*GIRE* Georgia Real Estate Words C D
Terms
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- Capitalization
- The process of converting future income into present value; the income approach to value; considering net income and percentage of reasonable yield on the investment.
- Capitalization rate
- The rate of return an investor will demand from the investment in a property; increases with risk involved in a property.
- Caveat emptor
- Let the buyer beware.
- Censure
- Disciplinary power of the Commission whereby it reprimands a licensee; usually for technical violations occurring for the first time.
- Certificate of eligibility
- The VA's official statement regarding the exact amount of a mortgage loan it will guarantee for a particular veteran.
- Certificate of no defense
- See estoppel certificate.
- Certificate of occupancy
- Authorization from a building inspector that construction has been completed in compliance with building codes and is ready for occupancy.
- Certificate of Reasonable Value (CRV)
- An official VA appraisal of a specific property.
- Certificate of sale
- Issued to the successful bidder at a foreclosure sale if the state provides a statutory period of redemption to the defaulting owner.
- Certificate of title
- A title examiner's written opinion of the current condition of a property title based on a search of the public records dating back for a specified number of years.
- Certified Property Manager (CPM)
- A professional designation for one who has met all of the educational and experience requirements of the Institute of Real Estate Management.
- Chain of title
- The recorded history of conveyances affecting a property's title beginning with the original patent or grant from the government and continuing to the current owner.
- Chapel
- Personal property.
- Chattel mortgage
- See security agreement.
- Civil Rights Act of 1866
- The first federal legislation intended to prohibit racial discrimination in the sale or rental of all types of property.
- Client
- The person who authorizes the agent (broker) to act on his/her behalf. In real estate transactions; the client may be the seller. Also called the principal.
- Client BRRETA
- "Under ""BRRETA;"" the client is the person or entity who has entered into a contractual relationship (brokerage engagement) with the broker."
- Closed mortgage
- One which does not allow the borrower to pay off the loan before maturity.
- Closing
- The act of finalizing a transaction; in which title is conveyed to the purchaser. Also called settlement.
- Closing Costs
- Prorated charges by the lender including costs of making the loan and a service charge can be paid by buyer or seller.
- Cloud on the title
- Any claim; lien; or encumbrance that impairs title to real estate.
- Co-broker
- A broker who assists the listing broker in securing a buyer. Subagent.
- Co-brokering
- Participation of more than one broker in a real estate transaction.
- Codicil
- A written instrument executed for the purpose of amending an existing will.
- Collateral
- Property pledged to a lender as security for a loan.
- Color of title
- A title condition which appears to be good but in fact is not valid due to a certain defect; such as a forged deed.
- Commercial easement in gross
- A right to use the land of another. It does not benefit any particular property. The right is transferable and freely inheritable. Typical examples include utility easements; railroad rights-of-way; and billboard easements.
- Commingling
- An illegal practice whereby a broker mixes trust funds with his/her own or uses any part of those funds; before the sale is closed or otherwise terminated.
- Commission
- A broker's compensation for rendering a service to the principal as negotiated with the principal.
- Commission (GREC)
- The Georgia Real Estate Commission; the state licensing authority charged with the enforcement of the Real Estate License Law.
- Comparables
- Properties with similar characteristics to the subject property used for analysis in the market date approach.
- Competency
- See legal capacity.
- Condemnation
- A legal proceeding to exercise the power of eminent domain to take private property for public use.
- Condemnation clause
- A lease provision which specifies that proceeds be paid to the landlord in the event the leased premises are acquired by the government through condemnation.
- Condition
- A provision in a deed which subjects the ownership of land to certain restrictions. The party creating the condition (the grantor) reserves a future right in the property. Upon the occurrence or nonoccurrence of a stated condition; either the title automatically reverts to the grantor; or the grantor has the right to sue for possession and terminate the estate.
- Conditional commitment
- An official FHA appraisal of a specific property. Referred to as cost of acquisition. It is used to determine the amount of loan the FHA will insure.
- Consideration
- Anything of monetary value to induce another to enter into a contract.
- Constant mortgage plan
- See fully amortized mortgage.
- Construction loan
- A short-term interim loan to finance the cost of labor and materials necessary to complete construction of a building or other project.
