Real Estate Glossary

Letter T

Tacking(1) Annexing a lien to one superior to it in order to gain the priority of the superior lien and defeat an intermediate lien. Generally not allowed. (2) Annexing periods of possession to add up to enough time for successful adverse possession. For example: A begins adverse possession. A dies and A's son takes up possession, adding A's time to his own. Not always allowed.

TAH (Targeted Affordable Housing)See: Multifamily Affordable Housing.

Take Out CommitmentAgreement by a lender to place a long term (take out) loan on real property after completion of construction.

Takeout LoanA loan that is used to pay off a construction loan when construction is complete.

Take Out LoanThe "permanent" (long term) financing of real estate after completion of construction.

TakingAs a legal term, it is used to describe acquisition such as taking by will; it is most commonly used as a real estate term to mean acquisition by eminent domain.

TalusRocks at the foot of a hill or other slope, which accumulate by sliding or rolling down the slope from the action of wind, rain, and gravity.

Tandem PlanA method of keeping home financing active by the purchase of mortgages by GNMA (Government National Mortgage Association) at face value (par), for resale to FNMA (Federal National Mortgage Association), a private corporation, at a discount.

Tangible PropertySee: Corporeal Property.

Tangible ValueValue in appraisal of the physical value (land, buildings, etc.), as opposed to the value of an intangible, such as a favorable lease.

Targeted Affordable HousingSee: Multifamily Affordable Housing

TaxAn annual tax levied on the value of realproperty.

Tax And Insurance EscrowSee: Impound Account.

Tax AssessorAn official who evaluates property forthe purpose of taxing it.

TaxationThe process by which a government or municipal quasi-public body raises monies to fund its operation.

Tax BaseThe assessed valuation of real property, which is multiplied by the tax rate to determine the amount of tax due.

Tax BookSee: Tax Roll.

Tax BracketThe percentage of income tax which one pays, based on graduated tax tables.

Tax DeductibilityThe ability to write-off a portion of interest from a loan on the amount of taxes owed to the government.

Tax Deed(1) Deed from tax collector to governmental body after a period of non-payment of taxes according to statute. (2) Deed to a purchaser at a public sale of land taken for delinquent taxes. The purchaser receives only such title as the former owners had, and strict procedures must be followed to prevent attachment of prior liens.

Tax-Deferred ExchangesExchanges where taxable gain is deferred until a later date.

Tax DepreciationCalculating depreciation that can be used to determine any expense that can be deducted from income to determine net profit.

Tax DistrictAn area over which a governmental body has authority to levy property taxes; may contain one or more assessment districts.

TaxesA mandatory contribution of money to meet the expenses of a government, whether federal, state, or local.

Tax EscrowsSee: Impound Account.

Tax ExemptionFreedom from payment of property or other taxes, granted to religious, educational, and similar organizations. Partial property tax exemptions are granted in some states to individuals, such as veterans and senior citizens.

Tax Free ExchangeThe trading of one property for another rather than a sale of property and purchase of another. The actual transaction may involve a sale and repurchase, but if done according to the requirements of IRS Section1031, it is treated as a trade. The taxpayer pays no tax on the transaction if no profit (boot) is made.

Tax-Free ExchangeSee: Exchange

Tax LevyDetermine tax rates by developing and adopting a budget, evaluating the revenue fromall sources other than property taxes (state aid,sales tax, user fees, etc.), and then subtracting the revenues from the original budget.

Tax LienA charge against property created by the operation of law. Tax liens and assessments take priority over all other liens.

Tax Lien CertificateA certificate obtained by the purchase of a property tax lien. It entitles the purchaser to the tax owing, including interest and penalties. A method used by governments to improve cash flow by having private sector investors buy the certificates.

Tax RateThe rate at which real property is taxed in a tax district or county.

Tax RollA list, usually published by a county, containing the descriptions of all parcels in said county, the names of the owners (or those receiving the tax bill), the assessed value, and tax amount.

Tax SaleA court-ordered sale of real property to raise money to cover delinquent taxes.

Tax SearchA part of a title search which determines if there are any unpaid taxes or assessments which may be a lien against the property being searched.

Tax ServiceThe checking of property taxes for a lender to be sure that they are not delinquent during the life of the loan. The borrower pays a one time fee for this service.

