Real Estate Glossary

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C

CAN-SPAM act of 2003

act pertaining to licensees who send commercial emails. Requirements of the CAN-SPAM Act of 2003 (Controlling the Assault of Non-Solicited Pornography and Marketing Act) prohibits deceptive subject lines and misleading or false header information, in addition the act requires that e-mail recipients have an opt-out method.

capitalization rate

is a one of the components, the Rate, within the Income Approach formula (V = I ÷ R) used to determine the value of an incoming producing property.

The Capitalization Rate is comprised of two rates: the interest rate and the capital recovery rate (often referred to as the recapture rate). The interest rate is the return "on" the investment. It is interest in its traditional sense and use. The capital recovery rate is actually the return "of" the investment. That is, the capital recovery rate reimburses the investor for the deterioration in value of the improvements which were paid for at the time of purchase, but deteriorate as time passes.

cash equivalency

refers to adjustments necessary to determine a subject's value when pricing has been affected by favorable (below market) financing terms provided by the seller in a transaction, or the assumption by the buyer of a below market mortgage.

The cash equivalency technique will reveal the maximum impact that the favorable financing may have had on the price paid; it will not necessarily reveal the actual impact on the sales price. It attempts to determine what the actual sale price would have been if the favorable financing or concessions had not been offered.

CERCLA - Comprehensive Environmental Response Compensation and Liability Act

A federal law, in 1980 and reauthorized by the Superfund Amendments and Reauthorization Act of 1986, which imposes on owners, lenders, occupants, and operators liability got correcting environmental problems discovered on a property.

Certificate of reasonable value (CRV)

This states the property's current market value based on a VA-approved appraisal. The CRV places a ceiling on the amount of a VA loan allowed on the property.

certificate of title

document from and attorney/agent expressing an opinion as to the lawful holder of title to the real estate. The title insurance company will use the certificate of title to issue the title insurance.

Keyword(s):

chain of title

shows each property’s history of ownership. Because the current owner’s title is only as good as the title received from the previous owner, the chain of title can establish that the ownership was properly vested in each of the proceeding owners.

chattel

or personal property, includes all tangible items that are not considered real estate.

Keyword(s):

Civil Rights Act of 1866

This banned all racial discrimination and was mainly intended to protect the civil rights of African Americans in the wake of the civil war. This law provided that "All citizens of the United States shall have the same right in every state and territory as is enjoyed by White citizens thereof, to inherit, purchase, lease, sell, hold, and convey real and personal property."

Civil Rights Act of 1968

This emulated the objectives of the Civil Rights Act of 1964 and extended protections against discrimination in residential real estate transactions based on the protected classes of race, color, religion, or national origin.

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