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Real Estate Dictionary Terms - T
Tacking
Adding an extra period of time to the term of a contract.
Tax
A compulsory charge on property or individuals, the payment of which
supports a government.
Tax Basis
The tax value of property to the taxpayer. It is a figure used to
compute capital gains and losses.
Tax Deed
Deed issued to the pruchaser at a tax sale. The instrument of conveyance
when a property is sold by a government body to pay for arrears of
taxes.
Tax Lien
A claim registered against a property by a government authority for
non-payment of assessed taxes.
Tax Sale
Sale of property after a period of nonpayment of taxes. Sale of property
by a government body for non-payment of taxes, either by tender or
auction.
Taxation
To levy an assessment against, usually by government powers. Unpaid
taxes usually form a special lien on property owned by the taxpayer,
ahead of registered mortgages.
Tenancy
A leasehold estate. (For specific types of leases see Estates.)
Tenancy In Common
As opposed to joint tenancy, when there are two or more individuals
on title to a piece of property, this type of ownership does not
pass ownership to the others in the event of death. Ownership of
property in which several owners each own a stated portion of the
property (a percentage). Each owner may deal with her portion of
the property as she wishes (giving it away, mortgaging it, bequeathing
it, etc.) and, upon her death, her share becomes part of her estate.
Ownership by two or more persons who hold an undivided interest in
real property, without right of survivorship; the interests need
not be equal.
Tenant
One who leases real property from the owner.
Tenements
All rights in real property that pass with a conveyance of it.
Tentative Map
The Subdivision Map Act requires subdividers initially to submit
a tentative map of their tract to the local planning commission for
study. The approval or disapproval of the planning commission is
noted on the map. Thereafter, the planning commission requests a
final map of the tract embodying any changes.
Tenure In Land
The manner in which land is held.
Termite Shield
A shield, usually of noncorrodible metal, placed on top of the foundation
wall or around pipes to prevent passage of termites.
Termites
Antlike insects that feed on wood.
Testament
The written declaration of one's last will.
Testamentary Disposition
A gift passing by will.
Testate
Describes a person who dies leaving a will. To die leaving a valid
will: opposite meaning is to die intestate.
Testator
A person who makes a will. Technically, a testator is a male and
a testatrix is a female, although in common use testator refers to
anyone who makes a will. The person who makes a will.
The Right Of Ownership
The evidence of a person's ownership or interest in property.
The Voluntary Affirmative Marketing Agreement
Is a voluntary commitment by real esate licensees to promote fair
housing by using methodology that is more fair than goverment regulations.
Third-Party Origination
A process by which a lender uses another party to completely or partially
originate, process, underwrite, close, fund, or package the mortgages
it plans to deliver to the secondary mortgage market.
Thirty-Day Notice
A notice terminating a periodic tenancy without cause, by ending
a tenancy thirty days from date of service.
Three-Day Notice
A notice giving a tenant three days in which to cure a default or
quit the premises. It is the first step in an unlawful detainer action,
as the means of terminating a lease for cause. When rent is delinquent,
it is sometimes called a notice to quit or pay rent.
Threshold
A strip of wood or metal beveled on each edge and used above the
finished floor under outside doors.
Time Is Of The Essence
A standard statement in a contract which ensures that all dates and
times of day noted in the contract are important and cannot be ignored
by any of the parties without the consent of the others except in
breach of the contract.
Time Is Of The Essence
These words, when placed in an agreement, make it necessary that
all time limitations and requirements be strictly observed.
Time-Share
A form of joint ownership of property where numerous owners share
title and enjoy use or occupation of the property according to a
specific schedule.
Title
A legal document evidencing a person's right to or ownership of a
property. Evidence of the owner's right or interest in property.
The legal term for one's ownership interest in land.
Title Company
A company that specializes in examining and insuring titles to real
estate.
Title Insurance
Insurance that protects the lender (lender's policy) or the buyer
(owner's policy) against loss arising from disputes over ownership
of a property. Insurance written by a title company to protect a
property-owner against loss if title is defective or not marketable.
A special policy of insurance issued by a title company, insuring
the owner against loss of or defect in title to the insured property.
The policy may be either a CLTA policy, issued to the property owner
and to non-institutional lenders, or an ALTA policy, issued to institutional
lenders. A form of insurance contract which guarantees to indemnify
an owner or mortgagee of property for damages suffered as a result
of undiscovered title defects which arise later.
Title Search
A check of the title records to ensure that the seller is the legal
owner of the property and that there are no liens or other claims
outstanding. The act of examining in detail the public records relating
to ownership of a parcel of land to ensure that the current owner
has clear title, free of any liens, claims, mortgage or competing
and adverse interests. Usually performed by a lawyer, qualified title
searcher, or title isurance company on behalf of a proposed purchaser
or mortgagee.
Title Theory
Jurisdictions in which ownership of land is divided into two interests--legal
title and equitable title When an owner registers a mortgage in favor
of a lender, legal title is transferred to the lender while the owner
retains equitable (or beneficial ) title. Once the mortgage is paid
out, legal title is transferred back to the owner.
Topography
Nature of the surface of the land. Topography may be level, rolling,
or mountainous.
