REAL ESTATE - A -

REAL ESTATE - B -

   BAD FAITH
Generally, conduct implying or involving fraud, or a scheme to mislead or deceive another, or a neglect or refusal to perform some duty or contractual obligation. The term implies the conscious doing of a wrong based upon a dishonest purpose and not an honest mistake, for example, if a licensee takes copies of listings, records, or other confidential information of the broker, when the licensee leaves the employ of the broker. Also called breach of trust. 

 

   BALLOON PAYMENT
A final payment on a partially amortized mortgage loan that is much larger than the series of periodic payments made to repay the loan.   

   BARGAIN AND SALE DEED
A type of deed in which the grantor assures the grantee that he is the lawful owner of the real property, but does not agree to warrant (i.e., guarantee) the title. >>_ grantor and grantee.   

   BASE LINE(S)
In the goverment rectangular survey system of describing real property, imaginary survey lines running east and west crossing a principal meridian. Used toestablish township lines and as boundaries for land areas called townships or tiers. See government survey system.   

   BASE RENT
Usually a fixed amount of minimum rent required to be paid to the landlord.   

   BASIS
>>_ adjusted basis.   

   BEFORE-TAX CASH FLOW (CASH THROW-OFF OR PRETAX CASH FLOW) (BTCF)
A pretax measurement of cash generated by the property. Annual debt service - NOI = BTCF   

   BENCHMARKS
Used to measure elevations; fixed or permanent reference points.   

   BENEFICIARY
A person receiving personal property in a will.   

   BEQUEST
The gift of personal property in a will.Bert J. Harris, Jr., Private PropertyRights Act Provides a landowner with relief from government regulation or payment of compensation if a state law, rule, regulation, ordinance, or state agency limits, restricts, or unfairly affects the landowner's use of his or her private property, or causes the property to be devalued.   

   BIENNIUM
A period of two years.   

   BIWEEKLY MORTGAGE
A mortgage loan that takes a monthly payment and splits it in half. The borrower makes this half payment every two weeks; thereby making 13 full mortgage payments per year instead of 12. This allows the borrower to pay less interest over the life of the loan and allows a 30 year mortgage to be paid off in approximately 22 years.   

   BILATERAL CONTRACT
A contract in which all parties have made promises and are bound to perform in accordance with the terms of theagreement (e.., in a contract for the sale of real property, where the seller is bound to convey his property and the buyer is bound to pay the agreed price for it).   

   BINDER CONTRACT
Can serve as a basic agreement until all parties can draw a more complete contract.Depending on the wording, this may be no more than a letter of intent between the parties.   

   BINDER DEPOSIT
A deposit of earnest money given by the buyer to the seller of real property; it serves to indicate the buyer's good faith intent to complete the transaction.   

   BLANKET MORTGAGE
A single mortgage that pledges multiple parcels of land as security for a debt. It usually contains a release clause, which allows individual parcels to be released from the mortgage as they are sold and upon payment of a specified amount to the lender.   

   BLIND AD
A deceptive or misleading advertisement which does not properly identify the licensed name of the brokerage firm who placed the ad and merely gives a telephone number, street address, or post office box number. Real estate brokers and brokerage firms are prohibited by law and Florida Real Estate Commission rule from using blind ads.   

   BLOCKBUSTING
The illegal and discriminatory practice of inducing or attempting to induce a person to sell or rent his real property by representing that people of a certain race, color, religion, or ethnic background are, or likely will be, moving into the neighborhood.   

   BOARD OF REALTORS®
The local trade organization of the Florida Association of REALTORS® that is affiliated with the National Association ofREALTORS®. bonafide Actual, real, or honest; in or with good faith.   

   BOND (NOTE)
The written obligation to repay a loan under specific terms that is given by a borrower to a lender. It is usually accompanied by a mortgage that pledges real property as security for the debt. See promissory note.   

   BOOT
Money or other property that is given to make up the difference in value between exchanged properties. >>_ like-kind exchange.   

   BORROWER
>>_ mortgagor.   

   BRANCH OFFICE
Any office maintained by a broker in addition to his principal office is considered to be a branch office, and all such offices must be separately registered with the Department of Business and Professional Regulation.   

   BREACH OF CONTRACT
Failure, without legal excuse, to perform in accordance with the terms or conditions of a contract.   

