TAKE
OUT FINANCING-Long
term permanent financing
TAX LIEN -
A general statutory lien imposed against real property for failure to
pay taxes. There are federal tax liens and state tax liens.
TAX SHELTER
- A phrase often used to describe some of the tax advantages of real
estate investment, such as deductions for depreciation, interest, taxes,
etc., which may offset the investor's other ordinary income to reduce
the investor's overall tax payment.
TENANCY AT SUFFERANCE
- A tenancy which exists when a tenant wrongfully holds over after the
expiration of a lease, without the landlord's consent, as where the
tenant fails to surrender possession after termination of the lease.
TENANCY AT WILL
- A tenancy in which a person is in possession of real estate with the
permission of the owner, for a term of unspecified or uncertain duration,
as when an owner permits a tenant to occupy a property until it is sold.
TENANCY BY THE ENTIRETY
- A special joint tenancy between a lawfully married husband and wife,
which places all title to the property into the marital unit, with both
spouses having an equal, undivided interest in the whole property.
TENANCY FOR YEARS
- A less-than-freehold estate in which the property is leased for a
definite, fixed period of time, be it for 60 days or any fraction of
a year, a year, ten years, etc.
TENANCY IN COMMON
- A form of concurrent ownership of property between two or more persons,
in which each has an undivided interest in the whole property; frequently
found when the parties acquire title by descent or by will.
TENANCY IN SEVERALTY
- Ownership of property vested in one person alone, and not held
jointly with another; also called Several Tenancy or Sole Tenancy.
TENANT
- In general, one who holds or possesses property, such as a life tenant
or a tenant for years; commonly used to refer to a lessee under a lease.
TIME IS OF THE ESSENCE
- The clause in a contract which emphasizes that punctual performance
is an essential requirement of the contract.
TIME SHARING
- A modern approach to communal ownership and use of real estate which
permits multiple purchasers to buy undivided interests in real property
(which is usually in a resort condominium or hotel) with a right to
use the facility for a fixed or variable time period.
TITLE INSURANCE
- A comprehensive contract of indemnity under which the title company
agrees to reimburse the insured for any loss if title is not as represented
in the policy.
TITLE SEARCH
- An examination of the public records to determine what, if any, defects
there are in the chain of title.
TOWNHOUSE
- A type of dwelling unit normally having two floors, with the living
area and kitchen on the base floor and the bedrooms located on the second
floor.
TOWNSHIP -
A piece of property, used in the government survey system of land description,
which is 6 miles square, and contains36 sections, each 1 mile square;
and consists of 23,040 acres.
TRADE FIXTURES
- Articles of personal property annexed to leased premises by
the tenant, as a necessary part of the tenant's trade or business.
TRIPLE NET LEASE
- A net, net, net lease, where in addition to the stipulated rent, the
lessee assumes payment of all expenses associated with the operation
of the property.
TRUST DEED
- A real property security device (also called a deed of trust) very
similar to a mortgage, except that there are three parties, the trustor,
the trustee, and the beneficiary (the lender).
TRUST FUND ACCOUNT
- An account set up by a broker at a bank or other recognized depository,
into which the broker deposits all funds entrusted to him by his principal
or others.
TURNKEY PROJECT
- A development term meaning the complete construction package from
ground breaking to the completion of the building. All that is left
undone is to turn over the keys to the buyer.
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U
UNILATERAL CONTRACT
- A contract in which one party makes an obligation to perform
without receiving in return any express promise of performance from the
other party, such as an open listing contract, where the seller agrees
to pay a commission to the first broker who brings in a ready, willing
and able buyer.
UPSET PRICE
- A minimum price set by a court in a judicial foreclosure, below which
the property may not be sold by a court appointed commissioner at public
auction; the minimum price which can be accepted for the property after
the court has had the property appraised.
USEFUL LIFE
- That period of time over which an asset, such as a building, is expected
to remain economically feasible to the owner.
USURY
- Charging a rate of interest in excess of that permitted by law.
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V
VACANCY FACTOR
- An allowance or discount for estimated vacancies (unrented units)
in a rental project. The vacancy rate is the ratio between the number
of vacant units and the total number of units in a specified project
or area.
VALUE
- The power of a good or service to command other goods in exchange
for the present worth of future rights to income or amenities; the present
worth to typical users and investors of future benefits arising out
of ownership of a property.
VARIANCE
- Permission obtained from governmental zoning authorities to build
a structure or conduct a use which is expressly prohibited by the current
zoning laws; an exception from the zoning laws.
VENDEE
- The purchaser of realty; the buyer. The buyer under an agreement of
sale.
VENDOR
- The seller of realty. The seller under an agreement of sale.
VOID -
Having no legal force or binding effect; a nullity; not enforceable.
A contract for an illegal purpose (i.e. gambling) is void.
VOIDABLE
- A contract which appears valid and enforceable on its face, but is
subject to rescission by one of the parties who acted under a disability,
such as being a minor or being under duress or undue influence; that
which may be avoided or adjudged void but which is not, in itself, void.
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W
WAIVER
- To voluntarily give up or surrender a right.
WAREHOUSE
- A building used to store merchandise and other materials or equipment.
WAREHOUSING
- A term used in financing to describe the process which loan
correspondents employ, assembling into one package a number of mortgage
loans which the correspondent has originated and selling them in the
secondary mortgage market.
WARRANTY
- A guaranty by the seller, covering the title as well as the physical
condition of the property.
WARRANTY DEED
- A deed in which the grantor fully warrants good clear title to the
premises. Also called a general warranty deed.
WASTE
- An improper use or abuse of property by one in possession of land,
who holds less than the fee ownership, such as a tenant, life tenant,
mortgagor, or vendee.
WEAR AND TEAR
- The gradual physical deterioration of property, resulting from use,
passage of time and weather. Only property subject to wear and tear
is depreciable.
WRAP-AROUND MORTGAGE
- A method of refinancing in which the new mortgage is placed in a secondary
or subordinate position. In essence, it is an additional mortgage in
which another lender refinances a borrower by lending an amount over
the existing first mortgage amount, without cashing out or distributing
the existence of the first mortgage
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Y
YEAR-TO-YEAR
TENANCY
- A periodic tenancy in which the rent is reserved from year
to year.
YIELD
- The return on an investment or the amount of profit, stated as a percentage
of the amount invested.
Z
ZONING
- The regulation of structures and uses of property within designated
districts or zones. Zoning regulates and affects such things as use
of the land, types of structure permitted, building heights, setbacks,
and density (the ratio of land area to improvement area).
