CALL OPTION (PROVISIONS, RIGHTS):
A lender's right to demand payment of the outstanding balance of the loan at a time specified in the loan agreement.

CANCELLATION CLAUSE:
Provision in a contract that gives one or more parties the right to terminate the contract if a specific event occurs.

CAP:
The maximum allowable increase, for either payment or interest rate, for a specified amount of time on an adjustable rate mortgage.
A limiting factor in variable rate mortgages as to how high periodic payments may go or how much the interest may change within a given time period or over the life of the mortgage.

CAP RATE:
Short form for capitalization rate.

CAPACITY:
Having legal competence to sign binding contracts.

CAPE COD COLONIAL:
A one-storey house, compact in design and in an early-American-style. Symmetrical layout with a central entrance. Steep, gable-type roof, usually shingled, with a low central chimney.

CAPITAL ASSET:
Asset of a permanent nature used in the production of an income, such as land, buildings, machinery, equipment, etc.

CAPITAL GAIN:
Profit from the sale of property.  Used in computing income tax.

CAPITAL IMPROVEMENT:
Value enhancing work carried out on a capital property.

CAPITAL LOSS:
Loss from the sale of property.  Used in computing income tax.

CAPITAL:
The working money in a business venture.

CAPITALIZATION:
In appraising, determining value of property by considering net income and percentage or reasonable return on the investment.

CAPITALIZATION RATE:
The rate which is considered a reasonable return on the investment, and used in the process of determining value based upon net income.

CAPTURE RATE:
A comparison of the sales or leasing rate of a particular real estate development to the sales or leasing rate of all developments in the same market.

CARRYING CHARGES (COSTS):
Costs incidental to property ownership, other than interest (i.e. taxes, insurance costs & maintenance expenses) that must be absorbed by the landlord during the initial lease up of a building and thereafter during periods of vacancy.  The expense required to maintain a property over a given period of time, including property taxes, maintenance, insurance payments, interest charges on financing, etc.

CASH EQUIVALENT:
The amount a vendor would have realized on the sale of a property had she not accepted unfavourable (or favourable) financing of the purchaser but received cash instead.

CASH FLOW:
Cash left at the end of a period of time (usually a year) from the operation of income property or a business.  Do not subtract depreciation when computing cash flow.

CASH METHOD:
An accounting method, based on actual cash moving in and out of the company over a given period. See accrual method.

CASH RESERVE:
An amount of money that the purchaser of a property still has after the transaction closes. Some lenders require a certain level of cash reserve (equal to two payments) before granting a mortgage.

CASH THROW-OFF:
See cash flow.

CASH-OUT REFINANCE:
When an owner renegotiates or negotiates a new mortgage and the proceeds of the new financing exceed the money required to pay out the old mortgage and any other costs, liens or expenses, leaving money for the borrower.

CAVEAT EMPTOR:
Let the buyer beware.  The buyer must examine the goods or property and buy at his own risk.

CEILING:
The maximum allowable interest rate over the life of the loan of an adjustable rate mortgage.  The limit over which the interest rate on a variable rate mortgage may not rise over the life of the loan.

CENTRAL BUSINESS DISTRICT (CBD):
The business and commercial "core" of a municipality (also known as "Downtown").

CERTIFICATE OF ELIGIBILITY:
Document issued by the Department of Veteran's Affairs to qualifying veterans which entitles them to apply for subsidized or guaranteed loans.

CERTIFICATE OF INSURANCE:
A document, issued by the insurance company, setting out the particulars of the insurance coverage for a particular property.

CERTIFICATE OF NO DEFENSE: Document which sets out a certain set of facts which the issuer is agreeing to be bound by. Same as estoppel certificate.

CERTIFICATE OF OCCUPANCY:
A document presented by a local government agency or building department certifying that a building and/or the leased premises (tenant's space) has been satisfactorily inspected and is/are in a condition suitable for occupancy.  Document issued by the local municipality indicating that a new dwelling is suitable for occupation. Generally confirms that the dwelling complies with local building, safety and health by-laws.

CERTIFICATE OF REASONABLE VALUE (CRV):
The Federal Veterans Administration appraisal commitment of property value.

