We Buy Houses Glossary - C

Cash reserves
There are the available assets that may be cash such as demand deposits or treasury bills that a person or a company possesses. This is regarded as the cash amount required to be held in reserve in addition to the down payments and closing costs. Usually the amount is determined by the lender.

Collateral
A property that acts as security against loan. It can be a property or goods that can be used as security against a loan and it can be fortified if the loan is not repaid. For example it can be a car or a home that can be used to guarantee the repayment of the loan. In this case the borrower is the risk bearer in losing the asset if the loan is not repaid on time.

Contingency
A specified condition that must be met before a contract is lawfully bonded. The two most common contingencies in home purchasing are that 1) the house must pass the home examination, and 2) the borrower must get the loan.

Cash Offer
The offers by the professionals of home sales realtors who can present the customer with a fair offer on the house purchased at a great cash price.

Customer
A buyer who may be a person or a company that buys goods or services.

Client
A person or an organization attaining advices from an attorney, accountant or any other professional person.