Real Estate Glossary "T"

tacking - Combining successive periods of property use.

tangible property - Property that can be seen and touched, such as a car.

taxation - A government power by which local governments can raise revenue by taxing real estate.

tax shelter - An investment intended to lower (or pro­tect) taxable income through tax-deductible expenses.

tenancy at sufferance - This tenancy occurs when a tenant wrongfully remains on the property after the right to possess has ended.

tenancy at will - A form of tenancy whereby the tenant possesses the property with the consent of the land­lord. The term is for an indefinite period of time and can be canceled without notice.

tenancy by the entirety - A form of joint tenancy that exists between husband and wife.

tenancy in common - A form of holding title in which two or more parties have an undivided interest in the property. They can hold unequal shares in the property, and there is no right of survivorship.

term loan - A loan arrangement in which payments include only interest and the loan balance is due at the end of the loan period. They are usually non-amortizing loans for short terms. Also called a straight loan.

testamentary trust - A trust created through a will after a property owner's death.

testate - Having died and left a will.

testator - A male person who has made a will.

testatrix - A female person who has made a will.

thrifts - See savings banks.

time is of the essence - A clause in a contract that stipulates that time limits stated in the contract must be met.

time-share - Ownership of a specified time interval in a property, usually recreational or resort property.

title - The legal evidence of ownership rights to real property.

title insurance - Insures the existence of rights in real estate and pays for losses to the insured because of successful claims to the title by other parties. A policy is issued after a search of the public records. There are lenders' and owners' policies.

title report - The results of a search of the public records by a title insurance company. The report lists anyone who has an ownership interest in the property being examined.

title search - A search of the public records to determine past and present facts regarding ownership of the property. Also called title examination.

Torrens system - A system used for both assuring and recording title to real estate. This system is used in only a small number of states. When a property is registered in Torrens, a Torrens certificate establishing title to the owner on the certificate is issued by the registrator of title.

township lines - Township lines are six miles apart, run east and west and are measured from the base lines. Used in the rectangular survey method of describing real estate.

townships - Townships are square sections of land that are six miles on a side and contain 36 square miles, or sections. Used in the rectangular survey method of describing real estate. See also sections.

trade fixture - A fixture that remains personal property and can be removed by the tenant.

transactional broker - A licensee who does not act as the agent for either party in a real estate transaction. The broker's function is to assist the parties with the required paperwork and other activities in the transaction but not negotiate on behalf of either party.

transfer tax - A tax on the transfer of real property that is assessed by state and local law. The seller in the real estate transaction is usually required to pay the tax.

trust - A three-party arrangement (trustor, trustee, beneficiary) in which title to real estate or other assets is placed with the trustee.

trust deed - A deed that creates security for a loan by conveying title to a trustee, who holds it as security for the benefit of the lender (the beneficiary). Also called a deed of trust.

trustee - The party in a trust that holds title to the assets for the benefit of the beneficiary.

trustor - The party that creates a trust by transferring title to assets to a trustee.

Truth-in-Lending Act - A federal law implemented by Regulation Z that requires that lenders inform borrowers of the true costs of obtaining a loan. Primary disclosures include the finance charge, annual percentage rate, the amount financed and the total payments. The law also provides certain restrictions when advertising financing terms.

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