[
Dictionary of Terms ]
 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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 landlordÕs 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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