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T-1
A dedicated phone connection supporting data rates of 1.544 Mbits per second. A T-1 consists of 24 individual channels, each supporting 64 Kbits per second. Each channel can be configured to carry voice or data traffic. It is possible to obtain fractional T-1 access by purchasing just some of the channels.
table funding
Simultaneous conveyance of purchase price and title as well as all loan papers at a closing.
tack
Adding together successive periods of adverse possession. (See adverse possession)
tacking
Adding or combining successive periods of continuous occupation of real property by adverse possessors. This concept enables someone who has not been in possession for the entire statutory period to establish a claim of adverse possession.
tactics
Procedures or maneuvers engaged in to achieve a desired end, aim, or goal.
take sheet
The initial worksheet of the escrow holder. It includes information regarding the property, the buyer and the seller (marital status, address, vesting, and other personal information), the new loan of the buyer (amount, terms, rate, lender, and other details), prorating property taxes based on the anticipated closing date, identifying the title company (policy number, officer, and any special consideration, coverage, or exclusions), and information regarding any existing loans of the seller that will be paid off. (See closing, escrow, escrow holder)
take-out financing
Long-term permanent financing. In the usual large construction project, the developer obtains two types of financing. The first is the interim loan, a short-term loan to cover construction costs. Before lending any money, however, the interim lender normally requires a commitment by a permanent lender to agree to “take out” the interim lender in which the lender pays off the construction loan and leaves the developer with a permanent long-term loan when the building has been completed.
takes a residential mortgage loan application
Takes a residential mortgage loan application means any communication, regardless of form, from a mortgage loan originator to a borrower soliciting a loan application, or requesting information typically required in an application for the purpose of deciding whether to extend the offer of a loan to a borrower.
taking
The concept of taking comes from the Takings Clause of the fifth amendment of the United States Constitution. The clause reads, “nor shall private property be taken for public use, without just compensation.” This means that when land is taken for public use through the government’s power of eminent domain or condemnation, the owner must be compensated. (See eminent domain)
talking sign
A radio transmitter with a range of up to 250 feet that broadcasts a description of a property to prospects listening to a radio tuned to the transmitter’s frequency.
tandem plan
A mortgage subsidy program offered from time to time by the United States Congress. The Government National Mortgage Association (GNMA) purchases certain mortgages at below market interest rates, granting borrowers low-interest loans. GMNA sells the loans on the secondary market at a discount, the discount being the amount of the subsidy. These programs are offered “in tandem” with local mortgage lenders. (See GNMA, secondary mortgage market)
tax base
The value of taxable properties in a region.
tax bill
A property owner’s tax bill is computed by applying the tax rate to the assessed valuation of the property.
tax bracket
Tax rate applicable to a taxpayer’s taxable income.
tax credit
An amount by which tax owed is reduced directly.
Tax Cuts and Jobs Act of 2017 (TCJA)
Tax Cuts and Jobs Act (TCJA) Law passed in 2017 that significantly modified the tax code. It reduced tax rates for individuals and businesses, increased the standard deductions, and eliminated or reduced common itemized deductions.
tax deduction/write-off
This is an expense, loss, or negative amount/number that goes on one of you tax forms and will reduce the amount of income one earns and hence taxes one pays.
tax deed
An instrument, similar to a certificate of sale, given to a purchaser at a tax sale. (See certificate of sale)
tax deferred exchange (1031 exchange)
Under Section 1031 of the Internal Revenue Code, some or all of the realized gain from the exchange of property may not need to be immediately recognized for tax purposes. Both properties in an exchange must be held for productive use in trade or business or for investment and must be of a like-kind. (See like-kind, realized capital gain)
tax increment funding
Payments on bonds through collection of increased taxes on improvements financed by the bonds.
tax levy
The amount to be raised from the general real estate tax is then imposed on property owners through a tax levy. A tax levy is the formal action taken to impose the tax, usually a vote of the taxing district’s governing body.
tax lien
An involuntary lien that arises from a taxpayer’s obligation to pay real property taxes, state income and estate taxes, or federal income, gift, and estate taxes. (See assessments, lien)
IRS on Federal Tax Liens
tax participation clauses
Tax participation clauses, often found in commercial lease agreements, require tenants to pay a portion of the property taxes in addition to their base rent. These clauses typically stipulate that tenants will share the burden of any increases in property taxes based on their proportionate share of the leased space. This arrangement helps landlords cover rising property tax costs while ensuring that tenants contribute fairly to the expenses associated with maintaining the property.
