Page 610 - Principals of Real Estate

GLOSSARY 602 California Real Estate Principles
capitalization rate (tasa de capitalización)
(1) The rate of interest which is considered a reasonable
return on the investment, and used in the process of
determining value based upon net income. It may also
be described as the yield rate that is necessary to attract
the money of the average investor to a particular kind of
investment. (2) It is sometimes call the cap rate.
carryback financing
Financing by a seller who takes back a note for part of the
purchase price.
cash flow
The net income generated by a property before depreciation
and other non cash expenses.
caveat emptor (caveat emptor)
“Let the buyer beware”.
CC&Rs
(See covenants, conditions, and restrictions)
certificate of eligibility
Issued by Department of Veterans Affairs; evidence of
individual’s eligibility to obtain VA loan.
certificate of reasonable value (certificado del
valor razonable)
The Federal VA appraisal commitment of property value.
certificate of title (certificado de título)
A written opinion by an attorney that ownership of the
particular parcel of land is as stated in the certificate.
chain of title (cadena de título)
A chronological history of property’s ownership.
change, principle of
Holds that it is the future, not the past, which is of prime
importance in estimating value. Change is largely the result
of cause and effect.
chattel
Personal property.
chattel real
An item of personal property which is connected to real
estate; for example, a lease.
chattels
(1) Personal property. (2) This term is sometimes used in
law to describe any interest in real or personal property other Any electronic mail message whose primary purpose is the
than a freehold.
client (cliente)
The person who employs an agent to perform a service for
a fee.
closed sheathing
Foundation for exterior siding; boards nailed to studding.
closing (cierre)
(1) Process by which all the parties to a real estate transac-
tion conclude the details of a sale or mortgage. The process
includes the signing and transfer of documents and distribu-
tion of funds. (2) Condition in description of real property
by courses and distances at the boundary lines where the
lines meet to include all the tract of land.
closing costs
The miscellaneous expenses buyers and sellers normally
incur in the transfer of ownership of real property over and
above the cost of the property.
closing statement
An accounting of funds made to the buyer and seller
separately. Required by law to be made at the completion
of every real estate transaction.
cloud on title
Any condition that affects the clear title of real property
or minor defect in the chain of title which needs to be
removed.
COALD
The mnemonic for the five duties an agent owes a principle:
Care, Obedience, Accounting, Loyalty, and Disclosure.
Code of Ethics (código de ética)
A set of rules and principles expressing a standard of
accepted conduct for a professional group and governing
the relationship of members to each other and to the
organization.
codicil
A change in a will before the maker’s death.
cold calling
The practice of making unsolicited calls to people you do
not know in order to get new business.
collateral
Something of value given as security for a debt.
color of title
That which appears to be good title but which is not title
in fact.
commercial acre
(1) The area remaining from an acre of newly subdivided land
after deducting the area devoted to streets, sidewalks, alleys,
curbs, etc. (2) Also known as a buildable acre.
commercial e-mail message
commercial advertisement or promotion of a commercial
product or service.
commingling
The illegal practice of depositing client’s funds in a broker’s
personal or general business account.