Friday, September 30, 2011

Real Estate Glossary - 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 remo

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.

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. 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.

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)

Tuck-point : The process of removing old mortar from between bricks and replacing it with new mortar.

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.

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