A

A la carte real estate services
Professional real estate services that are rendered one transaction at a time instead of the conventional full-service, commission-based brokerage relationship.

A frame design
An interior style that features a steeply peaked roofline and a ceiling that is open to the top rafters.

Abstract of judgment
The summary of a court judgment that creates a lien against a property when filed with the county recorder.

Abstract or title search
The process of reviewing all recorded transactions in the public record to determine whether any title defects exist that could interfere with the clear transfer of ownership of the property.

Accelerated cost recovery system
A tax calculation that provides greater depreciation in the early years of ownership of real estate or personal property.

Accelerated depreciation
A bookkeeping method that depreciates property faster in the early years of ownership.

Acceleration clause
A provision that gives a lender the right to collect the balance of a loan if a borrower misses a payment.

Acceptance
The seller's written approval of a buyer's offer.

Access
Any means by which a person can enter property.

Accessibility
The degree to which a building or site allows access to people with disabilities.

Accretion
The gradual addition to the shore or bank of a waterway by deposits of sand or silt.

Acknowledgment
A written declaration affirming that a person acted voluntarily.

Acre
A measurement of land equal to 43,560 square feet.

Acre-foot
The volume of material needed to cover an acre of land one foot deep.

Active solar system
A system that utilizes electric pumps or fans to transfer solar energy for storage or direct use.

Actual age
The number of years a structure has been standing.

Ad valorem tax
Tax based on assessed property value

Add-on interest
The interest a borrower pays on the principal for the duration of the loan.

Addendum
An addition or change to a contract.

Additional principal payment
Extra money included in the monthly payment to help reduce the principal and shorten the term of the loan.

Adjustable rate mortgage (ARM)
A loan with an interest rate that is periodically adjusted to reflect changes in a specified financial index.

Adjusted cost basis
The cost of any improvements the seller makes to the property. Deducting the cost from the original sales price provides the profit or loss of a home when it is sold.

Adjustment period
The amount of time between interest rate adjustments in an adjustable-rate mortgage.

Administrator
A person given authority to manage and distribute the estate of someone who died without leaving a will.

Administrator's deed
A legal document that an administrator of an estate uses to transfer property.

Adverse possession
The acquisition of title to property through possession without the owner's consent for a certain period of time.

Adverse use
The access and use of property without the owner's consent.

Aeolian soil
Soil that is composed of materials deposited by the wind.

Affiant
A person who makes a sworn statement.

Affirmation
A substitution for an oath granted to people based on religious reasons.

Agency
The relationship of trust that exists between sellers and buyers and their agents. The agency is formed through a written contract.

Agency closing
The process by which a lender uses a title company or other firm as an agent to complete a loan.

Agency disclosure
Laws in most states require agents who act for buyers or sellers to disclose who represents whom in a real estate transaction. Laws vary widely by state.

Agreed boundary
A compromise boundary to which property owners agree in order to resolve a dispute.

Agreement of sale
A document the buyer initiates and the seller approves that details the price and terms of the transaction.

Air handler
Short for air-handling unit, the blower equipment in a furnace, heat pump, or similar appliance designed for circulating heated or cooled air through a central heating system.

Air lot
A designated airspace over a piece of property.

Air-handling unit
The blower equipment in a furnace, heat pump, or similar appliance designed for circulating heated or cooled air through a central heating system.

Alcove
A recessed section of a room, such as a breakfast nook.

Alienation clause
A provision that requires the borrower to pay the balance of the loan in a lump sum after the property is sold or transferred.

Alkali
Mineral salt found in soil

Alkaline soil
Soil that contains a higher concentration of mineral salt than natural acid.

Alley
A lane behind a row of buildings or between two rows of buildings.

Allowance
A budget offered by builders of new homes for the purchase of carpeting and fixtures.

Alternative mortgage
Any home loan that does not conform to a standard fixed-rate mortgage.

Aluminum siding
A metal covering that provides an alternative to paint for owners of wood homes.

Aluminum-clad windows
Wooden windows with aluminum covering the exterior.

Amenities
Parks, swimming pools, health-club facilities, party rooms, bike paths, community centers, and other enticements offered by builders of planned developments.

American Society of Home Inspectors (ASHI)
Professional association of independent home inspectors whose members must meet the group's education and performance requirements. Call (800) 743-2744 for list of ASHI-certified inspectors in your area.

