CAPITAL LOSS
Loss from the sale of a capital asset. The difference between the purchase and sale price plus allowable deductions, less depreciation.
CAPITAL STOCK
A general term referring to the stock a corporation may issue, the amount actually subscribed by shareholders, the value of the company, liability to the shareholders, etc.
CAPITALIZATION
Determining a present value of income property by taking the annual net income (either known or estimated) and discounting by using a rate of return commonly acceptable to buyers of similar properties. For example: Net income of a property is $10,000 per year. Capitalizing at a rate of 10%, the property would be worth $100,000.
CAPITALIZATION APPROACH
See: Income Approach.
CAPITALIZATION RATE
The percentage (acceptable to an average buyer) used to determine the value of income property through capitalization.
CAPITALIZE
To determine the present money value of future income, whether estimated or fixed.
CAPITALIZED VALUE
The value of the property after use of the capitalization approach of appraisal.
CAPRICIOUS VALUE
In appraisal, a value based on whim or emotion and not reflective of the fair market value.
CAPTURE RATE
The comparison of the rate of sales or leases of real estate developments in a given market area.
CAR
California Association of Realtors.
CAR FLOAT BRIDGE
The connection (bridge) used to transfer railroad cars to or from land and a barge. The bridge must be vertically mobil to adjust to changing water levels.
CARAVAN
An inspection of newly listed properties, either by the entire sales staff of an office or by sales personnel from more than one office in conjunction with a multiple listing group. Generally conducted on a regular basis.
CARPORT
A roof supported by pillars or cantilevered which shelters a car. May either extend from a structure (usually a house) or be constructed separately (often to accommodate several cars).
CARRYBACK LOAN
See: Purchase Money Mortgage (1).
CARRYING CHARGES
The costs involved in keeping a property which is intended to produce income (either by sale or rent) but has not yet done so.
CARRYOVER BASIS
The tax basis in a tax deferred exchange which is transferred (carried over) from the property given up to the property acquired.
CASE
(1) An external framework of a structure. (2) A court action.
CASE LAW
See: Common Law.
CASEMENT WINDOW
A window hinged at its sides, allowing it to swing open vertically.
CASH
(1) Money or (2) its equivalent (checks, bank notes, etc.). Ready money.
CASH ACCOUNTING
See: Accrual Accounting.
