| CANTILEVER
- A projecting beam or overhanging portion supported at one end only.
CAPITAL GAIN -
The taxable profit derived from the sale of a capital asset.
CAPITAL IMPROVEMENT
- Any structure which is erected as a permanent improvement to real
property; any improvement which is made to extend the useful life of a
property, or to add to the value of the property.
CAPITALIZATION
- A mathematical process for converting net income into an indication of
value, commonly used in the income approach to appraisal.
CAP RATE
(CAPITALIZATION RATE) - The percentage selected for use in the
income approach to valuation of improved property. The cap rate is
designed to reflect the recapture of the original investment over the
economic life of the improvement, to give the investor an acceptable rate
of return (yield) on the original investment, and to provide for the
return on borrowed capital.
CERTIFICATE OF
REASONABLE VALUE (CRV) - A certificate issued by the Veterans
Administration setting forth a property's current market value estimate,
based upon a VA approved appraisal.
CERTIFIED CHECK
- A check which the bank guarantees to be good, and against which a stop
payment is ineffective.
CERTIFIED PROPERTY
MANAGER - A professional property manager who has qualified for
membership in and is a member of the Institute of Real Estate Management,
and is designated a CPM.
CHAIN OF TITLE -
The recorded history of matters which affect the title to a specific
parcel of real property, such as ownership, encumbrances and liens,
usually beginning with the original recorded source of the title.
CHATTEL -
Personal property which is tangible and moveable.
CLEAR TITLE -
Title to property that is free from liens, defects or other encumbrances,
except those which the buyer has agreed to accept, such as mortgage to be
assumed, the ground lease of record, and the like; established title;
title without clouds.
CLIENT TRUST ACCOUNT
- An account set up by a broker to keep client's monies segregated
from the broker's general funds.
CLOSING -
The final stage of consummating a real estate transaction when the seller
delivers title to the buyer, in exchange for the purchase price.
CLOSING COSTS
- Expenses of the sale which must be paid in addition to the purchase
price (in the case of the buyer's expenses), or be deducted from the
proceeds of the sale (in the case of the seller's expenses).
CLOSING STATEMENT
- A detailed cash accounting of a real estate transaction prepared by an
escrow officer or other person designated to process the mechanics of the
sale, showing all cash that was received, all charges and credits which
were made, and all cash that was paid out in the transaction; also called
a settlement statement.
CLOUD ON TITLE -
Any document, claim, unreleased lien or encumbrance which many impair or
injure the title to property or make the title doubtful because of its
apparent or possible validity.
CLUSTER DEVELOPMENT
- The grouping of housing units on less than normal size homesites, with
the remaining land being devoted to common areas.
CODE OF ETHICS
- A written system of standards of ethical conduct. The Code of Ethics of
the National Association of Realtors, first written in 1913, establishes
the high standards of conduct for members of the Realtor community.
COLLATERAL
- Something of value given or pledged as security for a debt or
obligation. The collateral for a real estate mortgage loan is the
mortgaged property itself, which has been hypothecated.
COLOR OF TITLE
- A condition which has the appearance of good title, but which in fact is
not valid title, as where title is founded on some written document which
on its face appears valid and effective, but which is actually invalid.
COMMERCIAL PROPERTY
- A classification of real estate which includes income producing property
such as office buildings, gasoline stations, restaurants, shopping
centers, hotels and motels, parking lots and stores, and other similar
uses.
COMMINGLING -
To mingle or mix; for example, to deposit client funds in the broker's
personal or general account. A licensee found guilty of commingling can
have the license suspended or revoked by the Real Estate Commission.
COMMISSION -
The compensation paid to a real estate broker(usually by the seller) for
services rendered in connection with the sale or exchange of real
property.
COMMITMENT
- A pledge or promise to do a certain act, such as the promise of a
lending institution to loan a certain amount of money at a fixed rate of
interest to a qualified buyer, provided the loan is obtained on or before
a certain date.
