Real Estate Insurance Terms - C

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CABINET WORK - Any interior carpentry which will be seen and must be finished with skill and care. One who does this work is called a cabinet maker or, more commonly, a finish carpenter.

CAISSON - A watertight chamber ion which men work underwater, or in an open excavation where loose soil or sand could cave in on the workers. It may also be filled with concrete after it is used and become a support.

CALIFORNIA RANCH ARCHITECT - A sprawling, one story, ranch-style building, lending itself to interior flexibility in floor plan design.

CALL - (1) In metes and bounds description, the angle and distance of a given line, or arc. Each call is usually preceded by the word "then" or "thence". Example: N 22% E 100' (1st call), thence N 80% E100' (2ND call). (2) To demand payment due to default. Also used when a loan payment is not large enough to amortize the loan. Example: A mortgage payment requiring 20 years to pay in full but for a term of 5 years would be referred to as a 20-year amortization with a 5-year call.

CALL DATE - Originally a term used when a bond is redeemed prior to maturity, it is now also used in describing mortgages.

CALL LOAN - A loan payable upon demand.

CAMBER - A slight bending or arching to a convex angle. Used to prevent beams, girders, flooring, ship decks, timbers and similar load bearing members, from taking a concave shape.

CAMINO - A Spanish word meaning highway.

CAMPANILE - A free-standing bell tower.

CANAL - (1) A man made waterway used to connect bodies of water for navigation. (2) An irrigation waterway.

CANCELLATION CLAUSE - A clause in a lease or other contract, setting forth the conditions under which each party may cancel or terminate the agreement. The conditions may be as simple as giving notice or complex and require payment by the party desiring to cancel.

CANTILEVER - A structural support which itself is supported at one end only and bears its load through its material strength and rigidity.

CANTILEVER BRIDGE - A bridge formed by two cantilevered members extending toward each other and connecting each other or a suspended span.

CAP - (1) The maximum increase of an Adjustable Rate Mortgage. Example: the original loan is made at 10% with a 5% cap. The interest rate on the loan may not exceed 15% regardless of index changes. (2) A fitting used by a plumber to seal (cap) a pipe end. (3) A cornice, lintel or top of a structural member such as a column.

CAPE COD HOUSE - An adaptation of the New England cottage. May be one or two stories with sloping roof, usually with dormer windows, cornices, and of frame painted white.

CAPITAL - Money used to create income, either as investment in a business or income property.

CAPITAL ASSETS - Assets of a permanent nature used to produce income, such as machinery, buildings, equipment, land, etc. Must be distinguished from inventory. A machine which makes pencils, for example would be a capital asset to a pencil manufacturer, but inventory to the company whose business is to sell such machines.

CAPITAL EXPENDITURES - Money spent on improvements such as land, buildings, machinery and similar major expenditures which are not inventory.

CAPITAL GAINS - Gains realized from the sale of capital assets. Generally, the difference between cost and selling price, less certain deductible expenses. Used mainly for income tax purposes.

CAPITALIZATION - Determining a present value of income property by taking the annual net income (either known or estimated) and discounting by using a rate or return commonly acceptable to buyers of similar properties. For example: net income of a property is $10,000 per year. Capitalizing at a rate of 10%, the property would be worth $100,000.

CAPITAL STOCK - A general item referring to the stock a corporation may issue, the amount actually subscribed by shareholders, the value of the company, liability to the shareholders, etc.

CARPORT - A roof supported by pillars or cantilevered which shelters a car. May either extend from a structure (usually a house) or be constructed separately (often to accommodate several cars).

CARRYING CHARGES - The costs involved in keeping a property which is intended to produce income (either by sale or rent) but has not yet done so.

CASE - (1) An external framework of a structure. (2) A court action.

CASEMENT WINDOW -- A window hinged at its sides, allowing to it swing open vertically.

CASH - Money or its equivalent (checks, bank notes, etc.).

CASHIER'S CHECK - A check drawn by a bank on itself rather than on an account of a depositor. A cashier's check is generally acceptable to close a sale without waiting for the check to clear.

CASH SALE - A sale for full payment in cash, as opposed to a credit sale. A payment by check is considered cash. May be qualified, as "cash to existing loan" etc.

CASING - The exterior surface of covering of a building such as aluminum siding, a roof, etc.

