Your Online Legal Resource Center for Property Management

TAKE-OUT COMMITMENT - A lender's written statement that a short-term construction loan may be converted to long-term financing after completion of the project.

TANDEM PLAN - The resale of first mortgages to GNMA, who in turn resells them to FNMA at a discount; increases the supply of funds available for lending on first mortgages.

TANGIBLE VALUE - The physical worth of a structure, as opposed to the value of a mortgage placed on it.

TAP FEES - Most companies charge a tap fee for hooking up utilities.

TAX ABATEMENT - A tax assessment decrease.

TAX BASE - The total assessed value of all the property in a given area which determines the rate at which an individual property is assessed.

TAX DEDUCTION - A tax break given by the government. Mortgage interest, loan points and property taxes can be deducted.

TAX DEED - A deed issued to a government body upon non-payment of taxes for a period of time; the deed issued to a purchaser of property through a tax sale.

TAX EXEMPTION - Freedom from taxation of property owned by non-profit organizations or qualified elderly individuals.

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.

TAX STAMP - See Revenue Stamp.

TAX-STOP CLAUSE - Increases in rent under a lease agreement which go to pay for increases in taxes on the property.

TEAR-DOWN CONDITION - A house that requires the entire interior to be rebuilt.

TEASER RATE - A 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.

TENDER - An offer on the part of one party to an agreement to fulfill the terms of the agreement in full; if rejected by the other party, it becomes a breach of contract.

TENURE - The status of one's ownership of title in property in relation to another person's interest in the same property; a less than fee interest in real property.

TERMITE INSPECTION - A determination after examination by a licensed inspector as to whether or not termites are present in a structure.

TERMS - The mutually agreed upon conditions written into a contract, such as a sales agreement, mortgage, etc.

TERRA COTTA - Unglazed fired earth (clay) used for roof and floor tiles.

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.

TESTIMONIUM CLAUSE - A deed clause which acknowledges through the presence of a witness that the right parties are signing the instrument of conveyance.

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.

THERMAL WINDOW - A double-panned window with dead air space between, for insulating purposes.

THIRD PARTY - A reference term in a legal instrument which indicates the involvement of a third party to the contract.

THIRD-PARTY ORIGINATION - In a third-party origination transaction, the lender has another institution originate all or part of a mortgage.

THREE-QUARTERS BATH - A bathroom with a commode, sink, and shower.

TIGHT MONEY - An economic reference to the lack of availability of money for lending during periods of high interst rates or recession.

TILLABLE LAND - Cleared land, suitable for farming.

TIMBER - A marketable tree, cut or uncut.

TIMELINESS - The importance of fulfilling the terms of a contract by the date mentioned in the agreement, i.e. "Time is of the essence".

TIME SHARE - Ownership that involves the acquisition of a specific period of time, or that percentage of interest, in a vacation home or resort.

TIME-SHARING - Sharing ownership in a recreational or resort condominium according to time, for example 1 week per year would be a 1/52 interest. Various plans are available.

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.

TOPOGRAPHICAL SURVEY - A survey of land to determine its elevation levels in relation to sea level.

TOP SOIL - The top layer of soil that is removed when lots are graded in preparation for construction.

TORRENS SYSTEM - A registration of land ownership, bearing the name of its originator.

TOTAL EXPENSE RATIO - The percentage of monthly debt obligations relative to gross monthly income.

TOWNHOUSE - An attached home that is not a condominium.

TOWNSHIP - Thirty-six square miles as determined by federal survey.

TRACT HOME - Another term for a production home, a mass-produced house constructed by one builder in a project.

TRACK RECORD - Past history of performance.

TRACT - Subdivision.

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.

TRADE FIXTURES - Business equipment attached to real property which may be removed at the time of sales of the real property.

TRADING UP - A reference to buyers who purchase a home that is more expensive home than their current house.

TRANSFER - Passing the ownership of property to another.

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.

TRANS-UNION, TRANS-UNION CORP. - It is one of the "Big Three" credit-reporting bureaus that operate nationwide. Address: 760 Sproul Road, P.O. Box 390, Springfield, PA 19064-0390. Telephone: (312) 408-1400.

TRAP - The curved section of pipe beneath a sink which traps grease and other objects going down the drain.

TRAY CEILING -A tray ceiling has edges that slant toward the middle from the walls.

TREASURY BILLS - Securities issued by theTreasury 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.

TRIPLE NET LEASE- A lease arrangement under which the lessee pays the expenses of the property, such as taxes and insurance, as well as the cost of maintenance and repairs, in addition to a base rent; called net.

TRI-PLEX - A 3-unit apartment dwelling.

TRUSS - A prefabricated framework of girders, struts and other items used to support a roof or other load-bearing elements.

TRUST - A relationship established for the benefit of one or more parties, but actually managed by another, called the trustee.

TRUST ACCOUNT - Special accounts used by brokers and escrow agents to safeguard funds for a buyer or seller.

TRUST DEED - A deed used in the same manner as a mortgage to secure property for a debt; a trustee hold title for the trustor (owner-borrower) and is empowered to sell the property in the event of default, and pay off the (lender-beneficiary) from the funds.

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.

TRUSTOR - The owner-borrower under a deed of trust who grants title to a trustee.

TUCK-POINT - The process of removing old mortar from between bricks and replacing it with new mortar.

TRUSTOR - The owner-borrower under a deed of trust who grants title to a trustee.

TURN KEY - A rental arrangement of business property where the tenant furnished only the furniture, inventory and telephone and the land lord prepared the premises itself for a business operation.

TURN-OVER - The rate at which business inventory sells.

TWO-STEP MORTGAGE - An adjustable mortgage with two interest rates, one for the first five or seven years of the loan, and the other for the remainder of the loan term.

TWO-TO-FOUR FAMILY PROPERTY - A piece of property that is owned by one person but provides housing for up to four households.