"B" and "C" Real Estate Terms
Balloon Mortgage: A short-term mortgage, generally at a fixed rate of interest, to be paid back in predetermined, equal monthly payments with a large final payment for the balance of the loan to be paid at the end of the term.
Broker: A person licensed to represent home buyers or sellers for a contracted fee. Brokers manage real estate offices and employ licensed agents to sell properties.
Bridge Loan: A short-term mortgage made until a longer-term loan can be made; it's sometimes used when a person needs money to build or purchase a home before the present one has been sold.
Building Codes: State and local laws that regulate the construction of new preoperty and the rehabilitation of existing property.
Cap: A limit on the total amount an interest rate can be increased in a specified time and over the lifetime of an adjustable-rate mortgage.
Capital Gains: The taxable profit derived from the sale of a capital asset. A gain is the difference between the sale price and the basis of the property, after making appropriate adjustments for closing costs, fix-up expenses, capital improvements, allowable depreciation, etc.
Closing: The final settlement at which time the title is transferred from seller to buyer, accounts are settled, new mortgages are signed, and all fees and expenses are dispersed or satisfied.
Closing Costs: All fees, taxes, charges, commissions, surveys, lender fees, inspection fees, and other costs paid by the buyer and/or seller at the closing.
Commission: A previously agreed upon percentage of the home's sale price paid to the listing and selling agents(s).
Comparables: Similar properties in type, size, price, and amenities that have sold recently, been adjusted, and are used for comparison in the appraisal report.
Condominium (condo): Real estate ownership in which a property owner has title to a specific unit but shared interest in common areas.
Contingency: A condition that must be satisfied before a contract is binding.
Contract: An agreement to do or not to do a certain thing.
Contract for Deed: A contract ordinarily used in connection with the sale of a property in cases where the seller does not wish to convey title until all or a certain part of the purchase price is paid by the buyer.
Contract of Title: A summary or digest of the conveyances, transfers, and any other facts relied on as evidence of title together with any other elements or records that may affect the marketability of the title.
Conventional Mortgage: Most popular home financing form not insured by Federal Housing Administrations (FHA) or guaranteed by Veteran's Affairs (VA). Available from many lenders at varying rates, terms, and conditions.
Conversion Clause: Clause in an ARM permitting conversion from an adjustable loan to a fixed-rate loan.
Counteroffer: An offer made by a buyer or seller to the other party, responding to the asking price or a subsequent adjustment to that price to complete a purchase of sale.
CRV: Certificate of Reasonable Value. A document of appraisal issued by VA establishing their opinion of the maximum value.
Curb Appeal: A term used by REALTORS that encompasses all that a buyer sees from the street that may induce the buyer to look more closely at the property.