   BRIBERY
The offering, giving, receiving, or soliciting of anything of value to influence a public official in discharge of his legal or public duty.   

   BROKER ASSOCIATE
A person qualified to be issued a license as a broker, but who operates as a sales associate in the employ of a licensed broker or owner/employer. For all practical purposes, a broker associate must operate as a sales associate. See sales associate and real estate.   

   BROKER PRICE OPINION (BPO)
Used to obtain the probable sales price and marketing time of a residential property, based on a qualitative analysis of competitive listings and closed sales. The BPO may be utilized for transactions less than $250,000 that do not require completion by a state licensed or certified appraiser. It is not an appraisal and cannot be called an appraisal. See appraisal.   

   BROKER, REAL ESTATE
A licensed person who, for another, and for compensation, or with the intent to receive compensation, acts as an agent for others in the performance of one or more services of real estate; this includes transactions involving business enterprises or opportunities. As set forth in Chapter 475, F.S., the term broker also includes 1) any person who advertises rental property information or lists; 2) any person who is a general partner of a brokerage partnership, or an officer or director of a brokerage corporation; and 3) any person or entity who lists, advertises for sale, promotes or sells by any means whatsoever one or more time-share periods per year on behalf of others, except as otherwise provided by law.   

   BROKERAGE, REAL ESTATE
A business registered with the Department of Business and Professional Regulation that buys, sells, rents, leases, exchanges, auctions, or appraises the real property of others for compensation, or advertises rental property information or lists, or that lists, advertises for sale, promotes or sells by any means whatsoever one or more time-share periods per year on behalf of others. A brokerage business may be registered and operated as a sole propnetorship, corporation, or general or limited partnership. See sole proprietorship, corporation for profit, general partnership, and limited partnership.   

   BROKERAGE RELATIONSHIP DISCLOSURE ACT (BRDA)
Florida's law regarding relationships between licensees and consumers. A licensee may enter into a brokerage relationship as either a single agent, as a transaction broker, or as a designated sales associate. Licensees may also engage in a no brokerage relationship.   

   BUDGET MORTGAGE
An amortizing permanent long-term loan in which the monthly payment includes principal and interest and one-twelfth of the estimated cost of the annual real estate taxes and hazard insurance on the mortgaged property. >>_ PITI.   

   BUFFER ZONE
A strip of land that separates one land use from another.   

   BUILDING CODES
Construction materials and practices which are regulated through governmental ordinances that protect the public. The State of Florida has a state building codeand different municipalities have their own codes which cannot be less strict than the state code.   

   BUILDING INSPECTION
Normally conducted by a local city or municipality to enforce minimum standards pursuant to the Florida Building Code.   

   BUILDING PERMIT
Issued by a city or municipality in relation to building, electrical, plumbing, roofing, or mechanical work and installations.   

   BUSINESS DAY
Any day other than Saturday, Sunday, or a legal holiday.   

   BUSINESS ENTERPRISES BROKERAGE
A real estate firm that specializes in businesses with values in excess of $200,000.   

   BUSINESS OPPORTUNITY BROKERAGE
A real estate firm that specializes in businesses with values less than $200,000.   

   BUSINESS RISK
>>_ operating business risk.   

   BUSINESS TRUST, REAL ESTATE
A business entity formed for the purpose of purchasing and developing real estate, which is funded by persons who make investments at a stipulated amount per unit or share. Generally, a board of trustees is elected by the shareholders to manage the business affairs of the trust. A business trust also may be called a Massachusetts trust, common law trust, real estate investment trust, or syndication.   

   BUYER'S MARKET
A market where there are more sellers relative to the number of buyers. >>_ seller's market.   

REAL ESTATE - C -

   CANCELED
A license that is void. Cancellation of a license is effective on the date that it is approved by the Florida Real Estate Commission. Cancellation does not involve disciplinary action. A licensee who no longer wants to practice real estate can voluntarily cancel being licensed. >>_ void.   

   CAPITAL ASSET
Real or personal property not held for sale to a taxpayer's customers in the normal course of business.   

   CAPITAL GAIN (LOSS)
The gain or loss realized from the sale or exchange of a capital asset (e.g., real property) as defined by the Internal Revenue Code.   

   CAPITALIZATION
A mathematical process used by appraisers in the income capitalization approach to convert the annual net income of an income-producing property into an indication of value.   