CERTIFICATE OF SALE:
A certificate issued to a buyer at a judicial sale (eg. foreclosure of a mortgage).

CERTIFICATE OF SATISFACTION:
Document registered on title which provides evidence from the lender that a loan instrument (deed of trust, mortgage, other lien) has been paid out and released.

CERTIFICATE OF TITLE:
A certification of the ownership of land.  A forerunner to title insurance.

CERTIFICATE OF VETERAN STATUS:
Document issued by Department of Veteran's Affairs confirming that the person named in the Certificate has served at least 90 days of continuous active duty (including training time) and is eligible for certain VA benefits (such as a VA mortgage).

CERTIFIED COPY:
A copy of a document which bears some form of declaration (usually by the holder of the original document) that it is a true copy of the original.

CERTIFIED GENERAL APPRAISER:
A person who has met the requirements to be licensed to appraise the value of property. Qualification requirements may vary from one jurisdiction to the next.

CERTIFIED HOME INSPECTOR:
A person who has met the requirements to be "certified" to inspect the physical condition of homes. Qualification requirements may vary from one jurisdiction to the next.

CERTIFIED PROPERTY MANAGER (CPM):
A person who has met the requirements of the Institute of Real-Estate Management.

CERTIFIED RESIDENTIAL APPRAISER:
A person who has met the requirements to be licensed to appraise the value of residential properties of no more than four units.

CERTIFIED RESIDENTIAL BROKER (CRB):
A person who has met the requirements of the Realtors National Marketing Institute.

CERTIFIED RESIDENTIAL SPECIALIST (CRS):
A person who has met the requirements of the Realtors National Marketing Institute.

CESTUI QUE TRUST:
The beneficiary of a trust, the person who is the beneficial/equitable owner of the property held in trust for which the trustee holds legal title.

CHAIN OF TITLE:
A history of conveyances and encumbrances affecting the title from the time the original patent was granted, or as far back as records are available.

CHAIN:
An old unit of measurement of land, measuring 66 feet in length. A chain equals 100 links, each 0.66 feet in length.

CHANGE FREQUENCY:
Term describing the period of time between changes in the interest rate and/or payments of a variable rate (adjustable rate) mortgage or loan (i.e. one week, one month etc.).

CHANGE, PRINCIPLE OF:
Holds that it is the future, not the past, which is of prime importance in estimating value.

CHATTEL:
Personal property.

CHATTEL MORTGAGE:
A personal property mortgage.  (See Security Agreement and Security Interest).

CHATTELS:
Goods or every species of property movable or immovable which are not real property.

CHATTELS REAL:
An estate related to real estate such as a lease on real property.

CHOSE IN ACTION:
A personal right recoverable by a court suit.

CLEAR TITLE:
A title that doesn't have any liens (including a mortgage) against it.  Ownership of land which is marketable and free of competing claims, liens, mortgages or other encumbrances.

CLAIM:
A right asserted against another party. One might register a claim on title to the property to which the claim applies, file a claim under an insurance policy or file a Statement of Claim in court to assert one's rights.

CLASS ACTION:
A legal proceeding which presents the related or similar claims of an identifiable group against a single or group of defendants, usually by using one representative claimant to assert the claims on behalf of the group.

CLIENT:
Person with whom the broker has an agency interest.

CLOSED MORTGAGE:
A land loan that cannot be prepaid or re-negotiated before the end of its term without the payment of an interest penalty.

CLOSED-END MORTGAGE:
A mortgage with a set principal amount which cannot be increased or extended during the life of the mortgage.

CLOSING:
The conclusion of a sales transaction when the seller transfers title to the buyer in exchange for consideration.  The culmination of any transaction in which the interested parties (or their representatives) meet to exchange documents, funds, and property and, if necessary, to register the transfer of title.

CLOSING COSTS:
Costs the buyer must pay at the time of closing, in addition to the down payment which may include points, title charges, credit report fee, document preparation fee, mortgage insurance premium, inspections, appraisals, prepayments for property taxes, deed recording fee and property insurance. Closing costs can vary considerably from one financial institution to another.  Monies expended by a party in completing a transaction, over and above the purchase price, including: legal fees, taxes, mortgage application charges, interest adjustments, registration fees, appraisal fees, etc.

