Real Estate Glossary
Browse the glossary using this index
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consideration | |
constructive noticeis one of the three ways the law presumes an individual has notice of an event. Constructive notice is making information available for public discovery. The deed recording system provides a means of legally providing notice (albeit constructive) to the world. | |
contractis an agreement made between two or more parties where each promises to do something; or promises to refrain from doing something. If a breach occurs, the law provides a remedy. | |
contributionThe principle of contribution states that items or components of real estate are worth what value they contribute to the entire property value. Contribution applies to the cost approach since, in effect, the improvements will be worth whatever value they contribute to the land. | ||
controlled business arrangement (CBA)Stated by the Real Estate Settlement Procedures Act (RESPA), it is an arrangement in which an individual or firm has more than one percent interest in a company to which the firm regularly refers business. | |
cooperativeoften refers to a group of individuals who unite in some common business endeavor. The business is owned and managed by its members for the benefit of its members. Coops provide purchasing power and economies of scale that would not be available to the members acting alone. Coops can be created for numerous products or retail enterprises, utilities, credit unions, and real estate cooperatives. | ||
costthe word "cost" has many connotations. In accounting cost means the price paid at acquisition. In general conversation, cost may be used to describe the wholesale price. Appraisers, however, use cost to describe the cost to the consumer to construct the improvements being appraised as of the effective date of the appraisal. What “cost” means to appraisers is the current retail price to the consumer including all construction costs, builder profits, and marketing expenses. | ||
cost approachis one of the three classic approaches to estimating the value of real property. In the cost approach, the site and the improvements are valued separately. The focus in applying the cost approach is on the current value or current cost of the improvements. The improvements are valued at the current cost new minus any loss in value due to depreciation. The depreciated cost of the improvements is then added to the site value to provide an indication of the value of the property. It is considered most reliable when appraising properties with new improvements or when appraising properties that have unusual improvements for which there are no market comparables. | |
counterofferis a new offer made in response to an offer received. | ||