   CAPTION
The title, heading, or clause in an abstract where the legal description of the property appears.   

   CASEMENT
A type of window that moves outward by the use of pivots or hinges.   

   CASH FLOW
>>_ after-tax cash flow.   

   CAVEAT EMPTOR
Literally translated, the term means, "let the buyer beware." It emphasizes that a purchaser must examine, judge, and test for himself before purchasing goods or services. Since Chapter 475, F.S., Florida Real Estate Commission rules and other laws protect the consumer-buyer. Real estate licensees are prohibited from dealing with the buying public on the basis of caveat emptor.   

   CEASE AND DESIST ORDER
An order or notice which may be issued by the Department of Business and Professional Regulation when it has probable cause to believe that an unlicensed person has violated any provision of Chapters 475 or 455, F.S., or any lawful rule of the Florida Real Estate Commission or Department of Business and Professional Regulation.   

   CEASE TO BE IN FORCE
A licensee cannot conduct any business while the license is in this status (e.g., a broker's license will expire and cease to be in force until he or she notifies thecommission when changing the business address). License law requires the notification no later than 10 days after the change in address.   

   CERTIFICATE
A written document intended to relate the facts concerning proceedings, records, and acts of the Florida Real Estate Commission.Certificates are signed by the chairman or vice-chairman, authenticated by the seal of the Commission, and considered as prima facie evidence in all courts of the state.   

   CERTIFICATE OF DEPOSIT
A written acknowledgement by a commercial bank, savings association, or other type of savings institution with a promise to pay to the depositor, or to some other person, or to his order, the funds deposited with accrued interest, if any, upon maturity or demand.   

   CERTIFICATE OF OCCUPANCY
An occupancy permit issued by a city or county government when construction has been completed and a final inspection is approved.   

   CERTIFICATE OF REASONABLE VALUE
A certificate establishing the current market value of a property based upon an approved Department of Veterans Affairs(VA) appraisal. Issued by the VA, such a certificate places a limit on the amount of a VA-guaranteed mortgage loan.   

   CERTIFIED APPRAISAL REPORT
A written document issued by a state-certified appraiser that presents the appraiser's analysis, estimate, or conclusion of the subject property's value as of a given date.   

   CERTIFIED GENERAL APPRAISER
An individual certified by the Department of Business and Professional Regulation to issue certified appraisal reports for all types of real property.   

   CERTIFIED RESIDENTIAL APPRAISER
An individual certified by the Department of Business and Professional Regulation to issue certified appraisal reports for residential real property of one to four units.   

   CERTIORARI PROCEEDING
A suit for a court review filed by the taxpayer who pays the taxes under protest.   

   CHAIN OF TITLE
A list of all recorded documents such as deeds, conveyances, mortgages, liens, or other instruments affecting title to a particular parcel of real property. It has been called the basic tool of the title search, for the chain of title begins from the government or original source of title and continues down to the present titleholder.   

   CHANNELING (OR STEERING)
The illegal and discriminatory practice of directing, channeling, or steeringprospective real estate buyers into or out of certain neighborhoods based upon minority status, or into or out of racially transitional neighborhoods.   

   CHAPTER 475, F.S., PART I
The numerical identification of the Real Estate License Law contained within the Florida statutes.   

   CHAPTER 475, F.S., PART II
The numerical identification of Appraiser License Law contained within the Florida statutes.   

   CHAPTER 718, F.S.
The numerical identification of the Condominium Act contained within the Florida statutes.   

   CHAPTER 719, F.S.
The numerical identification of the Cooperative Act contained within the Florida statutes.   

   CHAPTER 720, F.S.
The numerical identification of the Homeowners Association Act contained within the Florida statutes.   

   CHATTEL (PERSONAL PROPERTY)
All valuable property other than real property. Personal property usually consists of items having a limited life that are easily movable from one place to another (e.g., cars, boats, stocks, bonds, and mortgages).   

   CHATTEL (REAL)
An interest in real property that is less than freehold (e.g., a leasehold estate).   

   CHATTEL MORTGAGE
A mortgage that is secured by personal property.   

   CHECK
In the goverment rectangular survey system of describing real property, the land area contained within the intersection of any two adjacent standard parallels or correction lines and any two adjacent guide meridians. A check is 24 miles square and contains 16 townships.   