CATWALK - A narrow, elevated walkway along a wall, girders, or over a stage or other area where it may be necessary for a person to go for operation or repair.

CAUSEWAY - A raised roadbed over lowlands.

CAVEAT EMPTOR - "Let the buyer beware". Legal maxim stating that the buyer takes the risk regarding quality or condition of the item purchased, unless protected by warranty or there is misrepresentation. Modernly, consumer protection laws have placed more responsibility for disclosure on the seller and broker.

CAVITY WALL - Refers to a brick or stone wall which is actually built as two separate walls, joined only at the top and ends, and so "hollow". Also called a hollow wall.

CC&R'S (COVENANTS, CONDITIONS AND RESTRICTIONS) - A term used in some areas to describe the restrictive limitations which may be placed on property. In other areas, simply called restrictions.

CELLAR - A storage room or group of rooms, usually under a building which are used for storage.

CEMENT - A mineral powder which, when mixed with water and allowed to set will dry hard and can be used in construction as floors, walls, etc.

CEMENT BLOCK - A building block, composed of cement, and usually hollow.

CENTRAL ASSESSMENT - An assessment of property under one ownership but located in more than one assessment district. Used for railroads and public utilities to stabilize the assessment value.

CENTRAL BUSINESS DISTRICT - An area of a city where most of the major businesses are located. The "downtown" area.

CERTIFICATE - A writing, either from a court or other public body, giving assurances of existing conditions or facts, and giving rights or creating obligations.

CERTIFICATE OF DEPOSIT - A specific sum of money deposited into a saving institution for a specified time period, and bearing a higher rate of interest than a passbook account if left to maturity. Does not have withdrawal privileges as does a passbook account. Also called a time certificate of deposit (T.C.D.).

CERTIFICATE OF OCCUPANCY - A certificate issued by a local building department to a builder or renovator, stating that the building is in proper condition to be occupied.

CERTIFICATE OF REDEMPTION - Evidence of redeeming (buying back) a property by the owner after losing it through a judicial sale. The time limit for redemptions is set by statute.

CERTIFICATE OF SALE - Certificate issued to the buyer at a judicial sale (such as tax sale), which will entitle the buyer to a deed upon confirmation of the sale by the court or if the land is not redeemed within a specified time.

CERTIFICATE OF TITLE - In areas where attorneys examine abstracts or chains of title. A written opinion, executed by the examining attorney, stating that title is vested as stated in the abstract.

CERTIFIED CHECK - A personal check drawn by an individual which is certified (guaranteed) to be good. The bank holds the funds to pay the certified check and will not pay any other checks drawn on the account if such payment would impede payment of the certified check. The bank also will not honor a stop payment of a certified check.

CERTIFIED COPY - A true copy, attested to be true by the officer holding the original.

CERTIORARI - An appellate review of the complete record of a lower court action, rather than simply a review of an appeal for judicial error.

CESSPOOL - A pit or pool which holds raw sewage.

CESTUI QUE TRUST - One having an equitable interest in property, legal title being vested in a trustee.

CHAIN OF TITLE - The chronological order of conveyancing of a parcel of land, from the original owner (usually the government) to the present owner.

CHAINS & LINKS - Measurements. In real estate measurements (surveying) a chain is 66' long or 100 links, each link being 7.92". The measurement may change when used in fields other than surveying.

CHATTEL - Personal property.

CHATTEL MORTGAGE - A lien on personal property. Also called a security interest or financing statement.

CHATTEL REAL -- All estates in real property less than fee estates, such as a lease.

CHECK VALVE - A valve to prevent backup of material being carried through a pipe or other conduit.

CHIMNEY - Any passage through which smoke from a fire passes. Most commonly the passage, constructed of brick, from a fireplace to above the roof of a building.

CHIMNEY BACK - The back wall or lining of a fireplace or furnace chimney.

CINDER BLOCK - A building block composed of cinders (ashes) and cement which does not have the weight or strength of a cement block.

CIRCLEHEAD WINDOW - A semicircular window, usually above a door, which has no moving parts and is used as a decoration as well as to admit light.

CIRCUIT BREAKER - An electrical device which has taken the place of the fuse in most homes. The circuit is broken (electricity shut-off) when there is an overload. The circuit breaker can be reset rather than replaced as a fuse must be.

CIRCULATION PATTERN - The regular traffic pattern, as from a residential area to a business district and back.

