TAKING A common synonym for condemnation or eminent domain.
T-BAR A chart used to summarize the timing of real estate cash flows. Also, a elevation enhancement device designed to destroy the confidence of beginning skiers by humiliating them in front of others.
TACKING Adding on to a time period.
TAKEOUT FINANCING A commitment to provide permanent financing following construction of a planned project. The takeout commitment is generally predicated upon specific conditions, such as a certain percentage of unit sales or leases, for the permanent loan to "takeout" the construction loan. Most construction lenders require takeout financing.
TANDEM PLAN A program of the Government National Mortgage Association (GNMA) working together with the Federal National Mortgage Association (FNMA) to provide low-interest rate home loans.
TANGIBLE PROPERTY Real estate and other valuables which can be seen and touched.
TAX A charge levied upon persons or things by a government.
TAXABLE INCOME Adjusted gross income less personal deductions and exemptions.
TAXATION How an investment is affected by tax laws and codes.
TAX AND INSURANCE ESCROW An account required by a mortgage lender to fund annual property tax assessments and hazard insurance premiums for the mortgaged property. Funded through monthly contributions by the mortgagor.
TAX BASE Assessed valuation of real property, which is multiplied by the tax rate to determine the amount of tax due.
TAX BASIS Same as basis (tax).
TAX BRACKET Marginal rate for income taxes; the percentage of each additional dollar in income required to be paid as income taxes.
TAX CREDIT A reduction against income tax payments that would otherwise be due. Contrast with tax deductions that reduce taxable income .
TAX DEDUCTIBLE A type of expense that can be used to reduce taxable income.
TAX DEDUCTION One that can be used to reduce taxable income.
TAX DEED The type of instrument given to a grantee by a government that had claimed the property for unpaid taxes.
TAX-EXEMPT PROPERTY Real property that is not subject, in whole or in part, to ad valorem property taxes.
TAX FORECLOSURE The process of enforcing a lien against property for nonpayment of delinquent property taxes. Taxing authorities hold a superior lien against all taxable property to enforce the payment of their taxes-
TAX-FREE EXCHANGE Same as tax-deferred exchange.
TAX LIABILITY Real Estate taxable income multiplied by the individuals tax rate.
TAX LIEN (1) A lien for nonpayment of property taxes. Attaches only to the property upon which the taxes are unpaid. (2) A federal income tax lien. May attach to all property of the person owing the taxes
TAX MAP A document showing the location, dimensions, and other information pertaining to a parcel of land subject to property taxes. Maps are generally bound into books and kept as public records at the local tax office.
TAX PREFERENCE ITEMS Certain types of Income or deductions that are added to adjusted gross income to calculate the alternative minimum tax.
TAX RATE The ratio of a tax assessment to the amount being taxed.
TAX ROLL A list containing the descriptions of all parcels in the county, the names of the owners (or those receiving the tax bill), assessed values and tax amounts.
TAX SALE The sale of property after a period of nonpayment of taxes. The grantee receives a tax deed. In most states the defaulting party has a redemption period during which he may pay the unpaid taxes, interest, court costs, and the purchase price to redeem the property.
TAX SHELTER The ability of real estate holdings to reduce an investors tax liability through the use of cost recovery (depreciation).
TAX STOP A clause in a lease that stops a lessor from paying property taxes above a certain amount.
TEASER RATE A contract interest rate charged on an adjustable-rate mortgage for the initial adjustment interval that is significantly lower than the fully indexed rate at the time. It is an incentive to encourage borrowers to accept adjustable-rate mortgage loans. In general, the interest rate reverts to the fully indexed rate at the first adjustment date.
TENANCY The right of possession of real property. May refer to ownership or occupancy.
TENANCY AT SUFFERANCE Tenancy established when a person who had been a lawful tenant wrongfully remains in possession of property after expiration of a lease.
TENANCY AT WILL A license to use or occupy lands and buildings at the will of the owner. The tenant may decide to leave the property at any time or must leave at the landlord?s will. Agreement may be oral or written.
TENANCY BY THE ENTIRETY An estate that exists only between husband and wife with equal right of possession and enjoyment during their joint lives and with the right of survivorship-i.e., when one dies, the property goes to the surviving tenant. Recognized in some states.
TENANCY FOR LIFE Same as life estate.
TENANCY FOR YEARS Created by a lease for a fixed term, such as 2 months, 3 years, 10 years, and so on.
TENANCY FROM YEAR-TO-YEAR Same as leasehold.
TENANCY IN COMMON An ownership of realty by 2 or more persons, each of whom has an undivided interest, without the right of survivorship. Upon the death of one of the owners, the ownership share of the decedent is inherited by the party or parties designated in the decedent's will. Compare with partition.
TENANCY IN SEVERALTY Ownership of property by one person or one legal entity (corporate ownership).
TENANT (1) A holder of property under a lease (2) Originally, one who had the right to possession, irrespective of the title interest.
TENANT AT WILL One who holds possession of premises by permission of the owner or landlord, but without agreement for a fixed term.
TENANT FIXTURES Fixtures added to ]eased real estate by a lessee that, by contract or by law, may be removed by the lessee upon expiration of the lease.
TENANT IMPROVEMENTS Improvements to land or buildings to meet the needs of tenants. May be new improvements or remodeling, and may be paid for by the landlord, the tenant, or shared. See also LEASEHOLD IMPROVEMENTS and WORKLETTER.
TENDER (1) An offer to perform an obligation, together with present ability to perform. (2) To perform under a contract. (3) To pay or deliver.
