Homeowner Glossary

• California Consumer Privacy ActCalifornia Consumer Privacy Act is a state level privacy law that establishes rights and obligations related to personal information(...)
• CapCap is a limiting provision used in residential property ownership to establish a maximum allowable level for a specific financial,(...)
• Cape Cod StyleCape Cod Style is a traditional residential architectural form known for its simplicity, symmetry, and practical design. In(...)
• Capital AssetCapital Asset refers to property or property related interests held for long term use or value rather than for immediate consumption.(...)
• Capital ExpenditureCapital Expenditure refers to money spent on a residential property to acquire, improve, or extend the useful life of a long term(...)
• Capital GainsCapital Gains refers to the increase in value realized when a residential property or other capital asset is transferred for more than(...)
• Capital ImprovementCapital Improvement refers to a permanent enhancement made to a residential property that adds value, extends useful life, or adapts(...)
• Capital LossCapital Loss refers to a financial loss that occurs when a residential property or a related capital asset is sold or transferred for(...)
• CapitalizationCapitalization refers to the way costs, assets, or financial value are recorded, structured, or recognized for accounting, financial,(...)
• Capitalization RateThe Capitalization Rate is a financial metric used in real estate investing to estimate the expected rate of return on an(...)
• Capitalized Cap CostCapitalized Cap Cost refers to the total amount being financed in a vehicle lease after all adjustments, additions, and reductions are(...)
• Cash FlowCash Flow describes the movement of money into and out of a residential property over a defined period. In residential property(...)
• Cash out RefinanceA Cash out Refinance is a mortgage transaction that replaces an existing home loan with a new, larger loan and provides the homeowner(...)
• Casualty and Theft LossCasualty and Theft Loss refers to damage to or loss of residential property resulting from sudden, unexpected events or from the(...)
• Catastrophic Weather Event A Catastrophic Weather Event is a severe natural occurrence that causes widespread damage to residential property, land, and housing(...)
• Caveat EmptorCaveat Emptor Meaning In Residential Real Estate Caveat Emptor is a legal principle in real estate that places primary responsibility(...)
• Certificate of Occupancy Certificate of Occupancy is an official authorization issued by a local governing authority confirming that a residential(...)
• Certificate of SaleA Certificate of Sale is a legal document issued after a property is sold at a public sale, most commonly following a foreclosure, tax(...)
• Certificate of Title Certificate of Title is a legal document that affirms who holds ownership rights to a residential property at a specific point(...)
• Certified Passive HouseCertified Passive House is a residential building standard focused on achieving exceptionally low energy use while maintaining(...)
• Cesspool A Cesspool is an underground system used for the disposal of household wastewater in residential properties that are not(...)
• Chain of TitleThe Chain of Title is the historical sequence of recorded ownership transfers that shows how real property has passed from one owner(...)
• Change FrequencyChange Frequency refers to how often a particular element, condition, or requirement related to a residential property is modified(...)
• Change OrderA Change Order is a formal modification to an existing residential construction or improvement agreement that alters the original(...)
• Chapter 11Chapter 11 is a section of federal bankruptcy law that allows businesses and certain organizations to reorganize their financial(...)
• Chapter 12Chapter 12 is a specialized form of bankruptcy designed specifically for family farmers and family fishermen who have regular annual(...)
• Chapter 13Chapter 13 is a form of consumer bankruptcy that allows individuals with regular income to reorganize their debts through a(...)
• Chapter 7Chapter 7 is a form of consumer bankruptcy that allows individuals to eliminate certain debts through a court-supervised liquidation(...)
• Chapter 9Chapter 9 is a section of federal bankruptcy law that applies to municipalities rather than to individual homeowners or private(...)
• Claim Denial Claim Denial occurs when a request for coverage related to damage or loss affecting a residential property is not approved. In real(...)
• Claim Underpayment Claim Underpayment occurs when a residential property damage claim is approved, but the amount provided is less than what the(...)
• ClapboardClapboard is a traditional exterior siding material used on residential buildings, consisting of long, narrow boards installed(...)
• Clear TitleA Clear Title refers to legal ownership of real property that is free from unresolved claims, liens, disputes, or encumbrances that(...)
• ClosingClosing is the final step in a residential property transaction where legal ownership is formally transferred from one party to(...)
• Closing CostsClosing Costs are the fees and expenses that buyers and sellers pay to complete a real estate transaction at the time ownership is(...)
• Closing Disclosure Closing Disclosure Meaning In Residential Real Estate Transactions A Closing Disclosure is a formal document provided to a home(...)