CIRCUMFERENTIAL HIGHWAY - A highway which arcs around the central business district of a city. Also called a belt highway or by-pass.

CISTERN - A tank used for storing rain water for use in areas where there is no water brought to the property by plumbing.

CITY - Technically, a municipal corporation having voting be representatives to operate its functions, rather then direct voting, as in a town. Commonly, any large incorporated town in called a city.

CLAPBOARD - Narrow boards used as siding for frame houses, and having one edge thicker than the other. The boards run horizontally with the thicker edge overlapping the thinner edge.

CLARIFIER - Underground system of tanks with filters or chemical agents designed to remove or neutralize harmful wastes from water before emptying said water into a sewer or septic tank.

CLASS ACTION - An action brought on behalf of a group of people having a similar claim. Has become increasingly popular in the consumer movement and is a strong weapon against unfair pricing when the price of overcharging in one instance would be too minor to bring suit.

CLASSIFIED LOAN - A substandard loan which a bank should not have made.

CLASSIFIED PROPERTY TAX - Property tax which varies in rate depending on the use (zoning classification) of the property.

CLEAR HEADWAY - The height of the lowest overhead framing member (usually the top of a door frame) as measured from the floor.

CLEAR SPAN - An interior area which does not use columns or posts to hold up the roof, thereby creating a large, open area with maximum visibility and use of the floor space.

CLERESTORY - A wall or portion of a wall to which the roof attaches at a higher level than the other walls or portions of a wall of a building. Generally found in church construction and contains windows.

CLOSING - (1) In real estate sales, the final procedure in which documents are executed and/or recorded, and the sale (or loan) is completed. (2) A selling term meaning the point at which the client or customer is asked to agree to the sale or purchase and sign the contract. (3) The final call in the metes and bounds legal description which "closes" the boundaries of the property.

CLOSING COSTS - Expenses incidental to a sale of real estate, such as loan fees, title fees, appraisal fees, etc.

CLOSING STATEMENT - The statement which lists the financial settlement between buyer and seller, and also the costs each must pay. A separate statement for buyer and seller is sometimes prepared.

CLOUD ON TITLE - An invalid encumbrance on real property, which, if valid, would affect the rights of the owner. For example: A sells Lot 1, Tract 1, to B. The deed is mistakenly drawn to read Lot 2, Tract 1. A cloud is created on Lot 2 by the recording of the erroneous deed. The cloud may be removed by quitclaim deed, or, if necessary, by court action.

CLUSTER HOUSING - Building houses close together with little yard space and a large common area, rather than each house having a large yard. The density is usually greater in the cluster project.

COAST - A seashore or land near it.

CODICIL - An addition to a will, which modifies the will by adding to it, subtracting from it, or clarifying it.

COGNOVIT NOTE - A note in which a debtor confesses judgment in the event of nonpayment and waives all defenses.

COINSURANCE - A sharing of the risk of an insurance policy by more than one insurer. Usually one insurer is liable up to a certain amount; the other liable over that amount.

COLLATERAL - By or at the side, additional or auxiliary. Mistakenly used to mean collateral security.

COLLATERAL ASSIGNMENT - An assignment of property as collateral security and not with the intent to transfer ownership from assignor.

COLLATERAL HEIR - One not in a direct line of descent of inheritance. Example: A nephew, not a son.

COLLATERAL NOTE - A promissory note secured by specific property.

COLLATERAL SECURITY - Most commonly used to mean some security in addition to the personal obligation of the borrower.

COLLUSION - An agreement of two or more people to doe something unlawful. Generally, an agreement between people who represent different interests and "sell out" these interests for personal gain.

COLONIAL ARCHITECTURE - Two-story houses with windows divided into small panes, usually with shutters. The main facade is detailed and symmetrical, generally with a center entrance. Architecture following the style of New England colonial houses.

COLOR OF TITLE- That which gives the appearance of good title, but actually contains some defect. For example: A conveyance given without the grantor having good title.

COLUMN - A large vertical support member of a structure. A pillar, usually cylindrical.

COLUMN FOOTINGS - The support bases for load bearing columns. Generally composed of reinforced concrete.

CO-MAKER - A surety under a loan. The co-maker is equally responsible for repayment as the borrower (maker).

COMBED PLYWOOD - An interior paneling, grooved as if by a comb.

COMBINATION DOOR - An outer door using interchangeable panels of glass and screen, depending on the weather.