Americans with Disabilities Act (ADA)
A law passed in 1990 that outlaws discrimination against a person with a disability in housing, public accommodations, employment, government services, transportation and telecommunications.

Amortization
The process of paying the principal and interest on a loan through regularly scheduled installments. Initially, most of each payment is applied toward interest owed, and later in the loan term increasingly applied toward principal.

Amortization tables
Mathematical tables that lenders use to calculate a borrower's monthly payment.

Amperage
The strength of an electrical current.

Ampere
The basic unit used to measure electric current.

Anchor bolt
A large steel bolt anchored in concrete and attached to a building to prevent the structure from moving.

Annual
Any kind of plant that must be planted every year.

Annual assessments
The process of placing a value on property for the strict purpose of taxation. May also refer to a levy against property for a special purpose, such as a street lighting or sewer assessment.

Annual mortgagor statement
A yearly statement to borrowers that details the remaining principal and amounts paid for taxes and interest.

Annual percentage rate (APR)
A measure of interest rate that expresses the cost of a mortgage as a yearly rate on the loan balance. The APR assumes the loan is held for its full term. For adjustable-rate loans, the APR assumes the loan's index doesn't change from its initial value.

Annuity
The payment of a fixed sum to an investor at regular intervals.

Anticipatory breach
A communication that informs a party that the obligations of the original contract will not be fulfilled.

Antioxidant compound
A substance applied to aluminum wiring connections to seal and promote conduction.

Appellant
A taxpayer or representative who appeals to a higher tribunal.

Application
A document that details a potential borrower's income, debt, and other obligations to determine credit worthiness.

Application fee
Includes any fees that are paid upon application. An application fee may include charges for property appraisal and a credit report, if those fees are not reported separately.

Appraisal
An opinion of the value of a property at a given point in time.

Appraisal fee
The fee that a professional real estate appraiser charges to appraise, or estimate the market value of, a property.

Appraisal report
A detailed written report on the value of a property based on recent sales of comparable sites in the area.

Appraised value
An opinion of the current market value of a property.

Appreciation
An increase in the value of a home or other property.

Approval
A thorough assessment made by a lender of a borrower's ability to pay for a home, and a confirmation of the amount the borrower may obtain.

APR (annual percentage rate)
A measure of interest that expresses the cost of a mortgage as a yearly rate on the loan balance. The APR assumes the loan is held for its full term. For adjustable-rate loans, the APR assumes the loan's index doesn't change from its initial value.

Apron
A paved area, such as the junction of a driveway with the street.

Aquastat
A thermostat submerged in water and used to control the operation of a device.

Arbitration
A method of resolving a dispute in which a third party renders a decision.

Arbor
An area shaded by trees, shrubs, or vines on a latticework structure.

Arc
A spark between two electrical points

Arpent
A French measurement of land equal to .84625 acres.

Array
A term used by tax assessors to describe a list of properties in a certain category sold within a given period of time.

As-is condition
The purchase or sale of a property in its existing condition.

Asbestos
A fire-resistant mineral used for insulation and home products that has been found to pose a health hazard.

ASHI (American Society of Home Inspectors)
A professional association of independent home inspectors whose members must meet the group's education and performance requirements. Call (800) 743-2744 for list of ASHI-certified inspectors in your area.

Asking price
A seller's initial price for a property

Assemblage
The combining of two or more adjoining lots into one larger tract to increase total value.

Assessed value
A tax assessor's determination of the value of a home in order to calculate a tax base.

Assessment
The estimated value of a piece of real estate or a levy placed on property in addition to taxes.

Assessment rolls
A list of taxable property compiled by the assessor.

Assessor
An official who determines the assessed value of a property.

Assets
Items of value which include cash, real estate, securities, and investments.

Assignment
The transfer of rights to pay a debt from one party to another, with the original party remaining liable for the debt if the second party defaults.

Assignor
A person who transfers rights and interests of a property.

Assumable mortgage
A mortgage that can be transferred to another borrower.

Assumption clause
A provision that allows a buyer to take responsibility for the mortgage from a seller.

Assumption fee
A fee the lender charges to process new records for a buyer who assumes an existing loan.

Automatic extension
A clause in a listing contract stating that the agreement will automatically continue for a certain period of time after the expiration date. This is discouraged and prohibited in many states.

Automatic flue damper
A device in the flue of a heating unit that closes to prevent heat loss when the unit is not in operation.