CLOSING DATE:
Also known a Completion Date. The date set in the Agreement of Purchase and Sale upon which the transaction is to be completed, the purchase price paid and the transfer of title registered.

CLOSING STATEMENT:
A detailed written summary of the financial settlement of a real estate transaction showing all charges and credits made, and all cash received and paid out.  The final accounting of a sale given by escrow to the buyer and seller.

CLOUD ON TITLE:
Any conditions revealed by a title search which affect the title to property; usually relatively unimportant items which can be removed with a quitclaim deed or court action.

CLUSTER HOUSING:
Development design which places attached dwelling in close proximity to each other, with nearby open spaces set out for common use of the dwelling owners.

CODE:
A group of laws.

CODE OF ETHICS:
Rules of an organization used as a guideline by members of the organization (eg. NAR Code of Ethics).

COINSURANCE:
A technique used to share the risk of a larger development between several insurance companies, each company covering a certain percentage of the total value of the insured property. Each policy may include a clause setting a minimum percentage of the total value of the insured property which the owner must keep insured in order to be eligible for payment under the policy.

COLD CANVASS:
Also known as "Cold Call". Contacting home owners out of the blue to solicit business or, in the case of a real estate broker or agent, listings.

COLLATERAL:
This is the property subject to the security interest.  (See Security Interest)

COLLATERAL MORTGAGE:
A loan which is secured by some sort of written note of indebtedness (such as a Promissory Note) which is secondarily secured by a mortgage registered against a property.

COLLATERAL SECURITY:
A separate obligation attached to contract to guarantee its performance; the transfer of property or of other contracts or valuables to insure the performance of a principal agreement.

COLLECTION:
The act of pursuing a debtor who is delinquent on his loan payments.

COLLUSION:
An agreement between two or more persons to defraud another of his rights by the forms of law, or to obtain an object forbidden by law.

COLOR OF TITLE:
That which appears to be good title but which is not title in fact.


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CO-MAKER:
Also known a "Guarantor". Someone who signs a loan document along with the principal borrower, pledging to be responsible for the loan should the borrower fail to pay it.

COMMERCIAL ACRE:
A term applied to the remainder of an acre of newly subdivided land after the area devoted to streets, sidewalks, curbs, etc., has been deducted from the acre.

COMMERCIAL BROKER:
A real estate professional who deals in properties with commercial (business, retail, etc.) uses.

COMMERCIAL PAPER:
Bills of exchange used in commercial trade.

COMMERCIAL PROPERTY:
As opposed to residential or industrial property. Property zoned, designed or intended for use retail, office, or similar users.

COMMINGLE:
To mix client's money or property with the agent's.

COMMISSION:
The compensation paid to a licensed real estate broker or by the broker to the salesperson for services rendered. Usually a percentage of the selling price of the property or the total value of the lease.  An agent's compensation for performing the duties of his agency; in real estate practice, a percentage of the selling price of property, percentage of rentals, etc.

COMMISSION SPLIT:
The division of the payment made to the listing agent between that agent and her broker, or between the listing agent and agent representing the Purchaser (the selling agent).

COMMITMENT:
A pledge or a promise or firm agreement.

COMMITMENT FEE:
The fee charged by the lender to commit itself to a mortgage or loan on specific terms.

COMMON AREA ASSESSMENTS:
Also known as Common Element Fees. A periodic charge levied against all of the owners of units in a condominium or planned unit development (PUD) project which is used by the condominium corporation or homeowner's association to pay for repair, maintenance and other expenses of the common areas in the development.

COMMON ELEMENTS:
A common area in a condominium project which is owned by the condominium corporation and for the use of all unit owners.

COMMON LAW:
The body of law that grew from customs and practices developed and used in England "since the memory of man runneth not to the contrary".

COMMUNITY:
A part of a metropolitan area that has a number of neighborhoods that have a tendency toward common interests and problems.

