Glossary of Terms
We have compiled a list of the most common real estate terms and definitions to assist you in your search for a home. Whether you are a buyer or seller of real estate it is easy to get confused by the language used in real estate transactions. With our comprehensive real estate glossary you can easily navigate through the complicated world of buying and selling a home.
C
- cancellation clause
- A clause that details the conditions under which each party may terminate the agreement.
- capital gains tax
- A tax placed on profits from the sale of real estate or investments.
- cash out refinance
- A refinance option, where additional funds are paid to the borrower, in addition to the existing equity loan being paid off. The additional funds can be used for different purposes (debt consolidation, home improvements, large purchases, etc.).
- clear title
- A title to property that does not have liens, defects, or other legal encumbrances.
- 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.
- community property
- Property accumulated through the joint efforts of husband and wife. It is a classification of property peculiar to certain states.
- comparative market analysis
- An estimate of the value of a property based on an analysis of sales of properties with similar characteristics.
- condominiums
- Multi-family or other structures in which units are individually owned and in which owners of individual units also own an undivided interest in common areas.
- 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.
- contingency
- A condition specified in a purchase contract, such as a satisfactory home inspection.
- 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.
- conveyance
- The transfer of title of property.
- conveyance tax
- A tax imposed on the transfer of real property.
- counteroffer
- A response to an offer.
- credit
- The money a lender extends to a buyer for a commitment to repay the loan within a certain time frame.
- 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).
