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
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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.
This
is a typical list:
BUYER'S
EXPENSES SELLER'S EXPENSES
Documentary
Stamps on Notes Cost of Abstract
Recording Deed and Mortgage Documentary Stamps on Deed
Escrow Fees Real Estate Commission
Attorney's Fee Recording Mortgage
Title Insurance Survey Charge
Appraisal and Inspection Escrow Fees
Survey Charge Attorney's Fee
The agreement of sale negotiated previously between the buyer and the
seller may state in writing who will pay each of the above costs.
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Closing
Day
The day on which the formalities of a real estate sale are concluded.
The certificate of title, abstract, and deed are generally prepared for
the closing by an attorney and this cost charged to the buyer. The buyer
signs the mortgage, and closing costs are paid. The final closing merely
confirms the original agreement reached in the agreement of sale.
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Cloud
(On Title)
An
outstanding claim or encumbrance which adversely affects the marketability
of title.
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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--6 to 7 percent on houses, 10 percent on land.
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Condemnation
The
taking of private property for public use by a government unit, against
the will of the owner, but with payment of just compensation under the
government's power of eminent domain. Condemnation may also be a determination
by a governmental agency that a particular building is unsafe or unfit
for use.
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Condominium
Individual
ownership of a dwelling unit and an individual interest in the common
areas and facilities which serve the multi-unit project.
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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.
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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.)
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Cooperative
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.
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