COMMUNITY APARTMENT PROJECT:
A subdivision where the buyer receives a deed to the whole property and the right to use an apartment.  Each owner is a tenant in common.

COMMUNITY ASSOCIATION:
Any organization established and run by property owners in a particular area, often to represent the common interests of the owners in dealings with government, planning bodies, developers or other outside parties.

COMMUNITY HOME BUYER'S PROGRAM:
Program established to find creative ways to finance home purchases for people with modest income.

COMMUNITY PROPERTY:
Property accumulated through joint efforts of husband and wife.

COMPACTION:
Whenever extra soil is added to a lot to fill in low places or to raise the level of the lot, the added soil is often too loose and soft to sustain the weight of the buildings.   Therefore, it is necessary to compact the added soil so that it will carry the weight of buildings without the danger of their tilting, settling, or cracking.

COMPARABLES or COMPARABLE SALES:
Properties which are similar to a particular property and are use to compare and establish a value for that property.  Sales which have similar characteristics as the subject property and are used for analysis in the appraisal process.

COMPARISON APPROACH:
A means of appraising by comparing recent sales prices of similar properties.

COMPETENT PARTIES:
Legally qualified.

COMPLETION DATE:
See closing date.

COMPETITION, PRINCIPLE OF:
Holds that profits tend to breed competition and excess profits tend to breed ruinous competition.

COMPONENT DEPRECIATION:
For tax purposes, allocating a portion of the total cost of renovation to each component of the renovation (roof, plumbing, electrical, foundation, etc.) and then depreciating the cost of each component separately.

COMPOUND INTEREST:
Interest paid on original principal and also on the accrued and unpaid interest which has accumulated.

CONCESSIONS:
Cash or cash equivalents expended by the landlord in the form of rental abatement, additional tenant finish allowance, moving expenses, cabling expenses or other monies expended to influence or persuade the tenant to sign a lease.  Sacrifices made by a party to convince another party to enter a contract.

CONDEMNATION:
The process of taking private property, without the consent of the owner, by a governmental agency for public use through the power of eminent domain.  The act of taking private property for public use by a political subdivision; declaration that a structure is unfit for use.

CONDITION(S):
Provision(s) that the transfer of property depends upon another uncertain event.

CONDITION PRECEDENT:
A condition that must be fulfilled before title can be transferred.

CONDITION SUBSEQUENT:
A condition which provides that if the owner fails to do something, his title may be defeated and he may lose his property.

CONDITIONAL COMMITMENT:
A commitment of a definite loan amount for some future unknown purchaser of satisfactory credit standing.

CONDITIONAL SALE CONTRACT:
A contract for the sale of property stating that delivery is to be made to the buyer, title to remain vested in the seller until the conditions of the contract have been fulfilled.

CONDITIONAL OFFER:
An offer to purchase a property which is contingent on the fulfillment of certain conditions before it becomes firm and binding. Also known as "Conditional Sales Contract".

CONDOMINIUM:
A form of real estate, usually a dwelling with individual ownership of separate portions of the building plus shared ownership of the common areas. Also found in industrial parks, where individual units are separately owned, but the common areas (such as guard gates, common landscaping, etc) are shared.  A system of individual fee ownership of units in a multi-family structure, combined with joint ownership of common areas of the structure and the land.

CONDOMINIUM OWNERS ASSOCIATION:
An organization made up of unit owners in a condominium development established to govern relations between the owners and to administer the rules, by-laws and covenants of the condominium.

CONFIRMATION OF SALE:
A court approval of the sale of property by an executor, administrator, guardian or conservator.

CONFORMITY, PRINCIPLE OF:
Holds that the maximum value is realized when a reasonable degree of homogeneity of improvements is present.

CONFORMING:
Complying with the requirements of a certain statute, by-law or organization.

CONSENT:
Agreement.  Mutual consent is one of the four essential elements of a contract.

CONSERVATOR:
Also called a Committee, Personal Representative or Guardian, a person appointed by the Court to administer the property of a person who is not capable of managing his own affairs.

CONSIDERATION:
Anything of value given to induce entering into a contract; it may be money, personal services, or even love and affection.

