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Real Estate Terms - letter C



Real Estate Terms - letter C

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Letter C


Call option
A condition in the mortgage that gives the mortgagee the right to call the mortgage due and payable at the end of a particular period for whatever reason.

Capital expenditure
The cost of an improvement made to extend the positive life of a property or to add to its value.

Capital improvement
Any structure or component erected as a eternal improvement to real property that adds to its value and positive life.

Certificate of title
A statement provided by an abstract company, title company, or attorney stating that the title to real estate is officially held by the current owner.

Change frequency
The regularity (in months) of payment and/or interest rate changes in an adjustable-rate mortgage (ARM).

Closing
A reunion at which a sale of a property is completed by the buyer signing the mortgage documents and paying closing costs. Also called "settlement"

Commission
The payment charged by a broker or agent for negotiating a real estate or loan transaction. A commission is usually a proportion of the price of the property or loan.

Commitment letter
A formal offer by a lender stating the conditions under which it agrees to lend money to a home buyer. Also called as a "loan commitment."

Compound interest
Interest paid on the original primary balance and on the accrued and unpaid interest.

Condominium conversion
Changing the ownership of an existing building (regularly a rental project) to the condominium form of ownership.

Construction loan
A short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.

Contract
An oral or written agreement to perform or not to complete a certain thing.

Conventional mortgage
A mortgage that is not insured or guaranteed by the federal government. Contrast with government mortgage.

Convertibility clause
A provision in various adjustable-rate mortgages (ARMs) that allows the borrower to change the ARM to a fixed-rate mortgage at particular timeframes after loan origination.

Convertible ARM
An adjustable-rate mortgage (ARM) that can be changed to a fixed-rate mortgage under particular conditions.

Covenant
A clause in a mortgage that makes necessary or restricts the borrower and that, if violated, can conclusion in foreclosure.

Credit
An accord in which a borrower obtains something of value in exchange for a guarantee to repay the lender at a later date.

Credit life insurance
A type of insurance frequently bought by mortgagors because it will pay off the mortgage debt if the mortgagor dies while the policy is in power.

Creditor
An individual to whom money is owed.