Cash Rent to Cement

Cash Rent

With agricultural leases, cash rent is the monetary amount that the tenant farmer will pay the landlord for use and possession of the land.

Cash Reserve

See the Reserve Requirement entry.

Cash to Close

In mortgage and real estate transactions, “cash to close” refers to the funds needed by the borrower to complete the closing, typically to satisfy down payment, closing costs, prepaid expenses and reserve requirements. Lenders often have seasoning requirements and restrictions, especially with regards to funds that the borrower will be obtaining from gifts or additional loans. The Good Faith Estimate provides an itemized estimate of closing credits, costs and the cash to close.

Cashier’s Check

The cashier’s check is a check for payment issued by a bank or recognized financial institution. The cashier’s check is considered more liquid than personal checks. Real estate transactions typically require immediate “cash” closings, so personal checks are normally not accepted.

Cash-on-Cash Return

The cash on cash return is a measurement of an investment’s rate of return based on the property’s cash flow divided by the original down payment, purchase expenses and capital expenditures during the first year. After the first year, the cash-on-cash return is the net cash flow for the subject year, minus the capital expenditures made in that year.

Cash-on-Cash Yield

The cash on cash yield is an investment’s cash-flow performance expressed as a ratio of the cash-on-cash return divided by the capital expenditures made. This is typically an annualized figure, which considers the yield during a 12-month period.

Cash-Out Refinance Loan

The cash-out refinance loan is a refinancing of an original mortgage loan that also includes a portion of the borrower’s established equity being taken out in cash. This differs from the rate & term refinance, which only borrows enough to repay current principal. For example, if a borrower has a $70,000 mortgage on a $120,000 home, he or she can obtain a refinance of $90,000 (or more)-of which $70,000 will pay off the old mortgage and $20,000 will be a cash-out for the borrower. See also Equity Loan entry.

Casing

The casing is the trim or molding that joins the wall with the door or window frame. Because it essentially masks the door and window frame, casings are sometimes mistakenly considered the frame.

Castellated

Sometimes called crenellation, the term castellated refers to buildings that have been decorated with castle-like parapets and battlements.

Casualty Loss

With regard to hazard insurance, casualty loss refers to monetary value of damages to the property covered by the insurance policy. The casualty coverage of most homeowner loans covers losses caused by theft, vandalism and most accidents.

Catch Basin

The catch basin is a receptacle or formation used to collect water underground.

Cathedral Ceiling

A high ceiling, typically at least 15′ in height for most homes, is commonly called a cathedral ceiling.

Caulking

Any material, preferably waterproof, that is used to seal joints, seams and cracks is called caulking.

Causeway

A causeway is a constructed roadway or railroad that is built across or against lakes, rivers or wetlands. As opposed to bridges and viaducts, causeways are typically made of earth, gravel and natural material. Many causeways do, however, connect with bridges to span bodies of water, so as to allow water, boats and ships to pass through the causeway.

Caveat Emptor

The phrase caveat emptor is Latin for “let the buyer beware,” which essentially means that it is the buyer’s responsibility to examine and perform due diligence on the property being purchased.

Cavedium

A cavedium is a walled opening, such as an atrium or courtyard.

CBD

See the Central Business District entry.

CC&R

See the Covenant, Conditions and Restrictions entry.

CCCS

See the Consumer Credit Counseling Service entry.

CCRC

See the Continuing Care Retirement Community entry.

C-Credit

The term C-Credit is an informal term referring to borrowers and applicants with damaged and poor credit. C-grade consumers are usually delinquent on several accounts, and demonstrate an inability to efficiently manage debt; they usually have credit scores between 500 to 579. For most C-grade consumers, their only financing hope would be with non-conforming loan programs. In the mortgage industry, C-credit borrowers usually have one or more of the following traits: (1) a bankruptcy, foreclosure or repossession during the past two to three years; (2) at least 60-90 days behind on mortgage or large installment debts ; (3) at least nine late payments on revolving accounts in the past two years; and (4) more than one open collection account. However, with proper attention to debt payments and an aggressive credit rebuilding plan, a C-credit borrower can usually return to A-grade within one year (or less).

Ceiling Height

The standard indoor height for room ceilings is typically 8′. Municipalities typically set minimum room heights of at least seven feet for most residential properties.

Cellulose Insulation

A type of building insulation used today that provides a healthier alternative to the popular fiberglass insulation that has been a construction staple the past four decades. Fiberglass has been criticized for elements and qualities that have an adverse impact on air quality and health. For example, the glass fibers can be an irritant and may be dangerous if inhaled. Fiberglass insulation has also contained formaldehyde in the past. Cellulose insulation, by comparison, is often made from recycled paper combined with fire-retardant material, with insulating qualities that can be superior to fiberglass insulation.

Cement

Cement used in building and property improvements is a mixture of clay and limestone. When mixed with water and other aggregates, it becomes concrete.