tax rate
The tax rate for each taxing body is computed separately. To arrive at a tax rate, the total monies needed for the coming fiscal year are divided by the total assessments of all real estate located within the taxing body’s jurisdiction.
tax rate tables
These are IRS published figures that help you easily calculate how much you owe in Federal Income Taxes based on how much income you earned and your filing status. They match what you would calculate if you used a computer tax program or calculated them based on marginal tax rates and brackets.
tax rate tables
These are IRS published figures that help you easily calculate how much you owe in Federal income taxes based on how much income you earned and your filing status. They match what you would calculate if you used a computer tax program or calculated them based on marginal tax rates and brackets. (See Federal income taxes)
Tax Reform Act of 1986 (TRA 86)
Sweeping revisions to the income tax laws, enacted by the United State Congress in 1986, that lowered tax rates and eliminated many tax shelters.
tax sale
A court-ordered sale of real property to raise money to cover delinquent taxes.
tax shelter
A phrase often used to describe some of the tax advantages of real estate or other investments, such as noncash deductions for cost recovery (depreciation), interest, taxes and postponement or even elimination of certain taxes. A tax shelter not only may offset the investor’s tax liability relevant to the real estate investment but also may reduce the investor’s other ordinary income, which reduces overall tax liability.
tax-free gifts
Gifts that are free from federal gift taxes.
tax-stop clause
A clause in a lease providing that the lessee will pay any increase in taxes over a base or an initial year’s taxes.
taxable income
Income that remains after allowed deductions from adjusted gross income. (See adjusted gross income
taxation
1. The process by which a government or municipal quasi-public body raises monies to fund its operation. 2. The impact an investment has on the investor’s liability for the payment of federal, state, and local taxes.
Taxpayer Advocate’s Office
California state office that assists taxpayers in explaining and resolving tax issues.
Taxpayer Relief Act of 1997 (TRA 97)
Enacted by the United State Congress and effective May 7, 1997, TRA ’97 provides for broader exemption from capital gains taxes on the profits on the sale of a personal residence. Replaces the old provision for a “one-time” exemption of $125,000 for sellers over age 55.
team building
Team building refers to a wide range of activities designed for improving team performance.
teaser rate
Teaser rates are those rates that have an initial or introductory rate with a duration of less than six months.
teleconferencing
Conference held among people in different locations by means of telecommunications equipment, such as telephone.
telemarketer
Any person who, in connection with telemarketing, initiates or receives telephone calls to or from a customer or donor.
telemarketing
A plan, program, or campaign which is conducted to induce the purchase of goods or services or a charitable contribution, by use of one or more telephones and which involves more than one interstate telephone call. The term does not include the solicitation of sales through the mailing of a catalog which: contains a written description or illustration of the goods or services offered for sale; includes the business address of the seller; includes multiple pages of written material or illustrations; and has been issued not less frequently than once a year, when the person making the solicitation does not solicit customers by telephone but only receives calls initiated by customers in response to the catalog and during those calls takes orders only without further solicitation. For purposes of the previous sentence, the term “further solicitation” does not include providing the customer with information about, or attempting to sell, any other item included in the same catalog which prompted the customer’s call or in a substantially similar catalog.
Telephone Consumer Protection Act (TCPA)
The Telephone Consumer Protection Act (TCPA) was passed in 1991. From a telephone marketer’s viewpoint, the most significant part of the TCPA regulations concern commercial solicitation calls made to residences. Companies making those calls are required to limit calls to between 8 A.M. and 9 P.M.; have a clearly written call policy, available to anyone upon request; have a clearly defined training program for personnel making the telephone solicitations; and honor any request to not be called again.
temporal data
Temporal data refers to any data that is associated with time. This type of data captures changes and events over a period, allowing for the analysis of trends, patterns, and variations that occur over time.
temporary designated broker (AZ)
A temporary designated broker is person who holds a broker’s license, and temporarily accepts the responsibilities and liabilities of the designated broker. This is a requirement if the designated broker will be unavailable and unable to act for more than 24 hours, such as when a designated broker goes on vacation or needs medical care.