Tax ShelterA general term used to include any property which gives the owner certain income tax advantages, such as deductions for property taxes, maintenance, mortgage interest, insurance, and especially depreciation.

Tax StampsSee: Documentary Tax Stamps.

Tax TitleSee: Tax Deed (2).

T-BillsSee: Treasury Bills.

Teaser RateSee: Start Rate.

TemperaA process of painting, using a base of albuminous or colloidal materials, instead of oil.

TempleA place of worship, usually thought of as being large and ornate.

Temporary BuydownWhen points are paid to a lender to reduce the interest rate and payments early in a loan, with interest rate and payments rising later.

TenancyAn estate in fee, such as "joint tenancy" or a non freehold estate, such as a tenancy under a lease.

Tenancy At SufferanceThe tenancy of a lessee who lawfully comes into possession of a landlord's real estate but who continues to occupy the premises improperly after her or his lease rights have expired.

Tenancy At WillAn estate that gives the lessee the right to possession until the estate is terminated by either party; the term of this estate is indefinite.

Tenancy By The EntiretiesA form of property coownership by husband and wife, in which each spouse has an undivided one-half interest and the right of survivorship, with neither spouse able to convey or encumber his or her interest without the other's consent.

Tenancy By The EntiretyThe joint ownership, recognized in some states, of property acquired by husband and wife during marriage. On the death of one spouse, the survivor becomes the owner of the property.

Tenancy For YearsSee: Estate For Years.

Tenancy From Period To PeriodSee: Periodic Tenancy.

Tenancy In PartnershipThe form of co-ownership in which general partners own partnership property, whether or not title to the property is in the partnership's name. Each partner has an equal undivided interest, but no right to transfer the interest to someone outside the partnership.

Tenancy (or Estate) For Yearssee: Estate for Years

TenantOne who holds or possesses lands or tenements by any kind of right of title.

Tenant At SufferanceOne who comes into possession lawfully, but holds over after the termination of his interest.

Tenant At WillOne who holds possession of premises by permission of the owner or landlord, but without agreement for a fixed term of possession.

Tenant ChangesSee: Tenant Improvements.

Tenant FarmerOne who operates a farm but is a tenant rather than the owner. Rent may be in cash, a share of the crops, or both.

Tenant For LifeSee: Life Estate, Life Tenant.

Tenant ImprovementsImprovements to land or buildings to meet the needs of tenants. May be new improvements or remodeling, and be paid for by the landlord, tenant, or part by each.

Tenant In SeveraltyOne who owns property alone, without any other person being joined in said ownership.

Tenant In TailSee: Fee Tail.

Ten Day Escrow LawSee: Bulk Sales Act.

TenderThe offer of money or performance in connection with a contract. If unjustifiably refused, places the party who refuses in default and gives rise to an action for breach of contract.

TendonThe materials used to reinforce concrete, such as cable and wire, which resemble human tendons.

TenementEverything that may be occupied under a lease by a tenant.

Tenement HouseA term now seldom used. A run-down apartment house, such as those which were common after World War II; overcrowded, cold water, etc.

TenementsCommonly used to refer to certain types of property such as multiple dwellings. Legally, any property, or property rights, which are of a permanent nature.

Tentative Assessment RollThe public recordlisting assessed value for all real property in amunicipality.

Tentative MapA map submitted by a subdivider to a planning commission for approval; approval is usually conditioned upon changes. The final map, embodying the changes, is recorded.

TenureManner of holding title subordinate to a superior interest. Derived from feudalism; the superior title was seisin.

Tenure Monthly Advance Reverse MortgageMonthly payments to the borrower under this reverse mortgage continue so long as the borrower occupies the property, even if the payments exceed the market value of the property. See also: Reverse Mortgage.

TermA period of time, such as the term of a lease.

Terminable InterestsProperty interests which are not perpetual but liable to terminate, such as a leasehold. Also called "terminable property".

TerminateTo end. To cause to stop or end.

Termination (lease)The cancellation of a lease by the action of either party. A lease may be terminated by expiration of the term, surrender and acceptance, constructive eviction by lessor, or option, when provided in the lease for breach of covenants.

Termination (listing)The cancellation of a broker-principal employment contract. A listing may be terminated by death or insanity of either party, expiration of listing period, mutual agreement, sufficient written notice, or the completion of performance under the agreement.