   CHIEF ADMINISTRATOR
The person who is responsible for the overall policies and practices of a real estate proprietary school or state institution teaching Florida Real Estate Commission prescribed educational courses.   

   CIRCUIT BREAKERS
A safety device designed to interrupt the flow of electric power when a dangerous situation develops.   

   CITATION
Administrative penalty issued to real estate licensees, permit holders, and DRE registrants. It comes as a result of an audit or investigation and involves fines from $100 to $500. Investigators are authorized to issue citations to licensees when an offense poses no substantial threat to the public health, safety, or welfare, or if the offense poses a substantial threat to the public health, safety, or welfare but the potential for harm has been removed prior to issuance of the citation; or it is a first offense.   

   CITATION_EXAMPLES
Examples of some citable offenses include failure to properly reconcile an escrow account when the account balances; guaranteeing a pupil will pass an exam; and failure to maintain the required office. A licensee has 30 days after receiving a citation to accept or reject it. If the licensee does not dispute it, then it becomes a final order and the case is closed. If the licensee disputes the alleged violations, then the licensee must file a written objection. Also, the licensee must pay the fine on time; otherwise, the Florida Real Estate Commission will file an administrative complaint.   

   CIVIL RIGHTS ACT OF 1866
Prohibits discrimination on the basis of race in any rental or sale of real estate.   

   CIVIL RIGHTS ACT OF 1968
Known as Title VIII - Fair Housing Act, prohibits discrimination on the basis of race, color, religion, sex, or national origin 1) in the sale or rental of residential housing or lots; 2) when advertising the sale or rental of a dwelling; 3) in the origination of residential real estate loans; or 4) when providing any real estate brokerage service.   

   CLAUSE
A subdivision, single paragraph, a sentence, or part of a sentence of a legal document (e.g., a contract, deed, will, or statute).   

   CLEAN AIR ACT OF 1970
Requires the Environmental Protection Agency (EPA) to develop and enforce regulations to protect the general public from exposure to airborne contaminants that are known to be hazardous to human health.   

   CLERK OF THE CIRCUIT COURT
An officer of the court who is responsible for filing pleadings, motions, judgments, and so on, issuing processes, and maintaining records of court proceedings.   

   CLIENT (PRINCIPAL OR EMPLOYER)
A person who delegates authority to another person to act for or represent him as his agent. In real estate brokerage, the client or principal employs the broker as his agent to perform one or more services of real estate on his behalf. >>_ principal.   

   CLOSING
The termination of a real estate transaction when title to the seller's property is conveyed to the buyer in return for the purchase price as stated in the sales contract. Although it concludes the broker's legal responsibilities, good business practice dictates that closing does not terminate his ethical responsibilities to the parties to the transaction.   

   CLOSING COSTS
Expenses incurred by the seller and buyer on the sale of real property. The Real Estate Settlement Procedures Act (RESPA), which is a federal statute, regulates the full disclosure of such costs toborrowers. >>_ Real Estate SettlementProcedures Act.   

   CLOSING DATE
The date on which the final legal documents pertaining to the sale of real property are completed, and title to the seller's property is conveyed to the buyer in return for the purchase price as stated in the sales contract.   

   CLOSING STATEMENT
A detailed financial accounting of a real estate sales transaction. Some transactions involve three statements 1) the seller's statement; 2) the buyer's statement; and 3)  the broker's statement. Also called HUD-1.   

   CLOUD ON TITLE
Any valid claim or encumbrance on real property that, if valid, affects or impairs the owner's title in the property. If a properly executed quitclaim deed does not clear a cloud or defect on title, it is necessary to file a suit (or action) to quiet title. >>_ quitclaim deed and suit to quiet title.   

   CODE OF ETHICS
Written standards of ethical conduct, such as the Code of Ethics of the National Association of REALTORS®.   

   COERCION
Compelled to compliance by force of arms or threat.   

   COGNOVIT CLAUSE
A harsh clause that provides that a judgment of default and a lien against all real property owned by the mortgagor can be obtained by simply filing an affidavit in court.   

   COLLATERAL
Real or personal property that is pledged as security for the satisfaction of a debt (e.g., stocks, bonds, or the real property that the borrower pledges as security on a loan).   

   COLLUSION
When two or more parties get together to defraud a third party.   