tenancy at sufferance
A tenancy (or estate) in which a person wrongfully holds or occupies a property after the expiration of a lease without the consent of the landlord. No notice of termination is required for the landlord to evict the tenant.
tenancy at will
A tenancy (or estate) in which a person holds or occupies real estate with the permission of the owner, for a term of unspecified or uncertain duration: i.e., there is no fixed term to the tenancy.
tenancy by the entirety
Some states allow husbands and wives to use a special form of co-ownership called tenancy by the entirety. In this form of ownership, each spouse has an equal, undivided interest in the property. (The term entirety refers to the fact that the owners are considered one indivisible unit because early common law viewed a married couple as one legal person).
tenancy for years
A tenancy for a definite period of time. The tenant must vacate the property at the end of the lease unless an extension or new lease has been agreed upon.
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. This form is frequently found when the parties acquire title by descent or by will. Each cotenant is entitled to the undivided possession of the property, according to his or her proportionate share and subject to the rights of possession of the other tenants. No cotenant can exclude another cotenant, or claim ownership of a specific portion of the property. Each cotenant holds an estate in land by separate and distinct titles, but with unity of possession. Their interests may be equal, as in joint tenancy, or unequal. Where the conveyance document does not specify the extent of interest of each cotenant, there is a rebuttable presumption that the shares are equal. Unlike a joint tenancy, there is no right of survivorship in a tenancy in common. Therefore when one of the cotenants dies, the interest passes to his or her heirs or beneficiaries and not to the surviving tenants in common. The property interest of a tenant in common is thus subject to probate. Also, unlike joint tenancy, dower rights may exist in property held in common.
tenancy in partnership
Ownership by two or more persons, acting as partners, of property held for partnership purposes.
tenant
In general, one who exclusively holds or possesses property, such as a life tenant or a tenant for years; commonly used to refer to a lessee under a lease. A tenant’s occupancy, although exclusive, is always subordinate to the rights of the owner. Tenant refers to an occupant, not necessarily a renter.
tenant emergency procedures manual
A printed manual outlining emergency procedures, including evacuation plans and contact information for emergency personnel. The manual is used by building managers in the event of accident, illness, fire, natural disaster or other emergency situation.
tenant improvements
A commercial or an industrial property manager often is called on to make tenant improvements. These are alterations to the interior of the building to meet a tenant’s particular space needs. Such construction alterations range from simply repainting or recarpeting to completely gutting the interior and redesigning the space by erecting new walls, partitions and electrical systems.
tenant remedies
Tenant remedies are legal actions tenants can take if a landlord fails to fulfill their obligations, such as maintaining a habitable property. Options include repairing issues themselves and deducting costs from rent, withholding rent to force compliance, or terminating the lease if the property is uninhabitable. These remedies vary by jurisdiction and typically require tenants to follow specific legal procedures, like providing notice, to exercise these rights legally.
tenant screening
Reviewing tenant information, rental and credit application, performing a credit check, employment and income verification, rental history verification, criminal and civil lawsuit verification; all to determine if the prospective resident will be a good tenant.
tenant wardens
In property management, tenant wardens are designated individuals within a building who assist in emergency preparedness and response. They are responsible for ensuring that evacuation procedures are followed, accounting for occupants, and communicating with emergency responders. Tenant wardens play a crucial role in maintaining safety and order during emergencies.
tender
A formal offer of money or service in payment of an obligation. A written offer to contract goods or services at a specified cost or rate; a bid. Something, especially money, offered in payment.
tenement
A common law real estate term that describes those real property rights of a permanent nature. These rights relate to the land and pass with conveyance of the land, such as buildings and improvements.
tenting fumigation
Termite fumigation is a long used treatment for the control and elimination of termites, specifically drywood termites. Sometimes called “tenting”, due to the large tents used in the process, fumigating essentially administers a pest killing gas directly into the home in order to kill and/or repel a large number of termites at one time.
term loan
A short-term loan requiring interest-only payments until maturity, at which time the entire principal is due and payable.
term of transaction
Any right or obligation of the parties to a credit transaction.
termite inspection
A visable check of a property for the presence of termites. Usually performed by a licensed exterminator. Buyers often make a termite inspection a condition of a sales contract, and require a pest control report or a clearance letter showing the property to be clear of any live, visable infestation. The VA, FHA and Fannie Mae all require a termite inspection as a condition of a loan.
