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T
TACKING adding on to a time period.
TAKEOUT FINANCING a commitment to provide permanent financing following
construction of a planned project. The takeout commitment is generally predicated upon
specific conditions, such as a certain percentage of unit sales or leases, for the
permanent loan to "takeout" the construction loan. Most construction lenders
require takeout financing.
TAKING 1. acquisition of a parcel of land through condemnation. 2. in land use law,
application of police power restrictions to a parcel of land that are so restrictive as to
preclude any reasonable use.
TANDEM PLAN a program of the Government National Mortgage Association (GNMA)
working together with the Federal National Mortgage Association (FNMA) to provide
low-interest rate home loans.
TANGIBLE PROPERTY real estate and other valuables which can be seen and touched.
TAX a charge levied upon persons or things by a government.
TAX AND INSURANCE ESCROW an account required by a mortgage lender to fund annual
property tax assessments and hazard insurance premiums for the mortgaged property. Funded
through monthly contributions by the mortgagor.
TAX BASE the collective value of property, income or other taxable activity or
assets subject to a tax. Tax revenues are computed as the tax base times the tax rate. For
property taxation, the tax base is the total assessed value of all taxable property less
exemptions.
TAX BASIS same as basis (tax).
TAX BRACKET marginal rate for income taxes; the percentage of each additional
dollar in income required to be paid as income taxes.
TAX CREDIT a reduction against income tax payments that would otherwise be due.
Contrast with tax deductions that reduce taxable income .
TAX DEDUCTIBLE a type of expense that can be used to reduce taxable income.
TAX DEDUCTION one that can be used to reduce taxable income.
TAX DEED the type of instrument given to a grantee by a government that had claimed
the property for unpaid taxes.
TAX-EXEMPT PROPERTY real property that is not subject, in whole or in part, to ad
valorem property taxes.
TAX FORECLOSURE the process of enforcing a lien against property for nonpayment of
delinquent property taxes. Taxing authorities hold a superior lien against all taxable
property to enforce the payment of their taxes-
TAX-FREE EXCHANGE same as tax-deferred exchange.
TAX LIEN a debt attached against property for failing to pay taxes.
TAX MAP a document showing the location, dimensions, and other information
pertaining to a parcel of land subject to property taxes. Maps are generally bound into
books and kept as public records at the local tax office.
TAX PREFERENCE ITEMS certain types of Income or deductions that are added to
adjusted gross income to calculate the alternative minimum tax.
TAX RATE the ratio of a tax assessment to the amount being taxed.
TAX ROLL the list of all properties subject to a tax in a county or other property
taxing jurisdiction. It identifies all properties and indicates their assessed values.
TAX SALE the sale of property after a period of nonpayment of taxes. The grantee
receives a tax deed. In most states the defaulting party has a redemption period during
which he may pay the unpaid taxes, interest, court costs, and the purchase price to redeem
the property.
TAX SHELTER an investment that produces after-tax income that is greater than
before-tax income. The investment may produce before-tax cash flow while generating losses
to shield, from taxation, income from sources outside the investment.
TAX STOP a clause in a lease that stops a lessor from paying property taxes above a
certain amount.
TEASER RATE a contract interest rate charged on an adjustable-rate mortgage for the
initial adjustment interval that is significantly lower than the fully indexed rate at the
time. It is an incentive to encourage borrowers to accept adjustable-rate mortgage loans.
In general, the interest rate reverts to the fully indexed rate at the first adjustment
date.
TENANCY the right of possession of real property. May refer to ownership or
occupancy.
TENANCY AT SUFFERANCE tenancy established when a person who had been a lawful
tenant wrongfully remains in possession of property after expiration of a lease.
TENANCY AT WILL a license to use or occupy lands and buildings at the will of the
owner. The tenant may decide to leave the property at any time or must leave at the
landlord’s will. Agreement may be oral or written.
TENANCY BY THE ENTIRETY an estate that exists only between husband and wife with
equal right of possession and enjoyment during their joint lives and with the right of
survivorship-i.e., when one dies, the property goes to the surviving tenant. Recognized in
some states.
TENANCY FOR LIFE same as life estate.
TENANCY FOR YEARS created by a lease for a fixed term, such as 2 months, 3 years,
10 years, and so on.
TENANCY FROM YEAR TO YEAR same as leasehold.
TENANCY IN COMMON an ownership of realty by 2 or more persons, each of whom has an
undivided interest, without the right of survivorship. Upon the death of one of the
owners, the ownership share of the decedent is inherited by the party or parties
designated in the decedent's will. Compare with partition.
TENANCY IN SEVERALTY ownership of property by one person or one legal entity
(corporate ownership).
TENANT one who is given possession of real estate for a fixed period or at will.
TENANT FIXTURES mixtures added to ]eased real estate by a lessee that, by contract
or by law, may be removed by the lessee upon expiration of the lease.
TENDER 1. an offer to perform an obligation, together with present ability to
perform. 2. to perform under a contract. 3. to pay or deliver
TENEMENTS 1. possessions that are permanent and fixed; structures attached to land.
2. older apartment units.
TENURE the nature of an occupant's ownership rights; an indication of whether one
is an owner or a tenant.
TENURE IN LAND the mode in which a Person holds an estate in lands.
TERM the period of time during which something is in effect.
