Calendar Year to Capital

Calendar Year

A calendar year refers to the 12-month period beginning January 1 and ending December 31. Financial agreements and contracts that rely on dates should clearly specify if they’re referring to the calendar year, fiscal year or any 365-day period. Compare with the Banker’s Year and Fiscal Year entries.

California Bungalow

California bungalows are a type of bungalow homes popularized in California, especially in the early part of the 1900s. In fact, California bungalows are the best-known version of the bungalow type of single-family residences. As with most bungalows, California bungalows are typically single-story or 1½-story homes with exposed rafters and a gable over the main structure. Unlike the Chicago bungalow, however, California bungalows are not made of brick. Instead, they usually rely on wood or concrete. California bungalows offered a simpler alternative for middle-class and even low-income homeowners. They usually had front doors that opened directly into the living room, which then connected directly with the dining room and a small kitchen. Compare with the Chicago Bungalow, Milwaukee Bungalow, Michigan Bungalow and Bungalow entries.

Call Date

The call date is the period or time during which the lender has the right to accelerate full payment of the principal balance. The call date is not the official maturity date. In fact, the call date is much shorter and comes sooner than the maturity date. Most residential loans do not use such a call provision, although many commercial property and development loans do. Compare with the Call Option, Call Provision, Demand Feature and Maturity Date entries.

Call Option

Similar to the demand feature or acceleration clause, the call option clause in certain mortgage documents allows the lender to accelerate the debt payments.

Also called a call provision, the call option is typically conditioned on certain events-such as borrower default, delinquency or failure to meet specific obligations.

Call Provision

See the Call Option entry.

Calorifier

See the Water Heater entry.

Canceled Check

A canceled or processed check is a check that had been used for payment, of a debt or obligation, and has been processed through the issuer’s bank and returned to the issuing payer.

The canceled check will normally have processing ink-stamps on its back and can be used as proof of payment.

Canceled checks are often used in residential mortgage loan processing and underwriting to support an applicant’s request for financing. Mortgage lenders will sometimes ask for canceled checks to verify a history of payment of rent, mortgage or other debt.

For example, Carlos is buying his first home. Because his credit report is not very long and he has no mortgage history, his mortgage lender wants to confirm that he has been paying his rent on time.

Unfortunately, he has been renting for the past two years from his aunt. So he will not be able to use a simple Verification of Rent (VOR) form. Most mortgage lenders don’t accept VORs, because landlords can and do lie to help out their current tenants.

So Carlos is forced to dig up all the canceled checks for the past 12 months of rental payments. Those canceled checks will indeed show that he paid the rent and when those checks were processed by his bank.

Unfortunately, if Carlos’ aunt was slow in depositing the checks, then it may actually show that Carlos was late on payments. Consumers should therefore try to make sure that their landlords deposit rent checks within 20 days of payment—or pay them with a money order.

Cancellation Clause

The cancellation clause is a provision in a contract that allows one party to cancel an agreement. Most cancellation provisions usually come with pre-defined conditions. With most real estate contracts, buyers face penalties if cancel the agreement—unless they uncover a problem with the property that affects the property’s value, habitability or use. For example, many real estate contracts require the buyer to provide an earnest money deposit when the contract is submitted or accepted. If the buyer later cancels the agreement without an acceptable reason or cause, that buyer would forfeit his or her earnest money deposit. However, if the buyer discovers that the property is infested with termites or carpenter ants, the buyer could cancel the agreement and still get back his or her earnest money deposit.

Cant

The cant is a slanting roof board used to eliminate sharp right angles.

Cantilever

A cantilever is a beam or projection that is fixed and supported on only one end but is left free floating on the other end. This is sometimes used for roofs and overhanging porches or balconies, where external bracing is unavailable, difficult or unwanted. Cantilevers provide an airy feel to balconies and spans, making them seem as if they’re floating on air. By contrast, a standard beam is supported at or near both of its ends, usually with posts and lintels. That standard beam then supports the load in the middle of the beam between the two posts. In addition to home construction, many bridges are cantilever style bridges. This is especially true of many draw bridges, such as most of the bridges spanning the Downtown portion of the Chicago River. Such draw bridges typically consist of a pair of cantilever spans, each supported on only one end. In addition, most cable-stayed bridges are built using cantilevers.

Cap on Interest

See the Interest Rate Cap entry.

Cap on Payment

See the Payment Cap entry.

Cap on Principal

See the Principal Cap entry.

Cap Rate

See the Capitalization Rate entry.

Cape Cod

Sometimes called a “one-and-a-half story” house, this contemporary style is actually a two-story variation of the Colonial American style of home building.

Cape Cod homes are typically wood-frame buildings, with the common areas on the first floor. The second floor of a Cape Cod has sufficient height to allow at least half of the area to be used as living area, usually as bedrooms or studies.

The Cape Cod allows homeowners to start small but eventually make additions, by finishing the attic or building extensions. The compact size has also made Cape Cod homes a popular type of vacation residence.

Capital

Capital is any money invested with the intent of generating more money. Capital is usually through an appreciation of the investment’s value or an increase in the investment’s positive cash flow.

In real estate investment purchases and development, both the down payment and the mortgage loan funds are considered capital. Similarly, funds used to purchase an elevator or new boiler for an apartment building would also be considered capital.

Real estate developers, investors and speculators invest capital with the expectation (or hope) of earning profits through sale of improved products and/or capital appreciation.

Note that long-term profits generated by invested capital are considered capital gain and is subject to capital gain taxes.