COMBINATION SEWER - A sewer that is both a sanitary and storm sewer.

COMBINATION WINDOW - A window using interchangeable panels of glass and screen, depending on the weather.

COMMERCIAL BANK - An institution for savings, loans, checking accounts and other services not all of which are found in savings and loan institutions. Banks are generally more active in construction loans rather than long term real estate financing.

COMMERCIAL PAPER - Property which is zoned "commercial" (for business use). Property such as stores, restaurants, etc., falling between residential and industrial.

COMMINGLING - To mix funds held in trust with other funds. For example: A broker or builder mixes deposits (should be in a trust account) with his funds by putting the deposits in his general account. Although commingling is in itself a violation for which a broker may lose his license, it does not mean that, by commingling the broker or builder intended to misappropriate the funds.

COMMISSION - An amount, usually as a percentage, paid to an agent (real estate broker) as compensation for his services. The amount to a real estate broker is generally a percentage of the sale price or total rental.

COMMITMENT - (1) Title insurance term for the preliminary report issued before the actual policy. Said report shows the condition of title as contemplated by buyer and seller. (2) A written promise to make or insure a loan for a specified amount and on specified terms.

COMMON AREA - The area owned in common by the owners of condominiums or planed unit development homes in a subdivision.

COMMON BRICK - A brick having no special surface treatment, making each brick different in color. Used to describe a surface of bricks which are artificially treated so that each is different in color.

COMMON LAW - The body of laws, originated and developed in England, which was adopted by most states and still prevails if not superseded by statute. Also referred to as case law.

COMMUNITY PROPERTY - Property owned in common by a husband and wife, which was not acquired as separate property. A classification of property peculiar to certain states.

COMMUNITY SHOPPING CENTER - An intermediate size shopping center. May contain a small department store and coordinated small shops. Larger than a neighborhood center and smaller than a regional center.

CO-MORTGAGER - One who signs a mortgage with another as borrower. The term is often applied to one who intends to guaranty the loan even though co-mortgagors have equal liability.

CONCRETE - A cement mixture containing sand and gravel which is combined by mixing with water, poured to a desired shape, and hardens as it dries.

CONDEMNATION - The taking of private property for public use without the consent of the owner, but only upon payment of just compensation.

CONDITIONAL SALES CONTRACT - A sale in which the title to property or goods remains with the seller until the purchaser has fulfilled the terms of the contract, usually payment in full.

CONDOMINIUM - A structure of two or more units, the interior space of which are individually owned; the balance of the property (both land and building) is owned in common by the owners of the individual units. The size of each unit is measured from the interior surfaces (exclusive of paint or other finishes) of the exterior walls, floors and ceiling. The balance of the property is called the common area.

CONDUIT - A natural channel for the flow of water, or artificial channel, such as a pipe, used for conveying and protecting water, wires or other materials.

CONDUIT, ELECTRICAL - A metal pipe, usually flexible, through which electrical wiring is installed.

CONFESSION OF JUDGMENT - The written, voluntary, submission of a debtor to a judgment by a creditor for a specified amount.

CONSENT JUDGMENT - A written agreement between plaintiff and defendant to have a judgment entered and recorded. Although the court does no actual finding for one party or the other, the judgment, once approved by the court, is binding on both parties.

CONSERVATION - (1) Care and preservation of natural resources. (2) Preservation, through zoning, of improved areas to maintain the quality of the area.

CONSERVATOR - A guardian, court appointed.

CONSIDERATION - Anything which is, legally, of value, and induces one to enter into a contract.

CONSTRUCTION COST - The total cost of building, including overhead and profits as well as land, labor and materials.

CONSTRUCTION LOAN - Short term financing of real estate construction. Generally followed by long term financing called a "take out" loan, issued upon completion of improvements.

CONSTRUCTIVE EVICTION - (1) Regarding a landlord and tenant relationship, constructive eviction is any act by the landlord which substantially interferes with the tenant's use and enjoyment of the leased property, but is not actual eviction. (2) The inability of the buyer to obtain possession because of a superior title of a third party. This constitutes a breach of the covenant of quiet enjoyment warranted by the seller.

CONSTRUCTIVE TRUST - A trust created by operation of law to change an inequitable situation. If one acquires title to property through fraud, the court will hold that the legal owner holds in trust for those who really should have ownership. Also called an involuntary trust.

