GLOSSARY ( T )

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Tax Lien Lien for nonpayment of taxes.
   
Tax Savings This is the amount of money you save in income taxes. You save this money because in most cases the interest you pay on your home loan is tax deductible!
   
Tax As applied to real estate, an 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 Service A fee collected to set up a third-party to monitor the borrower's property tax payments to ensure that the payments are made on time, and to prevent tax liens from occurring.
   
Tax Bracket Please select the tax bracket you fall under. If you are unsure what tax bracket you are in, you may want to speak with an accountant find out.
   
Tax Sale Public sale of property at auction by governmental authority, after a period of nonpayment of property taxes.
   
Tenancy in Common A type of ownership in which two or more people have an undivided interest in property, without the right of survivorship. Upon death of one of the owners, his/her interest passes to his/her heirs or devises.
   
Tenancy Joint A type of joint ownership of property that provides right of survivorship and is available only to a husband and wife.
   
Tenancy in Common A type of joint ownership in a property without right of survivorship.
   
Tenancy By The Entirety A type of joint tenancy of property that provides right of survivorship and is available only to a husband and wife. One spouse dies the property goes to the other spouse. Contrast with tenancy in common and joint tenancy.
   
Tenant A person who is granted temporary possession of a property under specific terms and conditions which are usually specified in a Lease or Rental Agreement.
   
Tenement Everything that may be occupied under a lease by a tenant.
   
Term The term of a home loan is the number of years the home loan is amortized for. Home loans are generally amortized over 15, 20 or 30 years.
   
Termite Report A report that results from an inspection by a professional to determine if the property has termites.
   
Third Party Fees Fees collected by lender for services provided by other companies, such as an appraiser.
   
Third Party Origination A process by which a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the home loan. See mortgage broker.
   
Time is of the Essence A clause, which if included in a contract, makes failure to perform by a specified date a material breach or violation of the contract.
   
Timeshare An arrangement under which a purchaser receives an interest in real property and the right to use an accommodation or amenities, or both, for a specified period and on a recurring basis. Used primarily for selling vacation properties.
   
Title Theory State The system in which the lender has legal title to the mortgaged property and the borrower has equitable title.
   
Title Option An attorney's opinion of a title, based on an Abstract of Title.
   
Title Company A company that specializes in examining and insuring titles to real estate.
   
Title Search Checks all the records relating to the property to determine whether the seller can sell the property, and can do so free of liens.
   
Title Insurance Endorsements This is an endorsement of insurance against losses that may result from claims of previously unknown ownership in insured property.
   
Title Company A company that specializes in examining and insuring titles to real estate.
   
Title Insurance Protects lenders or homeowners against loss of their interest in property due to legal defects in title. Title insurance may be issued to either the mortgagor, as an"owner's title policy" or to the mortgagee, as a "mortgagee's title policy." Insurance benefits will be paid only to the "named insured" in the title policy, so it is important that an owner purchase an "owner's title policy," if he desires the protection of title insurance.
   
Title As generally used, the rights of ownership and possession of particular property. In real estate usage, title may refer to the instruments or documents by which a right of ownership is established (title documents), or it may refer to the ownership interest one has in the real estate.
   
Torrens System A system of land registration in which clear title is established with a governmental authority, which issues title certificates to owners.
   
Total Expense Ratio Total obligations as a percentage of gross monthly income. The total expense ratio includes monthly housing expenses plus other monthly debts. Used to help qualify a potential borrower for a home loan.
   
Total Monthly Payment See Monthly PITI payment.
   
Townhouse A dwelling unit usually with two or three floors, and shared walls. It can be individually owned, a condominium, a cooperative, or rental property.
   
Transaction Fee A fee which may be charged each time you draw on a home equity credit line.
   
Transfer Tax State or local tax payable when title to a property passes from one owner to another.
   
Transfer of Ownership Any 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.
   
Treasury Index An 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 adjustable-rate mortgage (ARM).
   
Trust Account An account separate and apart and physically segregated from broker's own funds, in which broker is required by law to deposit all funds collected for clients.
   
Trust A property interest held by one person for the benefit of another.
   
Trustee A party who is given legal responsibility to hold property in the best interest of or "for the benefit of" another.
   
Truth-In-Lending Act A federal law requiring disclosure of the APR-Annual Percentage Rate to home buyers shortly after they apply for the loan. Also known as Regulation Z. This is intended to facilitate comparisons between the lending terms of financial institutions.
   
Two To Four-Family Property A 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. See multi-unit housing.


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