TENEMENTS (1) Possessions that are permanent and fixed; structures attached to land. (2) Older apartment units.
TENURE The nature of an occupant's ownership rights; an indication of whether one is an owner or a tenant.
TENURE IN LAND The mode in which a Person holds an estate in lands.
TERM The period of time during which something is in effect.
TERM, AMORTIZATION For a loan, the period of time during which principal and interest payments must be made; generally the time needed to amortize the loan fully.
TERMITE CLAUSE A provision in a sales contract that allows the buyer to have the property inspected for termite infestation. In general, if termites are discovered, the buyer may require the seller to treat the property or the buyer may cancel the contract. Most clauses now use the term wood-destroying insects to protect against other types of insects that harm structures, such as the powder post beetle and old house borer.
TERMITE INSPECTION An examination of a structure by qualified personnel to determine the existence of infestation by termites. Often required by the terms of a sales contract.
TERMITES Insects that bore into wood and destroy it.
TERM LOAN One with a set maturity date, typically without amortization.
TERMS Conditions and arrangements specified in a contract.
TESTAMENT A will. Generally to dispose of personal property. Common usage employs the words will, testament, and last will and testament as synonyms.
TESTATE Having made a valid will. Contrast with intestate.
TESTATOR A person who makes a will.
TESTATRIX A woman who makes a will.
TESTIMONIUM A clause that cites the act and date in a deed or other conveyance. Before signing a deed, the grantor should make sure that everything is in order, e.g., the spelling of names and legal descriptions. This is the testimonium clause.
THIRD PARTY One who is not directly involved in a transaction or contract but may be involved or affected by it.
TIME IS OF THE ESSENCE Clause 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-SHARING A form of property ownership under which a property is held by a number of people, each with the right of possession for a specified time interval. Time-sharing is most commonly applied to resort and vacation properties.
TIME VALUE OF MONEY A concept that money available now is worth more than the same amount in the future because of its potential earning capacity.
TITLE The means whereby one has just and full possession of real property.
TITLE COMPANY One in the business of examining title to real estate and/or issuing title insurance.
TITLE DEFECT An unresolved claim against the ownership of property which prevents presentation of a marketable title. Such claims may arise from failure of the owner's spouse, or former part owner, to sign a deed, current liens against the property, or an interruption in the title records to a property.
TITLE INSURANCE Insurance against loss resulting from defects of title to a specifically described parcel of real property. Defects may run to the fee (i.e., chain of title) or to encumbrances.
TITLE REPORT A document indicating the current state of the title, such as easements, covenants, liens and any defects. The title report does not describe the chain of title.
TITLE SEARCH A review of all recorded documents affecting a specific piece of property to determine the present condition of title.
TITLE THEORY STATES States in which the law splits the title of mortgaged property into legal title, held by the lender, and equitable title, held by the borrower. The borrower gains full title to the property upon retiring the mortgage debt. The lender is granted more immediate cure to a default than in lien theory states. Contrast with lien theory states.
TOPOGRAPHY The state of the surface of the land; may be rolling, rough, flat, etc.
TORRENS SYSTEM A title registration system used in some states; the condition of the title can easily be discovered without resorting to a title search.
TORT A wrongful act that is neither a crime nor a breach of contract, but that renders the perpetrator liable to the victim for damages.
TOTAL INVENTORY Total square footage of rentable office or industrial space, vacant and occupied, ready for tenant finish. Includes owner-occupied space.
TRADE FIXTURES Personal property used in a business and attached to a structure, but removable upon sale because it is deemed to be part of the business, not of the real estate.
TRANSFERABLE DEVELOPMENT RIGHTS The permission to increase the intensity of development for I parcel in exchange for decreasing the density of an adjacent parcel.
TRANSFER DEVELOPMENT RIGHTS A type of zoning ordinance that allows owners of property zoned for low-density development or conservation use to sell development rights to other property owners. The development rights purchased permit the landowners to develop their parcels at higher densities than otherwise. The system is designed to provide for low-density uses, such as historic preservation, without unduly penalizing some landowners.
TRANSFER TAX One paid upon the passing of title to property or to a valuable interest
TRESPASS Unlawful entry or possession of property.
TRIPLE-A TENANT One with an excellent credit record.
TRIPLE NET (NNN) LEASE One in which the tenant is to pay all operating expenses of the property; the landlord receives a net rent.
TRIPLE NET (NNN) RENT Rent stipulated in a lease in which the tenant agrees to pay a share of the landlord?s operating expenses or real estate taxes for the building proportionate to the amount of space it occupies. See also FULL SERVICE RENT.
TRUST An arrangement whereby property is transferred to a trusted third party (trustee) by a grantor (trustor). The trustee holds the property for the benefit of another (beneficiary).
TRUST ACCOUNT A separate bank account segregated from a broker's own funds, in which the broker is required by state law to deposit all monies collected for clients. In some states called an escrow account.
TRUST DEED A conveyance of real estate to a third party to be held for the benefit of another. Commonly used in some states in place of mortgages that conditionally convey title to the lender.
TRUSTEE One who holds property in trust for another to secure performance of an obligation; the neutral party in a trust deed transaction.
TRUSTEE'S DEED Same as deed of trust.
TRUSTEE'S SALE A foreclosure sale conducted by a trustee under the stipulations of a deed of trust.
TURN KEY PROJECT A project in which the developer is responsible for the total completion of a building (including interior design and construction) or demised premises to the customized requirements of a future owner or tenant.