COMMITMENT LETTER
A letter outlining the amount, terms and conditions under which a lender is willing to
offer a mortgage.
COMMON AREAS
Lands or improvements on land that are designated for common use and enjoyment
by all occupants, tenants or owners. The lobby, a pool, tennis court or common
hallways would all be Common Areas in a condominium or townhouse complex.
COMMON TENANCY
The ownership of property by two or more persons, where on the death of one, his
share does not automatically go to the other(s) but is credited to his estate.
COMPOUND INTEREST
Interest charged on both the principal amount of a loan as well as on the interest
charged in a preceeding period.
CONTRACT OF PURCHASE AND SALE
A written statement by which a buyer agrees to purchase, and a seller agrees to sell a
particular piece of property according to the terms set forth in that agreement.
CONVENTIONAL MORTGAGE
A first mortgage granted by an institutional lender such as a bank or trust company,
where the amount of the loan does not exceed 75% of the lending value of the
property.
CONVERTIBLE MORTGAGE
A short term mortgage, usually 6 months or 1 year, that allows a borrower to lock in
to a longer term at any time without penalty