Glossary C

CAP
A provisional limit indicating how much the interest rate or mortgage payments may increase or decrease.

CASHFLOW
The amount of cash derived over a certain period of time from an income-producing property. The cash flow should be large enough to pay the expenses of the income-producing property (mortgage payment, maintenance, utilities, etc.).

CAPITAL GAINS
Profit earned from a sale of real estate.

CAPITALIZATION
A method used to estimate value of a property based on the rate of return on investment.

CASH RESERVE
A requirement of some lenders that buyers have sufficient cash remaining after closing to make the first two monthly mortgage payments.

CATEGORY 1 OFFICE BUILDINGS
Office buildings are defined as those located in core business areas in Downtown Core and Orchard Planning Area which are relatively modern or recently refurbished, command relatively high rentals and have large floor plate size and gross floor area.

CATEGORY 2 OFFICE BUILDINGS
These are the remaining office buildings which are not included in Category 1 office buildings.

CAVEAT
Notification placed on a title deed to warn any purchaser that someone else holds an interest in the property. This ensures it is not sold without the consent of this third party.

CAVEAT EMPTOR
Buyer beware. The buyer must inspect the property and satisfy himself that it is adequate for his needs. The seller is under no obligation to disclose defects but may not actively conceal a known defect or lie if asked.

CC&R’s
Covenants, conditions, and restrictions.
The basic rules establishing the rights and obligations of owners of real property within a subdivision or other tract of land in relation to other owners within the same subdivision or tract and in relation to an association of owners organized for the purpose of operating and maintaining property commonly owned by the individual owners.
The document given to qualified veterans that entitles them to VA guaranteed loans for homes, business, and mobile homes. Certificates of eligibility may be obtained by sending DD-214 (Separation Paper) to the local VA office with VA form 1880 (request for Certificate of Eligibility).

CENTRAL AREA
It comprises of 11 Planning Areas :Outram, Museum, Newton,River Valley, Singapore River, Marina South,Marina East, Straits View, Rochor, Orchard and Downtown Core.

CENTRAL REGION
It comprises of 22 Planning Areas : Downtown Core, Orchard, Marina East, Marina South, Museum, Newton, Outram, River Valley, Rochor, Singapore River, Straits View, Bishan, Bukit Merah, Bukit Timah, Geylang, Kallang, Marine Parade, Novena, Queenstown, Southern Islands, Tanglin and Toa Payoh.

CERTIFICATE OF ELIGIBILITY

CERTIFICATE OF OCCUPANCY
A certificate issued by a local governmental body stating that the building is in a condition to be occupied.

CERTIFICATE OF SATISFACTION
A document signed by the Note holder and recorded in the land records evidencing release of a DEED OF TRUST, MORTGAGE or other lien on the property.

CERTIFICATE OF TITLE
A written opinion by an attorney setting forth the status of title to the property as shown on the public records. The certificate does not certify as to matters not of record and affords no protection unless the author was negligent.
Compare, TITLE INSURANCE.

CHAIN OF TITLE
The series of transactions from GRANTOR to GRANTEE as evidenced in the land records.

CHATTEL
Personal property.

CLASS ACTION
A claim brought up on behalf of a group of people.

CLEAR TITLE
A title that is free of liens or legal questions as to ownership of property.

CLOSING
The meeting between the buyer, seller and lender or their agents where the property and funds legally change hands. Also called settlement. Closing costs usually include an origination fee, discount points, appraisal fee, title search and insurance, survey, taxes, deed recording fee, credit report and notary fees.

CLOUD ON TITLE
An evidence of encumbrances.

CLUSTER HOUSE
Similar to town house but with facilities such as swimming pool, gym, security, clubhouse, etc. A hybrid between conventional landed housing and condominium housing. Cluster housing therefore have Strata Titles.
see TOWN HOUSE

COINSURANCE
When more than one insurance company shares the risk of a particular transaction or series of transactions. Lenders may require co-insurance on large commercial projects.

COLLATERAL
Property pledged to secure a loan.

COMMITMENT LETTER
A formal offer by a lender stating the terms under which it agrees to lend money to a home buyer.

CONDEMNATION
A judicial proceeding through which a governmental body takes a private property for a public use.

CONDOMINIUM
A type of private apartment, with full communal recreational facilities (like swimming pool, tennis court, BBQ pit, etc) and usually have car park space, 24hrs security surveillance, intercom systems. They start from as small as 450 sq ft to as large as 8,000 sq ft. The owners are called Subsidiary Proprietors. A system of individual FEE SIMPLE ownership of portions (units) in a multi-unit structure, combined with joint ownership of common areas. Each individual may sell or encumber his own unit.
compare COOPERATIVE

CONSERVATOR
Also called a Committee or Guardian, a person designated by the Court to protect and preserve the property of someone who is not able to manage his or her own affairs. Examples include the mentally incompetent, minors and incarcerated persons.

CONSTRUCTION LOAN
A short-term interim loan to pay for the construction of buildings or homes. These are usually designed to provide periodic disbursements to the builder as he progresses. Lenders with offices local to the site of the construction generally do these. This enables the lender or their agent to monitor the progress of the construction.

CONTRACT
A legally enforceable agreement between two parties.

CONTRACT FOR DEED
Also known as a Land Contract or Land Installment Contract. A method of financing where title remains in the Seller’s name until the Buyer has paid the full purchase price. A Contract for Deed will normally trigger the due on Sale Clause in a DEED OF TRUST or MORTGAGE but Veterans Administration regulations specifically allow Contracts for Deed without invoking the due on Sale Clause.

CONVENTIONAL LOAN
A mortgage not insured by FHA or guaranteed by the VA.

CONVERSION FEE
The lender may impose a conversion fee where an existing borrower wishes to change from one loan type to another e.g. Variable Rate Loan to Fixed Rate Loan. Also known as “Conversion fee”.

CONVEYANCE
A legal document by which the ownership of property is transferred.

COOLING-OFF PERIOD
The amount of time either the buyer or seller has to change their minds in a private sale. This does not apply if you buy or sell at an auction.

COOPERATIVE
A system of individual ownership of stock in a corporation that. in turn, owns the structure. Each owner has an exclusive right to use his individual unit and must pay his portion of the debt encumbering the entire building according to share value. Amount is decided by Subsidiary Proprietors.
see CONDOMINIUM

CORE CENTRAL REGION (CCR)
It comprises of postal districts 9,10, 11, Downtown Core and Sentosa.

COST APPROACH
A method used by an appraiser to estimate replacement costs of improvements less depreciation.

COTENANCY
Ownership in the same land by more than one person.
see TENANTS IN COMMON, JOINT TENANTS, TENANTS BY THE ENTIRETY

COV
Cash Over Valuation. Above this valuation has to be paid upfront in cash.

COVENANT
A written agreement or restriction on the use of land or promising certain acts. Homeowner Associations often enforce restrictive covenants governing architectural controls and maintenance responsibilities. However, land could be subject to restrictive covenants even if there is no homeowner’s association.

CREDIT REPORT
A report documenting the credit history and current status of a borrower’s credit standing.

CUL-DE-SAC HOUSE
A landed house at the end of a large turnaround dead-end road.
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