- Constructive communication
- Communication by operation of law. When an offer is made through a courier; such as the mail; the offeree's acceptance is effectively communicated to the offeror when the acceptance is sent; not when it is received by the offeror.
- Constructive eviction
- Occurs when the landlord's actions or omissions allow the leased premises to become uninhabitable for its intended use; usually a violation of the implied warranty of habitability or the implied covenant of quiet enjoyment.
- Constructive fraud
- The misrepresentation of material facts; without intending to deceive or mislead but involving a breach of duty; such as negligence or carelessness. The broker is also liable for damages and license sanction. For example; a broker is negligent in the duty to discover the truth about zoning and unintentionally misleads a prospective purchaser.
- Constructive notice
- Knowledge that one is presumed by law to have; even though there is no actual knowledge of the fact. Constructive notice may be given by recording an instrument in the public records or by taking possession.
- Constructive severance
- The transfer to someone other than the owner of the land the rights to remove attachments such as timber; or buildings; or the right to remove minerals.
- Consummate dower
- A wife's right in her husband's estate after his death.
- Contiguous
- Adjoining; next to; in actual contact with.
- Contingent remainder
- A nonpossessory estate created when a fee simple owner grants a lesser estate and designates another person to take possession of the fee simple estate upon termination of the lesser estate and the occurrence of a stated condition.
- Contour
- The shape of the earth's surface.
- Contour map
- See topography map.
- Contract
- An agreement to do or not to do a particular act or thing which is enforceable by law. For the agreement to be valid and enforceable it must contain the following elements: legally competent parties; mutual assent; genuine assent; consideration; lawful purpose; and be in writing when required by law.
- Contract for deed
- See land contract.
- Contract for sale
- See sales contract.
- Contract rent
- The amount of rent stated in a lease agreement.
- Conventional life estate
- See life estate.
- Conventional loan
- One that is neither insured nor guaranteed by the government.
- Conveyance
- The document used to transfer interest in real property. Such as deeds; leases; mortgages; etc.
- Corporation
- A legal entity created under authority of the state. It offers limited liability to its owners. A resolution of the board of directors authorizing certain officers to sign a contract is required in order to bind a corporation.
- Correction deed
- See deed of reformation.
- Correlation
- See reconciliation.
- Correlative rights
- A doctrine of law which allows riparian owners in certain states to use only a reasonable share of water during periods of drought.
- Cost
- A historical record of past expenditures necessary to bring a property into being.
- Cost approach
- One of the three approaches to value; it involves estimating the current cost of replacing all improvements; from which the amount of estimated accrued depreciation is deducted; and an estimated value of the land is added.
- Cost-to-cure
- A method of estimating accrued depreciation by calculating the cost to correct all curable depreciation; also called observed condition.
- Counter-offer
- A proposal by an offeree to an offeror made in response to an offer; a counter offer terminates the original offer. Sometimes called qualified acceptance.
- Covenant
- A restriction in a lease or deed which specifies that the property will or will not be used in a certain manner. An example of a covenant is a subdivision restriction. Covenants must be enforced by seeking an injunction or damages. Covenants have a time limit after which they are no longer effective.
- Covenant against encumbrances
- A deed provision which assures the grantee that title to the property is free from any and all encumbrances not excepted in the deed or visible on the premises; or recorded in the public records.
- Covenant of further assurances
- A deed provision in which the grantor promises to perform any acts necessary to produce whatever documents are required to perfect title in the grantee.
- Covenant of quiet enjoyment
- A deed provision in which the grantor promises that the grantee shall be free of interference from the acts or claims of others having a superior title to the property.
- Covenant of seizin
- A deed provision in which the grantor promises that at the time of conveyance; he/she owns the property and has the right to convey title to it.
- Covenant of warranty forever
- A deed provision in which the grantor promises to compensate the grantee for any loss suffered while defending the title against persons asserting a genuine claim to the property from any time in the past.
- Covenants of title
- Either expressed or implied deed provisions in which the grantor promises that certain conditions of title exist. If it is later proven that those conditions do not exist; the grantor is obligated to compensate the grantee for any actual damages which result.
- Credit report
- A written report detailing the credit history of a prospective borrower; used by a lender to help determine credit worthiness.
- Curable depreciation
- Items of physical deterioration and functional obsolescence within the owner's control; which are economically feasible to repair or replace.
