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Frequently
Asked Questions
Glossary
of Real Estate Terms
Glossary for "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
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.
Terrace
A terrace can be several things: an unroofed paved area right next
to a house; a roofed balcony; a verandah; 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.
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) until midnight
of the third business day after the contract was signed.
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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