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GLOSSARY
Consumer Leasing Act
The Consumer Leasing Act is federal legislation that mandates how leasing costs and terms are disclosed to consumers. The Consumer Leasing Act was put into effect with a 1976 amendment to the Truth in Lending Act (TILA).
Consumer price index
The Consumer Price Index, or CPI, is a statistic that tracks the cost of living in the U.S. CPI is used as an inflationary indicator, with rapid increases indicating inflation, and rapid decreases indicating deflation.
Consumer Reporting Agency
A company that obtains files and sells information to creditors when they are deciding to extend credit to an applicant. It is important for the consumer to ensure that the information obtained by the reporting agency is correct. Consumers are able to dispute incorrect information with the agency.
Contigency
It is a condition or qualification or provision that must be taken care of before the contract becomes legally binding. For example, buyers while purchasing a home, will put in a contigency that the contract will not be legally binding until he acquires a satisfactory home inspection report from a qualified home inspector.
Contiguous lots
Pieces of real estate or parcels that are next to each other.
Contingency
A contingency is a future event that may or may not happen. In the legal sense, a contingency is something that has to happen before a contract or agreement goes into effect. Contingencies are common in real estate contracts; a homeowner who wants to buy a different home may make an offer that lists the sale of the first home as a contingency. This means that the homeowner is not bound to purchasing the second home until the first one sells.
Contingent beneficiary
A contingent beneficiary is a person who's designated to receive insurance policy proceeds if certain conditions are met. Usually the contingent beneficiary only receives the proceeds if the primary beneficiary is deceased when the proceeds are to be paid.
Contingent fee
A contingent fee is an assessment incurred when a specific event happens.
Continuous compounding
Continuous compounding is a method of computing interest, where the interest earned is constantly being rolled into the principal balance. Once the interest is rolled into the principal balance, it becomes part of the interest-earning balance.
Contract
An agreement either written or oral, that qualifies whether a certain thing can be done or not.
Contract for deed
The sale of property or real estate in which the buyer takes possession while making payments. The seller holds the title until full payment is made. This may also be called a land contract.
Contract to purchase
A document showing the price of the real estate and other terms of the transfer of title, which has been approved by both the buyer and the seller. This is also known as an agreement of sale, a purchase contract or a sale contract.
Contractor
The person who constructs or oversees construction of a house or a large renovation.
Contractual lien
A voluntary obligation as a result of a contract, such as a mortgage or trust deed.
Contribution
Contribution, or contributions, are monies deposited into a retirement account.