Axiom
INDIA - 91 33 4020 4020   UK - 020 3290 4536   USA - 646 480 0364
Sign In  I  Sitemap   
AxiomEstates - India Real Estate
     India Properties Worldwide
 
E-mail Print Tell A Friend


Residential Properties

 
 
Home » Real Estate Terms  
Real Estate Terms
 
A B C D E F G H I J K L M

N O P Q R S T U V W X Y Z

Capitalization Rate
A rate of return on a real estate investment property based on the expected income that the property will generate. Capitalization rate is used to estimate the investor's potential return on his or her investment. This is done by dividing the income the property will generate (after fixed costs and variable costs) by the total value of the property. If you want to get technical, it is basically the discount rate of a perpetuity. Capitalization Rate = Yearly Income/Total Value Also known as "cap rate".

Carpet Area
The actual area you use. The area on which "you can put a carpet"

Cash-Out Refinance
Cash-out refinances are a popular way for borrowers to access the equity in their homes to pay down consumer debt or make additional purchases. Borrowers need to make a risk-based assessment of whether extracting equity from a home is economical. Borrowers also need to be aware that refinancing a mortgage has costs, including the fact that the lender may charge a higher interest rate on a cash-out refinance than a rate-and-term refinance.

Chain (real estate)
in the process of buying or selling a house

Chain free property
A chain free property is a property that is being sold by a vendor (home seller) who does not need to purchase a new property after they sell.

Chain of title
In a real estate transaction, the chain of title is researched on behalf of the buyer by a title company, which summarizes all title transfers and encumbrances in a title report. Title insurance is used by buyers to protect against financial loss ensuing from errors in the title report.

Chatak / Satak
A unit for measuring land. 1 Chatak / Satak = 45 Sq.ft.

Chawls
A chawl is a name for a type of building found in India. They are often 4 to 5 stories with about 10 to 20 tenements, referred to as kholis, which literally mean 'rooms' on each floor. Many chawls can be found in Mumbai where they were constructed in abundance to house the people migrating to Mumbai because of its booming cotton mills and overall strong economy.

Closing (real estate)
Closing (or settlement) is the final step in executing a real estate transaction.

Closing costs
Real property in most jurisdictions is conveyed from the seller to the buyer through a real estate contract.

Club
A club is an association of two or more people united by a common interest or goal. A service club, for example, exists for voluntary or charitable activities; there are clubs devoted to hobbies and sports, social activities clubs, political and religious clubs, and so forth.

Club Membership Registration Charge (CMRC)
A charge for membership of a Club

Co-Applicant
An additional person seeking to obtain a loan with a primary applicant. One reason a potential borrower might want a co-applicant is to increase his odds of qualifying for a loan or to qualify for a larger loan. A co-applicant is also desirable if the loan is for the purchase of property that will be owned equally by both borrowers, such as business partners or spouses.

Co-borrower
Any additional borrower(s) whose name(s) appear on loan documents and whose income and credit history are used to qualify for the loan. Under this arrangement, all parties involved have an obligation to repay the loan. For mortgages, the names of applicable co-borrowers also appear on the property's title.

Collateral
Collateral is a form of security to the lender in case the borrower fails to pay back the loan. For example, if you get a mortgage, your collateral would be your house. In margin trading, the securities in your account act as collateral in the case of a margin call.

Collateralization
The act where a borrower pledges an asset as recourse to the lender in the event that the borrower defaults on the initial loan. Collateralization of assets gives lenders a sufficient level of reassurance against default risk, which allows loans to be issued to individuals/companies with less than optimal credit history/debt rating.

Combination Loan
1. A transaction consisting of two separate loans for the same borrower by the same lender. The initial loan is used to finance the construction of a new home; upon completion of construction, the loan is repaid by a second loan, which is a permanent mortgage on the home. The initial construction loan is usually an adjustable-rate mortgage, while the subsequent mortgage might be any one of the mortgage types available. 2. The simultaneous use of a first and second mortgage to finance a home. The first loan is usually made for 80% of the home's value and has a first lien position, while the second loan is usually for 10-20% of the home's value and has a second lien position. This transaction is frequently used to avoid having to pay private mortgage insurance. This type of combination loan is also known as a "piggy-back" or "80-10-10 transaction".

