Real Estate Glossary - Letter T

Take-out loan

A permanent loan arranged by the owner for a buyer usually to pay for construction costs.

Tangible property

Any property such as real estate that can be physically seen and touched.

Tax

Any fee imposed by the government on an income, service or activity.

Tax deed

A property deed issued at a public sale during the purchase of a property that was seized due to nonpayment of taxes.

Tax lien

A claim against a property placed when the owner has failed to pay assessment or property taxes.

Tax title

The title transferred through a tax sale.

Taxable value

The property’s market value which serves as the basis for tax calculation.

Tenancy at sufferance

A condition in a lease whereby tenant remains in possession of the leased property after expiration of the lease, without the landlord’s consent.

Tenancy at will

A situation whereby tenant is allowed to remain in the leased property even after lease contract has expired.

Tenant

Lessee; the person who pays for the possession of a property under the terms and conditions of a lease contract.

Term mortgage

A housing loan where only the interest is paid in the first five years and where entire principal is due at the end of the term.

Termination statement

A legal document stating that the borrower has paid all financial obligations to the lender.

Third party

A separate person or entity aside from the two principals.

Tight money market

A condition of a market where interest rates increase and underwriting requirements are tightened because of the high demand for money while supply is insufficient.

Trading on equity

Borrowing funds to magnify return on capital investment; also known as financial leverage.

Transfer fee

The amount charged by a lending mortgage institution to change its records to indicate a different owner.

Transfer tax

Tax imposed by the government when title is transferred from the seller to the buyer.

Trust

A legal arrangement in which fiduciary control of a property is given by an individual to a person or institution.

Trust deed

A deed that transfers the property’s title to a trustee who uses it as a loan security.

Trust deed lien

A lien on a property used to secure a trust deed loan.

Trust funds

Any securities or money held in a trust.

Trustee

A person or institution to which a property is legally entrusted.

Truth-In-Lending Act

A federal law requiring lenders to disclose all terms and conditions of a mortgage in full including the APR.

Turnkey project

A type of project in which a single supplier is responsible for all its components.

Turnover

The ratio of inventory to annual sales.