Average price
The price of a home determined by totaling the sales prices of all houses sold in an area and dividing that number by the number of homes.

Avigation easement
An easement over private property near an airport that limits the height of structures and trees.

Awning windows
Single-sash windows that tilt outward and up.

Back title letter
A letter that a title insurance company gives to an attorney who then examines the title for insurance purposes.

Back-end ratio
A lender calculation that compares a borrower's total debt (principal, interest, property taxes, and insurance, plus other monthly debt payments) to gross monthly income.

Back-to-back escrow
Arrangements that an owner makes to oversee the sale of one property and the purchase of another at the same time.

Backerboard
A rigid board used beneath tile.

Backfill
Soil used to solidify the foundation of a structure

Backsplash
The area behind and above a countertop, typically covered to prevent water from splashing onto the wallboard.

Backup offer
A secondary bid for a property that the seller will accept if the first offer fails.

Backwater valve
A valve in a sewer line that prevents sewage from flowing back into a house.

Baffle
A device used as a heat shield to deflect the byproducts of combustion.

Balance sheet
A statement that shows the assets, liabilities, and net worth of an individual.

Ball cock
One type of inlet valve assembly inside a toilet tank that, when opened automatically, fills the tank with water.

Ballcock assembly
The toilet tank mechanism that controls flushing.

Balloon loan
A mortgage in which monthly installments are not large enough to repay the loan by the end of the term. As a result, the final payment due is the lump sum of the remaining principal.

Balloon payment
The final lump-sum payment due at the end of a balloon mortgage.

Balloon-frame construction
A type of framing used in two-story homes in which studs extend from the ground to the ceiling of the second floor.

Baluster
Intermediate vertical support for a stair railing, often made from turned hardwood.

Balustrade
Railing held up by a set of posts on a porch or stairway.

Bankruptcy
A proceeding in which an insolvent debtor can obtain relief from payment of certain obligations. Bankruptcies remain on a credit record for seven to 10 years and can severely limit a person's ability to borrow.

Bargain sale
The sale of a piece of property for less than market value.

Base loan amount
The amount upon which loan payments are based. If the borrower finances his or her closing costs, those costs will be added to the base loan amount.

Baseboard
Any board or molding found at the bottom of an interior wall.

Baseboard electric heat
Heating units installed in the floor that can be controlled by a central thermostat.

Basement
The area of a home below ground level.

Basis point
A basis point is one one-hundredth of one percentage point. For example, the difference between a loan at 8.25 percent and a mortgage at 8.37 percent is 12 basis points.

Batten
A narrow piece of material used on the outside of a house to cover joints in walls.

Bay
The opening between two columns or walls that forms a space.

Bay window
A window that projects outward in a curve.

Bearing wall
A wall that supports its own weight in addition to other parts of a structure.

Before-tax income
Total income before taxes are deducted

Beneficiary
The lender who makes a loan, also called a mortgagee. The person borrowing money is the mortgagor.

Bequest
Personal property given to a person through a will.

Berm
A built-up lip of concrete designed to prevent runoff water from entering the garage or driveway.

Betterment
An improvement that increases a property's value as opposed to repairs that maintain the value.

Betterment
An improvement that increases the property's value.

Bi-level
A home that has two levels. Typically, a garage or storage area is situated in the lower level and the home in the upper section. Most bi-level structures were built after 1950.

Bi-metal coil
Part of a mechanical thermostat. Consists of two different types of metal that expand and contract at two different rates with changes in room temperature.

Bid out
The process that contractors use to estimate the cost of a house or project before it is completed.

Bidding war
Offers from multiple buyers for a piece of property. Agents also sometimes compete to list a house for sale.

Bilateral contract
A contract in which the parties involved give mutual promises. Also called a reciprocal contract.

Bill of sale
A document that transfers ownership of personal property.

Binder
A report issued by a title insurance company that details the condition of a home's title and provides guidelines for a title insurance policy.

Binder
A preliminary agreement between buyer and seller.

Biweekly mortgage
A mortgage that requires payments every two weeks and helps repay the loan over a shorter term.

Blanket insurance policy
A policy that covers more than one person or piece of property.

Blanket mortgage
A mortgage that covers more than one property owned by the same borrower.

Blighted area
A neighborhood that has deteriorated.

Blind nailing
Nails driven into a wall and concealed with putty.

Blockbusting
The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry of a particular race into the neighborhood.