CONSUMER LENDING - Loans made for personal property, such as automobiles, appliances, etc.

CONTEMPORARY ARCHITECTURE - A general term encompassing any number of modern designs which do not conform to any traditional architectural styles.

CONTIGUOUS - Near or close to, whether actually touching or not. Generally refers to actual touching or bordering on.

CONTINGENCY - Commonly, the dependence upon a stated event which must occur before a contract is binding. For example: The sale of a house, contingent upon the buyer obtaining financing.

CONTRACT - An agreement between two or more persons or entities which creates or modifies a legal relationship. Generally based upon offer and acceptance.

CONVENTIONAL LOAN - A mortgage or deed of trust not obtained under a government insured program, (such as F.H.A. or V.A.).

CONVEYANCE - Transfer of title to land. Includes most instruments by which an interest in real estate is created, mortgaged or assigned.

CORBEL - A timber or stone, set in and projecting from a wall, and used to support a load.

CORNER LOT - A lot contiguous to two intersecting streets, and, for purposes of value, having access to both streets.

COTENANCY - A general term covering both joint tenancy and tenancy in common.

CO-TRUSTEE - One who shares the duties of trustee with one or more other trustees.

COTTAGE - Originally, a house with no surrounding land belonging to it. Modernly, a small house, perhaps used as a summer home.

COUNTER FLASHING - Flashing (tar substance) used on chimneys at the roofline to prevent entry of moisture and cover the metal sheet flashing.

COUNTY - A political division within a state, usually encompassing one or more cities or towns. There are exceptions such as New York City which contains more than one county. Louisiana uses the word parish instead of county; New York used both borough and county, as in Kings County (the borough of Brooklyn).

COUNTY ROAD - (1) A road lying entirely in one county. (2) Any road or portion of a road under the jurisdiction and maintenance of the county. (3) Loosely, any road not a federal or state road.

COVE - (1) An arched, rather than square angle, meeting of a ceiling and wall. (2) An inlet or small bay.

COVENANT - Generally, almost any written agreement. Most commonly in real estate, assurances set forth (expressed) in a deed by the grantor or implied by law. Example: Covenant against encumbrances, covenant of right to convey, etc.

COVENANT NOT TO COMPETE - A promise (covenant) usually by a seller of a business, not to operate a competitive business after the sale. The more specific the restriction (time limit, distance, etc.), the more easily it is enforceable.

COVENANT OF QUIET ENJOYMENT - Usually inserted in leases or conveyances whereby lessor or grantor promises that the tenant or grantee shall enjoy possession of the premises in peace and without disturbance caused by defective title.

CRAWL SPACE - A space between the ground and the first floor of a structure (usually a house). Repair of utilities under the house may be made by a person crawling though the shallow space.

CREATIVE FINANCING - A general term which encompasses any method of financing property going beyond traditional real estate lending.

CREDIT REPORT - A report on the past ability of a loan applicant to pay installment payments. Several national and local companies make such reports.

CREEK - (1) An inlet, going deeper into land than a cove. (2) A stream which empties into a river or bay.

CRICKET - A small, convex roof, placed on a larger roof or surface, to promote drainage in areas of the surface which have barriers to said drainage.

CROSS-BRIDGING - Strengthening a structure by bracing cross members between the joists, thereby spreading the weight over a larger area.

CROWN MOLDING - A large molding used on a cornice or to cover a wide gap or angle.

CUBIC FOOT - The area contained by boundaries of 1 foot long, 1 foot wide and 1 foot high. There are 27 cubic feet in 1 cubic yard.

CUL DE SAC - A street or alley open at one end only. Modernly a street in a subdivision, open at one end, and having a large, rounded, closed end to facilitate U-turns.

CULVERT - A waterway or drainage ditch which crosses under a road.

CURB CUTS - The part of a curb which lowers to street level to form the apron of a driveway.

CURB LINE - The line between the right of way for automobiles (road) and the right of way for pedestrians (sidewalk).

CURTAIN WALL - An outside wall which lends no structural support to a building, but acts merely to enclose.

CURTILAGE - The grounds and secondary buildings surrounding a house which are commonly used in connection with the everyday use of the house. Usually fenced.

CUSTODY - The care and keeping of property (real or personal). For example: an escrow agent has custody of documents and funds until closing.

CUT-OVER LAND - Land from which the original growth has been cut away by logging.