Test Proctoring Fees
Mohave County Test Proctoring sites charge $50 per proctored exam. Maricopa County Test Proctoring sites charge $25 per proctored exam.
testamentary trust
A trust established by a will.
testate
Having made and left a valid will.
testator
A person who has made a valid will. A woman often is referred to as a testatrix, although testator can be used for either gender.
thank-you letter
A letter written by you after the interview that allows you to re-iterate your qualifications for the job and discuss any point that you may have missed during the interview, or wish to emphasize.
the rule of lenity
This rule is one of the most famous substantive canons for real estate licensing law. It provides that any ambiguity in a real estate licensing statute must be resolved in favor of the accused (or, in the case of a civil trial, in favor of the defendant)
theory of consistent use
Refers to the concept that land cannot be valued on the basis of one use while the improvements are valued on the basis of another.
There are no glossary terms for this chapter.
thermal mass
Thermal mass is a property that enables building materials to absorb, store, and later release significant amounts of heat. Buildings constructed of concrete and masonry have a unique energy savings advantage because of their inherent thermal mass.
thinking skills
Skills that require thinking, such as decision-making, problem-solving, creativity, seeing things in the mind’s eye, knowing how to learn, and reasoning.
third party originator
Third-party originators prepare loan applications for borrowers and submit the applications to lenders.
Thirteenth Amendment to the United States Constitution (1868)
Section 1. Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction.
Section 2. Congress shall have power to enforce this article by appropriate legislation.
thirty-day notice
Notice to vacate a premises under a periodic tenancy. Notice must be for the rent period, but not more than 30 days. (See periodic tenancy)
three-day notice
Notice to quit, quit or cure, or quit or pay rent. Three-day notice must be given before an unlawful detainer action. (See unlawful detainer action)
three-way switch
A light switch that allows a person to turn the light on or off from either end of a hallway or stairway.
threshold
A level, point, or value above which something is true or will take place and below which it is not or will not.
threshold notification
Notification by brokers that they have met the threshold requirements for filing status and fiscal year reports on trust fund activities.
thrift
Another name for a savings and loan association; a financial institution established to promote “thrift” by accepting savings deposits, and to make home mortgage loans. (See savings and loan association)
tier
A strip of land six miles wide, extending east and west and numbered north and south according to its distance from the baseline in the rectangular (government) survey system of legal description. Also known as a township strip. (See baseline)
tight-monetary policy
A central bank policy designed to curb inflation by reducing the reserves of commercial banks (and consequently the money supply, through open market operations). Also called tight monetary policy. Opposite of easy monetary policy. (See easy monetary policy, reserve requirements, certificate of title)
Federal Reserve Website
time
time is of the essence
A contract clause that emphasizes punctual performance as an essential requirement of the contract. Thus, if any party to the instrument does not perform within the specified time period (the drop-dead date), that party is in default, provided the nondefaulting party has made a valid tender of performance. If no tender is made, then the clause may be waived. The clause may also be waived by the subsequent acts of the parties such as accepting tardy payments or signing escrow instructions that allow for extensions of time in which to perform.
time value of money
The principle that money received in the present is worth more than the same amount of money received in the future. The concept that cash received earlier is worth more than a similar sum received later, because a sum received earlier can be invested to earn interest in the intervening period. Conversely, cash paid out later is worth less than a similar sum paid earlier.
time-share project
A form of subdivision of real property into rights to the recurrent, exclusive use or occupancy of a lot or unit of the property on an annual or other periodic basis, for a specified period of time. (See subdivision)
timeshare plan (Arizona statutory definition)
A timeshare plan means any arrangement in which a purchaser, in exchange for consideration, receives ownership rights in or the right to use accommodations for a period of time less than a full year during any given year, but not necessarily for consecutive years.
timesharing
A modern approach to communal ownership and use of real estate that permits multiple purchasers to buy undivided interests in real property (usually in a resort condominium or hotel) with a right to use the facility for a fixed or variable time period. Under time-sharing forms of ownership, potential purchasers of property buy fixed or floating time periods for use of a specific apartment within a project.
timing
Refers to the length of time one must wait to receive cash flow from an investment.
title
1. The right to or ownership of land. 2. The evidence of ownership of land. (See ownership)
title company
A company that specializes in examining and insuring titles to real estate.
title defects
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 partner to sign a deed, current liens against the property or an interruption in the title records to a property.
title insurance
A comprehensive indemnity contract under which a title insurance company warrants to make good a loss arising through defects in title to real estate or any liens or encumbrances thereon. Unlike other types of insurance, which protect a policyholder against loss from some future occurrence (such as a fire or auto accident), title insurance in effect protects a policyholder against loss from some occurrence that has already happened, such as a forged deed somewhere in the chain of title.
