A limit on how much an adjustable mortgage rate can vary (in an ARM or AML), either monthly, at each adjustment interval, or over the span of the entire mortgage.
Standard costs incurred when owning a property, such as taxes, insurance, interest, utilities, maintenance, etc.
The acronym for Covenants, Conditions and Restrictions. A recorded document that controls the use, requirements and restrictions of a property, commonly created when a subdivision is built.
Certificate of Title
A document issued by an attorney or title company certifying the status of title to real property and the absence or presence of title defects, liens and adverse claimants.
Certified of Reasonable Value (CRV)
In a VA-guaranteed mortgage, this is a document establishing the maximum value and loan amount.
Certified Residential Broker (CRB)
For certification, a Broker is required to have worked as a licensed broker for five years, be a member of the National Association of REALTORS®, and complete five required Residential Division courses.
Chain of Title
The history of all owners and lienholders of real property along with the dates of their acquisition and the nature of their title, going back to the first deed out of the government.
To make a demand for money, property or for enforcement of a right provided by law.
The final step in the transaction process, where title exchanges hands, money is disbursed and all documents are signed. In some states, a real estate transaction is not considered “closed” until the documents record at the local recorder’s office. Also known as a settlement.
The fees that are part of closing at a title company, such as legal fees, recording fees, title policy, mortgage company charges, etc., incurred by either the buyer or seller as is set forth in the contract of sale.
A 5-page disclosure document designed to help consumers understand all of the costs associated with taking out a mortgage and purchasing a home. The Closing Disclosure must be provided to consumers three business days before they close on the loan.
An all-inclusive summary itemizing debits and credits to each party, seller and buyer, and presented in the form of a balance sheet.
Cloud on Title
Any claim or encumbrance that may impair the title to a property, making its validity questionable, and that might prevent the title from being cleared to transfer.
C.L.U.E. (Comprehensive Loss Underwriting Exchange)
Is a claims-history database generated by the national insurance industry’s that enables insurance companies to access consumer claims information (personal property and personal auto) when they are underwriting or rating an insurance policy.
The compensation real estate brokers, mortgage brokers and real estate professionals are paid upon the final sale for their services.
The percentage by which a real estate agent and the real estate sales brokerage divide the commission amount.
Comparative Market Analysis
The study of active, pending and sold comparable properties to estimate a listing price for a property that is done by a real estate agent or broker.
Competitive Market Analysis
The analysis of market information that is provided to the seller and assists the real estate agent in securing the listing.
A term related to restrictions and reservations, a term alluding to provisions in deeds and real estate documents that are hinged to a future event.
Real estate ownership that provides title to a specific unit within a larger structure encompassing various units, and that also provides the owner with a proportionate interest in certain common areas.
All the owners associated with a particular condominium.
A financial report of expenses and savings incurred by the condominium and the financial prediction of the future.
Rules set forth by an association that governs the administration of the property.
A document that establishes a condominium legally.
Condominium Right of First Refusal
The first opportunity to purchase or meet an offer in condominium real estate that is granted to a person or association.
Condominium Rules and Regulation
Agreed-upon rules for the condominium that owners abide by.
Consumer Financial Protection Bureau (CFPB)
The CFPB is an independent agency of the United States government authorized and created by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Dodd-Frank Act was passed in 2010 in response to the financial crisis of the 2000s that led to the Great Recession.The new agency was given jurisdiction over all of the consumer protection statutes that had been heretofore scattered among several government agencies, including RESPA and TILA.
A condition that must be met before a contract is legally binding.
Continue to Show
When a seller does not stop showing prospective buyers a property although it’s under contract for the period in which there are outstanding contingencies waiting to be met.
A legal agreement between two or more parties that is written and enforceable by law.
Contract for Deed
Also referred to as an installment sale contract, it is a contract for which the buyer takes possession of the property but the seller holds the title until the loan has been paid.
Contract of Sale
A legally binding agreement between two parties concerning the terms of purchase or transfer of real property.
A term commonly applied to a fixed-term or fixed-rate loan, it refers to a mortgage loan that is not guaranteed by the VA or FHA.
A type of mortgage in which the underlying terms and conditions meet the funding criteria for Fannie Mae and Freddie Mac. About 35-50% of mortgages, depending on market conditions and consumer trends, are conventional mortgages. They may be fixed-rate or adjustable-rate mortgages.
A clause in a mortgage loan that allows the borrower to convert from an adjustable-rate mortgage to a fixed-rate mortgage.
A commission offered by the selling broker to the buyer’s broker for bringing them a buyer.
A form of property ownership whereby the occupants of the building are shareholders of the cooperation and entitled to a specific unit, as opposed to owning the unit itself.
When relocating employees, this is the company that handles employee relocation with whom the third-party company has an agreement.
The response the seller makes to the potential buyer’s initial offer.
A formal agreement between two parties in which one party makes promises and assurances to the other.
A report that includes a borrower’s financial history, including all credit cards, outstanding balances, and payments on past or current debts.
Credit Report Fee
The price charged by the lender to verify the information on the Credit Report, usually paid at the time of the loan application by the potential buyer.
A score based on the information provided in the credit report.
The appearance of property when viewed from the street.