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California Real Estate Inspection
Association Also known as CREIA. A trade
organization of home inspectors whose members must meet the group's education
and performance requirements. Call (800) 388-8443 for list of CREIA-certified
inspectors in your area. |
call option A clause
in a loan agreement that allows a lender to ask for the balance at any
time. |
can light An
incandescent light inside a metal can that is mounted flush with the
surface. |
can lights Cylindrical chambers with bulbs recessed into the
ceiling. |
cancellation clause A
clause that details the conditions under which each party may terminate the
agreement. |
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cantilever A
projecting structure supported on one end, such as a balcony. |
cap A limit on the
amount the interest rate or monthly payment can increase in an adjustable rate
mortgage. |
Cape Cod style A
wood-frame or shingled house with a steep roof and several windows projecting
from the second floor. |
capital Money used to
create income, such as funds invested in rental property. |
capital The
decorative top of a column or pilaster. |
capital expenditure The cost of making improvements on a
property. |
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capital gain Profit an investor makes from the sale of real estate or
investments. |
capital gains tax A
tax placed on profits from the sale of real estate or
investments. |
capital improvement Any improvement that extends the life or increases the value of a
piece of property. |
capitalization A
mathematical formula that investors use to compute the value of a property based
on net income. |
capitalization rate The percentage rate of return estimated from the net income of a
piece of property. |
caravan A group of
real estate agents who tour a house that has been recently listed for
sale. |
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carport A roof
that covers a driveway or other parking area. |
carryback financing Financing in which a seller agrees to take back a note for a set
amount of the sale of the home. |
casement window A
window hinged on its sides to allow it to swing open
vertically. |
cash flow The amount
of cash a rental property investor receives after deducting operating expenses
and loan payments from gross income. |
cash-out refinance 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. |
cashier's check A
check the bank draws on itself rather than on a depositor's
account. |
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casing The trim
that encircles a window or door opening, hiding the gap between the door or
window jamb and the wall's surface. |
cathedral ceiling A
high, open ceiling formed by finishing exposed roof rafters. |
caulk An acrylic or
silicon sealant used to fill cracks, crevices, and holes in a
home. |
caveat A formal
notice asking a court to suspend action until the party that filed the challenge
can be heard. |
caveat emptor A legal
principle stating that a buyer is responsible for ensuring the quality of goods
purchased. From Latin, "let the buyer beware." |
cavedium A courtyard
or atrium. |
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CD (certificate of deposit) A document showing that the bearer has a specified amount of money
on deposit with a bank, stock-brokerage firm, or other financial
institution. |
ceiling fan A large,
ceiling-mounted paddle fan. Also known as a Casablanca fan. |
ceiling height The
standard height of a ceiling is eight feet. |
center mullion A
cabinetry term referring to the vertical piece of wood on the front that divides
the opening into two parts. |
central air conditioning A device that generates cold air through an outside unit connected
to ductwork inside the house. |
central business district The area of a city where most large businesses are
located. |
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certificate of deposit (CD) A document showing that the bearer has a specified amount of money
on deposit with a bank, stock-brokerage firm, or other financial
institution. |
certificate of deposit index An index based on the interest rates on six-month CDs. It used to
determine the interest rate for some adjustable rate mortgages. |
certificate of eligibility A document issued by the Veterans Administration that verifies the
eligibility of a veteran for a loan program. |
certificate of occupancy A document stating that a home or other building has met all
building codes and is suitable for habitation. |
certificate of sale A
document issued at a judicial sale that entitles the buyer to receive a deed
after court confirmation of the purchase of the property. |
Certified International Property Specialist
(CIPS) An advanced designation issued by the
National Association of Realtors (NAR) to members who meet specific performance
and education requirements for handling international real estate
transactions. |
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Certified Real Estate Brokerage Manager
(CRB) An advanced designation issued by the
National Association of Realtors (NAR) to members who meet specific performance
and education requirements for real estate office management. |
Certified Residential Specialist
(CRS) An advanced designation issued by the
National Association of Realtors (NAR) to members who meet specific performance
and education requirements for handling residential real estate
transactions. |
chain of title The
official record that details the ownership history of a piece of
property. |
chair railing Decorative trim installed on a wall about 32 inches above the floor
to protect against scuffs from furniture. |
change frequency The
adjustment schedule on an adjustable rate mortgage. |
change order A
modification of a 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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chase A shielded
vertical shaft that houses various pipes, drains, ducts, and
