CAPITALIZATION. In appraising, An act or process of determining the value of property by dividing net income by a capitalization rate to come to an estimate of the present worth of expected future incomes, thereby converting them into current capital value.
CAVEAT EMPTOR. "Let the buyer beware." The buyer must examine the goods or properties and buy at his own risk.
CHAIN OF TITLE. A history of conveyance and encumbrances affecting a title from the time the original patent was granted or as far as records are available.
CHATTEL. Personal property; Any item other than real property.
CHATTEL MORTGAGE. A mortgaged personal property.
CLOSED MORTGAGE. A mortgage which can not be paid of until its maturity, unless the creditor consents to earlier payment.
COLLATERAL SECURITY. A separate obligation attached to a contract to guarantee its performance, such as the transfer of property or of oilier contracts or valuables to insure the performance of a principal agreement.
COLLUSSION. An agreement between two or more persons to obtain an object forbidden by law, or to defraud another person of his rights by the forms of law.
COLOR OF TITLE. That which appears to be a good title, but which is not a title in fact.
COMMERCIAL PAPER.Bills of exchange used in commercial trade.
COMMISSION. An agent’s compensation for performing the duties of his agency which, in real estate practice, is a percentage of the selling price of property, percentage of rentals, etc.
COMMUNITYOF CONJUGAL PROPERTY. Property accumulated through the joint efforts of a husband and wife living together.
COMPACTION. Whenever extra soil is added to a lot to fill in low places or to raise the level of the lot, the added soil is often too loose and soft to sustain the weight of buildings. It is necessary to compact the added soil so it can carry the weight of buildings without the danger of their tilting, settling or cracking.
COMPOUND INTEREST. Accrued and unpaid interest on original principal which has accumulated.
CONDEMNATION. The act of taking private property for public use through the government’s exercise of eminent domain, just compensation or fair market value to be paid; The declaration that a structure is unfit for use.
CONDITIONAL SALES CONTRACT. A contract for the sale of property stating that delivery is to be made to the buyer, but the title remains vested in the seller until the condition of the contract has been fulfilled.
CONDOMINIUM. An apartment house where individual apartments arc bought instead of rented and each owner has his own deed and mortgage; A system of individual ownership of units in a multi-family structure combined with joint ownership of common areas of the structure and the land (sometimes referred to as vertical subdivision).
CONSIDERATION. Anything of value given to induce entering into a contract, which may be money, personal services or even love and affection.
CONSTRUCTIVE NOTICE. Notice given by the public records.
CONTRACT. An agreement, either written or oral, to do or not to do certain things, taking into account a consideration.
CONVERSION. A change from one character or use to another.
CONVEYANCE. The transfer of the title of land from one to another, also, the instrument which carries interest in land from one person to another.
COOPERATIVE (APARTMENT). An owner buys shares in the corporation that owns the building, the cost of the stock to be determined by the value of his apartment.
CORPORATION. A group or body of persons established and created by law as an individual or unit with rights and liabilities distinct and apart from those of the persons composing it.
CORPOREAL. Tangible properties, such as land, buildings, cars, tables, etc.
COVENANT.An agreement written into deeds and other instruments between two or more persons who promise to do or not to do a certain act, or who stipulate certain uses of non-uses of the property, or that a given state of things does or docs not exist.
COL DE SAC. A passageway with only one outlet, A blind alley
CURTAIL SCHEDULE. A listing of the amounts by which die principal sum of an obligation is to be reduced by partial payments and of the dates when each payment will become payable.
CURTESY RIGHTS. The rights the husband has in his wife’s estate, provided a child was born to them alive.
