Bear Island Land Co., Inc.

~Your Recreational Real Estate Professionals~

Dictionary of Terms

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Caps (Interest)
Consumer safeguards which limit the amount the interest rate on an adjustable rate mortgage may change per year and/or the life of the loan.
Caps (Payment)
Consumer safeguards which limit the amount the monthly payment on an adjustable rate mortgage may change.
Caveat Emptor
"Let the Purchaser beware". The buyer is duty-bound to examine the property he is purchasing and he assumes conditions which are readily known upon view.
Certificate of Reasonable Value
Commonly referred to as a "CRV" Veterans Administration's certified appraisal of value of real property.
Certificate of Taxes Dues
A written statement or guaranty of the condition of the taxes on a certain property, made by the County Treasurer of the county wherein the property is located. Any loss resulting to any person from an error in a tax certificate shall be paid by the county which such treasurer represents.
Closing
The meeting between the buyer, seller and lender or their agents where the property and funds legally change hands. Also called the settlement.
Closing Costs
Usually include an origination fee, discount points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit reporting charge and other costs assessed at closing. The costs of closing usually are about 3 to 6 percent of the mortgage amount.
Cloud on the Title
An outstanding claim or encumbrance which, if valid, would affect or impair the title of the owner of the property.
Commingling
Mixing money belonging to other with personal or business funds. Illegal commingling is using the money of one beneficiary for the benefit of another or failing to maintain such money in identified escrow accounts.
Commitment
An agreement, often in writing, between a lender and a borrower to loan money at a future date subject to the completion of paperwork or compliance with stated conditions.
Condominium Ownership
The individual outright ownership of a single unit in a multi-unit property together with an interest in the common elements of that property.
Consideration
One of the essential elements of a contract A promise or an act of legal value bargained for and received in return for a promise.
Construction Loan
A short-term interim loan used to finance the construction of a building. The lender advanced funds to the builder at periodic intervals as the work progresses.
Contingency
A condition that has to be removed before the transaction can be finalized.
Contract
An agreement, enforceable at law, between two or more competent persons, having for its object a legal purpose, wherein the parties agree to act in a certain manner.
Conventional Mortgage
A mortgage securing a loan made by private investors without governmental participation; that is, which is not FHA insured or VA guaranteed.
Conveyance
An instrument in writing by which some estate, interest, or title in real estate is transferred from one person to another, such as a deed or mortgage.
Counter Offer
The rejection of an initial offer to purchase with a substitute offer that could change the price and/or terms of the original offer.
Credit Report
A report documenting the credit history and current status of a borrowers credit standing.
Curb Appeal
Condition of a building exterior and its grounds.

 

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Ely, Minnesota's most experienced Realtors, serving Buyers and Sellers in the Ely, MN area since 1995.