COMMON AREAS
- Land or improvements designated for the use and benefit of all
residents, property owners and tenants.
COMMON ELEMENTS -
Parts of the property which are necessary or convenient to the existence,
maintenance and safety of the condominium, or are normally in common use
by all of the condominium residents.
COMMON LAW -
That body of law which is based on usage, general acceptance, and custom,
as manifested in decrees and judgments of the courts; judge-made law, as
opposed to codified or statutory law.
COMMON WALL -
A wall separating two living units.
COMMUNITY PROPERTY
- A system of property ownership based on the theory that each spouse has
an equal interest in property acquired by the efforts of either spouse
during marriage.
COMPARABLES
- Recently sold properties which are similar to a particular property
being evaluated, and which are used to indicate a reasonable fair market
value for the subject property.
COMPOUND INTEREST
- Interest which is computed upon the principal sum plus accrued interest.
CONCESSIONS
- Discounts given by landlords to prospective tenants to induce them to
sign a lease.
CONDEMNATION
- Either a judicial or administrative proceeding to exercise the power of
eminent domain, i.e., the power of the government to take private property
for public use.
CONDOMINIUM OWNERSHIP
- An estate in real property consisting of an individual interest in an
apartment or commercial unit, and an undivided common interest in the
common areas such as the land, parking areas, elevators, stairways, and
the like.
CONSIDERATION
- An act or forbearance, or the promise thereof, which is offered by one
party to induce another to enter into a contract; that which is given in
exchange for something from another.
CONSTRUCTIVE EVICTION
- Acts done by a landlord which so materially disturb or impair the
tenant's enjoyment of the leased premises that a tenant is effectively
forced to move out and terminate the lease without liability for any
further rent.
CONSTRUCTIVE NOTICE
- Notice of certain facts which are implied bylaw to a person because he
could have discovered the fact by reasonable diligence or by inquiry into
public records.
CONTINGENCY
- A provision placed in contract which requires the completion of a
certain act or the happening of a particular event before a contract is
binding.
CONTRACT -
A legal agreement between competent parties who agree to perform or
refrain from performing certain acts for a consideration. In real estate,
there are many different types of contracts, including listings, contracts
of sale, options, mortgages, assignments, leases, deeds, escrow
agreements, and loan commitments, among others.
CONVEYANCE
- The transfer of title to real property by means of a written instrument
such as a deed or an assignment of lease.
COOPERATING BROKER
- A broker who joins with another broker in the sale of real property.
COOPERATIVE OWNERSHIP
- Cooperative ownership of an apartment unit means that the apartment
owner has purchased shares in a corporation which holds title to the
entire apartment building.
CO-TENANCY
- A form of concurrent property ownership in which two or more persons own
an undivided interest in the same property.
COUNTER-OFFER -
A new offer made as a reply to an offer received from another; this has
the effect of rejecting the original offer, which cannot thereafter be
accepted unless revived by the offeror's repeating it.
COURTESY TO BROKERS
- The practice of sharing commissions with cooperating brokers.
COVENANT -
A written agreement or promise of two or more parties by which either
pledges to perform or not to perform specified acts on a property, or
which specifies certain uses or non-uses of the property.
COVENANTS AND
CONDITIONS - Covenants are promises contained in contracts, the
breach of which would entitle a person to damages. Conditions, on the
other hand, are contingencies, qualifications or occurrences upon which an
estate or property right would be gained or lost.
COVENANTS RUNNING
WITH THE LAND - Covenants which become part of the property and
benefit or bind successive owners of the property.
CUL DE SAC -
A street which is open at one end only, and which usually has a circular
turnaround; a blind alley.
CUSTOMER TRUST FUND (CTF)
- An impound account maintained for the purpose of setting up a reserve to
pay certain periodic obligations such as real property taxes, insurance
premiums, lease rent, and maintenance fees.
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Hernando
County Real Estate 
