Real Estate Glossary - T

Tacking - When successive periods of use or possession by more than one person are added together to make up the period required for prescription or adverse possession.

Taking - When the government acquires private property for public use by condemnation, it's called "a taking." The term is also used in inverse condemnation lawsuits, when a government action has made private property useless.

Tax, Ad Valorem - A tax assessed on the value of property.

Tax, Excise - A state tax levied on every sale of real estate, to be paid by the seller.

Tax, General Real Estate - An annual ad Valorem tax levied on real property.

Tax, Progressive - A tax, such as the federal income tax, that imposes a higher tax rate on a taxpayer who earns higher income.

Tax, Property - 1.The general real estate tax. 2. Any ad Valorem tax levied on real or personal property.

Tax Credit - A credit hat is subtracted directly from the amount of tax owed.

Tax-Free Exchange - A transaction in which on e piece of property is treaded for a piece of like-kind property; if the property involved is held for investment or the production of income, or used in a trade or business, tax on the gain may be deferred.

Tax Sale - Sale of property after foreclosure of a tax lien.

Tenancy - Lawful possession of real property; an estate.

Tenancy, Joint - A form of concurrent ownership in which the co-owners have unity of time, title, interest, and possession and the right of survivorship.

Tenancy, Periodic - A leasehold estate that continues for successive periods of equal length (such as from week to week or month to month), until terminated by proper notice from either party. Also called a month-to-month (or week-to-week, etc.) tenancy.

Tenancy at Sufferance - When a tenant (who entered into possession of the property lawfully) stays on after the lease ends without the landlord's permission.

Tenancy at Will - When a tenant is in possession with the owner's permission, but there's no definite lease term; as when a landlord allows a holdover tenant to remain on the premises until another tenant is found.

Tenancy by the Entireties - A form of joint ownership of property by husband and wife (in some states that don't use a community property system).

Tenancy in Common - A form of concurrent ownership in which two or more persons each have an undivided interest in the entire property, but no right of survivorship.

Tenancy in Partnership - The form of concurrent 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.

Tenant - Someone in lawful possession of real property; especially, someone who has leased property from the owner.

Tenant, Dominant - A person who has easement rights on another's property; either the owner of a dominant tenement, or someone who has an easement in gross.

Tenant, Holdover - A lessee who remains in possession of the property after the lease term has expired.

Tender - An unconditional offer by one parties to a contract to perform his or her part of the agreement; made when the offeror believes the other party is breaching, it establishes the offeror's right to sue if the other party doesn't accept it. Also called a tender offer.

Tenements - Everything of a permanent nature associated with a piece of land that is ordinarily transferred with the land. Tenements are both tangible (buildings, for example) and intangible (air rights, for example).

Tenement, Dominant - Property that receives the benefit of an easement appurtenant.

Tenement, Servient - Property burdened by an easement. In other words, the owner of the servient tenement (the servient tenant) must allow someone who has an easement (the dominant tenant) to use the property.

Tenure - The period of time during which a person holds certain rights with respect to a piece of real property.

Term - A prescribed period of time; especially, the length of time a borrower has to pay off a loan, or the duration of a lease.

Testate - Refers to someone who has died and left a will.

Testator - Refers to someone who makes a will. (If it is a woman, she may be referred to as a testatrix.)

Third Party - 1. A person seeking to deal with a principal through an agent. 2. In a transaction, someone who is not one of the principals.

Tie-in Arrangements - An agreement to sell one product, only on the condition that the buyer also purchases a different product.

Tight Money Market - When loan funds are scarce, leading lenders to charge high interest rates and discount points.

TILA - Truth in Lending Act.

Time is of the Essence - A clause in a contract that means performance on the exact dates specified is an essential element of the contract; failure to perform on time is a material breach.

Title - Lawful ownership of real property. Also, the deed or other document that is evidence of that ownership.

Title, Abstract of - A brief, chronological summary of the recorded documents affecting title to a particular piece of real property.

Title, After-Acquired - Title acquired by a grantor after he or she attempted to convey property he or she didn't own.

Title, Chain of - 1.The chain of deed (and other documents) transferring title to a piece of property from on e owner to the next, as disclosed in the public record. 2. A listing of all recorded documents affecting title to a particular property; more complete that an abstract.

Title, Clear - A good title to property, free from encumbrances or defects; marketable title.

Title, Color of - Title that appears to be good title, but which in fact is not; commonly based on a defective instrument, such as an invalid deed.

Title, Equitable - The vendee's interest in property under a land contract. Also called an equitable interest.

Title, Legal - The vendor's interest in property under the land contract.

Title, Marketable - Title free and clear of objectionable liens, encumbrances, or defects, so that a reasonably prudent person with full knowledge of the facts would not hesitate to purchase the property.

Title, Slander of - Disparaging or inaccurate statements, written or oral, concerning a person's title to property.

Title Plant - A duplicate (usually microfilmed) of a county's public record, maintained by a title company at its offices for use in title searches.

Title Report, Preliminary - A report issued by a title company, disclosing the condition of the title to a specific piece of property, before the actual title insurance policy is issued.

Title Search - An inspection of the public record to determine all rights and encumbrances affecting title to a piece of property.

Title Theory - The theory holding that a mortgage or deed of trust gives the lender legal title to the security property while the debt is being repaid.

Topography - The contours of the surface of the land (level, hilly, steep, etc.).

Tort - A breach of a duty imposed by law (as opposed to a duty voluntarily taken on in a contract) that causes harm to another person, giving the injured person the right to sue the one who breached the duty. Also called a civil wrong (in contract to a criminal wrong, a crime).

Total Finance Charge - Under the truth in Lending Act, the total finance charge on a loan includes interest, any discount points paid by the borrower, the loan origination fee, and mortgage insurance costs.

Township - In the rectangular survey system, a parcel of land 6 miles square, containing 36 sections; the intersection of a range and a township tier.

Township Lines - Lines running east-west, spaced six miles apart, in the rectangular survey system.

Township Tier - In the rectangular survey system, a strip of land running east-west, six miles wide and bounded on the north and south of township lines.

Tract - 1.A piece of land of undefined size. 2. IN the rectangular survey system, an area made up of 16 townships; 24 miles on each side.

Trade Fixtures - Articles of personal property annexed to real property by a tenant for use in his or her trade or business, which the tenant is allowed to remove at the end of the lease.

Transaction Folder - A record of all documents associated with a particular transition, such as the listing agreement, the purchase and sale agreement, the purchase and sale agreement, the settlement statement, and any modifications or addenda.

Transferability - If an object is transferable, then ownership and possession of that object can be conveyed from one person to another. Transferability is one of the four elements of value, along with utility, scarcity, and demand.

Trespass - An unlawful physical invasion of property owned by another.

Trust - A legal arrangement in which title to property (or funds) is vested in one or more trustees, who manage the property on behalf of the trust's beneficiaries, in accordance with instructions set forth in the document establishing the trust.

Trust Account - A bank account, separate from a real estate broker's personal and business accounts, used to segregate trust funds from the broker's own funds.

Trustee - 1.A person appointed to manage a trust on behalf of the beneficiaries. 2. A neutral third party appointed in a deed of trust to handle the nonjudicial foreclosure process in case of default.

Trustee in Bankruptcy - An individual appointed by the court to handle the assets of a person in bankruptcy.

Trustee's Sale - A nonjudicial foreclosure sale under a deed of trust.

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

Trustor - The borrower in a deed of trust. Also called the grantor.

Truth in Lending Act - A federal law that requires lenders and credit arrangers to make disclosures concerning loan costs (including the total finance charge and the annual percentage rate) to consumer loan applicants.

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