Needless to say, a title company will not insure a bad title any more than a fire insurance company would insure a burning building. However, if upon investigation of the public records and all other material facts, the title company feels that it has an insurable title, it will issue a policy. Title insurance protects the lender against any claims that arise from arguments about ownership of the property; also available for home buyers. An insurance policy guaranteeing the accuracy of a title search protecting against errors. Most lenders require the buyer to purchase title insurance protecting the lender against loss in the event of a title defect. This charge is included in the closing costs. A policy that protects the buyer from title defects is known as an owner’s policy and requires an additional charge. (See extended coverage policy, mortgagee’s title insurance, standard coverage policy)
title insurance company
Business licensed by the state to insure buyers and lenders against losses due to defects in title to real estate. (See title insurance)
title insurance fees
The costs involved in purchasing title insurance. May include title insurance policy and search fees.
title insurance fund
Specified amount of premiums collected by a licensed California title insurance company that must be set aside each year. (See title insurance)
title insurance surplus fund
The California Insurance Code requires every title insurer to annually set apart a sum equal to 10 percent of its premiums collected during the year. The resulting “title insurance surplus fund” shall be maintained as a further security to holders and beneficiaries of the title policies issued by the insurer.
title plant
A title plant is the storage facility of a title insurance company in which it has accumulated complete title records of properties in its area. Many of the larger title insurance companies maintain their own title plants containing copies of all recorded instruments.
title report
The title report includes information found in a title search (an examination of the public record for matters affecting title to the property). It lists any problems with the title revealed by the physical inspection and all defects and encumbrances of record.
title search
The examination of public records relating to real estate to determine the chain of title and the current state of the ownership.
title service
Any service involved in the provision of title insurance (lender’s or owner’s policy), including but not limited to: title examination and evaluation; preparation and issuance of title commitment; clearance of underwriting objections; preparation and issuance of a title insurance policy or policies; and the processing and administrative services required to perform these functions. The term also includes the service of conducting a settlement.
title theory
Some states interpret a two-party mortgage to mean that the lender is the owner of mortgaged land. Upon full payment of the mortgage debt the borrower becomes the landowner. These states are called title theory states. In a title-theory state, the lender has actual title, and the buyer has possession.
tolerance
The maximum amount by which the charge for a category or categories of settlement costs may exceed the amount of the estimate for such category or categories on a GFE.
tolled
To delay, suspend, or hold off the effect of a statute or a clause in a contract.
topography
The physical features of a property. The shape of a surface area including relative elevations and the position of natural and man-made features.
Torrens system
A method of evidencing title by registration with the proper public authority, generally called the registrar, named for its founder, Sir Robert Torrens, an Australian who developed the system in 1857. Torrens took the idea from the system of registering title to shipping vessels.
A legal system for the registration of land, used to verify the ownership and encumbrances (except tax liens), without the necessity of an additional search of the public records. The purpose of the Torrens Act pertaining to registration of title to land is to conclusively establish an indefeasible title to the end that anyone may deal with such property with the assurance that the only rights or claims of which he or she need take notice are those so registered. The Torrens system of registration is the title itself; it differs from a title insurance policy, which is only evidence of title. In other words, a person does not acquire title to Torrens-registered real property unless that person registers the title.
The distinctive feature of registered property is that title does not pass, and encumbrances (such as mortgages) are not effective against the property until such encumbrances or conveyances are noted on the registered certificate of title. A party who suffers loss through an error made by the governmental registrar can recover damages from the state through an assurance fund. The registrar, however, will not personally defend against litigation or reimburse the landowner for litigation expenses, which is one reason why most mortgagees require title insurance even for Torrens-registered titles.