Termite InspectionAn inspection required in certain types of sales of property, to determine if termites are present within a building.

TermitesInsects, similar to ants, which feed on wood, causing destruction to wooden structures.

Termite ShieldMetal shields at the foundation of a structure or around pipes to prevent the entrance of termites.

Term Monthly Advance Reverse MortgageUnder this reverse mortgage, the lender makes periodic payments to the borrower for a fixed time period rather than for the borrower's lifetime or the time the borrower occupies the property. The borrower who uses this loan usually does not expect to outlive the term of the loan. An advantage of the loan is that the borrower may be able to receive larger monthly advances, since the lender knows exactly how much will be the maximum borrowed. See also: Reverse Mortgage.

Term MortgageSee: Straight-Term Mortgage.

TermsThe consideration, other than price, in a sale, lease, mortgage, etc. For example: the way the money will be paid, time to take possession, conditions, etc.

Terrace(1) A common synonym for a balcony in a residence. (2) A series of flat cuts bulldozed into a slope, on which houses are constructed. (3) The natural levels of sloping ground, usually alongside water and indicating the levels of the water over different eras.

Terra CottaLiterally "baked earth". A hard baked, glazed or unglazed, ceramic material used architecturally as a decorative surface for facings and tiles.

Terra Cotta LumberVery porous earthenware which can hold a nail and be cut without breaking or shattering.

TerrazzoA flooring made by embedding small pieces of marble or granite into cement and polishing to a high gloss.

Territorial JurisdictionThe geographical area over which a particular court has authority.

TestamentCommonly synonymous with "will", but technically only the disposition of personal property. See also: Will.

Testamentary TrustA trust created by a will.

TestateHaving made and left a valid will.

TestatorA will maker

Testator (F. Testatrix)One who dies leaving a testament or will.

TestatrixA woman who makes a will.

TesterSee: Checker.

Testimonium ClauseClause in a deed or other instrument of conveyance which states that the proper parties are signing the document: "In witness whereof, the parties to these presents have hereunto set their hands and seals".

ThermA measure of heat equal to one hundred thousand British thermal units (B.T.U.'s).

ThermalHeat. Having to do with heat or temperature.

Thermal WindowAn insulating window of two panes of glass with air between.

ThermostatThe part of a heating or air conditioning system which controls the heating or cooling unit by adjusting to bring ambient air to a pre- set temperature.

Third PartyA general term which includes anyone not a party to a contract, agreement, instrument, etc. However, statutes or court decisions may limit the definition in certain cases to, for instance, exclude representatives of the parties to a contract, etc.

ThreadA middle line of a stream, river, or road.

Three Phase WiringA method of wiring, used in industrial buildings, allowing a series of heavy machines to be used at the same time, without overload.

ThresholdA wooden strip under an outside door; the entrance to a building being over the threshold.

Tidal BasinA bay or inlet without water gates. The water level varies directly with the ebb and flow of the tide.

TideThe ebb and flow of the sea. The tide reaches its ebb (low tide) and its flow (high tide) twice in each day (actually 24 hours and 51 minutes).

Tide LandsLands which are covered at the highest point of the tide. These lands are state property and cannot be used for private purposes. Even though the tide may lower over a period of years, the land still remains state property.

Tie BeamA beam which acts to hold other structural members together, as a beam of a roof. Also called a collar tie.

Tie-In ArrangementsRequiring the consumer, as a condition of a transaction, to use or not use a particular service or product.

TierA group of townships which form a row across a map, running East and West.

TILSee: Truth in Lending.

TileA general term used to describe ceramic materials used for floors, facing of walls, and trim; also square, flat materials of many varieties of both composition and usage, such as acoustical ceiling tile, carpet tile, field tile, sewer tile, etc.

Tile FieldSee: Disposal Field.

TillUnstratified glacial deposits, composed of clay, sand, gravel, rocks, in any proportion.

Tillable LandLand which may be plowed and planted without special preparation, such as cutting trees, removing boulders, etc.

Till PlainLevel or rolling land covered by till.

Tilth(1) Land which has been cultivated (tilled). (2) The crop produced from tilled land.

Tilt-Up ConstructionA method of construction whereby precast concrete walls are tilted upright at the building site. Faster and less expensive than building the walls upright at the site.

