TAKEOUT FINANCING a commitment to provide permanent financing following construction of a planned project. The takeout commitment is generally predicated upon specific conditions, such as a certain percentage of unit sales or leases, for the permanent loan to "takeout" the construction loan. Most construction lenders require takeout financing.
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TAKING 1. acquisition of a parcel of land through condemnation. 2. in land use law, application of police power restrictions to a parcel of land that are so restrictive as to preclude any reasonable use.
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TANDEM PLAN a program of the Government National Mortgage Association (GNMA) working together with the Federal National Mortgage Association (FNMA) to provide low-interest rate home loans.
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TANGIBLE PROPERTY real estate and other valuables which can be seen and touched.
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TAX a charge levied upon persons or things by a government.
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TAX AND INSURANCE ESCROW an account required by a mortgage lender to fund annual property tax assessments and hazard insurance premiums for the mortgaged property. Funded through monthly contributions by the mortgagor.
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TAX BASE the collective value of property, income or other taxable activity or assets subject to a tax. Tax revenues are computed as the tax base times the tax rate. For property taxation, the tax base is the total assessed value of all taxable property less exemptions.
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TAX BASIS same as basis (tax).
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TAX BRACKET marginal rate for income taxes; the percentage of each additional dollar in income required to be paid as income taxes.
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TAX CREDIT a reduction against income tax payments that would otherwise be due. Contrast with tax deductions that reduce taxable income .
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TAX DEDUCTIBLE a type of expense that can be used to reduce taxable income.
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TAX DEDUCTION one that can be used to reduce taxable income.
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TAX DEED the type of instrument given to a grantee by a government that had claimed the property for unpaid taxes.
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TAX-EXEMPT PROPERTY real property that is not subject, in whole or in part, to ad valorem property taxes.
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TAX FORECLOSURE the process of enforcing a lien against property for nonpayment of delinquent property taxes. Taxing authorities hold a superior lien against all taxable property to enforce the payment of their taxes-
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TAX-FREE EXCHANGE same as tax-deferred exchange.
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TAX LIEN a debt attached against property for failing to pay taxes.
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TAX MAP a document showing the location, dimensions, and other information pertaining to a parcel of land subject to property taxes. Maps are generally bound into books and kept as public records at the local tax office.
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TAX PREFERENCE ITEMS certain types of Income or deductions that are added to adjusted gross income to calculate the alternative minimum tax.
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TAX RATE the ratio of a tax assessment to the amount being taxed.
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TAX ROLL the list of all properties subject to a tax in a county or other property taxing jurisdiction. It identifies all properties and indicates their assessed values.
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TAX SALE the sale of property after a period of nonpayment of taxes. The grantee receives a tax deed. In most states the defaulting party has a redemption period during which he may pay the unpaid taxes, interest, court costs, and the purchase price to redeem the property.
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TAX SHELTER an investment that produces after-tax income that is greater than before-tax income. The investment may produce before-tax cash flow while generating losses to shield, from taxation, income from sources outside the investment.
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TAX STOP a clause in a lease that stops a lessor from paying property taxes above a certain amount.
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TEASER RATE a contract interest rate charged on an adjustable-rate mortgage for the initial adjustment interval that is significantly lower than the fully indexed rate at the time. It is an incentive to encourage borrowers to accept adjustable-rate mortgage loans. In general, the interest rate reverts to the fully indexed rate at the first adjustment date.
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TENANCY the right of possession of real property. May refer to ownership or occupancy.
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TENANCY AT SUFFERANCE tenancy established when a person who had been a lawful tenant wrongfully remains in possession of property after expiration of a lease.
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TENANCY AT WILL a license to use or occupy lands and buildings at the will of the owner. The tenant may decide to leave the property at any time or must leave at the landlord’s will. Agreement may be oral or written.
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TENANCY BY THE ENTIRETY an estate that exists only between husband and wife with equal right of possession and enjoyment during their joint lives and with the right of survivorship-i.e., when one dies, the property goes to the surviving tenant. Recognized in some states.
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TENANCY FOR LIFE same as life estate.
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TENANCY FOR YEARS created by a lease for a fixed term, such as 2 months, 3 years, 10 years, and so on.
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TENANCY FROM YEAR TO YEAR same as leasehold.
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TENANCY IN COMMON an ownership of realty by 2 or more persons, each of whom has an undivided interest, without the right of survivorship. Upon the death of one of the owners, the ownership share of the decedent is inherited by the party or parties designated in the decedent's will. Compare with partition.
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TENANCY IN SEVERALTY ownership of property by one person or one legal entity (corporate ownership).
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TENANT one who is given possession of real estate for a fixed period or at will.
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TENANT FIXTURES mixtures added to ]eased real estate by a lessee that, by contract or by law, may be removed by the lessee upon expiration of the lease.
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TENDER 1. an offer to perform an obligation, together with present ability to perform. 2. to perform under a contract. 3. to pay or deliver
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TENEMENTS 1. possessions that are permanent and fixed; structures attached to land. 2. older apartment units.
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TENURE the nature of an occupant's ownership rights; an indication of whether one is an owner or a tenant.
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TENURE IN LAND the mode in which a Person holds an estate in lands.