flues. |
chattel Personal
property such as furniture, clothing, or a car. |
chattel mortgage A
lien on personal property used as collateral for a loan. |
chimney back The back
wall or lining of a fireplace or furnace chimney. |
chimney cap A
concrete cap that surrounds the top of the chimney brick. The cap protects the
masonry from rain and other elements. |
chimney flue The
passage inside a chimney that channels smoke and heat to the
outside. |
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chimney pot A
short pipe at the top of a chimney that increases ventilation to the fireplace
and reduces smoke. |
chipboard A board
made of wood chips glued together under pressure. |
cinder block A block
made of ash and cement, used in construction. |
cinder fill Cinders
used below a basement or around a foundation to promote
drainage. |
circuit Short for
electrical circuit, a complete circuit requires two electrical conductors
(wires), an electrical source, and an electrical device such as a light.
Electricity travels through one "hot" wire from the source to the device where
it is converted into light, heat, or energy, then it returns along the other
"neutral" wire to the source. |
circuit breaker A
switch-like device in an electrical circuit that is designed to shut down the
circuit in the event of an electrical overload or short circuit. Circuit
breakers are normally installed in main electrical panels or
subpanels. |
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circuit breaker A
switch-like device in an electrical circuit that is designed to shut down the
circuit in the event of an electrical overload or short circuit. Circuit
breakers are normally installed in main electrical panels or
subpanels. |
cistern A tank used
to store rainwater. |
clapboard A type of
siding, typically cedar, composed of overlapping horizontal
boards. |
classified property tax A tax that varies in rate depending on the use of the
property. |
cleanout An opening
in the drainage system for the removal of obstructions. It also refers to the
part of a fireplace from which ashes can be removed. |
cleanout A Y-shaped
fitting with a cap or plug on one of the arms of the Y that can be removed in
the event of a drain clog to snake out the drain line. |
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clear title A
title to property that does not have liens, defects, or other legal
encumbrances. |
clevis Part of the
assembly needed to raise and lower a sink or tub pop-up. The clevis is a pin
that connects to a pivot rod. |
closing The final
procedure in which documents are signed and recorded and the property is
transferred. |
closing costs Expenses incidental to the sale of real estate, including loan,
title, and appraisal fees. These costs exist in addition to the price of the
property and are paid at closing. Some are one-time expenses and some are
recurring. |
closing statement A
document which details the final financial settlement between a buyer and seller
and the costs paid by each party. |
cloud on title An
invalid encumbrance on real property. |
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cluster development A method of squeezing more homes into less space. |
co-housing Individual
housing units that are clustered around a common building where residents share
cooking and other activities. |
co-insurance Coverage
that involves the use of two or more insurers. |
co-maker A person who
signs a promissory note with the borrower and assumes responsibility for the
loan. |
co-signer A second
party who signs a promissory note and takes responsibility for the
debt. |
CO/ALR A designation
on special light switches and outlets intended to be installed with aluminum
wiring. |
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codicil A change
to a will that adds or subtracts provisions or clarifies portions of the
document. |
collar beam The
structural element that connects roof rafters. |
collateral security Additional security that a borrower supplies to obtain a
loan. |
collection The series
of steps a lender takes to bring a delinquent mortgage up to
date. |
collusion The action
of two or more people to break the law. |
colonia Unincorporated communities along the border between the United
States and Mexico. |
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column A slender
upright structure that consists of a base, a round or square shaft, and a
capital. |
column footing The
support base for a load-bearing column. The footing is usually made of
reinforced concrete. |
combination door An
outer door with interchangeable screen and glass panels. |
combination window A
window with interchangeable screen and glass panels. |
combustion gases The
fumes or exhaust from a gas- or oil-burning appliance such as a water heater or
furnace. Combustion gases are usually vented through a flue. |
commercial bank 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 An area that is zoned for businesses. |
commingling The
mixing of money held in trust with other funds. |
commission A
negotiable percentage of the sales price of a home, paid to the agents of the
buyer and seller. |
commitment A promise
by a lender to make a loan with specific terms for a specified
period. |
commitment fee A fee
charged by the lender to guarantee a specific set of loan terms to be honored at
some future date. |
common area An area
inside a housing development that is owned by all
residents. |
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common law A body
of laws based on custom, usage, and rulings by courts in various
jurisdictions. |
common-area assessments Fees paid by the owners of a condominium project or planned-unit
development to maintain, repair, improve, or operate common
areas. |
common-interest development A project composed of individually owned units that share usage and
financial responsibility for common areas. |
community property Property accumulated through the joint efforts of husband and wife.
