Today we will focus on the letter C.  We will add more posts in the future with additional terminology that you may run across during a real estate transaction.  If you would like to see our previous terminology, click here.


CHAIN OF TITLE – Beginning with a conveyance out of an original source of title such as a government, each succeeding deed, will or other document that conveys/transfers the title to succeeding owners constitutes a link in the chain of title. The chain of title is the composite of all such links.


CLOSING –The process of completing a real estate transaction. Closing occurs when the deeds, mortgages, leases and other required instruments are signed and/or delivered, an accounting between the parties is made, the money is disbursed, the papers are recorded, and all other details such as payment of outstanding liens and transfer of hazard insurance policies are attended to.  This is what finalizes and completes the sale of real property.


CLOSING DISCLOSURE – Sometimes referred to as the “CD”, the Closing Disclosure must be provided to the consumer three business days before they close on a loan to purchase real property. The Closing Disclosure details all of the costs associated with their mortgage transaction.


CLOUD ON TITLE – An irregularity, possible claim, or encumbrance which, if valid, would affect or impair the transfer of the title to the real property.


COMMISSION – The amount due to a real estate broker or a mortgage loan broker (or other real estate professional) for services performed in conjunction with a real estate transaction.



COVENANT – A formal agreement or contract between two parties in which one party gives the other certain promises and assurances. This could include covenants of warranty in a warranty deed.  This is also commonly used by home owner associations. 




We hope these glossary terms are helpful to you as you buy or sell your next home.  If you would like more information about how we help our clients, visit our website If you are moving in or to North Texas, our Team would love to help you personally.  If you are moving anywhere else in the United States, let us know and we can personally recommend a REALTOR to assist you wherever your move takes you.