TimberA general term applied to trees, standing or cut. Wood of a large size. Usually a piece of wood larger than 4" X 4" in cross-section.

Time Certificate Of Deposit (T.C.D)See: Certificate of Deposit.

Time Interval MapsMaps showing a given area, indicating certain changes over a given period.

Time Is Of The EssenceClause used in contracts to bind one party to performance at or by a specified time in order to bind the other party to performance.

Time ShareAn ownership interest that gives the owner a right to possession of the property only for a specific, limited period each year.

Time-SharingA concept of ownership increasing in popularity as real estate prices rise. The purchase of an undivided interest (usually in a resort area condominium) for a fixed or variable time period. For example: Fifty-two different purchasers buy one condominium; each agrees to possession for one week per year. Costs (taxes, insurance, maintenance, etc. are shared equally. Possession may be fixed, or by reservation, by lease, license, etc. Some developers provide several projects in different parts of the world, so that a person owning one week in a project in Hawaii could elect to spend that week in a connected project in France or other area.

Time Value Of An OptionThe value of an option based on the expiration date. Example: An option to purchase property would be worth less if it expires in one week than it would be if it expires in one year, even though the price and terms are the same. The reasoning is that the value of the property has a better chance to increase in a year than in a week, making the one year option a better deal.

Time Value Of MoneySee: Present Value Of $1.

Time Value Of Money (TVM)The relationship between time, money, a rate of return and earnings growth.

Title 1An FHA-insured loan that allows a borrower to make improvements such as renovations or repairs to his/her home.

Title ClosingThe final stage in a real estatetransaction; transfer of real property ownershipfrom seller to buyer occurs, according to theterms and conditions in a sales contract orescrow agreement.

Title DefectSee: Defective Title.

Title Insurance CompanyA company which issues insurance regarding title to real property.

Title One LoanA government insured loan which is greater than the equity in the property. These loans can currently go up to one hundred twenty five percent of the value of the property, and may be used only for improvements to the property. Also called a Negative Equity Loan. See also: Title One Look Alike Loan.

Title One Look Alike LoanA loan which has the same greater than value characteristic of a Title One Loan (See Above) but is privately funded without government insurance. This loan is not restricted to property improvements.

Title OrderAn order for a search of the title to some parcel of property, eventually leading to the issuance of a policy of title insurance.

Title PageThe page in a subdivision map which is signed by all parties having an interest in the land, agreeing to the subdivision.

Title PlantA filing of all recorded information to real property, paralleling the records of the county recorder's office, although the filing system may be different.

Title ReportSee: Preliminary Title Report.

Title TheoryA theory followed in several states that the mortgagee has legal title to the mortgaged property and the mortgagor has equitable title. See also: Lien Theory.

Title Theory StatesStates in which a mortgagee holds actual title to property until the loan is repaid. Compare: Lien Theory States.

ToenailingNailing at a slant for greater gripping into a second member.

Toll(1) Money paid for the use of a road, bridge, etc. (2) To take away, stop, or defeat. Commonly used to indicate the defeating of the statute of limitations.

Toll BridgeA bridge, the crossing of which requires a fee to be paid.

Toll RoadA highway over which a motorist may travel, for a specified fee.

Tombstone TitleInformation to validate title taken from tombstones, such as the death of an owner, date of death, names of survivors, etc.

Ton(1) A measure of weight; two thousand pounds. (2) A measure of capacity of an air conditioner. One ton equals twelve thousand British thermal units (B.T.U's).

Tongue And GrooveA method of joining (usually lumber) by cutting a tongue (protrusion) in one board and a corresponding groove in the other.

Topographical MapMap showing the differences in grade of a parcel of land. Grades are measured in relation to sea level.

TopographyThe contour of land surface, such as flat, rolling, mountainous, etc.

TopsoilThe surface or upper layer of soil, which determines its suitability for farming.

Torrens SystemA method of evidencing title by registration with the proper public authority, generally called the registrar.

Torrens TitleA system by which title to land is registered with a registrar of land titles, instead of being recorded. Originally established by Sir Robert Torrens in Australia in 1858.

TortA civil wrong committed against person or property, independent of any contractual agreement.

