Capitalization - The act of converting future income into current equivalent value.

Capitalization Rate - The relationship or ratio between the net income from a real estate investment and the value of the investment, usually expressed as a percentage; the rate of interest which is considered a reasonable return on the investment, plus the recapture rate which computes a return of the investment.

Caveat Emptor - Let the buyer beware; the buyer must examine the goods or property and buy at his own risk.

CC&R’s - Covenants, conditions and restrictions.

Certificate Of No Defense - An instrument executed by the mortgagor and attesting to its validity: estopped certificate.

Chain Of Title - A sequential history of the conveyances, encumbrances, and records of ownership to a piece of property through the years from the original grant to present; the succession of owners as revealed through the public records.

Chattel - Personal property which is tangible and movable; personally.

Chattel Mortgage -. A personal property mortgage.

Cite - To quote as authority or an example: to call to attention or enumerate.

Closing - The time when a transaction is consummated, or the actual signing over of the documents and delivery of the deed; the time after signing when the documents are recorded.

Closing Statement - A statement of settlement made by a broker or an escrow company that reflects the financial position of the buyer or seller in that particular real estate transaction.

Cloud On Title -Any conditions revealed by a title search which may affect or impair the owner’s title to property because of their apparent or probable validity.

Codicil - A supplement or addition to a will which adds to, subtracts from, alters, revokes, or qualifies the provisions of a will.

Collateralized Loan - A loan secured by property; unlike a debenture.

Color Of Title - That which appears to be good title hut which is not in fact good title, such as title held under a defective deed.

Commingling - Mixing money belonging to clients with personal funds.

Commission - An agent’s compensation for performance of the duties of his agency; in real estate practice, a percentage of the selling price of the property, or percentage of rentals, etc.

Commitment - A pledge or a promise; an agreement.

Common Element - In a condominium, land and all parts of a building normally used by all of the owners for their mutual convenience or safety.

Common Expense - In a condominium, the expenses of operation; all sums designated as such by the declaration or by-laws.

Common Interest - The percentage of undivided interest in the common elements of a building appertaining to each apartment in a condominium.

Common Law - Laws which have evolved from general usage and legally established through court decision.

Common Profit - The balance of all income, rent, profits and revenues from the common elements remaining after the deduction of the common expenses in a condominium.

Community Property - Property accumulated and owned in Common through joint efforts of husband and wife during their marriage. Hawaii is not a community property state.

Compound Interest Interest paid both on the original principal and on interest accrued from the lime it fell due.

Condemnation - The process by which property of a private owner is taken for public use, with just compensation to the owner, under the right of eminent domain.

Condemnee One whose property is condemned.

ConditionalFee - A fee estate based upon a condition.

Condominium Ownership - The individual outright ownership of a single unit in a multi-unit property together with an interest in the common elements of that property.

Consideration - Valuable consideration, a promise or an act of legal value bargained for and received in return for a promise; good consideration, love and affection.

Constructive Eviction - Breach of the covenant warranting quiet enjoyment in a lease; when a landlord performs an act depriving the tenant of quiet enjoyment of the premises thereby causing the tenant to move.

Constructive Notice - Notice given by the public records: legal presumption of notice given by the public records. Also called legal notice.

Consummate - To bring to completion, perfection, or fulfillment.

Contiguous - In close proximity; adjoining.

Contingent - Dependent upon an uncertain future event.

Continuation - An update of a title search, covering the period from the preliminary title report to the time of the recording of the documents.

Contract - A legal agreement between competent parties for a consideration to perform or refrain from performing certain acts,

Conventional Mortgage - A mortgage which is not Fl-IA insured, or VA guaranteed.

Conversion - Transforming an apartment building into a condo.

Conveyance - The transfer of the title of land from one to another; an instrument which carries from one person to another an interest in land.

Conveyance Tax - Tax paid by seller upon transfer of deed, based upon $.10 per $100.00 valuation.

Cooperating Broker - A broker who joins with another broker in the sale of real property; usually, one who represents the buyer of property listed with another broker: the selling broker.

CooperativeOwnership - Ownership that usually takes the form of shares of stock in a corporation owning the entire building and a proprietary lease giving the stockholder/tenant the right to occupy a unit for which he pays a proportionate share of the maintenance and operating expenses.

Corporation - A vehicle used to carry on business with its owners having liability only to the extent of their stock ownership; considered to be an individual or separate entity.

Corporeal - Pertaining to a right or rights of a visible and tangible nature.

CorrectionDeed – A deed used to correct a prior erroneous deed; a deed of confirmation; a reformation deed.

CourtesyToBroker - The practice of sharing commissions with cooperating brokers; also, where a selling owner states he will give a commission to the buyer’s broker.

Covenant - An agreement written into deeds and other instruments which promises or guarantees that something shall or shall not he done; an agreement stipulating certain uses or non uses of property.

Credit In closing statements, the acknowledgement of payment: the opposite of a charge or debit.

CRV - Certificate of Reasonable Value (VA).

Cul-De-Sac - A passage way or Street with only one outlet: a blind alley: a turn-around.

Curtesy - The right which a husband may have in his wife’s estate at her death.