Conditional Fee to Conformity Principle

 

Conditional Fee

See the Fee Simple Defeasible entry.

Conditional Sales Agreement

See the Installment Contract entry.

Conditional Use Permit

The conditional use permit is an exemption to existing zoning ordinances that allows a property owner to use or build in the subject property in a manner that would otherwise be illegal under the current zoning. Local governments typically only issue conditional use permits when the use serves a public good.

Condo

See the Condominium entry.

Condominium

The condominium is a multi-unit structure or building in which the units are owned individually while the common areas are owned jointly, through the condominium’s homeowners association. Condominiums require a declaration, articles of association, bylaws and CC&R to establish and operate. Each unit is individually owned and will have its own distinct property (tax) identification number. Note that condominium owners do not own the land; rather they own the air rights within their units. Compare this to Townhouse entry.

Condominium Act

State legislation that recognizes the formation of condominium ownership. This law enables subdivision of property into condominium ownership.

Condominium Association

The condominium association is the common name used to describe the homeowners association that official controls and operates the functioning condominium projects. Compare with the Homeowners Association entry.

Condominium Conversion

The condominium conversion is a condominium project that was not originally designed or constructed as such. Most condominium conversions are apartment buildings that have been legally and physically transformed into a condominium project. Although a condo conversion has a physical component, it is primarily a legal process by which a property is subdivided into separate parcels.

Condominium Declaration

See the Declaration of Condominium entry.

Condominium Dues

See the Association Dues entry.

Condominium Hotel

A condominium structure with hotel-like amenities and services. Most of the individual units in the structure are privately owned as condominiums. However, the association provides services such as dining, cleaning, valet and concierge services. Additionally, the hotel portion may also rent out the units to travelers, thereby earning rental income for the unit owner.

Condotel

See the Condominium Hotel entry.

Conduit Financing

The term conduit financing refers to a loan meant for the secondary market, usually through a private conduit lender or investor. The conduit investor buys loan from banks, mortgage brokers and other originators that meet its program guidelines. When the conduit investor has sufficient loans, it pools, packages and sells those loans as collateralized mortgage backed securities to financial investors. Many conduit investors actually have forward commitments from financial investors, who provide them with the funds to lend. Non-conforming and subprime loans are typical examples of conduit financing.

Conduit Loan

See the Conduit Financing entry.

Conference Center

A facility that hosts meetings, lectures, presentations and conferences. Many hotels provide conference center space, allowing their ballrooms and larger suites to perform double duty. Cities invest in larger conference facilities to host major conventions, which generate tremendous revenue because of the moneys that most travelers inevitably spend.

Conference Room

The conference room is a meeting space within an office or building designed and improved for conferences. The rapid evolution of communication technology has made the conference room an integral part of today’s commercial buildings and offices.

Confirmation of Sale

The confirmation of sale is a court or judicial decree, approving the sale of a property currently in probate or bankruptcy.

Confiscation

The legal term confiscation refers to the seizure of property without fair market compensation. Unlike eminent domain, which the U.S. Constitution allows with just compensation and for the common good, confiscation is usually a punishment. For example, recent laws designed to combat drug abuse empowers police departments to confiscate both real and personal property involved in the trafficking of drugs. Through such laws, the government has seized vehicles, real estate, weapons, jewelry, electronics and cash belonging to captured drug dealers.

Conforming Loan

The term conforming loan applies to any conventional home mortgages that follow the agency guidelines of Fannie Mae (Federal National Mortgage Association), Freddie Mac (Federal Home Loan Mortgage Corporation) and Ginnie Mae (Government National Mortgage Association). Conforming loans are purchased by those agencies for resale in the secondary market.

Conformity Principle

The conformity principle is a concept used in the appraisal of real estate, which assumes that some homogeneity helps to increase property values. Although many cookie cutter developments go too far, a reasonable amount of uniformity does help. More important than design, however, is use. Locating homes in a residentially zoned neighborhood helps to solidify its value, while placing a commercial property in a residential subdivision may not be wise. Similar principles that are taken into consideration when appraising real estate are the principles of anticipation, change, competition and surplus productivity.