• Closing StatementA Closing Statement is a detailed financial document that summarizes all monetary aspects of a residential property transaction at the(...)
• Cloud on TitleCloud on Title refers to any claim, defect, inconsistency, or unresolved issue that creates uncertainty about the legal ownership of a(...)
• Clouded TitleClouded TitleA Clouded Title describes a situation in which the ownership of real property is unclear or disputed due to defects,(...)
• Co-HousingCo-Housing is a residential living model that blends private dwellings with shared spaces and collective decision making. In(...)
• COAA COA is an organizational entity formed to manage and govern a residential community where individual owners share responsibility for(...)
• COFI MortgageA COFI Mortgage is a type of residential loan in which the interest rate is tied to a specific financial index that reflects the cost(...)
• CollateralCollateral is an asset pledged by a borrower to secure a loan or financial obligation, giving the lender a form of protection if(...)
• Colonial StyleColonial Style refers to a traditional residential architectural approach rooted in early American housing patterns that emphasized(...)
• Combination RoofA Combination Roof is a residential roofing configuration that incorporates more than one roof form within a single structure. Instead(...)
• Combined Loan-to-Value RatioThe Combined Loan-to-Value Ratio is a financial metric used to measure the total amount of debt secured by a property compared to the(...)
• Commercial Real EstateCommercial Real Estate refers to property that is used primarily for business, income producing, or investment purposes rather than(...)
• CommissionCommission is a form of compensation paid for professional services rendered in connection with a residential property transaction. In(...)
• Commitment FeeA Commitment Fee is a charge paid to a lender in exchange for reserving or holding specific financing terms for a residential property(...)
• Common Area AssessmentCommon Area Assessment is a required financial contribution paid by property owners to support the maintenance, operation, and long(...)
• Common AreasCommon Areas are portions of a property that are owned, maintained, or managed collectively and intended for shared use by multiple(...)
• Common-interest DevelopmentA Common-interest Development is a form of real estate ownership in which individual property owners hold title to their private units(...)
• Community ApartmentA Community Apartment is a form of residential property ownership in which multiple dwelling units share common interests while(...)
• Community Development TaxCommunity Development Tax is a tax mechanism used by local or regional governments to fund projects intended to improve residential(...)
• Comp ValueComp Value refers to an estimated property value derived from analyzing the sale prices of similar properties in the same or(...)
• Comparable ValueComparable Value refers to an estimated worth of a property or asset derived by analyzing the prices of similar properties that have(...)
• Comparables (Comps)Comparables (Comps) are recently sold, pending, or actively listed properties that share similar characteristics with a subject(...)
• Comparative Market AnalysisComparative Market Analysis is an evaluation method used to estimate the value of a residential property by comparing it to similar(...)
• CondemnationCondemnation is a legal process through which a government authority determines that a residential property is unfit for use or(...)
• Conditional Commitment A Conditional Commitment is a preliminary agreement issued by a lender or other approving authority that indicates approval is(...)
• CondominiumA Condominium is a form of residential property ownership in which an individual owns a specific dwelling unit while sharing ownership(...)
• Condominium ConversionCondominium Conversion is the process by which a residential property that was previously held or operated under a different ownership(...)
• Condominium StyleCondominium Style refers to a residential design and ownership format in which individual living units exist within a shared building(...)
• Conforming MortgageA Conforming Mortgage is a residential home loan that meets specific criteria established by regulatory and financial oversight(...)
• Consideration Consideration is a fundamental element of a legally binding agreement and refers to something of value that each party gives(...)
• Constitutions and BylawsConstitutions and Bylaws are foundational governing documents that define how an organization is structured, operated, and regulated.(...)
• Construction BudgetA Construction Budget is a detailed financial plan that outlines the expected costs associated with building, renovating, or(...)
• Construction LoanA Construction Loan is a form of financing used to fund the building of a residential property rather than the purchase of an existing(...)
• Construction to Permanent Loan A Construction To Permanent Loan is a residential financing arrangement that combines construction financing and long term(...)
• Consumer BankruptcyConsumer Bankruptcy is a legal process available to individuals who are unable to repay their debts and seek relief through(...)
• Contemporary StyleContemporary Style refers to a residential architectural approach that reflects current design trends, building technologies, and(...)
• Contiguous LotsContiguous Lots are parcels of land that directly touch one another along a shared boundary. In residential property ownership,(...)
• ContractA Contract is a legally binding agreement between two or more parties that establishes rights, duties, and obligations related to a(...)
• Contract for Deed A Contract for Deed is a residential property agreement in which the seller finances the purchase directly for the buyer and(...)