Under the Torrens system, the landowner initially petitions a state court to register his or her property, giving notice to all interested parties. After a search of title is filed with the court, there is generally a hearing to determine the status of the title and the court’s determination is made in the form of a court decree. The procedure is similar to a quiet title suit. The initial use of the Torrens system is optional. But once property is registered, all subsequent transfers must follow the registration procedures.
Approximately 10 states have adopted the Torrens system. It is also popular in Canada, Australia and Great Britain. In some states, Torrens-registered property is not subject to a general judgment lien, nor can title be lost through adverse possession.
tort
A wrongful act; a violation of a legal right.
total loan amount
The total loan amount is the principal of the loan minus those points and fees that are included in the principal amount.
total principal loan amount
The term total principal loan amount refers to the total principal loan amount as stated in the promissory note.
total project cost
The total project cost is the sum total of all costs incurred in the development of a project, which are approved by the Housing Finance Agency as reasonable and necessary. The costs include land acquisition and any buildings; site preparation, demolition, and development; architect, engineer, legal, agency, and other fees paid or payable in connection with the planning, execution, and financing of the project; necessary studies, surveys, plans, and permits; insurance, interest, financing, tax and assessment costs, and other operating and carrying costs during construction; construction, reconstruction, fixtures, and equipment related to the real property; cost of land improvements; necessary expenses in connection with initial occupancy of the project; reasonable profit or fee to the builder and developer; an allowance established by the agency for working capital and contingency reserves, and reserves for any anticipated operating deficits during the first two years of occupancy; other items, including tenant relocation, as the agency determines to be reasonable and necessary for the development of the real and personal property on the project site during construction.
All costs are subject to approval and audit by the agency, which may adopt rules and regulations specifying in detail the types and categories of cost that will be allowable if actually incurred in the construction or reconstruction of a project, less any and all net rents and other net revenues received from the operation of the real and personal property on the project site during construction. All costs will be subject to approval and audit by the agency, which may adopt rules and regulations specifying in detail the types and categories of cost that will be allowable if actually incurred in the construction or reconstruction of a project.
town house
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; a series of individual houses having architectural unity and a common wall between each unit.
township
Townships are part of the rectangular (government) survey system of land description. A township is a division of territory that is six miles square, and contains 36 sections, each of which is one square mile. A township consists of 23,040 acres. (See rectangular (government) survey system, section)
township line
Lines running east and west, parallel to the base line and six miles apart. (See base line)
township squares
When the horizontal township lines and the vertical range lines intersect, they form squares. These township squares are the basic units of the rectangular survey system. Townships are 6 miles square and contain 36 square miles (23,040 acres).
township tiers
Township lines form strips of land called township tiers. These township tiers are designated by consecutive numbers north or south of the base line. (See base line, township line)
Toxic Substance Control Act
Enacted by Congress in 1976, the act authorizes EPA to secure information on all new and existing chemical substances and to control any of these substances determined to cause an unreasonable risk to public health or the environment. The act was established to ensure that the human health and environmental effects of chemical substances were identified and properly controlled prior to placing these materials into commerce.  Toxic Substance Control Act Website
TRACS
TRACS, or Tenant Rental Assistance Certification System, is a computerized data management system used by the U.S. Department of Housing and Urban Development (HUD). It is designed to help improve the subsidy payment process and to maintain data concerning the certification and recertification of tenants in multifamily housing projects that receive subsidies. TRACS facilitates the accurate and timely processing of tenant data and subsidy vouchers, ensuring compliance with HUD’s regulations and aiding in the efficient management of housing assistance payments.
trade balance
Also known as balance of trade. The trade balance is the difference between a country’s imports and its exports. A country has a trade deficit if it imports more than it exports. The opposite is a trade surplus. The trade balance is the largest component of a country’s balance of payments. Debit items include domestic investments abroad, domestic spending abroad, foreign aid, and imports. Credit items include exports, foreign investments in the domestic economy, and foreign spending in the domestic economy.
trade fixture
An article of personal property annexed or affixed to leased premises by the tenant as a necessary part of the tenant’s trade or business. At the termination of a lease, a tenant must leave most fixtures in the premises; however, trade fixtures are removable by the tenant before expiration of the lease, and the tenant is responsible for any damages caused by their removal. However, a tenant cannot usually remove replacement fixtures, that is, improvements installed to replace worn-out ones. For instance, if a tenant installs a new bar to replace an old bar in a tavern the tenant leases, the tenant cannot remove the bar upon termination of the lease. If the tenant fails to remove trade fixtures within a reasonable time of lease expiration, the fixtures will be considered abandoned and will become the property of the landlord.
