Capitalization Rate – The relationship or ratio between the net income from a real estate investment and the value of the investment, usually expressed as a percentage; the rate of interest which is considered a reasonable return on the investment, plus the recapture rate which computes a return of the investment.

CC&R’s – Covenants, conditions and restrictions.

Chain Of Title – A sequential history of the conveyances, encumbrances, and records of ownership to a piece of property through the years from the original grant to present; the succession of owners as revealed through the public records.

Closing – The time when a transaction is consummated, or the actual signing over of the documents and delivery of the deed; the time after signing when the documents are recorded.

Closing Statement – A statement of settlement made by a broker or an escrow company that reflects the financial position of the buyer or seller in that particular real estate transaction.

Cloud On Title – Any conditions revealed by a title search which may affect or impair the owner’s title to property because of their apparent or probable validity.

Commingling – Mixing money belonging to clients with personal funds.

Commission – An agent’s compensation for performance of the duties of his agency; in real estate practice, a percentage of the selling price of the property, or percentage of rentals, etc.

Common Element – In a condominium, land and all parts of a building normally used by all of the owners for their mutual convenience or safety.

Common Interest – The percentage of undivided interest in the common elements of a building appertaining to each apartment in a condominium.

Community Property – Property accumulated and owned in common through joint efforts of husband and wife during their marriage. Hawaii is not a community property state.

Condemnation – The process by which property of a private owner it taken for public use, with just compensation of the owner, under the right of eminent domain.

Condominium Ownership – The individual outright ownership of a single unit in a multi-unit property together with an interest in the common elements of that property.

Consideration – Valuable consideration, a promise or an act of legal value bargained for and received in return for a promise; good consideration, love and affection.

Contingent – Dependent upon an uncertain future event.

Contract – A legal agreement between competent parties for a consideration to perform or refrain form performing certain acts.

Conveyance – The transfer of the title of land from one to another; an instrument which carries from one person to another an interest in land.

Conveyance Tax – Tax paid by seller upon transfer of deed, based upon $.10 per $100.00 valuation.

Cooperating Broker – A broker who joins with another broker in the sale of real property; usually, one who represents the buyer of property listed with another broker; the selling broker.

Covenant – An agreement written into deeds and other instruments which promises or guarantees that something shall or shall not be done; an agreement stipulating certain uses or non uses of property.