T

Tap fees Most companies charge a tap fee for hooking up utilities.
Tax deduction A tax break given by the government. Mortgage interest, loan points and property taxes can be deducted.
Tax lien An impediment placed against a property, such as back taxes.
Tax sale The public sale of a property by the government for nonpayment of taxes.
Tax shelter A term often applied to real estate investment and refers to various tax advantages.
Tear-down condition A house that requires the entire interior to be rebuilt.
Teaser rate An low, short-term rate offered on a mortgage to entice the borrower.
Tenancy by the entirety When a married couple owns a home, it is usually considered tenancy by the entirety If the property must be sold to pay the debts of one spouse, both must agree.
Tenants in common Two or more owners who share interest in a specific property.
Terrace A terrace can be several things: an unroofed paved area right next to a house; a roofed balcony; a veranda; or a raised bed of earth constructed to enhance a landscape.
The 72-hour clause When a buyer has a house to sell before they can purchase another home, most sellers insist on a 72-hour clause. In the event of a better offer coming in before the contingency is settled, this clause entitles the seller to give the buyer 72 hours to remove the contingency or lose the house.
Third-party origination In a third-party origination transaction, the lender has another institution originate all or part of a mortgage.
Timeshare Ownership that involves the acquisition of a specific period of time, or that percentage of interest, in a vacation home or resort.
Title The actual legal document conferring ownership of a piece of real estate.
Title company Firms that ensure that the title to a piece of property is clear and provide title insurance.
Title insurance A policy issued to lenders and buyers to protect any losses because of a dispute over the ownership of a piece of property.
Title risk Possible impediments to the transfer of a title from one owner to another.
Title search A check of public title records to ascertain that the seller is the legal owner and that there are no claims or liens against the property.
Top producer A real state industry term that refers to agents and brokers who sell a high volume of homes.
Top soil The top layer of soil that is removed when lots are graded in preparation for construction.
Total expense ratio The percentage of monthly debt obligations relative to gross monthly income.
Townhouse An attached home that is not a condominium.
Tract home Another term for a production home, a mass-produced house constructed by one builder in a project.
Trade equity Other real estate or assets a buyer gives to a seller as part of the down payment.
Trading down A reference to buyers who purchase a home that is less expensive than their current house.
Trading up A reference to buyers who purchase a home that is more expensive home than their current house.

Trans-Union Trans-Union Corp. is one of the “Big Three” credit-reporting bureaus that operate nationwide. Address: 760 Sproul Road, P.O. Box 390, Springfield, PA 19064-0390. Phone: (312) 408-1400.
Transfer of ownership Any legal means by which a piece of real estate changes hands.
Transfer tax An assessment by state or local authorities at the time a piece of property changes hands.
Transom A small hinged window directly above a door.
Tray ceiling A tray ceiling has edges that slant toward the middle from the walls.
Treasury bills Securities issued by the Treasury Department that have the full backing of the U.S. government.
Treasury index An index used to determine interest rate changes for adjustable rate mortgages.
Trellis A decorative landscape structure made of thin strips of wood or plastic.

Trim work The finishing of doors, doorways, window frames and floors.
Truss A prefabricated framework of girders, struts and other items used to support a roof or other load-bearing elements.
Trust account Special accounts used by brokers and escrow agents to safeguard funds for a buyer or seller.
Trustee A legally empowered person who holds or controls a piece of property for another person.
Truth-in-Lending Act A federal law that protects consumers in a variety of ways. One of its key provisions allows a consumer to cancel a home-improvement loan, second mortgage or other loan if the home was pledged as security (except for a first mortgage or first trust deed) until midnight of the third business day after the contract was signed.

Table Funding Simultaneous conveyance of purchase price and title as well as all loan papers at a closing.

Tacking Adding or combining successive periods of continuous occupation of real property by adverse possessors.

Take-Out Financing Long-term permanent financing. In the usual large construction project, the developer obtains two types of financing. The first is the interim loan, a short-term loan to cover construction costs. Before lending any money, however, the interim lender norma

Taking The concept of taking comes from the Takings clause of the fifth amendment of the United States Constitution. The clause reads, “nor shall private property be taken for public use, without just compensation.” This means that when land is taken for public
Talking Sign A radio transmitter with a range of up to 250 feet that broadcasts a description of a property to prospects listening to a radio tuned to the transmitter’s frequency.
Tandem Plan A mortgage subsidy program offered from time to time by the United States Congress. The Government National Mortgage Association (GNMA) purchases certain mortgages at below market interest rates, granting borrowers low-interest loans. GMNA sells the loans
Taxation 1. The process by which a government or municipal quasi-public body raises monies to fund its operation. 2. The impact an investment has on the investor’s liability for the payment of federal, state, and local taxes.
Tax Bill A property owner’s tax bill is computed by applying the tax rate to the assessed valuation of the property.
Tax Credit An amount by which tax owed is reduced directly.
Tax Deed An instrument, similar to a certificate of sale, given to a purchaser at a tax sale. (See certificate of sale)

Tax Deferred Exchange (1031 Exchange) Under Section 1031 of the Internal Revenue Code, some or all of the realizedgain from the exchange of property may not need to be immediately recognized for tax purposes. Both properties  exchange must be held for productive use in trade or business
Tax-Free Gifts Gifts that are free from federal gift taxes.

