C words

Question 1

CapitalGain

Answer 1

Atresaleofacapitalitem,theamountbywhichthenetsaleproceedsexceedthe adjustedcostbasis(bookvalue).Usedforincometaxcomputations.Gainsarecalledshortorlongterm baseduponlengthofholdingperiodafteracquisition.Usuallytaxedatlowerratesthanordinary income.

Question 2

CapitalImprovement

Answer 2

Anitemthataddsvaluetoaproperty,adaptsthepropertytonewusers,or prolongsthelifeoftheproperty.Maintenanceisnotacapitalimprovement.

Question 3

CapitalizationRate

Answer 3

Therateofinterestwhichisconsideredareasonablereturnontheinvestment, andusedintheprocessofdeterminingvaluebaseduponnetincome. CapitalizationRate=NOI/PurchasePrice

Question 4

CertificateofOccupancy

Answer 4

Adocumentissuedbyalocalgovernmentagencyaftersatisfactory inspectionofastructureauthorizingthatthestructurecanbeoccupied.

Question 5

ChainofTitle

Answer 5

Ahistoryofconveyancesandencumbrancesaffectingthetitlefromthetimetheoriginal patentwasgranted,orasfarbackasrecordsareavailable,usedtodeterminehowtitlecametobe vestedincurrentowner.

Question 6

ChronologicalAge

Answer 6

Theactualageofabuilding.

Question 7

CivilLaw

Answer 7

Thesystemoflawconcernedwithprivaterelationsbetweenmembersofacommunity ratherthancriminal,military,orreligiousaffairs.

Question 8

Client

Answer 8

Priortosigningalistingagreement,apartyinarealestatetransactionwhowillemployan agent.

Question 9

Closing

Answer 9

Processbywhichallthepartiestoarealestatetransactionconcludethedetailsofasaleor mortgage.Theprocessincludesthesigningandtransferofdocumentsanddistributionoffunds.

Question 10

ClosingCosts

Answer 10

Expensesincurredinthepurchaseandsaleofrealpropertypaidatthetimeof settlementorclosing.

Question 11

ClosingStatement

Answer 11

Anaccountingofthefundsreceivedanddisbursedinarealestatetransaction.

Question 12

CloudedTitle

Answer 12

Titlethatisencumberedorburdenedwithdefects.

Question 13

Commingling

Answer 13

Tomingleormix,forexample,aclient’sfundsinthebroker’spersonalorgeneral account.

Question 14

Commission

Answer 14

Anagent’scompensationforperformingthedutiesoftheagency;inrealestatepractice, apercentageofthesellingpriceofproperty,percentageofrentals,etc.Afeeforservices.

Question 15

CommonInterestSubdivision

Answer 15

Subdividedlandswhichincludeaseparateinterestinrealproperty combinedwithaninterestincommonwithotherowners.Theinterestincommonmaybethrough membershipinanassociation.Examplesarecondominiumsandstockcooperatives.

Question 16

CommunityProperty

Answer 16

Propertyacquiredbyhusbandand/orwifeduringamarriagewhennotacquired astheseparatepropertyofeitherspouse.Eachspousehasequalrightsofmanagement,alienationand testamentarydispositionofcommunityproperty.

Question 17

ComparativeMarketAnalysis

Answer 17

Ananalysisofthecompetitioninthemarketplacethatapropertywill faceuponsaleattempts.

Question 18

Condemnation

Answer 18

Takingprivatepropertyforpublicuse,withfaircompensationtotheowner;exercising therightofeminentdomain.

Question 19

Condominium

Answer 19

Fiveormoreunitswhereintheownerhasafeesimpleinterestintheairspace,orfour wallsinwhichtheyliveoroccupy,pluscommonareaswhichareownedasatenancyincommon.

Question 20

ConformingLoan

Answer 20

ThoseloansprocessedonuniformloanformsaccordingtoFNMA/FHLMCguidelines.

Question 21

Consideration

Answer 21

Anythinggivenorpromisedbyapartytoinduceanothertoenterintoacontract,ex: personalservicesorevenloveandaffection.Itmaybeabenefitconferredupononepartyora detrimentsufferedbytheother.

Question 22

ConstructiveEviction

Answer 22

Anydisturbanceofthetenant’spossessionoftheleasedpremisesbythe
landlordwherebythepremisesarerenderedunfitorunsuitableforthepurposeforwhichtheywere leased.

Question 23

ConstructiveFraud

Answer 23

Asituationwhereapersonorentitygainedanunfairadvantageoveranotherby deceitfulorunfairmethods.

Question 24

ConstructiveNotice

Answer 24

Afact,imputedtoapersonbylaw,whichshouldhavebeendiscoveredbecause oftheperson’sactualnoticeofcircumstancesandtheinquirythataprudentpersonwouldhavebeen expectedtomake.

Question 25

Contiguous

Answer 25

 Lots that touch at any point (even corners). 

Question 26

Contract

Answer 26

An agreement to do or not to do a certain thing.  It must have four essential elements:  parties capable of contracting, consent of the parties, a lawful object, and consideration.  A contract for  sale of real property must also be in writing and signed by the party or parties to be charged with  performance.

Question 27

Conventional Loan

Answer 27

A mortgage securing a loan made by investors without governmental underwriting,  i.e., which is not FHA insured or VA guaranteed.  This type of loan is customarily made by a bank or  savings and loan association. 

Question 28

Conversion

Answer 28

The unlawful appropriation of another’s property or funds. 

Question 29

Conveyance

Answer 29

 An instrument in writing used to transfer (convey) title to property from one person to  another, such as a deed or a trust deed. 

Question 30

Cooperating Broker

Answer 30

A broker who participates in facilitating a real estate transaction along with the  broker who listed the property. 

Question 31

Cooperative

Answer 31

 An apartment building, owned by a corporation and in which tenancy in an apartment  unit is obtained by purchase of shares of the stock of the corporation and where the owner of such  shares is entitled to occupy a specific apartment in the building.  In California, this type of ownership is  called a “stock cooperative”. 

Question 32

Corporation

Answer 32

An entity established and treated by law as an individual or unit with rights and liabilities,  or both, distinct and apart from those of the persons composing it.  A corporation is a creature of law  having certain powers and duties of a natural person.  Being created by law it may continue for any  length of time the law prescribes. 

Question 33

Cost Approach

Answer 33

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. 

Question 34

Covenants

Answer 34

Agreements written into deeds and other instruments promising performance or  nonperformance of certain acts, or stipulating certain uses or non‐uses of the property. 

Question 35

Covenants, Conditions, and Restrictions (CC&Rs)

Answer 35

The basic rules establishing the rights and  obligations of owners of real property within a subdivision or other tract of land in relation to other  owners within the same subdivision or tract and in relation to an association of owners organized for the  purpose of operating and maintaining property commonly owned by the individual owners. 

Question 36

Crawl Space

Answer 36

An area of limited height under a floor or roof, giving access to wiring and plumbing. 

Question 37

Credit

Answer 37

 In a closing statement, money to be received or credit given for money or an obligation given. 

Question 38

Creditor

Answer 38

A person who regularly extends consumer credit that is subject to a finance charge, or is  payable by a written  agreement in more than four installments, not including the down payment,  and  to whom the obligation is initially payable, either on the face value of the note or contract, or by  agreement where there is no note or contract. 

Question 39

Criminal Law

Answer 39

A body of rules and statutes that defines conduct prohibited by the government because  it threatens and harms public safety and welfare and that establishes punishment to be imposed for the  commission of such acts.