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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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