Dictionary

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Call Option

A provision in the mortgage that gives the mortgagee the right to call the mortgage due and payable at the end of a specified period for whatever reason.

Cancelable

A contract of insurance that may be terminated by the insurance company or insured at any time. Virtually every form of insurance is cancelable (unless state law prohibits such action) except Life insurance and those Health policies designated as Guaranteed Renewable or Non-cancelable and Guaranteed Renewable.

Cancellation

Termination of contract of insurance in force mid-term (rather than at the renewal date) by voluntary act of the insurance company or insured, effected in accordance with provisions in the contract or by mutual agreement.

Cancellation Clause

A provision in a lease that confers on one or all parties to the lease the right to terminate the parties obligations should the occurrence of the condition or contingency set forth in the clause happen.

Canvassing

The practice of searching for prospective clients by making unsolicited phone calls and or visiting homes door-to-door.

Cap

A provision of an adjustable-rate mortgage (ARM) that limits how much the interest rate or mortgage payments may increase or decrease. See lifetime payment cap, periodic payment cap, and periodic rate cap.

Capital

(1) Money used to create income, either as an investment in a business or an income property. (2) The money or property comprising the wealth owned or used by a person or business enterprise. (3) The accumulated wealth of a person or business. (4) The net worth of a business represented by the amount by which its assets exceed liabilities.

Capital Expenditure

The cost of an improvement made to extend the useful life of a property or to add to its value.

Capital Gains Tax

A tax charged on the profit gained from the sale of a capital asset.

Capital Improvement

Any structure or component erected as a permanent improvement to real property that adds to its value and useful life.