial property.

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

DELINQUENCY.
The state in which a borrow has actually stopped working to fulfill payment commitments on time.

DEPOSIT.
Cash given along with a deal to acquire residential or commercial property, Also called down payment.

DEPRECIATION.
The natural decline in residential or commercial property value due to market forces or exhaustion of resources.

DETACHED SINGLE-FAMILY HOME.
A single structure enhancement meant to function as a home for one family.

DISCOUNT POINTS.
Points paid in addition to the loan origination charge to get a lower rate of interest. One point amounts to one percent of the loan amount.