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T - Glossary - Don Wixom, Nampa, Caldwell, Boise, Eagle, Meridian

Real Estate Terms

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TThere are 43 entries in the glossary.Pages: 1 Takeout commitmentPromise by a lender to provide a permanent loan to pay off a construction loan. TaxAn enforced charge imposed on persons, property or income, to be used to support the State. The governing body in turn utilizes the funds in the best interest of the general public. Tax assessorA government employee who determines a property value for tax purposes. Tax creditAllowable reduction in the amount of income tax owed. Tax deferred exchangeTrade of like-kind property that does not trigger recognition of taxable gain at the time of the exchange. Tax lienA charge against property that makes it security for unpaid taxes. Taxes and InsuranceA commonly used term in real estate is PITI. This abbreviation stands for principal, interest, taxes and insurance. The tax and insurance components of a mortgage payment are generally held by the lender in an escrow account. The lender pays any property tax and homeowner's insurance bills as they are due, ensuring they are paid on time. A home buyer's monthly mortgage payment generally covers expenses through the escrow account. If you don't have your homeowner's insurance and property taxes paid out of a lender escrow account, your local government and your property insurance company will send payment notices directly to you. It is your responsibility to make sure you pay these bills on time. If you're planning to purchase a condominium or cooperative, talk to your lender about how they view condo and co-op fees. Most likely, they are considered housing costs and not a part of PITI. However, this can vary from lender to lender. Tenancy by entiretyA type of joint ownership of property that provides right of survivorship and is available only to a husband and wife. Tenancy by the EntiretyA type of joint tenancy of property that provides right of survivorship and is available only to a husband and wife. Contrast with tenancy in common. Tenancy in CommonA type of joint tenancy in a property without right of survivorship. Contrast with tenancy by the entirety and with joint tenacy. Tenant improvementsA lease provision that obligates the owner to incur a prespecified dollar. Allowance amount to prepare the space for the tenant's occupancy. Tenant-StockholderThe obligee for a cooperative share loan, who is both a stockholder in a cooperative corporation and a tenant of the unit under a proprietary lease or occupancy agreement. TermThe length of time in which a loan is to be repaid. A 30-year mortgage loan has a 30 year term. Term loanA loan having the entire principal due at maturity. Termite InspectionHomes in many parts of the country must be inspected for termites before they can be sold. You should receive a certificate from a termite inspection firm stating that the property is free of both visible termite infestation and termite damage. The cost of the termite inspection is usually paid by the seller, and the seller's real estate sales professional orders the inspection. You need to make sure that the original certificate is delivered to your lender at least three days before closing. This allows the lender to review the certificate and address any potential problems. TermsAll conditions placed on a loan, including the interest rate, any finance charges, and the length of the loan. Third-Party OriginationA 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. (see also "Mortgage Broker") Three/two (3/2) optionAn alternative financing plan that enables households whose earnings are no more than 115 percent of the median income in their regional area to make a 3 percent down payment with their own funds, coupled with a 2 per cent gift from a relative or a 2 percent grant or unsecured loan from a nonprofit or state or local government program. ThriftsThrifts are depository institutions that primarily serve consumers and include both savings banks and savings and loan (S&L;) institutions. These institutions originate and service mortgage loans. A thrift may choose to hold a loan in its own portfolio or sell the loan to an investor. Time value of moneyRelation of value at one time to value at another through discounting or compounding at a certain interest rate. Time Value Of Money (TVM)An economic principle recognizing that a dollar today has greater value than a dollar in the future because of its earning power. TitleA legal document evidencing a person's right to or ownership of a property. Title CompanyA company that specializes in examining and insuring titles to real estate. Title InsuranceInsurance that protects the lender (lender's policy) or the buyer (owner's policy) against loss arising from disputes over ownership of a property. Your lender will require that you buy title insurance to ensure that you are receiving a "marketable title." There are two types of title insurance policies:

Lender's policy (mandatory): This protects the lender should a flaw in the title be detected after the property has been purchased.

Owner's policy (optional, but recommended): This protects you should a flaw in the title be detected after the property has been purchased.

Generally, the buyer pays the cost of both policies. Check with your insurer, because you may receive a price break if you seek a combined lender/owner policy or if you purchase a "reissue" policy from the company that previously insured the title. Title searchA 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. Title search or examinationA check of the title records, generally at the local courthouse, to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue special assessments, or other claims or outstandi ng restrictive convenants filed in the record, which would adversely affect the marketability or value of title. TopographyThe nature of the surface of land, such as level, rolling, and so forth. Total Expense RatioTotal obligations as a percentage of gross monthly income. The total expense ratio includes monthly housing expenses plus other monthly debts. Total monthly debtThe total amount of credit card, car loan, and other debt payments a person must pay each month. Used to figure out debt-to-income ratios. Total monthly incomeThe amount of money that comes into a household every month from a job or jobs, interest or dividends, alimony, disability payments, and public assistance. A lender uses the total monthly income figure to decide how muc h house payment a loan applicant can afford. Also called gross monthly income. TownhouseA townhouse is similar to a condominium in that it's a type of joint real estate where each housing unit is individually owned. However, it has two or more stories, rather than the typical one floor found in a condominium. Townhouses are available in many shapes and sizes, and most may have yards or common spaces that can be used by the owners. TractAn area of land. Trade EquityEquity that results from a property purchaser giving his or her existing property (or an asset other than real estate) as trade as all or part of the down payment for the property that is being purchased. Trade fixtureAn item of personal property attached to leased premises by a tenant for purposes of use in his trade or business. Transfer of OwnershipAny 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. In cases in which an inter vivos revocable trust is the borrower, lenders also consider any transfer of a beneficial interest in the trust to be a transfer of ownership. Transfer TaxState or local tax payable when title passes from one owner to another. Treasury IndexAn 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. (see also Adjustable-Rate Mortgage) Triple-net leaseA lease in which the tenant pays, in addition to rent, all expenses related to the operation of the property. Trust deedSee Deed of Trust. TrusteeA fiduciary who holds or controls property for the benefit of another. Truth in lending actA federal law that requires lenders to provide complete and correct information, in writing, about how much a borrower owes when payments are due and how much they are, and what interest rates and other charges are. Truth-in-LendingA 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. Your lender should provide you with the Truth-in-Lending (TIL) Statement within three business days of your loan application. This document outlines the costs of your loan, and it is given to you so you can compare the costs with those of other lenders. Two- to Four- Family PropertyA 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. 

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