   COMMERCIAL BANK
A federal or state chartered financial institution that acts as a depository and lender for various commercial businesses and activities.   

   COMMERCIAL PROPERTY
A classification of real property used for business purposes or to produce income for the owner. Examples include restaurants, shopping centers, and office buildings.   

   COMMINGLE/COMMINGLING
The act of a broker mixing or intermingling his own personal funds with the funds of a client or customer.   

   COMMISSION
The compensation that a broker receives for performing one or more services of real estate in accordance with his employment  contract; the Florida Real Estate Commission (FREC).   

   COMMITMENT
An agreement, promise, or pledge to do something (e.g., a loan commitment by a lender that a loan will be made under certain terms if the potential borrower accepts the commitment on or before a certain date).   

   COMMITMENT FEE
A fee charged by a lender for issuing a loan commitment.   

   COMMITTEE'S DEED
A deed used to convey title to the real property of a person who is declared legally incompetent. Because a competent grantor must sign the deed, a committee is appointed by the court to administer the incompetent person's affairs and all members of the committee must sign the deed.   

   COMMON ELEMENTS
Parts of the condominium association property that are necessary or convenient to the existence, maintenance, and safety of the condominium property and the unit owners. Also called common areas. As defined in Chapter 718 F.S., the portion of the condominium property not included in the units.   

   COMMON LAW
The common law consists of principles and rules of action that relate to thegovernment, and security of persons and property. The authority for such laws is derived solely from usages and customs, or from the judgments and decrees of courtsthat recognize, affirm, and enforce such usages and customs.   

   COMMON LAW OF AGENCY
The body of law applicable to consensual relationships in which one person consents to act on behalf of another person and subject to that person's control.   

   COMMON LAW TRUST
>>_ business trust.   

   COMMUNITY ASSOCIATION MANAGEMENT
(CAM)A manager of a residential community association. A CAM license is required when the association has more than 10 units or a budget of $100,000 or more per year.   

   COMMUNITY PROPERTY
Under the community property system, property is owned in common by a husband and wife (each having an undivided one-half interest) by reason of their marital status. Florida operates under the common law system and not the community property system.   

   COMPARATIVE MARKET ANALYSIS (CMA)
A report provided to a real estate agent's customers that provides information helpful in establishing a list price for sellers or offering price for buyers. It is not an appraisal. >>_ appraisal.   

   COMPENSATION
Anything or any service of value paid, received, or expected to be paid or received.   

   COMPENSATORY DAMAGES
Compensation to an injured party that , merely makes good or replaces the loss caused by the wrong or injury. It is obtained by filing suit in a court. It is a remedy for breach of contract. >>_ breach of contract.   

   COMPETENT
Duly or legally qualified, able, adequate, suitable, and capable.   

   COMPLAINANT
A person who files a complaint with the Department of Business and ProfessionalRegulation. >>_ respondent.   

   COMPLAINT
Generally, a written statement that charges or accuses the person named therein of having committed a specified offense.   
   COMPREHENSIVE PLAN
A plan consisting of written and graphic materials that describe principles, guidelines, and standards for the orderly and balanced future economic, social, physical, environmental, and fiscal development of the area served. The plan must be flexible, economically feasible, and meet the goals of the area to be effective.   

   CONCEALMENT
The intentional withholding of something that one knows and is duty bound to reveal a form of fraud.   

   CONCURRENCY
A provision of the Florida Growth Management Act that requires growth, zoning, and building permits are kept in line with existing infrastructure.   

   CONDEMNATION
A judicial process of taking private property for public use through the power of eminent domain. The owner must receive just compensation for his property. >>_ eminent domain.   

   CONDOMINIUM
A concept of property ownership consisting of an undivided interest in a parcel of real property (common areas together with a separate fee simple interest in a single residential or commercial unit in a building located on the property (e.g., an apartment, office, or store).   

   CONFLICTING DEMANDS
A real estate broker who maintains an escrow account receives different claims from the parties to a contract. Florida law requires the broker to provide written notification to FREC within 15 business days of the last party's demand. The broker must institute one of the settlement procedures within 30 business days after the last demand (e.g., if the broker waits until the 10th business day to notify FREC, then the broker has 20 business days to institute one of the settlements procedures).>>_ business day.   