Blue-ribbon condition
A house maintained close to its original condition. Also called mint condition.

Blue-sky laws
Regulations on the sale of securities to prevent consumers from investing in fraudulent or high-risk companies without being informed of the risks.

Blueprint
The plan for a home or other structure.

Board and batten
A type of siding composed of vertical boards and batten slats that cover wall joints.

Board foot
Measurement of lumber that is the equivalent of 144 cubic inches.

Board of equalization
A state board charged with ensuring that local property taxes are assessed in a uniform manner.

Board-and-batten siding
Siding composed of 8- to 12-inch-wide wooden boards nailed vertically to create a barn-like exterior.

Boilerplate
Form language used in deeds, mortgages, and other documents. Details can be added by individual parties.

Bona fide
A legal term that refers to actions or persons that are honest and in good faith.

Bond
An agreement that insures one party against loss by acts or defaults of another party.

Bonus room
A room with no specifically designated function, unlike a living room, bedroom, or kitchen.

Book value
The value of a property as a capital asset based on its cost plus any additions, minus depreciation.

Boot
A piece of sheet metal that connects a heating or cooling duct and a vent.

Boring test
An analysis of soil in which holes are bored into the ground and samples are removed.

Borough
A section of a city that has authority over local matters.

Borrow
Sand, gravel, or other material used for grading.

Borrow pit
The hole at a site that has been excavated

Boulevard
A street lined with trees or constructed with a landscaped median.

Boundary
The dividing line between two adjacent properties.

Braced framing
A construction method in two-story homes in which the frame is reinforced with posts and braces.

Bracing
The technique used to reinforce a structure.

Branch circuit
An electrical circuit with its own circuit breaker in the service panel.

Breech of contract
The failure to perform provisions of a contract without a legal excuse.

Breech of covenant
The failure to obey a legal agreement.

Breech of warranty
A seller's inability to pass clear title to a buyer.

Break-even point
The point in which the owner's rental income matches expenses and debt.

Breezeway
A roofed passageway with open sides.

Brick
Building material made from clay molded into oblong blocks and fired in a kiln.

Brick veneer
A brick facade on a wall or fireplace.

Bridge loan
A short-term loan for borrowers who need more time to find permanent financing.

Broker
Anyone who acts as a go-between. A real estate broker is licensed to handle property transactions and operate a brokerage firm. A mortgage broker is an individual or firm that matches borrowers to lenders and loan programs for a fee.

Brokerage
The act of bringing together two or more parties in exchange for a fee or commission. Real estate brokerages are firms or companies that are licensed to conduct real estate transactions.

Broom clean
The ideal condition of a building when it is turned over to an owner or tenant.

Brownstone
A vintage row house constructed of red sandstone.

Buffer strip
A parcel of land that separates two or more properties.

Buildability
The feasibility of constructing a home or other structure on a piece of land. Parcels for which a building permit cannot be obtained may be considered "unbuildable."

Builder upgrades
Extra features or better finishing materials offered by a builder.

Building and loan association
An organization that raises money to helps its members purchase real estate or construct a building.

Building code
A comprehensive set of laws that controls the construction or remodeling of a home or other structure.

Building inspector
A city or county employee who enforces the building code and ensures that work is correctly performed.

Building line or setback
Guidelines that limit how close an owner can build to the street or an adjacent property.

Building moratorium
A halt on home construction to slow the rate of development.

Building paper
A thick, water-resistant paper that serves as insulation.

Building permit
A permit issued by a local government agency that allows the construction or renovation of a house.

Building restrictions
Regulations that limit the manner in which property can be used.

Built-ins
Appliances or other items that are framed into a home or permanently attached.

Bulkhead
A retaining wall designed to hold back water from the ocean or other body of water.

Bundle of rights
The various interests or rights an owner has in a property.

Bungalow
A small one-story house or cottage.

Butt
The way in which two boards meet so that the ends touch in a continuous line.

Butterfly roof
A roof formed by two gables that dip in the middle to resemble a butterfly's wings.

Buydown mortgage
A home loan in which the lender receives a premium as an inducement to reduce the interest rate during the early years of the mortgage.

Buyer's agent
An agent representing a buyer in a home purchase, either as a single agent or as an exclusive buyer's broker.

Buyer's broker
A real estate broker who exclusively represents the buyer's interests in a transaction and whose commission is paid either by the buyer or through the seller or listing broker at closing.