TERM, AMORTIZATION for a loan, the period of time during which principal and
interest payments must be made; generally the time needed to amortize the loan fully.
TERMITE CLAUSE a provision in a sales contract that allows the buyer to have the
property inspected for termite infestation. In general, if termites are discovered, the
buyer may require the seller to treat the property or the buyer may cancel the contract.
Most clauses now use the term wood-destroying insects to protect against other types of
insects that harm structures, such as the powder post beetle and old house borer.
TERMITE INSPECTION an examination of a structure by qualified personnel to
determine the existence of infestation by termites. Often required by the terms of a sales
contract.
TERMITES insects that bore into wood and destroy it.
TERM LOAN one with a set maturity date, typically without amortization.
TERMS conditions and arrangements specified in a contract
TESTAMENT a will. Generally to dispose of personal property. Common usage employs
the words will, testament, and last will and testament as synonyms.
TESTATE having made a valid will. Contrast with intestate.
TESTATOR a person who makes a will
TESTATRIX a woman who makes a will.
TESTIMONIUM a clause that cites the act and date in a deed or other conveyance.
Before signing a deed, the grantor should make sure that everything is in order, e.g., the
spelling of names and legal descriptions. This is the testimonium clause.
THIRD PARTY one who is not directly involved in a transaction or contract but may
be involved or affected by it.
TIL truth-in-lending law.
TIME IS OF THE ESSENCE a phrase that, when inserted in a contract, requires that
all references to specific dates and times of day noted in the contract be interpreted
exactly. In its absence extreme delays might be acceptable.
TIME-SHARING a form of property ownership under which a property is held by a
number of people, each with the right of possession for a specified time interval.
Time-sharing is most commonly applied to resort and vacation properties.
TIME VALUE OF MONEY a concept that money available now is worth more than the same
amount in the future because of its potential earning capacity.
TITLE evidence that the owner of land is in lawful possession thereof; evidence of
ownership. marketable title.
TITLE COMPANY one in the business of examining title to real estate and/or issuing
title insurance.
TITLE DEFECT an unresolved claim against the ownership of property which prevents
presentation of a marketable title. Such claims may arise from failure of the owner's
spouse, or former part owner, to sign a deed, current liens against the property, or an
interruption in the title records to a property.
TITLE INSURANCE an insurance policy that protects the holder from loss sustained by
defects in the title.
TITLE REPORT a document indicating the current state of the title, such as
easements, covenants, liens and any defects. The title report does not describe the chain
of title.
TITLE SEARCH an examination of the public records to determine the ownership and
encumbrances affecting real property.
TITLE THEORY STATES states in which the law splits the title of mortgaged property
into legal title, held by the lender, and equitable title, held by the borrower. The
borrower gains full title to the property upon retiring the mortgage debt. The lender is
granted more immediate cure to a default than in lien theory states. Contrast with lien
theory states.
TOPOGRAPHY the state of the surface of the land; may be rolling, rough, flat, etc.
TORRENS SYSTEM a title registration system used in some states; the condition of
the title can easily be discovered without resorting to a title search.
TORT a wrongful act that is neither a crime nor a breach of contract, but that
renders the perpetrator liable to the victim for damages.
TOWN HOUSE a dwelling unit, generally having 2 or more floors and attached to other
similar units via party walls. Town houses are often used in planned unit developments and
condominium developments, which provide for clustered or attached housing and common open
space.
TRANSFERABLE DEVELOPMENT RIGHTS the permission to increase the intensity of
development for I parcel in exchange for decreasing the density of an adjacent parcel.
TRANSFER DEVELOPMENT RIGHTS a type of zoning ordinance that allows owners of
property zoned for low-density development or conservation use to sell development rights
to other property owners. The development rights purchased permit the landowners to
develop their parcels at higher densities than otherwise. The system is designed to
provide for low-density uses, such as historic preservation, without unduly penalizing
some landowners.
TRANSFER TAX one paid upon the passing of title to property or to a valuable
interest
TRESPASS unlawful entry or possession of property.
TRIPLE-A TENANT one with an excellent credit record.
TRIPLE-NET LEASE one in which the tenant is to pay all operating expenses of the
property; the landlord receives a net rent.
TRUST an arrangement whereby property is transferred to a trusted third party
(trustee) by a grantor (trustor). The trustee holds the property for the benefit of
another (beneficiary).
TRUST ACCOUNT a separate bank account segregated from a broker's own funds, in
which the broker is required by state law to deposit all monies collected for clients. In
some states called an escrow account.
TRUST DEED a conveyance of real estate to a third party to be held for the benefit
of another. Commonly used in some states in place of mortgages that conditionally convey
title to the lender.
TRUSTEE one who holds property in trust for another to secure performance of an
obligation; the neutral party in a trust deed transaction.
TRUSTEE'S DEED same as deed of trust.
TRUSTEE'S SALE a foreclosure sale conducted by a trustee under the stipulations of
a deed of trust.
TUDOR an English-style imposing-looking house with fortress lines. Siding is
chiefly stone and brick with some stucco and half timbers. Windows and doors have moulded
cement or stone trim around them.
TURNKEY PROJECT a development in which a developer completes the entire project on
behalf of a buyer; the developer turns over the keys to the buyer at completion.
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Copyright © 2000
- 2007 Brenda Rose - Broker/Owner