It is a classification of property peculiar to certain states. |
Community Reinvestment Act A federal law that encourages financial institutions to loan money
in the neighborhoods where minority depositors live. |
commute The distance
and time it takes a person to reach his or her workplace. |
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comparables Properties used as comparisons to determine the value of a certain
property. |
comparative market analysis An estimate of the value of a property based on an analysis of
sales of properties with similar characteristics. |
competent A term for
a buyer who is legally fit to enter into a sales contract. |
compound interest The
interest paid on the principal balance of a mortgage plus accrued
interest. |
compressor Motorized
equipment in a refrigeration (or air conditioning) system that circulates
coolant through the system. |
concrete tilt-up 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 The
process the government uses to take private property for public use without the
consent of the owner. |
condensate drain A
drain required by a dehumidifier, high-efficiency furnace, or similar appliance
to carry away condensation. |
condensate pump A
small pump used with high-efficiency furnaces or other appliances that create
significant condensation. It activates when water collects to a certain level
and pumps it out to a drain. |
condenser Part of a
refrigeration (or air conditioning) system that pressurizes refrigerant to cool
it by changing it from a vapor to a liquid. On a refrigerator, the condenser is
the coil on the outside of the unit; an air conditioner's condenser is usually
outside the house. |
conditional commitment A promise by a lender to make a loan if the borrower meets certain
conditions. |
conditional sale A
contract for the sale of property stating that the title will remain invested in
the seller until the conditions of the contract have been
fulfilled. |
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condominium 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. |
condominium conversion The change in title from a single owner of an entire project or
building to multiple owners of individual units. |
conduit A metal pipe
that houses electrical wiring. |
conforming loan Any
loan that meets the qualifications to be purchased by Fannie Mae or Freddie Mac.
The current conforming loan limit is $252,700. |
consent judgment A
binding written agreement between two parties to have a judgment entered and
recorded. |
conservator A
court-appointed guardian. |
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consideration Anything that is legal, has value, and induces a person to enter
into a contract. |
construction budget Funding arranged by an owner for the construction of a
project. |
construction documents Drawings and specifications from an architect that provide detailed
requirements for the construction of a project. |
construction loan A
short-term loan for home or building construction. The lender disburses the
funds in stages. |
construction-to-permanent loan A construction loan that is converted to a longer-term traditional
mortgage after construction has been completed. |
Consumer Credit Counseling Service
(CCCS) 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 A design that features streamlined shapes, large unadorned windows,
and industrial materials. |
contiguous lots Pieces of property that are adjoined. |
contingency A
condition specified in a purchase contract, such as a satisfactory home
inspection. |
contingency listing A
property listing with a special condition attached. |
contingent fee A fee
that must be paid if a certain event occurs. |
continuity tester A
simple, battery-powered tool that indicates whether an electrical circuit is
complete or incomplete by lighting or buzzing when you touch its two probes to
the wires. |
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contract An
agreement between two or more parties that creates or modifies an existing
relationship. |
contract for deed A
contract in which the seller agrees to defer all or part of the purchase price
for a specified period of time. |
contract to purchase 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. |
contractor The
individual who contracts for the construction of a home or
project. |
contractual lien A
voluntary obligation such as a mortgage or trust deed. |
controlled growth Any
restrictions imposed on the amount or type of new development in an
area. |
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conventional loan A long-term loan a lender makes for the purchase of a
home. |
conversion The
exchange of personal or real property of one character for
another. |
convertible adjustable-rate
mortgage 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. |
conveyance The
transfer of title of property. |
conveyance tax A tax