Buyer's market
A slow real estate market in which buyers have the advantage.

Buyer's remorse
An emotion felt by first-time homebuyers after signing a sales contract or closing the purchase of a house.

Buyers Resource Real Estate
National buyer's brokerage company with offices in 13 states. Call (800) 359-4092 for information and referrals.

Buyers' Home Finding Network
National referral service for buyer's brokers only. Call (800) 500-3569 for information and referrals.

Bylaws
The rules and regulations that a homeowners association or corporation adopts to govern activities.

C          Back To Top

California Real Estate Inspection Association
Also known as CREIA. A trade organization of home inspectors whose members must meet the group's education and performance requirements. Call (800) 388-8443 for list of CREIA-certified inspectors in your area.

Call option
A clause in a loan agreement that allows a lender to ask for the balance at any time.

Can light
An incandescent light inside a metal can that is mounted flush with the surface.

Can lights
Cylindrical chambers with bulbs recessed into the ceiling.

Cancellation clause
A clause that details the conditions under which each party may terminate the agreement. 

Cantilever
A projecting structure supported on one end, such as a balcony.

Cap
A limit on the amount the interest rate or monthly payment can increase in an adjustable rate mortgage.

Cape Cod style
A wood-frame or shingled house with a steep roof and several windows projecting from the second floor.

Capital
Money used to create income, such as funds invested in rental property.

Capital
The decorative top of a column or pilaster.

Capital expenditure
The cost of making improvements on a property.

Capital gain
Profit an investor makes from the sale of real estate or investments.

Capital gains tax
A tax placed on profits from the sale of real estate or investments.

Capital improvement
Any improvement that extends the life or increases the value of a piece of property.

Capitalization
A mathematical formula that investors use to compute the value of a property based on net income.

Capitalization rate
The percentage rate of return estimated from the net income of a piece of property.

Caravan
A group of real estate agents who tour a house that has been recently listed for sale.

Carport
A roof that covers a driveway or other parking area.

Carryback financing
Financing in which a seller agrees to take back a note for a set amount of the sale of the home.

Casement window
A window hinged on its sides to allow it to swing open vertically.

Cash flow
The amount of cash a rental property investor receives after deducting operating expenses and loan payments from gross income.

Cash-out refinance
The refinancing of a mortgage in which the money received from the new loan is greater than the amount due on the old loan. The borrower can use the extra funds in any manner.

Cashier's check
A check the bank draws on itself rather than on a depositor's account.

Casing
The trim that encircles a window or door opening, hiding the gap between the door or window jamb and the wall's surface.

Cathedral ceiling
A high, open ceiling formed by finishing exposed roof rafters.

Caulk
An acrylic or silicon sealant used to fill cracks, crevices, and holes in a home.

Caveat
A formal notice asking a court to suspend action until the party that filed the challenge can be heard.

Caveat emptor
A legal principle stating that a buyer is responsible for ensuring the quality of goods purchased. From Latin, "let the buyer beware."

Cavedium
A courtyard or atrium.

CD (certificate of deposit)
A document showing that the bearer has a specified amount of money on deposit with a bank, stock-brokerage firm, or other financial institution.

Ceiling fan
A large, ceiling-mounted paddle fan. Also known as a Casablanca fan.

Ceiling height
The standard height of a ceiling is eight feet.

Center mullion
A cabinetry term referring to the vertical piece of wood on the front that divides the opening into two parts.

Central air conditioning
A device that generates cold air through an outside unit connected to ductwork inside the house.

Central business district
The area of a city where most large businesses are located.

Certificate of deposit (CD)
A document showing that the bearer has a specified amount of money on deposit with a bank, stock-brokerage firm, or other financial institution.

Certificate of deposit index
An index based on the interest rates on six-month CDs. It used to determine the interest rate for some adjustable rate mortgages.

Certificate of eligibility
A document issued by the Veterans Administration that verifies the eligibility of a veteran for a loan program.

Certificate of occupancy
A document stating that a home or other building has met all building codes and is suitable for habitation.

Certificate of sale
A document issued at a judicial sale that entitles the buyer to receive a deed after court confirmation of the purchase of the property.

Certified International Property Specialist (CIPS)
An advanced designation issued by the National Association of Realtors (NAR) to members who meet specific performance and education requirements for handling international real estate transactions

Certified Real Estate Brokerage Manager (CRB)
An advanced designation issued by the National Association of Realtors (NAR) to members who meet specific performance and education requirements for real estate office management.

