Home Page - Kelowna Real Estate

CALIFORNIA BUNGALOW:
Compact, early twentieth-century single-storey house.

CALIFORNIA RANCH:
One-storey house, in a post-Second-World-War style, known for its ground hugging design and low, pitched roof.

CALL OPTION (PROVISIONS, RIGHTS):
A lender's right to demand payment of the outstanding balance of the loan at a time specified in the loan agreement.

CANADA MORTGAGE AND HOUSING CORPORATION (CMHC):
A federal body set up to insure mortgages of up to 95% of the purchase price for home buyers.

CANCELLATION CLAUSE:
Provision in a contract that gives one or more parties the right to terminate the contract if a specific event occurs.

CAP:
A limit. In variable rate mortgages, a limit as to how high periodic payments may go or how much the interest may change within a given time period or over the life of the mortgage.

CAP RATE:
Short form for capitalization rate.

CAPACITY OF PARTIES:
Legal competence to sign and be bound by a contract. One might lack capacity as a result of being a minor, being mentally challenged or not being of right mind. A contract signed by an incapable person is not binding.

CAPE COD COLONIAL:
A one-storey house, compact in design and in an early-American style. Symmetrical layout with a central entrance. Steep, gable-type roof, usually shingled, with a low central chimney.

CAPITAL ASSET:
A property to which certain tax rules (capital gains and capital losses) apply.

CAPITAL EXPENDITURE:
Money spent to improve a property and enhance its value over an extended period of time (as opposed to a repair). May be added to the adjusted cost base of the property improved or depreciated over the useful life of the improvement.

CAPITAL GAIN:
Increase in value of a capital property (a property other than a principal residence) upon which tax is payable, either upon disposition of the property or the deemed disposition of the property under tax rules.

CAPITAL IMPROVEMENT:
Value enhancing work carried out on a capital property.

CAPITAL LOSS:
Decrease in value of a capital property (a property other than a principal residence). May be set off against capital gains or against regular income according to the tax rules.

CAPITAL:
The working money in a business venture.

CAPTURE RATE:
A comparison of the sales or leasing rate of a particular real estate development to the sales or leasing rate of all developments in the same market.

CARRYING CHARGES (COSTS):
The expense required to maintain a property over a given period of time, including property taxes, maintenance, insurance payments, interest charges on financing, etc.

CASH EQUIVALENT:
The amount a vendor would have realized on the sale of a property had she not accepted unfavourable (or favourable) financing of the purchaser but received cash instead.

CASH FLOW:
Description of the net income from a property after all expenses of holding and carrying the property are paid.

CASH METHOD:
An accounting method, based on actual cash moving in and out of the company over a given period. See accrual method.

CASH RESERVE:
An amount of money that the purchaser of a property still has after the transaction closes. Some lenders require a certain level of cash reserve (equal to two payments) before granting a mortgage.

CASH THROW-OFF:
See cash flow.

CASH-OUT REFINANCE:
When an owner renegotiates or negotiates a new mortgage and the proceeds of the new financing exceed the money required to pay out the old mortgage and any other costs, liens or expenses, leaving money for the borrower.

CAUTION:
An instrument registered on title to a property which serves notice of a competing interest in the property and, thus, blocks dealings with that property.

CAVEAT EMPTOR:
Latin, meaning "Let the Buyer beware". Maxim which applies to real estate transactions where the onus is on the Purchaser to satisfy herself as to the suitability and condition of the property she is considering for purchase. Vendor is not responsible to the Purchaser for the condition of the property and, unless he is specifically asked, does not generally have an obligation to reveal problems to the Purchaser (except where the defect is hidden, serious and could not be discovered by the Purchaser after reasonably prudent inquiries and investigations).

CC&R'S:
Short form for "covenants, conditions, and restrictions", which are the rules of general application governing the relations between land owners in a specific subdivision, development, condominium development or cooperative housing facility. May be registered on title.

CEILING:
The limit over which the interest rate on a variable rate mortgage may not rise over the life of the loan.

CENTRAL BUSINESS DISTRICT (CBD):