imposed on the transfer of real property. |
cooperating broker A
real estate broker who finds a buyer for a property listed by another
broker. |
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cooperative corporation A business trust that holds the title to a cooperative residential
building and grants occupancy rights to shareholders in the
corporation. |
cooperative mortgage Any loan related to a cooperative residential
project. |
cooperative project 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. |
corbel A short block
or bracket projecting from a wall and providing support for a horizontal
member. |
corner bead A
reinforcement placed in the corner where two walls intersect. |
corner influence The
effect on the value of a property because it is situated on a corner or near a
corner. |
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cornice A
horizontal molding that projects from the top of a structure or
wall. |
corporate relocation An arrangement by which employers pay to transfer and move
employees. |
corrective work Necessary or desired repairs to remedy problems uncovered by a home
or specialized inspection. |
cost-plus contract A
construction contract that determines the builder's profit based on a percentage
of the cost of labor and materials. |
cottage A small,
one-story house. |
counterbore A hole
drilled to recess the head of a screw. |
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counteroffer A
response to an offer. |
courier fee Fee
charged at closing to cover the delivery of documents between lenders, escrow
companies, and other parties during a real estate transaction. |
covenant A legal
assurance or promise in a deed or other document, or implied by
law. |
covenants, conditions, and restrictions
(CC&Rs) Rules and regulations for a
development, such as those pertaining to acceptable landscaping or improvements
that can be made to individual units. |
craftsman style An
architectural style that evolved as part of the Arts and Crafts movement near
the turn of the century. |
crawl space The space
between the ground and the first floor of a home, usually no higher than four
feet. |
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creative financing Innovative home-financing arrangements that help sell a
property. |
credit The money a
lender extends to a buyer for a commitment to repay the loan within a certain
time frame. |
credit history A
record of an individual's current and past debt payments. |
credit life insurance Insurance that pays off a mortgage in the event of the borrower's
death. |
credit rating The
degree of creditworthiness assigned to a person based on credit history and
financial status. |
credit report A
detailed account of an individual's credit, employment, and residence history. A
lender uses this report to determine a loan applicant's creditworthiness.The
three largest credit bureaus are Trans Union Corp., Equifax, and Experian
(formerly TRW). |
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credit repository Large companies that gather financial and credit information from
various sources about individuals who have applied for credit. |
credit union A
nonprofit cooperative organization that provides banking and financial services
such as mortgages, home improvement loans, and home equity loans to its
members. |
creditor An
individual or institution to whom a debt is owed. |
CREIA Abbreviation of
California Real Estate Inspection Association, a trade organization of home
inspectors whose members must meet the group's education and performance
requirements. Call (800) 388-8443 for list of CREIA-certified inspectors in your
area. |
cross-bridging The
strengthening of a structure by bracing cross members between
beams. |
crown A piece of
molding around the top of a room. |
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CU/AL A
designation on standard light switches and outlets that intended to be installed
with copper wiring. |
cul-de-sac A street
or alley that is closed at one end. |
cupola A dome-like
structure that sits on top of a roof. |
curable defect A
deficiency in a property that is easy or inexpensive to fix, such as chipping
paint. |
curb appeal The first
impression of a house as seen from the street. |
current value The
value of a home at the time of appraisal. |
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curtain wall An
exterior wall that encloses a yard or other area but does not provide any
structural support to a home. |
custom builder A
builder who constructs a home or building based on plans created by the
owner. |
custom home A
structure designed by an architect hired by the owner. |
cylindrical lockset The familiar type of doorknob mechanism found on most interior (and
some exterior) doors, designed to fit into a large hole bored through the face
of a door's stile.
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