Cost Recovery to Cracker House
Cost Recovery
See the Depreciation entry.
Cost Segregation
The cost segregation approach refers to a study typically performed to determine a faster depreciation rate under the Modified Accelerated Cost Recovery System (MACRS). In the cost segregation study, personal property is identified and separated from real property (land, buildings and real property improvements). This allows the business, company or investor to depreciate the personal property portions at a shorter rate, leading to potentially large tax savings.
Cost-Plus Contract
The cost-plus contract is a type of construction contract that pays the builder or contractor a percentage based on the cost of the building materials and labor.
Co-Tenancy Clause
The co-tenancy clause is a lease provision used with retail property leases in community shopping centers and malls, which allows the tenant to terminate its lease if another tenant also terminates its lease or ceases operations. Many smaller retail stores will include a co-tenancy clause to protect them from the sudden departure of an anchor tenant. Satellite retailers depend on the big anchor tenant to generate foot traffic.
Cottage
The cottage is typically a small one-story home. It is usually a modest dwelling found in rural and semi-rural areas.
Counteroffer
The counter-offer is a negotiating response to an offer by another party. Most real estate transactions will involve offer and counteroffers during the negotiating process. To many seasoned negotiators and investors, the counter-offer is an integral part of the negotiating process and is neither an acceptance or outright rejection of the other party’s last offer.
Coupon
With mortgage loans and real estate finance, the coupon is the term used by investors for the nominal interest rate of a note, mortgage-backed security or bond.
Courier Fee
The courier fee is normally charged by the title company and lenders to ship important legal documents and funds in a timely manner. In today’s real estate transaction, the courier fee typically covers the escrow or closing agent’s Fedex, UPS or priority mail expenses.
Court Deed
See the Sheriff’s Deed entry.
Court Sale
The court sale is usually a public auction that results from a court order or legal judgment. Such sales are typically used when properties must be sold to satisfy a judgment, as in a mortgage foreclosure, tax sale or tax lien.
Cove Molding
The cove molding is a decorative concave molding, sometimes used as a trim along the ceiling borders, where it meets the walls.
Covenant
The legal covenant is any binding agreement between two or more parties. With respect to real estate properties, housing developments or communities will often enter into covenants that limit individual improvements. For example, a private housing development (such as a homeowners association) may restrict individual homeowners from operating a manufacturing business on their property – even if local zoning allows such usage.
Covenant Against Encumbrances
The covenant against encumbrances is an element of a general warranty deed that guarantees that there are no encumbrances against the subject property, except those specifically stated in the deed.
Covenant of Further Assurance
See the Further Assurance entry.
Covenant of Quiet Enjoyment
The covenant of quiet enjoyment is an element of the general warranty deed that guarantees that the title being conveyed is superior to any other title claims to the property that may arise.
Covenant of Seisin
See the Seisin entry.
Covenant of Warranty Forever
See the Warranty Forever entry.
Covenant, Conditions and Restrictions
The Covenant, Conditions and Restrictions (CC&R) refer to the regulations filed by the condominium or subdivision developer that sets limits on how the land may be used, modified or improved. These covenants and restrictions typically “run with the land” and are passed down from one owner to the next, unless amended by the full association.
CPA Letter
The CPA letter is a verification of self-employment issued by a certified public accountant (CPA), typically the one who prepared or examined the borrower’s income tax returns. Many residential mortgage lenders require this verification to confirm that the borrower has at least a two-year track record in their current self-employment.
C-Paper
The term C-Paper refers to loans, bonds and other debt instruments that are considered high-risk and low quality. They usually involve borrowers with poor credit or properties with problems. In the residential loan industry, conforming loans are considered A-paper, while non-conforming loans are considered sub-prime, B-paper or C-paper. Very high-risk loans, such as hard-money loans and financing for borrowers currently in bankruptcy or foreclosure are considered D-paper.
CPI
See the Consumer Price Index entry.
CPM
See the Certified Property Manager entry.
Cracker House
The cracker house refers to a housing architectural style popularized in Florida during the 19th century. Similar to the “shotgun houses” also popular in the Southern U.S., cracker-style homes typically have floors raised off the ground and a straight central hallway that runs through the length of the home. Outside, cracker houses often came with metal roofs and large wraparound porches.