- Curtesy
- A husband's life estate in the real property owned by his wife and conveyed to him by law upon her death.
- Customer
- A third party; usually the buyer; with whom an agent deals on behalf of the principal.
- "Customer under ""BRRETA"" "
- "A customer is someone who is working with a broker concerning real estate matters but has not entered into a brokerage engagement with the broker. In a situation where the broker works with a ""customer;"" this law allows the broker to perform ""Ministerial Acts"" for the customer while working with them in a specific real estate transaction."
- Damages
- Loss or injury to a person or property caused by breach of contract. Also; the compensation paid for such loss.
- Datum
- A point of surface of known location from which heights and depths are measured. The basic point from which vertical land (air rights and mineral rights) is described.
- Debt service
- Mortgage payments including principal and interest.
- Decedent
- A deceased person.
- Declaration of restrictions
- An instrument which contains all the restrictive covenants affecting the lots in a subdivision. By recording the instrument; the subdivision restrictions are incorporated by reference into the deeds to each individual lot.
- Declaratory ruling
- An official statement from the Commission which is intended to clarify the position and intent relating to a particular rule or part of the License Law.
- Dedication
- The act of giving to a government real property which is designated for public use.
- Deed
- A written instrument which; when properly executed and delivered by the grantor during the grantor's lifetime; conveys the grantor's interest to the person who accepts it; known as a grantee.
- Deed in foreclosure
- See sheriff's deed.
- Deed in lieu of foreclosure
- A deed given to a lender by a defaulting borrower who wishes to avoid foreclosure proceedings. The lender may or may not accept the deed.
- Deed in partition
- A deed issued by the court when property is sold at a partition sale for the purpose of dividing a joint tenancy or tenancy in common ownership.
- Deed of reformation
- A deed which corrects an error in another deed.
- Deed of trust
- A deed used in many states in lieu of a mortgage. Title is held by a trustee on behalf of a lender (beneficiary) until the borrower (trustor) repays the loan.
- Deed to secure debt
- See security deed.
- Default
- See breach of contract.
- Defeasance clause
- A mortgage provision which allows the borrower to defeat the mortgage by repaying the loan according to the terms of the note. When the debt is paid; this provision causes the mortgage to become null and void; allowing the borrower to regain full rights of ownership.
- Deficiency judgment
- A judgment ordered by the court against the borrower when the proceeds from a foreclosure sale are insufficient to satisfy the debt. The defaulting borrower's other assets may be sold to satisfy the judgment.
- Demand deposits
- A bank's deposits which are available to the depositor with no advance withdrawal notice required.
- Depreciation
- Loss in value due to physical deterioration; functional obsolescence; or economic obsolescence.
- Depth tables
- Method of estimating the value of the added depth of a lot; as compared to a standard size lot.
- Dereliction
- A process of accretion whereby usable land is gradually exposed when a body of water recedes and remains below its normal waterline.
- Deterioration
- See physical deterioration.
- Devise
- A gift of real property by will.
- Deviser
- A person who disposes of real property by will.
- Devises
- A person named to receive real property by will.
- Discount points
- The percentage of a loan which determines the amount paid to the lender to increase the yield. One discount point is equal to one percent of the loan amount. See loan discount.
- Discount rate
- The rate of interest the Federal Reserve System charges member banks to borrow money. By controlling the discount rate; the Federal Reserve controls the money available for credit.
- Disintermediation
- Occurs when withdrawals exceed deposits from savings and loan associations or other similar institutions because alternative investments offer a more attractive return.
- Dominant estate
- The land parcel which benefits from an easement appurtenant. When title to the land is conveyed; the easement is automatically transferred to the new owner.
- Dower
- A wife's life estate in the real property owned by her husband and conveyed to her by law upon his death.
- Dual agency
- Representation by the same agent of more than one party in the same transaction. This practice constitutes a violation of the License Law; unless both parties give their written consent.
- "Dual agent under ""BRRETA"" "
- A dual agent is a broker who has entered into a brokerage engagement with both seller and buyer or landlord and tenant in the same transaction.
- Dual contracts
- See falsifying contracts.
- Due-on-sale clause
- See alienation clause.
- Duress
- The use of force to compel a person to enter into a contract.