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Glossary of Real Estate Terms
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| Tap fees |
| Most companies charge a tap fee for hooking up utilities. |
| Tax deduction |
| A tax break given by the government. Mortgage interest, loan points and property taxes can be deducted. |
| Tax lien |
| An impediment placed against a property, such as back taxes. |
| Tax sale |
| The public sale of a property by the government for nonpayment of taxes. |
| Tax shelter |
| A term often applied to real estate investment and refers to various tax advantages. |
| Tear-down condition |
| A house that requires the entire interior to be rebuilt. |
| Teaser rate |
| An low, short-term rate offered on a mortgage to entice the borrower. |
| Tenancy by the entirety |
| When a married couple owns a home, it is usually considered tenancy by the entirety If the property must be sold to pay the debts of one spouse, both must agree. |
| Tenants in common |
| Two or more owners who share interest in a specific property. |
| Terrace |
| A terrace can be several things: an unroofed paved area right next to a house; a roofed balcony; a veranda; or a raised bed of earth constructed to enhance a landscape. |
| The 72-hour clause |
| When a buyer has a house to sell before they can purchase another home, most sellers insist on a 72-hour clause. In the event of a better offer coming in before the contingency is settled, this clause entitles the seller to give the buyer 72 hours to remove the contingency or lose the house. |
| Third-party origination |
| In a third-party origination transaction, the lender has another institution originate all or part of a mortgage. |
| Time share |
| Ownership that involves the acquisition of a specific period of time, or that percentage of interest, in a vacation home or resort. |
| Title |
| The actual legal document conferring ownership of a piece of real estate. |
| Title company |
| Firms that ensure that the title to a piece of property is clear and provide title insurance. |
| Title insurance |
| A policy issued to lenders and buyers to protect any losses because of a dispute over the ownership of a piece of property. |
| Title risk |
| Possible impediments to the transfer of a title from one owner to another. |
| Title search |
| A check of public title records to ascertain that the seller is the legal owner and that there are no claims or liens against the property. |
| Top producer |
| A real state industry term that refers to agents and brokers who sell a high volume of homes. |
| Top soil |
| The top layer of soilthat is removed when lots are graded in preparation for construction. |
| Total expense ratio |
| The percentage of monthly debt obligations relative to gross monthly income. |
| Townhouse |
| An attached home that is not a condominium. |
| Tract home |
| Another term for a production home, a mass-produced house constructed by one builder in a project. |
| Trade equity |
| Other real estate or assets a buyer gives to a seller as part of the down payment. |
| Trading down |
| A reference to buyers who purchase a home that is less expensive than their current house. |
| Trading up |
| A reference to buyers who purchase a home that is more expensive home than their current house. |
| Transfer of ownership |
| Any legal means by which a piece of real estate changes hands. |
| Transfer tax |
| An assessment by state or local authorities at the time a piece of property changes hands. |
| Transom |
| A small hinged window directly above a door. |
| Trans-Union |
| Trans-Union Corp. is one of the "Big Three" credit-reporting bureaus that operate nationwide. Address: 760 Sproul Road, P.O. Box 390, Springfield, PA 19064-0390. Telephone: (312) 408-1400. |
| Tray ceiling |
| A tray ceiling has edges that slant toward the middle from the walls. |
| Treasury bills |
| Securities issued by the fTreasury Department that have the full backing of the U.S. government. |
| Treasury index |
| An index used to determine interest rate changes for adjustable rate mortgages. |
| Trellis |
| A decorative landscape structure made of thin strips of wood or plastic. |
| Trim work |
| The finishing of doors, doorways, window frames and floors. |
| Truss |
| A prefabricated framework of girders, strutsand other items used to support a roof or other load-bearing elements. |
| Trust account |
| Special accounts used by brokers and escrow agents to safeguard funds for a buyer or seller. |
| Trustee |
| A legally empowered person who holds or controls a piece of property for another person. |
| Truth-in-Lending Act |
| A federal law that protects consumers in a variety of ways. One of its key provisions allows a consumer to cancel a home-improvement loan, second mortgage or other loan if the home was pledged as security (except for a first mortgage or first trust deed) until midnight of the third business day after the contract was signed. |
| Tuck-point |
| The process of removing old mortar from between bricks and replacing it with new mortar. |
| Two- to four-family property |
| A piece of property that is owned by one person but provides housing for up to four households. |
| Two-step mortgage |
| An adjustable mortgage with two interest rates, one for the first five or seven years of the loan, and the other for the remainder of the loan term. |
