Takeout Financing: A commitment
to provide permanent financing upon completion of
construction. The take out loan normally pays off
the construction loan.
Tax Lien: Lien against a property
levied for nonpayment of taxes.
Tax Sale: Public sale or auction
of a property by the government to cover the nonpayment
of taxes.
Teaser Rate: A low initial rate on
a mortgage that is used to attract a borrower, but
which will increase.
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 land and buildings at the will of the owner.
The tenant may decide to leave the property at any
time or must leave at the landlords will.
Tenancy by the Entirety: A form of
ownership by husband and wife whereby each owns the
entire property. In event of the death of one, the
survivor owns the property without probate
Tenancy for Years: Tenancy created
by a lease for a set period of time.
Tenancy in Common: Ownership of a
property 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 deceased is inherited by the beneficiary
designated on the owner's will.
Tenancy in Severalty: Ownership of
property by one person.
Time is of the Essence: Legal term
dictating that all time and date references in a contract
be interpreted exactly.
Time Share: A form of ownership where
a property is held by several people, each having
right of possession for a specified period of time.
Title: Evidence that the owner of the property
is in lawful possession. Evidence of ownership.
Title Insurance: An insurance policy
which protects the insured against loss arising from
defects in title. Title insurance policies are typically
obtained for the buyer and the lender.
Title Report: A document indicating
the current state of title. The report includes information
on the current ownership, outstanding deeds of trust
or mortgages, liens, easements, covenants, restrictions,
and any defects.
Title Search: An examination of the
public records relating to the title on a piece of
property to determine ownership and any encumbrances
affecting the property.
Town House: Residence which normally
has 2 or more floors and is attached to other similar
units. Town houses are commonly found in planned unit
developments (PUDs) and condominiums.
Tract: A section of land, usually
set aside for subdividing.
Transfer Tax: Tax paid to a government
entity upon the sale or other transfer of a property.
Triple-Net Lease: A lease where the
tenant pays all of the expenses incurred on a property.
The landlord receives the net rent.
Trust Account: A separate account
maintained by an escrow agency or broker to handle
all money collected for clients.
Trust Deed: See Deed of Trust
Trustee: A party who is given legal
responsibility to hold property in the best interest
of or "for the benefit of" another. The
trustee is one placed in a position of responsibility
for another, a responsibility enforceable in a court
of law.
Truth in Lending: See Regulation
Z
Two-Step Mortgage: A mortgage where
the borrower receives one interest rate for the first
few years of a mortgage and then the mortgage adjusts
once and remains at the new rate.