   CONFORMING LOAN
A conventional mortgage loan that conforms to Fannie Mae and Freddie Mac standards (e.g., borrowers who qualify, can finance up to $417,000 for a one-unit property).   

   CONSENT TO TRANSITION
A principal must give written authorization to the agent prior to changing the representation from single agent to transaction broker.   

   CONSIDERATION
The promise, cause, motive, price, or compelling influence that induces a party to enter into a contract. Consideration is one of the essential elements of a valid and enforceable contract. Consideration can be good or valuable. Good is love and affection and valuable is monetary.   

   CONSPIRACY TO DEFRAUD
A confederacy between two or more persons formed to commit an unlawful civil or criminal act, or to perform a lawful act in an unlawful manner.   

   CONSTRUCTION
A court's interpretation of the terms of an agreement.   

   CONSTRUCTION LIEN
(mechanic's lien, material-man's lien) A lien filed with the Clerk of the Circuit Court no later than 90 days after the last labor is performed or last supplies are delivered. It is based on the principal of unjust enrichment and a property owner cannot use materials and labor to improve their property without paying the appropriate party. Once filed, the lien is retroactive to the first day of work. Once filed, the lien is valid for only one year.   

   CONSTRUCTION MORTGAGE
A loan originated to pay the costs of constructing or making improvements to a building, or for development of real property. It is usually a short-term loan and the proceeds are paid in installments as various stages of construction, improvement, or development are completed.   

   CONSTRUCTIVE NOTICE
Notice served to the public by recording all instruments which convey or affect the title to real property in the office of the Clerk of the Circuit Court of the county in which the property is located (e.g., deeds and other conveyances, mortgages and assignment of mortgages, liens, and leases for a term of one year or more). When such documents are recorded as prescribed by law, subsequent purchasers and creditors are held to have both knowledge of the documents and their contents.   

   CONSUMER MEMBER
A person appointed to serve on a board who is not, and has never been, a member or practitioner of the profession regulated by such board (e.g., the Florida Real Estate Commission has two consumer members).   

   CONSUMER CREDIT PROTECTION ACT
(Truth-in-Lending Act) (Reg Z) Federal law that ensures borrowers and customers in need of consumer credit receive meaningful disclosure of information regarding the cost of consumer credit and terms so that they can compare those terms, shop wisely, and thus avoid the uninformed use of credit.   

   CONSUMER PRICE INDEX (CPI)
The most used measure of consumer price changes over time for goods and services.The Save Our Homes caps increases in property tax assessments to 3% or the CPI, whichever is lower for a homesteaded property. >>_ homestead and Save Our Homes.   

   CONTEMPT
A willful disregard or disobedience of a public authority.   

   CONTIGUOUS
In close proximity; adjoining; in actual contact at a point or along a boundary.   

   CONTINGENCY CLAUSE
A contract clause that provides that a certain act must be completed or that some future event must take place for the contract to become binding on the parties.   

   CONTINGENT
Possible, but doubtful or uncertain;dependent upon the occurrence of some future event or happening.   

   CONTINUING EDUCATION
All brokers and sales associates (active and inactive) must satisfactorily complete a minimum of 14 hours of instruction of 50 minutes each of the Commission prescribed or approved education during each renewal period except their first renewal period. The 14 hours are composed of a mandatory three-hour core law course and 11 hours of specialty courses on real estate practices.Note that an involuntarily inactive licensee who is more than 12 months but less than 24 months involuntarily inactive must complete a 28 hour reactivation course instead. >>_ involuntarily inactive.   

   CONTRACT
A legally binding agreement between two or more persons that creates an obligation to do or not to do a particular thing. A real estate contract must be in writing and signed to be enforceable in court.   

   CONTRACT FOR DEED
An agreement in which the buyer is contracting for a deed to the seller's real property that will be delivered after payment of a specified sum of money (i.e., principal and interest), often by periodic monthly payments. This document also may be called an installment contract, land sales contract, or agreement for deed.   

   CONTRACT FOR SALE AND PURCHASE
A contract in which the owner of a parcel of real property agrees to convey title to the property to the buyer in the future, and the buyer agrees to purchase the property for a specified price, and under certain terms and conditions, on the same date. This document also may be called a sales contract, purchase agreement, or contract for purchase.   

   CONTRACT RENT
Also called scheduled rent; the rental amount designated in a lease contract.   