• Contractual LienA Contractual Lien is a legal claim against property that is created by agreement between parties rather than imposed by statute or(...)
• Conventional MortgageA Conventional Mortgage is a home loan that is not insured or guaranteed by a federal government agency. Instead, it is offered by(...)
• Conventional StyleConventional Style refers to a widely recognized approach to residential architecture that follows familiar design patterns,(...)
• Conversion Clause A Conversion Clause is a contractual provision that allows a change in the structure, status, or form of a residential(...)
• Convertible MortgageA Convertible Mortgage is a residential loan that allows the borrower to change specific loan terms under conditions defined in the(...)
• Conveyance TaxConveyance Tax is a tax imposed by a state or local government on the transfer of ownership of residential real estate. It is assessed(...)
• CooktopA Cooktop is a built-in kitchen appliance that provides a dedicated surface for cooking using burners or heating elements, separate(...)
• CooperativeA Cooperative is a form of residential property ownership in which individuals own shares in a legal entity that holds title to the(...)
• Cooperative MortgageA Cooperative Mortgage is a type of residential financing used to purchase an ownership interest in a housing cooperative rather than(...)
• Corrective WorkCorrective Work refers to actions taken to repair, fix, or remedy defects, deficiencies, or failures within a residential property. In(...)
• Cost BasisCost Basis is a foundational concept in residential property ownership because it represents the original financial value used to(...)
• Cost-Plus ContractA Cost-Plus Contract is a construction and renovation agreement in which a property owner agrees to pay the actual costs incurred for(...)
• CounterofferA Counteroffer is a response to an initial offer in which one party rejects the original terms and proposes new or modified conditions(...)
• County Property ReportA County Property Report is an official record compiled and maintained by a county government that documents key details about a(...)
• Court Order DeedA Court Order Deed is a legal instrument used to transfer ownership of real property pursuant to a directive issued by a court of law.(...)
• CovenantA Covenant is a formal promise, agreement, or restriction that imposes specific obligations or limitations on the use of property or(...)
• Covenant Lite Loan A Covenant Lite Loan is a type of loan agreement that includes fewer restrictive conditions placed on the borrower compared to(...)
• Covenants, Conditions and RestrictionsCovenants, Conditions and Restrictions refer to a set of legally binding rules attached to a residential property that govern how the(...)
• Covered ExpensesCovered Expenses are costs that an insurance policy or protection plan agrees to pay under defined conditions related to residential(...)
• Crawl Space A Crawl Space is a shallow area located beneath a residential structure that separates the ground from the living space above.(...)
• Creative Financing Creative Financing refers to nontraditional methods used to structure the purchase, sale, or transfer of residential property(...)
• CreditCredit is a financial concept that represents the ability to obtain goods, services, or money with the promise of repayment at a later(...)
• Credit AgreementA Credit Agreement is a formal written contract that defines the terms under which one party extends credit to another. In residential(...)
• Credit BureauA Credit Bureau is an organization that collects, maintains, and distributes information related to an individual’s credit behavior.(...)
• Credit HistoryCredit History is a record of an individual’s past borrowing and repayment behavior, documenting how financial obligations have been(...)
• Credit InsuranceCredit Insurance is a type of insurance coverage designed to protect lenders or borrowers against losses that may occur if a borrower(...)
• Credit LineA Credit Line is a flexible borrowing arrangement that allows an individual or business to access funds up to a predetermined limit,(...)
• Credit Monitoring Service A Credit Monitoring Service is a tool that tracks changes to an individual’s credit related records and alerts them to new(...)
• Credit RatingA Credit Rating is an assessment of creditworthiness that indicates the level of risk associated with lending to an individual,(...)
• Credit ScoreA Credit Score is a numerical measure used to represent an individual’s creditworthiness based on information contained in their(...)
• Credit Scoring SystemA Credit Scoring System is a methodology used to evaluate an individual’s credit risk by analyzing data from their credit history and(...)
• Credit UtilizationCredit Utilization is a financial measure that reflects how much available revolving credit is being used at a given time. In the(...)
• Curved Roof A Curved Roof is an architectural roof form characterized by a continuous arc rather than flat planes or sharp angles. In(...)
• Custom BuilderA Custom Builder is a professional who constructs homes based on individual client specifications rather than using standardized or(...)
• Custom HomeA Custom Home is a residential property that is designed and built specifically for an individual homeowner based on personalized(...)
• CyberspaceCyberspace is a conceptual environment formed by interconnected digital networks where electronic communication, data exchange, and(...)