Glossary
C
CASHIER'S CHECK: A bill of exchange drawn by the cashier of a bank, for the bank, upon any bank. After the check is delivered or issued to the payee or holder, the drawer bank cannot put a "stop order" against itself. By delivery of the check, the drawer bank has accepted the check, and thus becomes the primary obligor. (Also, see "Draft.")
CAVEAT: Literally, this means "let him beware." It is used generally to mean a warning.
CAVEAT EMPTOR: Let the buyer beware. Places a duty on a buyer to examine goods or property before purchasing when he buys at his own risk.
CAVEAT VENDITOR: Let the seller beware. Unless the seller by express language disclaims any responsibility, he shall be liable to the buyer if the goods delivered are different in kind, quality, use, and purpose from those described in the contract of sale.
CEDER: The insurance company issuing a policy which will then be reinsured. Most of the larger title insurers will not issue policies for more than $25,000,000 without obtaining reinsurance.
CERTIFICATE OF TITLE: Certified statement regarding ownership of land, based on examination of the record title.
CERTIFIED CHECK: A depositor's check recognized and accepted by a bank officer as a valid appropriation of the amount specified and as drawn against funds held by the bank.
CHAIN: As regards land measure, a chain equals 66 feet, 100 links, or 4 rods.
CHAIN OF TITLE: Beginning with a conveyance out of an original source of title such as a government, each succeeding deed, will or other medium which conveys and transfers the title to succeeding owners constitutes a link in the chain of title. The chain of title is the composite of all such links.
CHATTEL: Another name for personal property as distinguished from real estate. An article of movable property.
CHATTEL MORTGAGE: Obsolete name for mortgage of personal property.
CIVIL LAW: Law of the Roman Empire, based on the code of the Emperor Justinian. It is the basis of the law in many European countries today. In England, however, the common law applies.
CLAIM: A right to assert, or the assertion of, a demand for payment of money due, or the surrender or delivery of possession of property or the recognition of some right. A demand for something as one's rightful due.
CLASS ACTION: Representative lawsuit in which plaintiff files an action to recover money or to redress a wrong not only on his own behalf but also on behalf of all other persons similarly situated.
CLOSING: In some areas a closing is called a "settlement." The process of completing a real estate transaction during which deeds, mortgages, leases and other required instruments are signed and/or delivered, an accounting between the parties is made, the money is disbursed. The documents are recorded, and all other details such as payment of outstanding liens and transfer of hazard insurance policies are attended to. In some areas this procedure is known as the closing of escrow. (See also, "Settlement.")
CLOSING STATEMENT: A summation, in the form of a balance sheet, made at a closing, showing the amounts of debts and credits to which each party to a real estate transaction is entitled.
CLOUD ON TITLE: An irregularity, possible claim, or encumbrance which, if valid, would adversely affect or impair the title.
CO-INSURANCE: When the term "co-insurance" is used in connection with title insurance, as well as in other forms of insurance, it signifies that two or more insurance companies are insuring the same risk. Depending on the type of co-insurance utilized, the insurance may be identical for each company. That is, each company may have and be responsible for the same risks and liability. This is called "joint and several co-insurance," with each company's liability starting at the first dollar and continuing for the full amount of insurance as stated by the policy. This does not mean that the insured could be paid twice the amount of a loss, but does mean that all of the loss could be paid by one company rather than shared by both. The paying company would undoubtedly seek a partial recovery from its co-insurer. (Also, see "Reinsurance.")
CO-OPERATIVES: Co-operatives, usually referred to as "co-ops," are typically residential real estate projects which are owned by an entity, an interest in which is, in turn, owned by the "owner." The owner, as a concomitant to owning the interest in the entity, is also entitled to the use of a designated apartment in the building. This possessory interest is commonly evidenced by a proprietary lease.
CODE: A collection of laws.
CODICIL: An amendment, revision, supplementation, or cancellation of a will.
COLOR OF TITLE: That which gives the appearance of title, but is not title in fact.
COMMISSION: The amount due a real estate broker or mortgage loan broker for services performed in their respective capacities. The term also applies to regulatory tribunals such as real estate commissioners.
COMMITMENT: A pledge, promise, or firm agreement; also, a form of title evidence issued by a title company establishing a title insurer's contractual obligation to insure title to real property, subject to satisfaction of the requirements set forth therein..
COMMON AREA: When used in reference to condominiums or planned unit developments, the common area is that portion of land that is owned in common by all unit or lot owners and which each has an equal right to use. In a condominium the common area includes the buildings surrounding the units but not the unit of air space.
COMMON LAW: The system of laws originated and developed in England which was the source of customs, usages and arbitrary court decisions as distinguished from written laws enacted by legislative bodies.
COMPETENT: Legally qualified; capable of contracting.
CONDEMN: (1) The legal declaration of a government that something is unfit for further use or existence, or constitutes a peril to life, health, safety, or well-being of the public, and ordering its removal or destruction, such as declaring a building unfit for use and a menace to health and public safety and ordering its destruction, or to order the slaughter of diseased animals. (2) The selection of private property by a government or public service corporation for acquisition for public or quasi-public use.
CONDEMNATION: (1) The taking of private property for public or quasi-public use, with compensation to the owner, under the right of eminent domain. All governments and so-called public service corporations, such as railroads and electric companies, have the right to condemn and take private property. (2) The destruction by government of private property which imperils the life, health or safety of the public.
CONDITIONS: This term is related to restrictions and reservations. It refers to provisions in deeds and other real estate instruments which provisions make particular right contingent upon the occurrence of some future event.
CONDOMINIUM: An estate in real property consisting of an undivided interest in common in a portion of a parcel or real property together with a separate interest in space in a residential, industrial or commercial building. It may include a separate interest in another portion of real property. The estate may be either 1) an estate of inheritance or perpetual estate, 2) an estate for life, or 3) an estate for years including either a leasehold or subleasehold estate.
CONDOMINIUM UNIT: A residential unit in a condominium complex.
CONFIRMATION OF SALE: Court approval of the sale of property by an executor, administrator, guardian or conservator.
CONSIDERATION: Anything of value used to induce another person to enter into a contract. It may be money, services, or a promise, and consists of either a benefit to the promisor, or a loss or detriment to the promisee.
CONSTRUCTIVE: Inferred or implied.
CONSTRUCTIVE NOTICE: Notice given by public records.
CONTIGUOUS: In actual or close contact; adjoining or touching, e.g., parcels of land next to each other.
CONTINGENT: Dependent on an uncertain future event.
CONTRACT: Same as "Agreement", but usually more formal.
CONVEYANCE: The transfer of title to property from one person to another.
CORPORATION: A collection of individuals created by statutes as a legal person, vested with powers and capacity to contract, own, control, convey property, and transact business within the limits of the powers granted.
CORPOREAL: Of a material, tangible nature.
COTENANCY: Ownership of property by two or more persons.
COVENANT: (1) A formal agreement or contract between two parties in which one party gives the other certain promises and assurances, such as covenants of warranty in a warranty deed. (2) Agreements or promises contained in deeds and other instruments for performance or nonperformance of certain acts, or use or nonuse of property in a certain manner.
CUM TESTAMENTO ANNEXO: With the will annexed. A term applied to administration granted where a testator makes an incomplete will, without naming any executors, or where he names incapable persons, or where the executors named refuse to act. If the executor has died, an administrator "de bonis non cum testamento annexo" (of the goods not [already] administered upon with the will annexed) is appointed. Often abbreviated d.b.n.c.t.a.