Cloud on the Title This is an outstanding claim or unfulfilled condition that would affect the owner's title of property.
Comparative Method An appraisal method that bases the value of the subject property on the price of similar properties that have sold recently. Also named the Market Method.
Conditional Contract The contract will be fulfilled only when one party fulfills certain conditions.
Consideration The value, asset, service, information etc. which is offered to another party in a contract in exchange for that party's agreeing to enter the contract. A contract is not binding if each party does not offer at least some consideration to the other party(ies).
Construction Lien This is the same as the general lien except that the legal right or claim that is filed against a property is done so by an individual or a corporation based on construction services (labour or materials), rather than just outright money.
Contract A contract is a legally binding agreement that two or more parties sign, thereby obligating them to conditions that they have agreed upon. Because two or more parties are involved it is therefore considered a "bilateral" greement. It is therefore a legally enforceable agreement.
Corporate Entity Rather than using your own name in lease option transactions you can incorporate yourself under a business name. The advantage of doing this is that it will protect you from personal liability. If anything were to go wrong with the transaction then only your corporation would be held legally liable. In other words, the courts could not go after your personal property, such as your own house, car, etc. (nothing not registered to the corporation).
Covenant Agreements written into deeds or other instruments that promise the performance or non-performance of certain acts or restrictions on a property.