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TERM the period of time during which something is in effect.
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TERM, AMORTIZATION for a loan, the period of time during which principal and interest payments must be made; generally the time needed to amortize the loan fully.
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TERMITE CLAUSE a provision in a sales contract that allows the buyer to have the property inspected for termite infestation. In general, if termites are discovered, the buyer may require the seller to treat the property or the buyer may cancel the contract. Most clauses now use the term wood-destroying insects to protect against other types of insects that harm structures, such as the powder post beetle and old house borer.
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TERMITE INSPECTION an examination of a structure by qualified personnel to determine the existence of infestation by termites. Often required by the terms of a sales contract.
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TERMITES insects that bore into wood and destroy it.
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TERM LOAN one with a set maturity date, typically without amortization.
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TERMS conditions and arrangements specified in a contract
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TESTAMENT a will. Generally to dispose of personal property. Common usage employs the words will, testament, and last will and testament as synonyms.
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TESTATE having made a valid will. Contrast with intestate.
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TESTATOR a person who makes a will
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TESTATRIX a woman who makes a will.
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TESTIMONIUM a clause that cites the act and date in a deed or other conveyance. Before signing a deed, the grantor should make sure that everything is in order, e.g., the spelling of names and legal descriptions. This is the testimonium clause.
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THIRD PARTY one who is not directly involved in a transaction or contract but may be involved or affected by it.
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TIL truth-in-lending law.
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TIME IS OF THE ESSENCE a phrase that, when inserted in a contract, requires that all references to specific dates and times of day noted in the contract be interpreted exactly. In its absence extreme delays might be acceptable.
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TIME-SHARING a form of property ownership under which a property is held by a number of people, each with the right of possession for a specified time interval. Time-sharing is most commonly applied to resort and vacation properties.
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TIME VALUE OF MONEY a concept that money available now is worth more than the same amount in the future because of its potential earning capacity.
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TITLE evidence that the owner of land is in lawful possession thereof; evidence of ownership. marketable title.
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TITLE COMPANY one in the business of examining title to real estate and/or issuing title insurance.
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TITLE DEFECT 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 part owner, to sign a deed, current liens against the property, or an interruption in the title records to a property.
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TITLE INSURANCE an insurance policy that protects the holder from loss sustained by defects in the title.
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TITLE REPORT a document indicating the current state of the title, such as easements, covenants, liens and any defects. The title report does not describe the chain of title.
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TITLE SEARCH an examination of the public records to determine the ownership and encumbrances affecting real property.
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TITLE THEORY STATES states in which the law splits the title of mortgaged property into legal title, held by the lender, and equitable title, held by the borrower. The borrower gains full title to the property upon retiring the mortgage debt. The lender is granted more immediate cure to a default than in lien theory states. Contrast with lien theory states.
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TOPOGRAPHY the state of the surface of the land; may be rolling, rough, flat, etc.
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TORRENS SYSTEM a title registration system used in some states; the condition of the title can easily be discovered without resorting to a title search.
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TORT a wrongful act that is neither a crime nor a breach of contract, but that renders the perpetrator liable to the victim for damages.
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TOWN HOUSE a dwelling unit, generally having 2 or more floors and attached to other similar units via party walls. Town houses are often used in planned unit developments and condominium developments, which provide for clustered or attached housing and common open space.
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TRANSFERABLE DEVELOPMENT RIGHTS the permission to increase the intensity of development for I parcel in exchange for decreasing the density of an adjacent parcel.
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TRANSFER DEVELOPMENT RIGHTS a type of zoning ordinance that allows owners of property zoned for low-density development or conservation use to sell development rights to other property owners. The development rights purchased permit the landowners to develop their parcels at higher densities than otherwise. The system is designed to provide for low-density uses, such as historic preservation, without unduly penalizing some landowners.
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TRANSFER TAX one paid upon the passing of title to property or to a valuable interest
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TRESPASS unlawful entry or possession of property.
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TRIPLE-A TENANT one with an excellent credit record.
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TRIPLE-NET LEASE one in which the tenant is to pay all operating expenses of the property; the landlord receives a net rent.
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TRUST an arrangement whereby property is transferred to a trusted third party (trustee) by a grantor (trustor). The trustee holds the property for the benefit of another (beneficiary).
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TRUST ACCOUNT a separate bank account segregated from a broker's own funds, in which the broker is required by state law to deposit all monies collected for clients. In some states called an escrow account.
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TRUST DEED a conveyance of real estate to a third party to be held for the benefit of another. Commonly used in some states in place of mortgages that conditionally convey title to the lender.
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TRUSTEE one who holds property in trust for another to secure performance of an obligation; the neutral party in a trust deed transaction.
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TRUSTEE'S DEED same as deed of trust.
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TRUSTEE'S SALE a foreclosure sale conducted by a trustee under the stipulations of a deed of trust.
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TUDOR an English-style imposing-looking house with fortress lines. Siding is chiefly stone and brick with some stucco and half timbers. Windows and doors have moulded cement or stone trim around them.
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TURNKEY PROJECT a development in which a developer completes the entire project on behalf of a buyer; the developer turns over the keys to the buyer at completion.
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