Total Debt RatioSee: Debt ratio

Total Debt Service RatioRelationship of total monthly debt obligations to income, expressed as a percentage.

Total Expense RatioA formula to determine eligibility for a loan by figuring, as a percentage, all of the borrower's monthly obligations divided by gross monthly income. See also: Expense Ratios.

Touch And Concern The LandLegal doctrine that says restrictive covenants must be related to actual land use to be enforceable.

TownA term varying in meaning, depending on the area of the country. May be a county, city, or unincorporated village.

TownhouseOriginally a house in a city as opposed to a country estate. More recently the term is applied to certain types of row houses, whether planned unit developments or condominiums.

TownshipThe principal unit of the rectangular survey system. A township is a square with six-mile sides and an area of 36 square miles.

Township LinesThe horizontal lines running at six-mile intervals parallel to the base lines in the rectangular survey system.

Township RoadA road under the jurisdiction of, and maintained by a town or township.

TownshipsSquare divisions of land, 6 miles by 6miles, in the government survey system. Onetownship contains 36 sections.

Track RecordA general term referring to the past record of performance of one applying for a loan, developing a project, asking for a listing, etc.

TractA parcel of land. In some states, synonymous with a subdivision.

Tract HouseA house built using the plan of the builder, as one of many similar homes in a subdivision, as opposed to a custom house, which is built to the specifications of the owner.

Tract LoanA loan secured by an entire subdivision. See: Blanket Mortgage (1), Partial Release.

Trade AreaThe area from which a commercial development can expect to draw customers.

Trade EquityThe making of a down payment with property instead of cash.

Trade FixtureEquipment a tenant installs for use in his or her trade or business, and which can be removed by the tenant before the lease expires.

Trade FixturesThe articles installed by a tenant under the terms of a lease and removable by the tenant before the lease expires.

Trade-InSale of a house by an owner to a real estate broker in order for the owner to purchase another house. The house is put on the market at market value. If not sold in a specified time, the broker guarantees to buy the house at a lower price.

Traffic(1) The transporting of goods in trade or business. (2) The movement of air, sea, or land vehicles, people, or animals, along a route.

Traffic CountThe number of pedestrians or vehicles moving past a given point in a given period of time. The counts are used to determine business potential, patterns for redesigning streets, etc.

Traffic DensityThe number of vehicles moving across a portion of a road at a given time. Usually expressed as vehicles per mile of road.

TrailerAnything from a carrier used to haul small loads, boats, etc., to a complete mobile home, may be called a trailer.

Trailer ParkA site containing two or more parking spaces for trailers (mobile homes) with minimum facilities of water, sewer, electricity, laundry and bathing facilities. The more modern are called mobile home parks and have all the conveniences of an apartment complex.

TransferThe act by which the title to property is conveyed from one person to another.

Transferable Development RightsAllowing the assignment of development rights from parcel to parcel. Example: The owner of a parcel on which the zoning allows a maximum of a five story building could buy rights from another parcel and build a ten story building. The parcel transferring the rights would have to decrease its allowable height by the same number.

Transfer Of Development RightsThe exchange of zoning privileges from areas with low population needs to areas of high population needs.

TransformerTransfer power from one circuit to another.

Trap(1) The lowest curved portion of pipe under a sink (or other fixture using water) to catch and hold objects dropped into the drain. (2) A term used among sales agents of tract houses to describe the barriers which guide potential buyers through the sales offices on their way to and from the model homes.

Traverse WindowA window popular in modern construction, having sashes which open horizontally, sliding on separate grooves past each other.

TreadThe middle or center line of a road or stream.

TreadsThe width of a step in a staircase, being the horizontal distance between consecutive risers.

Treasury BillsInterest bearing federal obligations with maturities of less than one year.

Treasury BondsInterest bearing federal obligations with maturities of ten years or more. Commonly called the "Long Bond".

Treasury NotesInterest bearing federal obligations with a maturity of one to ten years.

Treble DamagesThree times the amount of actual damages. Given when damages were caused by a deliberate or grossly negligent act of the defendant. See also: Exemplary Damages.

TrespassLegally covers a variety of wrongs against person or property. Most commonly used to describe the wrongful entry of a person onto another's land, although encroachment of an inanimate object, such as a building or fence, is a form of trespass.

