Oconee County Real Estate
Real Estate Terms | A
Capital Gains
A term used for income tax purposes which represents
the gain realized from the sale of an asset less the
purchase price and deductible expense.
Capitalization
An appraising term used in determining value by considering
net operating income and a percentage of reasonable
return on investment.
Cash Flow
The owner's spendable income after operating expenses
and debt service is deducted
Chain Of Title
A history of conveyances and encumbrances affecting
the title as far back as records are available
Client
One who employs another's services, as in an attorney,
real estate agent, insurance agent, etc.
Closing
In the sale of real estate it is the final moment when
all documents are executed and recorded and the sale
is complete. Also a general selling term where a sales
person is attempting to sell something and the buyer
agrees to purchase
Certificate of Title
A certificate issued by a title company or a written
opinion rendered by an attorney that the seller has
good marketable and insurable title to the property
which he is offering for sale. A certificate of title
offers no protection against any hidden defects in the
title which an examination of the records could not
reveal. The issuer of a certificate of title is liable
only for damages due to negligence. The protection offered
a homeowner under a certificate of title is not as great
as that offered in a title insurance policy.
Closing Costs
The numerous expenses which buyers and sellers normally
incur to complete a transaction in the transfer of ownership
of real estate. These costs are in addition to price
of the property and are items prepaid at the closing
day.
Closing Statement
A list of the final accounting of all monies of both
buyer and seller prepared by an escrow agent which notes
all costs each must pay at the completion of a real
estate transaction.
Cloud (On Title)
An outstanding claim or encumbrance which adversely
affects the marketability of title.
Commission
Money paid to a real estate agent or broker by the seller
as compensation for finding a buyer and completing the
sale. Usually it is a percentage of the sale price-
often 5 to 7 percent on houses, 10 percent on land.
Common Area
That area owned in common by owners of condominiums
and planned site development homes within a subdivision.
Community Property
Both real and personal property accumulated by a husband
and wife after marriage through joint efforts of both
living together.
Condemnation
A declaration by governing powers that a structure is
unfit for use.
Conditional Sales Contract
A contract for the sale of property where the buyer
has possession and use, but the seller retains title
until the conditions of the contract have been fulfilled.
Also known as a land contract.
Co-Op Housing
An apartment building or a group of dwellings owned
by a corporation, the stockholders of which are the
residents of the dwellings. It is operated for their
benefit by their elected board of directors. In a cooperative,
the corporation or association owns title to the real
estate. A resident purchases stock in the corporation
which entitles him to occupy a unit in the building
or property owned by the cooperative. While the resident
does not own his unit, he has an absolute right to occupy
his unit for as long as he owns the stock.
Condominium
Individual ownership of a dwelling unit and an individual
interest in the common areas and facilities which serve
the multi- unit project.
Consideration
Anything of value given to induce someone into entering
into a contract.
Construction Loan
The short-term financing of improvements on real estate.
Once the improvements are completed a 'take out' loan
for a longer term is usually issued.
Contingency
A condition upon which a valid contract is dependent.
For example; the sale of a house is contingent upon
the buyer obtaining adequate financing.
Contract
An agreement between two or more parties, written or
oral, to do or not to do certain things.
Conveyance
The transfer of the title to land from one to another.
Contractor
In the construction industry, a contractor is one who
contracts to erect buildings or portions of them. There
are also contractors for each phase of construction:
heating, electrical, plumbing, air conditioning, road
building, bridge and dam erection, and others.
Conventional Mortgage
A mortgage loan not insured by HUD or guaranteed by
the Veterans' Administration. It is subject to conditions
established by the lending institution and State statutes.
The mortgage rates may vary with different institutions
and between States. (States have various interest limits.)
Counter Offer
An offer in response to an offer. 'A' offers to buy
'B's' house for $20,000 which is listed for $22,000.
'B' counter offers 'A's' offer by stating that he will
sell the house to 'A" for $21,000. The $21,000 is the
counter offer.
Covenants
Agreements written into deeds and other instruments
stating performance or non-performance of certain acts
or noting certain uses or non-uses of property.
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