REAL ESTATE TERMS

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TAKE-OUT LOAN: The loan arranged by the owner or builder developer for a buyer. The construction loan made for construction of the improvements is usually paid in full from the proceeds of this more permanent mortgage loan.

TAX: Enforced charge exacted of persons, corporations and organizations by the government to be used to support government services and programs.

TAX DEED: The deed given to a purchaser at a public sale of land held for nonpayment of taxes. It conveys to the purchaser only such title as the defaulting taxpayer had.

TAX-FREE EXCHANGE: The trade or exchange of one real property for another without the need to pay income taxes on the gain at the time of trade.

TAX SALE: Sale of property after a period of nonpayment of taxes.

TENANCY IN COMMON: Co-ownership of property by two or more persons who each hold an undivided interest, without right of survivorship; interests need not be equal.

TENANT: The party who has legal possession and use of real property belonging to another.

TENANTS BY THE ENTIRETIES: Under certain state laws, ownership of property acquired by a husband and wife during marriage, which property is jointly and equally owned. Upon depth of one spouse it becomes the property of the survivor.

TENTATIVE MAP: The Subdivision Map Act requires subdividers to submit initially a tentative map of their tract to the local planning commission for study. The approval or disapproval of the planning commission is noted on the map. Thereafter, a final map of the tract embodying any changes requested by the planning commission is required to be filed with the planning commission.

TENURE IN LAND: The mode or manner by which an estate in lands is held. All rights and title rest with owner.

TERMITES: Ant-like insects which feed on wood and are highly destructive to wooden structures.

TERMITE SHIELD: A shield, usually of noncorrodible metal, placed on top of the foundation wall or around pipes to prevent passage of termites.

TESTATOR: One who makes a will.

THIRD PARTY: Persons who are not parties to a contract which affects an interest they have in the object of the contract.

THRESHOLD: A strip of wood or metal beveled on each edge and used above the finished floor under outside doors.

TIDELANDS: Lands that are covered and uncovered by the ebb and flow of the tide.

TIME IS OF THE ESSENCE: A condition of a contract expressing the essential nature of performance of the contract by a party in a specified period of time.

TIME-SHARE ESTATE: A right of occupancy in a time-share project (subdivision) which is coupled with an estate in the real property.

TIME-SHARE PROJECT: A form of subdivision of real property into rights to the recurrent, exclusive use or occupancy of a lot, parcel, unit, or segment ofreal property, on an annual or some other periodic basis, for a specified period of time.

TIME-SHARE USE: A license or contractual or membership right of occupancy in a timeshare project which is not coupled with an estate in the real property.

TITLE: Indicates position of lawful ownership and right to property. "Bundle of Rights". possessed by an owner. Combination of all elements constituting proof of ownership.

TITLE INSURANCE: Insurance to protect a real property owner or lender up to a specified amount against certain types of loss, e.g., defective or unmarketable title.

TITLE REPORT: A report which discloses condition of the title, made by a title company preliminary to issuance of title insurance policy.

TITLE THEORY: Mortgage arrangement whereby title to mortgaged real property vests in the lender. Some states give greater protection to mortgage lenders and assume lenders have title interest. Distinguished from Lien Theory States.

TOPOGRAPHY: Nature of the surface of land; topography may be level, rolling, mountainous. Variation in earth's surface.

TORRENS TITLE: System of title records provided by state law (no longer used in California)

TORT: Any wrongful act (not involving a breach of contract) for which a civil section will lie for the person wronged.

TOWNHOUSE: One of a row of houses usually of the same or similar design with common side walls or with a very narrow space between adjacent side walls.

TOWNSHIP: In the survey of public lands of the United States, a territorial subdivision six miles long, six miles wide and containing 36 sections, each one mile square, located between two range lines and two township lines.

TRADE FIXTURES: Articles of personal property annexed by a business tenant to real property which are necessary to the carrying on of a trade and are removable by the tenant.

TRADE-IN: An increasingly popular method of guaranteeing an owner a minimum amount of cash on sale of owner's present property to permit owner to purchase another. If the property is not sold within a specified time at the listed price, the broker agrees to arrange financing to personally purchase the property at an agreed upon discount.

TRANSFER FEE: A charge made by a lending institution holding or collecting on a real estate mortgage to change its records to reflect a different ownership.

TRUST ACCOUNT: An account separate and apart and physically segregated from broker's own funds, in which broker is required by law to deposit all funds collected for clients.

TRUST DEED: Just as with a mortgage this is a legal document by which a borrower pledges certain real property or collateral as guarantee for the repayment of a loan. However, it differs from the mortgage in a number of important respects. For example, instead of there being two parties to the transaction there are three. There is the borrower who signs the trust deed and who is called the trustor. There is the third, neutral party, to whom trustor deeds the property as security for the payment of the debt, who is called the trustee. And, finally, there is the lender who is called the beneficiary, the one who benefits from the pledge agreement in that in the event of a default the trustee can sell the property and transfer the money obtained at the sale to lender as payment of the debt.

TRUSTEE: One who holds property in trust for another to secure the performance of an obligation. Third party under a deed of trust.

TRUSTOR: One who borrows money from a trust deed lender, then deeds the real property securing the loan to a trustee to be held as security until trustor has performed the obligation to the lender under terms of a deed of trust.

TRUTH IN LENDING: The name given to the federal statutes and regulations (Regulation Z) which are designed primarily to insure that prospective borrowers and purchasers on credit receive credit cost information before entering into a transaction.

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