Certified Residential Specialist (CRS)
An advanced designation issued by the National Association of Realtors (NAR) to members who meet specific performance and education requirements for handling residential real estate transactions.

Chain of title
The official record that details the ownership history of a piece of property.

Chair railing
Decorative trim installed on a wall about 32 inches above the floor to protect against scuffs from furniture.

Change frequency
The adjustment schedule on an adjustable rate mortgage.

Change order
A modification of a construction contract to authorize a change in the work, an adjustment in the amount of the contract, or a change in the contract time. The owner, architect, and contractor must sign the change.

Chase
A shielded vertical shaft that houses various pipes, drains, ducts, and flues.

Chattel
Personal property such as furniture, clothing, or a car.

Chattel mortgage
A lien on personal property used as collateral for a loan.

Chimney back
The back wall or lining of a fireplace or furnace chimney.

Chimney cap
A concrete cap that surrounds the top of the chimney brick. The cap protects the masonry from rain and other elements.

Chimney flue
The passage inside a chimney that channels smoke and heat to the outside.

Chimney pot
A short pipe at the top of a chimney that increases ventilation to the fireplace and reduces smoke.

Chipboard
A board made of wood chips glued together under pressure.

Cinder block
A block made of ash and cement, used in construction.

Cinder fill
Cinders used below a basement or around a foundation to promote drainage

Circuit
Short for electrical circuit, a complete circuit requires two electrical conductors (wires), an electrical source, and an electrical device such as a light. Electricity travels through one "hot" wire from the source to the device where it is converted into light, heat, or energy, then it returns along the other "neutral" wire to the source.

Circuit breaker
A switch-like device in an electrical circuit that is designed to shut down the circuit in the event of an electrical overload or short circuit. Circuit breakers are normally installed in main electrical panels or subpane

Circuit breaker
A switch-like device in an electrical circuit that is designed to shut down the circuit in the event of an electrical overload or short circuit. Circuit breakers are normally installed in main electrical panels or subpanels.

Cistern
A tank used to store rainwater.

Clapboard
A type of siding, typically cedar, composed of overlapping horizontal boards.

Classified property tax
A tax that varies in rate depending on the use of the property.

Cleanout
An opening in the drainage system for the removal of obstructions. It also refers to the part of a fireplace from which ashes can be removed.

Cleanout
A Y-shaped fitting with a cap or plug on one of the arms of the Y that can be removed in the event of a drain clog to snake out the drain line. C
Clear title
A title to property that does not have liens, defects, or other legal encumbrances.

Clevis
Part of the assembly needed to raise and lower a sink or tub pop-up. The clevis is a pin that connects to a pivot rod.

Closing
The final procedure in which documents are signed and recorded and the property is transferred.

Closing costs
Expenses incidental to the sale of real estate, including loan, title, and appraisal fees. These costs exist in addition to the price of the property and are paid at closing. Some are one-time expenses and some are recurring.

Closing statement
A document which details the final financial settlement between a buyer and seller and the costs paid by each party.

Cloud on title
An invalid encumbrance on real property. C

Cluster development
A method of squeezing more homes into less space.

Co-housing
Individual housing units that are clustered around a common building where residents share cooking and other activities.

Co-insurance
Coverage that involves the use of two or more insurers.

Co-maker
A person who signs a promissory note with the borrower and assumes responsibility for the loan.

Co-signer
A second party who signs a promissory note and takes responsibility for the debt.

CO/ALR
A designation on special light switches and outlets intended to be installed with aluminium wiring.

Codicil
A change to a will that adds or subtracts provisions or clarifies portions of the document.

Collar beam
The structural element that connects roof rafters.

Collateral security
Additional security that a borrower supplies to obtain a loan.

Collection
The series of steps a lender takes to bring a delinquent mortgage up to date.

Collusion
The action of two or more people to break the law.

Colonia
Unincorporated communities along the border between the United States and Mexico. C

Column
A slender upright structure that consists of a base, a round or square shaft, and a capital.

Column footing
The support base for a load-bearing column. The footing is usually made of reinforced concrete.

Combination door
An outer door with interchangeable screen and glass panels.

Combination window
A window with interchangeable screen and glass panels.

Combustion gases
The fumes or exhaust from a gas- or oil-burning appliance such as a water heater or furnace. Combustion gases are usually vented through a flue.