TrialThe fundamental court proceeding in a lawsuit, in which a judge (and in some cases, a jury) hears evidence presented by the plaintiff and defendant and issues a judgment. Compare:Appeal.

Trial RecordAll documents and transcripts from a trial.

Trigger PhraseA word or phrase that describes a loan, including the down payment, terms, and monthly payment. If an ad uses a trigger phrase,disclosures are needed to tell everything about the loan.

TrimDecorative or finish materials in a building as interior moldings, and exterior moldings around doors and windows.

TrimmerThe vertical side members of a doorway, opening for a stairway, opening for a chimney, etc., to which a header is attached.

Triple NetSee: Net Lease.

Triple Net LeaseA lease in which the tenant pays all the expenses associated with the property, including rent.

Triplex(1) Any building containing exactly three dwelling units. (2) An apartment on three separate floors or levels.

Truck HighA platform at the height of a truck bed, usually about four feet high.

Truck IndentureA recessed platform allowing a truck to back into a building to unload.

Truck WellA slope which brings the level of a truck bed to the level of a loading platform.

True TaxThe amount that would be paid before any exemptions held by the present owner are subtracted.

Trunk TitleSee: Dresser Drawer Title.

TrussA frame to support a roof, bridge, or other span.

Truss HeightThe height of the trusses (roof beams), as measured from the floor.

TrustA fiduciary arrangement by which property is conveyed to a person or institution, called a trustee, and held and administered on behalf of another person, called a beneficiary.

Trust AccountAn account used by brokers, escrow agents, or anyone holding money in trust for another. See also: Commingling.

Trust AgreementThe writing which sets forth the terms of a trust.

Trust DeedAn instrument used to create a lien by which the trustor conveys his or her title to a trustee, who holds it as security for the benefit of the note holder (the lender).

Trustee In BankruptcyOne appointed by a bankruptcy court, and in whom the property of the bankrupt vests. The trustee holds the property in trust, not for the bankrupt, but for the creditors.

Trustee's DeedA deed by a trustee under a deed of trust, issued to a purchaser at auction, pursuant to foreclosure.

Trustee’s DeedA deed executed by a trustee conveying land held in a trust to the beneficiary.

Trustee's SaleA sale at auction by a trustee under a deed of trust, pursuant to foreclosure proceedings.

Trustee’s SaleA non-judicial foreclosure sale undera deed of trust.

Trust FundsMoney or things of value received by an agent, not belonging to the agent but being held for the benefit of others.

Trust InstrumentAny writing which creates a trust. May be a will, court order, trust agreement, or similar writing.

TrustorThe borrower under a deed of trust. One who deeds his property to a trustee as security for the repayment of a loan.

Truth In LendingAlso referred to as Regulation Z. Part of the Consumer Credit Protection Act. Federal legislation designed to protect borrowers by requiring lenders to furnish information regarding the cost of the loan. The law requires interest to be expressed as the annual percentage rate (APR) to the nearest 1/8 of one percent. The APR must include charges such as loan fees, discount points, servicing fees, etc., as well as interest. The law applies to 1 to 4 family residential property only. Also applies to other consumer loans.

Truth-In-Lending ActAct that requires lenders to disclose consumer credit costs to promote informed use of consumer credit.

Tuck PointingThe finishing of joints of brick, block, or similar material, with putty or mortar. Most commonly used in chimney repair.

Turn KeyReferring to an owner making a property ready for a tenant to begin business by having the tenant furnish only furniture, phone, and inventory, if any. Ready to "turn the key" in the front door and begin business.

Turn-OverIn business opportunities, refers to the sale of one average inventory of a business within a specified time. For example: A business having an average inventory worth $10,000, and having gross sales of $5,000 per month, would "turn over" the inventory once every two months.

TurnpikeA toll road. Modernly, a road across a large portion of a state, having limited access, maximum speeds, and for the use of which a toll is charged.

TurpentineAn oil distilled from pine and other trees, used to thin paint and as a solvent for varnish.

Two Hour DoorA door with a resistance to fire, so that is would take a fire two hours to burn through it.

Two Hour WallA wall with a resistance to fire, so that it would take a fire two hours to burn through it.

Two Step MortgageA mortgage or deed of trust that begins with a fixed interest rate for a specified number of years and then uses an adjustable rate for the remaining years.