The Real Estate
Encyclopedia: A-E

In finance and real estate lending, compound interest refers to interest that is calculated not only on the original principal amount of a loan or investment but also on the accumulated and unpaid interest that has accrued over time. As interest is added to the...

In legal and real estate contexts, competent refers to an individual who is legally qualified and capable of performing a particular act or entering into a binding agreement. Competency generally requires that a person have the legal capacity to understand the nature...

In real estate, a comparative market analysis (CMA) is the process of evaluating a property’s market value by comparing it to similar properties that have recently sold, are currently listed, or failed to sell in the same area. Note that a CMA is not an appraisal, and...

In real estate appraisal and valuation, comparables, often called comparable sales, are properties with similar characteristics that have recently sold and are used to help determine the market value of a specific property. Comparables are selected based on factors...

In real estate and marital property law, community property refers to property acquired by either spouse, or both spouses together, during the course of a marriage, except for property that qualifies as separate property. Each spouse holds an equal, undivided...

Common law is the body of law that originated in England and developed over time through judicial decisions based on customs, traditions, and court rulings rather than through written statutes alone. It evolved from long-standing practices used by English courts to...

In real estate, a common area refers to all portions of a common interest subdivision that are owned or used collectively by the individual property owners, rather than by any single owner. This typically includes areas such as hallways, lobbies, recreational...

In real estate practice, a commitment is a binding pledge or firm agreement to perform a specific action in the future under stated terms and conditions. Most commonly, the term refers to a lender’s written loan commitment, in which the lender agrees to provide...

In real estate practice, commingling refers to the improper mixing of trust funds with personal or business funds, in violation of fiduciary and legal requirements. This occurs when a broker or agent deposits personal or office money into a trust account or,...

In finance and real estate, commercial paper refers to negotiable financial instruments used in business transactions, most commonly promissory notes. These instruments represent a written, legally enforceable promise to pay a specified sum of money either on demand...