Tax Levy The amount to be raised from the general real estate tax is then imposed on property owners through a tax levy. A tax levy is the formal action taken to impose the tax, usually a vote of the taxing district’s governing body.
Tax Lien A charge against property, created by operation of law. Tax liens and assessments take priority over all other liens. (See assessments, lien)
Tax Rate The tax rate for each taxing body is computed separately. To arrive at a tax rate, the total monies needed for the coming fiscal year are divided by the total assessments of all real estate located within the taxing body’s jurisdiction.
Tax Reform Act Of 1986 (TRA 86) Sweeping revisions to the income tax laws, enacted by the United State Congress in 1986, that lowered tax rates and eliminated many tax shelters.
Taxpayer Relief Act Of 1997 (TRA 97) Enacted by the United State Congress and effective May 7, 1997, TRA ‘97 provides for broader exemption from capital gains taxes on the profits on the sale of a personal residence. Replaces the old provision for a “one-time” exemption of $125,000 for selle
Tax Sale A court-ordered sale of real property to raise money to cover delinquent taxes.

Tax Shelter A phrase often used to describe some of the tax advantages of real estate or other investments, such as noncash deductions for cost recovery (depreciation), interest, taxes and postponement or even elimination of certain taxes.
Tenancy At Sufferance A tenancy (or estate) in which a person wrongfully holds or occupies a property after the expiration of a lease without the consent of the landlord. No notice of termination is required for the landlord to evict the tenant.
Tenancy At Will A tenancy (or estate) in which a person holds or occupies real estate with the permission of the owner, for a term of unspecified or uncertain duration i.e., there is no fixed term to the tenancy.
Tenancy By The Entirety Some states allow husbands and wives to use a special form of co-ownership called tenancy by the entirety.

Tenancy For Years A tenancy for a definite period of time. The tenant must vacate the property at the end of the lease unless an extension or new lease has been agreed upon.
Tenancy In Severalty Ownership of a property by one person, rather than held jointly with others. Also called sole tenancy.
Tenant In general, one who exclusively holds or possesses property, such as a life tenant or a tenant for years; commonly used to refer to a lessee under a lease. A tenant’s occupancy, although exclusive, is always subordinate to the rights of the owner.
Tenant Emergency Procedures Manual A printed manual outlining emergency procedures, including evacuation plans and contact information for emergency personnel. The manual is used by building managers in the event of accident, illness, fire, natural disaster or other emergency situation.
Tenants In Common A form of concurrent ownership of property between two or more persons, in which each has an undivided interest in the whole property. This form is frequently found when the parties acquire title by descent or by will.

Tenant Improvements A commercial or an industrial property manager often is called on to make tenant improvements. These are alterations to the interior of the building to meet a tenant’s particular space needs.
Tenement A common law real estate term that describes those real property rights of a permanent nature. These rights relate to the land and pass with conveyance of the land, such as buildings and improvements.
Termite Inspection A visable check of a property for the presence of termites. Usually performed by a licensed exterminator. Buyers often make a termite inspection a condition of a sales contract, and require a pest control report or a clearance letter showing the property

Term Loan A short-term loan requiring interest-only payments until maturity, at which time the entire principal is due and payable.
Testamentary Trust A trust established by will.
Testate Having made and left a valid will.
Testator A person who has made a valid will. A woman often is referred to as a testatrix, although testator can be used for either gender.
Thermal Mass Thermal mass is a property that enables building materials to absorb, store, and later release significant amounts of heat. Buildings constructed of concrete and masonry have a unique energy savings advantage because of their inherent thermal mass.
Third Party Originator Third-party originators prepare loan applications for borrowers and submit the applications to lenders.
30-Day Notice Notice to vacate a premises under a periodic tenancy. Notice must be for the rent period, but not more than 30 days. (See periodic tenancy)
Three-Day Notice Notice to quit, quit or cure, or quit or pay rent. Three-day notice must be given before an unlawful detainer action. (See unlawful detainer action)

Threshold Notification Notification by brokers that they have met the threshold requirements for filing status and fiscal year reports on trust fund activities.
Thrift Another name for a savings and loan association; a financial institution established to promote “thrift” by accepting savings deposits, and to make home mortgage loans. (See savings and loan association)
Tier (Township Strip) A strip of land six miles wide, extending east and west and numbered north and south according to its distance from the base line in the rectangular (government) survey system of legal description.
Timing Refers to the length of time one must wait to receive cash flow from an investment.
Time Is Of The Essence A contract clause that emphasizes punctual performance as an essential requirement of the contract. Thus, if any party to the instrument does not perform within the specified time period (the drop-dead date), that party is in default, provided the nondefa
Time-Sharing A modern approach to communal ownership and use of real estate that permits multiple purchasers to buy undivided interests in real property (usually in a resort condominium or hotel) with a right to use the facility for a fixed or variable time period. Un
Title 1. The right to or ownership of land. 2. The evidence of ownership of land. (See ownership)
Title Defects An unresolved claim against the ownership of property, which prevents presentation of a marketable title.
Title Insurance A comprehensive indemnity contract under which a title insurance company warrants to make good a loss arising through defects in title to real estate or any liens or encumbrances thereon. Unlike other types of insurance, which protect a policyholder again
Title Insurance Fees The costs involved in purchasing title insurance. May include title insurance policy and search fees.
Title Search The examination of public records relating to real estate to determine the current state of the ownership.