tradeoff table
A tradeoff table shows the borrower the conflicting effects of adjusting the settlement charges and the interest rate.
trading on the equity
The practice of agreeing to buy real estate and then assigning the purchase agreement to another buyer before closing takes place; thus turning a profit by “selling the paper.”
tranche
A series of bonds issued for a CMO. (See CMO)
transaction broker
A transaction broker (also referred to as a nonagent, facilitator, coordinator or contract broker) is not an agent of either party. A transactional broker’s job is simply to help both the buyer and the seller with the necessary paperwork and formalities involved in transferring ownership of real property. The buyer and the seller negotiate the sale without representation.
transaction outline
A basic outline of the transaction after obtaining the initial information from the parties. When the preliminary title report is received, the escrow officer will update the information, correcting anything that differs from what the parties provided (after confirming with them first that the preliminary title report is correct). Outlining the details of the transaction in narrative form helps establish the objective of the principals.
Transactionally-based payment
A payment for services rendered is transactionally based if the amount of the payment is determined by whether the real estate broker/agent’s services resulted in a successful transaction.
transfer tax
A state tax imposed on the transfer or conveyance of realty or any realty interest by means of deed, lease, sublease, assignment, contract for deed or similar instrument. One purpose of the tax is to acquire reliable data on the fair market value of property to help establish more accurate real property tax assessments.
transferability
High transferability is linked with high value.
Transit element
A transit element is an aspect of a general plan showing a proposed system of rail or transit lines or such other mode of transportation as may be appropriate.
Transportation Element
A Transportation Element is an aspect of the general plan that shows a comprehensive transportation system, including locations of rights-of-way, terminals, viaducts and grade separations. This element of the plan may also include aviation and related facilities.
Treasury bill, note, bond
Treasury bill issued for less than a year; Treasury note issued from one to five years; Treasury bond issued from five to ten years.
Treaty of Guadalupe Hidalgo
The Treaty of Guadalupe Hidalgo (Tratado de Guadalupe Hidalgo in Spanish) is the peace treaty, largely dictated by the United States to the government of Mexico, that ended the Mexican-American War (1846—1848). In the treaty, Mexico ceded 525,000 square miles to the United States in exchange for US$15 million ($313 million in 2006 dollars) and recognized pre-existing property rights of Mexican citizens in the transferred territories, the latter of which the United States in a significant number of cases failed to honor. The United States also agreed to take over $3.25 million ($68 million in 2006 dollars) in debts Mexico owed to American citizens.
trend
“Trends” are changes that have a long-term, consistent direction. In appraisal, a series of related changes brought about by a chain of causes and effects.
trespass
Unlawful entry or injury to the property of another.
trial de novo
A form of appeal in which the appeals court makes a decision and holds a trial as if no prior decision has been made.
TRID
Disclosures that came about as a result of the Dodd-Frank Act. The disclosures integrate the requirements of the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). TRID is an acronym that stands for TILA and RESPA Integrated Disclosures.
trigger terms
Terms in an advertisement which trigger additional disclosure of all credit terms.
trip hazard
Any situation where there is an increased likelihood of tripping (e.g. stairs that do not have a uniform tread or riser height all the way along the stairs).
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. This includes both fixed expenses, such as taxes and insurance, and all operating expenses, including costs of maintenance and repair. In some cases, the triple-net tenant even pays the interest payments on the lessor’s mortgage on the property leased.
Strictly speaking, the term triple-net lease is redundant because “net lease” adequately describes the situation. Rather than rely on labels, however, the parties must examine the provisions of the lease to discover the extent of the tenant’s responsibilities.
triplex
A building comprised of three dwelling units, each having a front and rear (or side) door and yard; similar to row houses.
trophy buildings
Trophy buildings are prestigious, high-quality commercial properties that stand out due to their prime location, superior design, construction, and amenities. These iconic buildings often attract high-profile tenants and command premium rental rates due to their desirability and status as landmarks. Trophy buildings are typically characterized by their architectural excellence, state-of-the-art facilities, and strategic positioning in major urban centers or financial districts.
trough
The stage of the economic or business cycle that marks the end of a period of declining business activity and the transition to expansion.