Commercial bank
A financial institution that provides a broad range of services, from checking and savings accounts to business loans and credit cards.

Commercial property
An area that is zoned for businesses.

Commingling
The mixing of money held in trust with other funds.

Commission
A negotiable percentage of the sales price of a home, paid to the agents of the buyer and seller.

Commitment
A promise by a lender to make a loan with specific terms for a specified period.

Commitment fee
A fee charged by the lender to guarantee a specific set of loan terms to be honored at some future date.

Common area
An area inside a housing development that is owned by all residents. C

Common law
A body of laws based on custom, usage, and rulings by courts in various jurisdictions.

Common-area assessments
Fees paid by the owners of a condominium project or planned-unit development to maintain, repair, improve, or operate common areas.

Common-interest development
A project composed of individually owned units that share usage and financial responsibility for common areas.

Community property
Property accumulated through the joint efforts of husband and wife. It is a classification of property peculiar to certain states.

Community Reinvestment Act
A federal law that encourages financial institutions to loan money in the neighborhoods where minority depositors live.

Commute
The distance and time it takes a person to reach his or her workplace.

Comparables
Properties used as comparisons to determine the value of a certain property.

Comparative market analysis
An estimate of the value of a property based on an analysis of sales of properties with similar characteristics.

Competent
A term for a buyer who is legally fit to enter into a sales contract.

Compound interest
The interest paid on the principal balance of a mortgage plus accrued interest.

Compressor
Motorized equipment in a refrigeration (or air conditioning) system that circulates coolant through the system.

Concrete tilt-up
The process of pouring concrete into forms on the ground, allowing the forms to harden, and then raising the material to a vertical position to form walls.

Condemnation
The process the government uses to take private property for public use without the consent of the owner.

Condensate drain
A drain required by a dehumidifier, high-efficiency furnace, or similar appliance to carry away condensation.

Condensate pump
A small pump used with high-efficiency furnaces or other appliances that create significant condensation. It activates when water collects to a certain level and pumps it out to a drain.

Condenser
Part of a refrigeration (or air conditioning) system that pressurizes refrigerant to cool it by changing it from a vapor to a liquid. On a refrigerator, the condenser is the coil on the outside of the unit; an air conditioner's condenser is usually outside the house.

Conditional commitment
A promise by a lender to make a loan if the borrower meets certain conditions.

Conditional sale
A contract for the sale of property stating that the title will remain invested in the seller until the conditions of the contract have been fulfilled.

Condominium
Individual units in a building or development in which owners hold title to the interior space while common areas such as parking lots, community rooms, and recreational areas are owned by all the residents.

Condominium conversion
The change in title from a single owner of an entire project or building to multiple owners of individual units.

Conduit
A metal pipe that houses electrical wiring.

Conforming loan
Any loan that meets the qualifications to be purchased by Fannie Mae or Freddie Mac. The current conforming loan limit is $252,700.

Consent judgment
A binding written agreement between two parties to have a judgment entered and recorded.

Conservator
A court-appointed guardian.

Consideration
Anything that is legal, has value, and induces a person to enter into a contract.

Construction budget
Funding arranged by an owner for the construction of a project.

Construction documents
Drawings and specifications from an architect that provide detailed requirements for the construction of a project.

Construction loan
A short-term loan for home or building construction. The lender disburses the funds in stages.

Construction-to-permanent loan
A construction loan that is converted to a longer-term traditional mortgage after construction has been completed.

Consumer Credit Counseling Service (CCCS)
A nationwide, nonprofit organization that helps consumers get out of debt and improve their credit profile. National headquarters: 8701 Georgia Avenue., Suite 507, Silver Springs, MD 20910. Phone: (800) 388-2227.

Contemporary style
A design that features streamlined shapes, large unadorned windows, and industrial materials.

Contiguous lots
Pieces of property that are adjoined. contingency
A condition specified in a purchase contract, such as a satisfactory home inspection.

Contingency listing
A property listing with a special condition attached.

Contingent fee
A fee that must be paid if a certain event occurs.

Continuity tester
A simple, battery-powered tool that indicates whether an electrical circuit is complete or incomplete by lighting or buzzing when you touch its two probes to the wires.

Contract
An agreement between two or more parties that creates or modifies an existing relationship.

Contract for deed
A contract in which the seller agrees to defer all or part of the purchase price for a specified period of time.