Torrens System
Developed in Australia, a system of the registration of interests
in land in which documents are closely regulated, monitored, and
examined by the recording authority to ensure that they are correct
and that title is transferred without flaw. Property may not be transferred
if uncorrected title defects exist.
Torrens Title
A title included in a state-insured title system no longer used in
California.
Tort
A wrongful act. A wrong or injury. Violation of a legal right. A
civil wrong, not arising from a breach of contract. Most torts lie
in negligence, although they could also be intentional torts (such
as assault and battery, trespass) or strict liability torts.
Tortfeasor
A person who commits a tort.
Tortious
Conduct which amounts to a tort.
Township
A territorial subdivision that is six miles long and six miles wide
and that contains 36 sections, each one mile square.
Trade Fixtures
Articles of personal property that are annexed to real property but
that are necessary to the carrying on of a trade and are removable
by the owner. Fixtures installed to further one's trade, business,
or profession. They are an exception to the general rule that fixtures
are part of a building. Such fixtures installed by a tenant may be
removed before the expiration of the tenancy.
Trade-In
Method of guaranteeing an owner a minimum amount of cash on?the sale
of his or her present property to permit him or her to purchase another.
If the property is not sold within a specified time at the listed
price, the broker agrees to arrange financing to purchase the property
at an agreed-upon discount.
Transfer
Conveyance; passage of title.
Transfer Disclosure Statement
It is the responsibility of the seller (transferor) to issue the
statement.
Transfer Of Ownership
Any means by which the ownership of a property changes hands. Lenders
consider all of the following situations to be a transfer of ownership:
the purchase of a property "subject to" the mortgage, the
assumption of the mortgage debt by the property purchaser, and any
exchange of possession of the property under a land sales contract
or any other land trust device.
Transfer Tax
State or local tax payable when title passes from one owner to another.
Transferee
The person to whom a transfer is made.
Transferor
The person who makes a transfer.
Treads
Horizontal boards of a stairway.
Treasury Index
An index that is used to determine interest rate changes for certain
adjustable-rate mortgage (ARM) plans. It is based on the results
of auctions that the U.S. Treasury holds for its Treasury bills and
securities or is derived from the U.S. Treasury's daily yield curve,
which is based on the closing market bid yields on actively traded
Treasury securities in the over-the-counter market.
Trespass
An invasion of an owner's rights in his or her property.1. Unauthorized
entry onto another's land.2. Invasion of another's rights or property.
Trespasser
One who trespasses. The importance of this classification of individuals
on property is created by the methods for removal and the liability
of the property owner if the trespasser is injured on his property.
Trim
The finish materials in a building, such as moldings applied around
openings (window trim, door trim) or at the floor and ceiling (baseboard,
cornice, picture molding).
Trust
A right of property, real or personal, held by one party called the
trustee for the benefit of another party called the beneficiary.
Arrangement whereby one person holds property for the benefit of
another under fiduciary (special confidential) relationship.
Trust Deed
Deed given by a borrower to a trustee to be held pending fulfillment
of an obligation, which is usually repayment of a loan to a beneficiary.
A deed of trust. Foreclosure of this deed maybe at a foreclosure
or at a trustee's sale. The lender in the trust deed is referred
to as the beneficary. Trust deed investments should be on improved
property rather than on unimproved property.
Trust Deed
An instrument of conveyance of title to property wherein the transferre
will be holding the title to the property on behalf on another person.
Trust Funds
Consists of money or property received by a real estate licensee
on behalf of others. Cannot be given to the seller without the permission
of the buyer. Must be in writing. These funds may not be commingled.
It is against the law. Protects the money in case a legal action
is taken against the broker. These records are subject to audit and
examination by the D.R.E. . All records and corresponding instuments
must be kept for a period of (3) three years.
Trustee
A fiduciary who holds or controls property for the benefit of another.
One who holds property in trust for another. The person who holds
property in trust for another. In a deed of trust, the person who
holds bare legal title in trust .A person who holds title to property
on behalf of another.
Trustee's Deed
The deed issued by the beneficiary after the foreclosure and sale
under a deed of trust.
Trustee's Sale
The private sale of property held by a trustee under a deed of trust
as part of the foreclosure proceedings. This sale must be conducted
in approximately four months.
Trustor
One who conveys his or her property to a trustee. The borrower or
debtor under a deed of trust.
Trustor's Reinstatement Rights
These rights continue for five business days prior to the date of
the trustee's sale.
Truth In Lending Law
A complex set of federal statutes designed to provide a borrower
with a means of discovering and comparing the true costs of credit.
Under Regulation Z of the act, certain borrowers of property have
three days after accepting a loan to rescind without cost or liability.
A federal law that requires lenders to fully disclose, in writing,
the terms and conditions of a mortgage, including the annual percentage
rate (APR) and other charges.
Two- To Four-Family Property
A property that consists of a structure that provides living space
(dwelling units) for two to four families, although ownership of
the structure is evidenced by a single deed.
Two-Step Mortgage
An adjustable-rate mortgage (ARM) that has one interest rate for
the first five or seven years of its mortgage term and a different
interest rate for the remainder of the amortization term.
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