true easement
The fundamental characteristic of a true easement is that it benefits another particular piece of land, referred to as the dominant estate. The land that is encumbered by the easement, that which gives up a right for the benefit of the dominant estate, is called the servient estate. (See Equal Credit Opportunity Act)
truss
A roof structural support system made up from “2 by” wood components that are attached using press-on metal plates (as opposed to rafters that are nailed together). (See rafter)
trust
An arrangement whereby some form of title (either full title or partial or naked title) to property is transferred by the grantor (or trustor) to a person called a trustee, to be held and managed by that person for the benefit of another, called a beneficiary. (See trustor, trustee, beneficiary)
trust deed
Also called a deed of trust. A legal document in which title to property is transferred to a third-party trustee as security for an obligation owed by the trustor (borrower) to the beneficiary (lender). A trust deed is similar to a mortgage; the main difference is that it involves three parties. When a borrower repays the note secured by a trust deed, the trustee must reconvey title back to the borrower by way of a deed of reconveyance. (See deed of reconveyance)
trust deed lien
A lien on the property of a truster that secures a deed of trust loan. (See lien)
trust fund bank account
An account set up by a broker, attorney or other agent at a bank or other recognized depository, into which the broker deposits all funds entrusted to the agent by the principal or others; also called an earnest money or escrow account. (See earnest money, escrow account)
trust funds
Money or other things of value that are received by a broker or salesperson on behalf of a principal or any other person, and which are held for the benefit of others in the performance of any act(s) for which a real estate license is required.
trust ledger
Ledger where a property manager records monies paid out on behalf of an owner.
trustee
One who holds property interest in trust for the benefit of another as a fiduciary (See fiduciary)
trustee
The person who controls the trust funds, and is responsible for the handling of the trust funds.
trustee sale guarantee
The trustee sale guarantee (TSG) report provides the foreclosing trustee with the information necessary to process the trustee’s foreclosure and guarantees the correctness of that information. (See foreclosure)
trustee’s deed
A deed executed by a trustee when property is sold at a trustee’s sale. The trustee’s deed is a bargain and sale deed, which contains only implied warranties and no express warranties. Generally, a trustee’s deed is not an insurable deed without separate documentation.
trustee’s sale
Sale of property held as security for payment of a loan on default of the trustor.
trustor
The person who creates a trust and places the property into the trust.
trustor
The person who pays into the trust account.
Truth-in-Lending Act
A body of federal law effective July 1969 as part of the Consumer Credit Protection Act, and implemented by Regulation Z that is now subject to the Consumer Financial Protection Bureau. It was amended in 1982 by the Truth-in-Lending Simplification and Reform Act and later amendments. The main purpose of this law is to ensure that borrowers and customers in need of consumer credit are given meaningful information with respect to the cost of credit. In this way consumers can more readily compare the various credit terms available to them and thus avoid the uninformed use of credit. This law creates a disclosure device only, and does not establish any set maximum or minimum interest rates or require any charges for credit. TILA can be found in 15 U.S. Code section 1601, et seq. (See Regulation Z) (Truth-in-Lending Act)
truth-in-lending disclosure statement
A document a buyer/borrower receives around closing time that specifies annual percentage rate (APR) on the loan. That APR includes all costs, not just lender costs. (See dissecting a GFE)
turnkey project
The term describes a rental property in which the supplier or provider is responsible to the client for the entire result of the project and presents it to the client completely finished and ready to use. Another term would be “all inclusive rental property”.
twitch
A short spastic contraction of the muscle fibers.
two-step mortgage
A two-step mortgage has two distinct phases. In the first phase, the interest rate is fixed for a specified period, typically for one to seven years. This initial period is known as the “fixed-rate period” and provides borrowers with a stable interest rate and monthly payment. After the fixed-rate period ends, the loan enters the second phase, where the interest rate becomes adjustable and is typically tied to a specific financial index, such as the prime rate or the Treasury bill rate. The interest rate can then fluctuate periodically based on changes in the index, which can result in changes to the borrower’s monthly payment amount. (See hybrid financing)
type of access
The most common types of access are:vacant or occupied and on lockboxvacant and call listing agent for appointmentoccupied and call listing agent for appointmentoccupied, call listing agent, and need 24-48 hours notice before showing