CONSTANT PAYMENT LOAN:
A type of loan which requires equal, periodic payments over a certain term, at the end of which the amount owing under the loan will be completely paid out.

CONSTRUCTION LOAN:
Loan made for the construction of homes or commercial buildings.  Usually funds are disbursed to the contractor-builder during construction and after periodic inspections.   Disbursements are based on an agreement between borrower and lender.

CONSTRUCTIVE EVICTION:
A disturbance or a tenant's possession by the landlord.

CONSTRUCTIVE NOTICE:
Notice given by the public records or by possession.

CONSUMER GOODS:
These are goods used or bought for use primarily for personal, family or household purposes.

CONSUMER REPORTING AGENCY (OR BUREAU):
Also known as Credit Bureau. The source to which the banks or other lenders turn for information on the credit history of an applicant.

CONTINGENCY:
A provision in a contract stating that some of all of the terms of the contract will be altered or voided by the occurrence of a specific event.  An event which may (or may not) happen in the future, a condition that must be fulfilled before a contract becomes firm and binding.

CONTINGENT:
Dependent upon an uncertain future event.

CONTOUR:
The surface configuration of land.

CONTRACT:
An agreement to do or not to do a certain thing.  A legally binding agreement (oral or written) between two or more persons regarding an exchange of some sort. A legally binding contract must include consideration passing between the parties, an intention on the part of all parties to be bound to the contract, a meeting of the minds of the parties as to the contents of the contract, and an element of clarity such that the terms of the contract may be interpreted, understood and enforced by a court.

CONTRACT FOR DEED:
Also known as a Land Contract or Land Installment Contract. Transfer of a property where the title remains in the Vendor's name until the Purchaser makes the final payment to the Vendor of the Purchase Price.

CONTRACT OF SALE:
Also known as Agreement of Purchase and Sale, Offer to Purchase, Contract of Purchase. The written agreement between the Vendor and Purchaser for the sale of property which contains all of the terms, conditions and financial details of the transaction.

CONTRACT RENT:
The periodic rental payment as set out in the lease contract.

CONTRACTOR:
A tradesman who works in the construction industry under a contract with the owner of the property. See also "sub-contractor".

CONTRIBUTION, PRINCIPLE OF:
An appraising principle used when considering proposed improvements.  Considers the income that would be contributed by the proposed improvements.

CONVENTIONAL LOAN:
A loan made without government backing.
1. A loan or mortgage to which the normal rules of such transactions apply without the inclusion of a government program (i.e. VA or FHA insurance).
2. A loan or mortgage with a fixed interest rate, fixed payments and a fixed term.

CONVERSION CLAUSE:
A provision in a variable rate mortgage (adjustable rate mortgage) which allows the borrow to change the mortgage to a fixed rate mortgage upon the occurrence of certain events.

CONVERSION:
Change from one character or use to another.
1. a change in the use of a property, or in the way a property is owned (i.e. from private to condominium ownership)
2. the improper taking of the property of another for one's own use;
3. In Ontario, the transfer of a property from the Registry System of land registration to the new Land Titles Conversion Qualified (LTCQ) computerized system by the agents of the Ontario government.

CONVERTIBILITY CLAUSE:
See Conversion Clause.

CONVEY:
To transfer title to (or any other interest in) a property to someone else.

CONVEYANCE:
Most commonly refers to the transfer of title to property between parties by deed. The term may also include most of the instruments by which an interest in real estate is created, mortgaged or assigned.  The transfer of the title of land from one to another.  It denotes an instrument which carries from one person to another an interest in land.

CO-OP:
Short for Cooperative, a mode of land ownership where the occupiers of individual units in a building own an interest in the Cooperative Corporation that owns the whole property.

COOPERATING BROKER:
A Broker who is involved in a real estate transaction and is, therefore, entitled to share in the commission from the transaction.

COOPERATIVE (CO-OP):
See Co-Op.

CORNER INFLUENCE:
The added value of a corner lot.

CORPORATE RELOCATION:
The movement of an employee of a corporation to a new city (or other location) as part of the normal business of the corporation. The employee's moving expenses (including the costs of selling and buying a home) may be paid by the corporation and are tax deductible.