   CONVENTIONAL MORTGAGE LOAN
A mortgage loan originated with an institutional lender such as a commercial bank, savings and loan association, or a private lender, which pledges real property as security for the debt. The federalgovernment is not involved in guaranteeing or insuring such loans.   

   CONVERSION
The act of receiving the money or property of another party and fraudulently converting, withholding, or applying it to one's own use and benefit—a form of fraud.   

   CONVEYANCE
A written instrument that transfers some estate or interest in land from one party to another (e.g., a deed, mortgage, or will).   

   COOPERATIVE

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   CORNER LOT
A lot on the end of the block that is bounded by streets on two sides.   

   CORPORATE VEIL
The theoretical protection provided by a corporate structure that applies to its officers, directors, and stockholders. For example, debts of a corporation can usually be enforced against the corporation only, and not against the officers, directors, and shareholders. However, if the Florida Real Estate Commission or a court of law has reason to believe that a real estate brokerage corporation has committed an unlawful act, it may be allowed to pierce or lift the corporate veil and take appropriate action against the offending natural (i.e., living) persons, such as the officers, directors, or shareholders of the corporation.   

   CORPORATION FOR PROFIT (CORPORATION)
A type of business organization formed by one or more natural (i.e., living) persons, that is considered by law to be an artificial or fictitious person. A corporation is a legal entity separate from its owners and, as such, may contract, own property, engage in any lawful business, and sue or be sued in its own name. In accordance with Chapter 475, F.S., a domestic or foreign corporation for profit can be registered tobroker real estate in Florida. >>_ domestic corporation and foreign corporation.   

   CORPORATION SOLE
An ecclesiastical or church organization that is recognized by Florida law. It cannot be organized for commercial business ventures or registered to broker real estate.   

   CORRECTION LINES
Imaginary lines located every 24 miles north and south of the base line. These lines are used in the government land survey system of legal description. >>_ guide meridians and check.   

   COST
The amount of funds expended to create a product or good   

   COST-DEPRECIATION APPROACH
An approach used to appraise real property that is often applied to estimate the market value of special purpose buildings (e.g., churches, schools, government buildings).The approach involves estimating the reproduction cost of the improvements, subtracting all elements of accrued depreciation, and adding to that result the value of the land as estimated separately.   

   COUNSELING
A specialized real estate service which involves providing professional, competent, independent advice and guidance to a client on a specific real estate problem.   

   COUNTEROFFER
Another offer made in response to an offer previously received but not accepted.   

   COUNTY PROPERTY APPRAISER
An elected county official who determines the assessed value of real property, which serves as the basis for computing property taxes.   

   COURT
A part of the judicial department of the government where a judge and/or jury administers justice by applying the laws to controversies brought before it.   

   COVENANT (IN A DEED)
A written promise in a deed by which a party, usually the grantor, binds himself to do or not to do a certain act.   

   COVERTURE
The condition or state of a married woman.   

   CREDIT
The ability of a person to borrow money or pay for goods over a period of time based upon his past credit history, reliability, and solvency. On a closing statement, funds that are to be received by the seller or buyer.   

   CREDITOR (LENDER)
A party to whom a debt or obligation is owed by another party (i.e., the debtor or borrower).   

   CREDIT UNIONS
Nonprofit cooperative associations, sach as teacher or labor unions, whose members place money in savings accounts, which is then loaned out to members.   

   CUL-DE-SAC
On a U-shaped block.   

   CULPABLE NEGLIGENCE
Unintentional and careless (or negligent) acts that are censurable, or the failure to do something that a reasonable, prudent, and honest person would have done.   

   CURABLE
Depreciation is curable when the cost to repair equals the added value.   

   CURABLE FUNCTIONAL OBSOLESCENCE
A functional deficiency that is economical to correct.   

   CURABLE PHYSICAL DETERIORATION
Results from failure to properly maintain the property. Curable problems will return the cost of the repair such as painting or cleaning the building.   

   CUSTOM BUILDING
An improvement constructed by the developer, contractor, or builder at the customer's (property owner's) request and to his specifications.   

   CUSTOMER (PROSPECT)
The party with whom the broker hopes to be successful in accomplishing the object of his employment. A buyer or seller of real property that may or may not be represented by a real estate licensee in an authorized brokerage relationship. >>_ transaction broker.