Commercial Investment
An investment in a for-profit enterprise involved in the buying and/or selling of goods and/or services that is expected to generate cash flow. A commercial investment can be assumed by an individual, group or institution. Frequently, a commercial investment is shared by a group of investors combining assets in order to fund the investment.

Commercial Property
Real estate property that is used for business activities.

Commercial Real Estate
Property that is solely used for business purposes. Examples are malls, industrial parks, gas stations, convenience stores and office towers.

Common amenities

Common Area

Common Resource
A resource, such as water or pasture, that provides users with tangible benefits. A major concern with common resources is overuse, especially when there are poor social-management systems in place to protect the core resource. Common resources that are not owned by anyone are called open-access resources.

Community center

Community hall

Companion Tranche
A class of tranche found in planned amortization class (PAC) and targeted amortization class (TAC) collateralized mortgage obligations (CMOs) that absorbs variable prepayment rates. The companion trache is so named because it is designed to provide support to the main PAC tranche, which has priority in receiving principal and interest payments so as to give its investors steadier and more predictable cash flows. If the actual rate of prepayments differs from the assumptions made at the time the CMO was issued, the difference is absorbed by the companion tranche. Also known as a "support tranche".

Comparables
A valuation technique in which a recently sold asset is used to determine the value of a similar asset. This technique is often used in real estate to determine the initial sale price of a property.

Conditional Offer
In general, an agreement between a buyer and a seller that an offer will be made if a certain condition is met. In real estate transactions, conditions can include a home inspection or a mortgage application. Once the conditions are satisfied, the buyer or seller will then be obligated to purchase or sell the property. If the conditions are not met then the buyer or seller is not obligated to purchase or sell the property.

Condominium
Building or complex, similar to apartments, owned by individuals. Common grounds are owned and shared jointly. There are townhouse or rowhouse style condominiums as well.

Condominium
A large property complex that is divided into individual units and sold. Ownership usually includes a non-exclusive interest in certain "common properties" controlled by the condominium management.

Condominium Fee
A maintenance fee charged by a condominium complex to cover the cost of repairs, landscaping, concierges, or amenities such as a gym or a pool. The condominium fee can be pegged to the size of the unit and what the development expects its expenses to be for the year. If expenses are expected to rise, so too will the condominium fees.

Condotel
A condominium project that is operated as a hotel with a registration desk, cleaning service and more. The units are individually owned. Unit owners also have the option to place their unit in the hotels rental program where it is rented out like any other hotel room.

Construction Lien
A claim made against a property by a contractor or other professional who has supplied labor or materials for work on that property. Construction liens are designed to protect professionals from the risk of not being paid for services rendered. Remedies vary from state to state, and can differ depending on whether the property in question is real property or personal property.

Construction Mortgage
A loan borrowed to finance the construction of a home and typically only interest is paid during the construction period. Once the construction is over, the loan amount becomes due and it becomes a normal mortgage. The money is advanced incrementally during construction, as construction progresses.

Contractor

Contributory Value
A real estate term that refers to the contribution a particular component has to the value of the whole property.

Convertible ARM
An Adjustable Rate Mortgage (ARM) that gives the borrower the option to convert to a fixed-rate mortgage. Convertible ARMs are marketed as a way to avoid rising interest rates and usually include specific conditions. The financial institution often charges a fee to switch the ARM to a fixed-rate mortgage.

Conveyance
A written instrument, such as a deed or lease, that transfers some ownership interest in real property from one person to another.

Conveyance Deed

Conveyance Tax

Cooperative
A type of multiple ownership in which the residents of a multiunit housing complex own shares in the cooperative corporation that owns the property, giving each resident the right to occupy a specific apartment or unit.

Covered Car Park

Credit

 

Axiom