CORPORATION:
A group or body of persons established and treated by law as an individual or unit with rights and liabilities of both, distinct and apart from those of the persons composing it.

CORPOREAL:
Tangible.

CORRELATION:
To bring the indicated values developed by the three approaches used in the appraisal process into mutual relationship with each other.

COST:
The price a buyer pays for property.

COST APPROACH:
One of three methods in the appraisal process.  An analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land.

COST BASIS:
The price a buyer pays for a property or its value at time of acquisition.  Used in computing profit for income tax.

COST ESTIMATING:
Predicting the total cost of a construction project by estimating, in advance, the actual costs of all elements in the project, including legal fees, labor, permits, materials etc.

COST PLUS CONTRACT:
An agreement with a contractor or builder which sets the contractor's compensation for the project as a percentage of the total cost of all labor and materials.

COUNTER OFFER:
The rejection of an offer to buy or sell that simultaneously makes a different offer, changing the terms in some way.  An answer to an offer. If a prospective Purchaser presents an offer to purchase a property to the owner of the property, that owner may accept the offer as it stands, reject it outright or respond with a "counteroffer" which changes certain terms of the original offer. Making a counteroffer, at law, entails rejection of the original offer. The Purchaser may then counteroffer back, making changes to the owner's counteroffer. Sometimes, the process of counteroffering is referred to as "signing back" the offer.

COUNTY:
A territorial division of land in a geographic region (state or province). Similar to Regions and Regional Municipality.

COVENANT:
Agreements written into deeds and other instruments promising performance or nonperformance of certain acts or stipulating certain uses or nonuses of the property.

CREATIVE FINANCING:
An arrangement for the financing of the purchase of a property which is outside the normal practice of residential financing.

CREDIT:
1. The ability to access money, to use money prior to earning it.
2. The accounting term for a liability or for equity, entered on the right side of the ledger.
3. As a verb, to allot for the benefit of a person (i.e. You must credit the Purchaser on closing for the deposit paid).

CREDIT HISTORY:
A statement of the debts and obligations, whether current or past, of a person which helps a lender to assess the risk of a loan to that person.

CREDIT LIFE INSURANCE:
A form of insurance which is designed specifically to pay out the debts of the insured person in case of their death.

CREDIT LIMIT:
The maximum amount available to a person under a loan, credit card or other borrowing arrangement.

CREDIT RATING:
Based on an analysis of a person's credit history, an evaluation of that person's ability to manage a new debt or debts overall.

CREDIT RISK:
The potential for a borrower to fail to live up to her obligations under a loan arrangement.

CREDITOR:
Any person to whom money is owed. May be secured (the debt has been registered against the property of the debtor) or unsecured.

CUL-DE-SAC:
French term for a "dead end street". A street open at one end only.  It usually has a circular turnaround. A street which meets another street at one end but is closed at the other, such that little traffic will travel down it and the property owners enjoy excellent privacy.

CUMULATIVE INTEREST:
The total amount charged as interest on a loan or mortgage to a certain date.

CURABLE DEPRECIATION:
Items of physical and functional obsolescence which are customarily repaired or replaced by a prudent property owner.

CURTESY:
The right which a husband has in a wife's estate at her death.

CUSTOM BUILDER:
A builder or developer who specializes in creating homes to the specifications and requirements of individual land owners.

CUSTOMER:
Third party with whom the broker does not have an agency contract.


General Links:
Canada Real Estate Directory  Canadian resources
Find California Real Estate Agents and Brokers  Buying or Selling Your Home? Find and Compare California Real Estate Agents and Brokers. Helpful resources for finding the right California Real Estate Agent to help you buy or sell your home.
Canada Fishing Charters  Experience heart-pounding Canadian Sportfishing action. Master Guide with thirty years experience gives all out effort. Pinpoints the best time and place to fish.
River Pirate Guide Service   Experience heart pounding sport fishing action. Catch more Kings. California fishing guide with thirty years experience gives all out fishing effort.
California Excitement   California travel and entertainment guide.