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HUD Home Buying Glossary - T

a b c d e f g h i j k l m n o p q r s t u v w x y z

Table Funding - A financing technique that occurs when a broker closes a mortgage loan with fund belonging to an acquiring lender and immediately assigns the loan to that lender.  

Take-Out Commitment -  A promise to make a loan at a future specified time.  It is most commonly used to designate a higher-cost, shorter-term, back-up commitment as a support for construction financing until a suitable, permanent loan can be secured.  

Take-Out Loan - See Take-Out Commitment.

Take Down - See Construction Loan Draw. 

Tax Deed - A deed on a property purchased at a public sale for nonpayment of taxes

Tax Deferred Exchange - An exchange of like-for-like property held for income or investment.

Tax Lien -  A lien on a property by local, state, or federal government for the amount of due and unpaid taxes   

Tax Shelter - A way of excluding income from taxes by such means as depreciation, which is a paper expense and can offset other income. 

Temporary Indulgence - A relief provision that allows the borrower additional time before more formal action is taken to cure a delinquency. 

1031 Exchange - See Tax Deferred Exchange. 

Tenancy - A mode of holding ownership or interest in property. 

Tenancy at Sufferance - A situation arising when a tenant holds over (continues occupancy) after the expiration of a lease.  No notice is required to eject the former tenant. 

Tenancy at Will - A tenancy for an indeterminate period. 

Tenancy by the Entirety - A form of joint tenancy for husbands and wives.  Neither spouse can separately convey to break the tenancy.

Tenancy in Common -  In law, the type of tenancy or estate created when real or personal property is granted, devised or bequeathed to two or more persons in the absence of express words creating a joint tenancy.  There is no right of survivorship.

Tenant -  One who is not the owner, but occupies real property (see Real Property) with the consent of the owner.  The tenant is entitled to exclusive possession and enjoyment of the property for a specified period of time and is responsible for the payment of rent as specified in a lease.

Tender -  To offer or present for acceptance.  

Tenements - Rights that transfer with the real property.

Term -  The time period granted for repayment of a loan.  Also known as “loan term.”  

Term Loan - See Straight Note.  

Termination Statement - A statement filed to remove a personal property lien from a financing statement.

Termite Inspection  - See Inspection.

Third Party -  A general term that includes anyone not a party to a contract, agreement, instrument, etc.

Thrifts -  A term referring to lending institutions such as savings and loan associations, credit unions and mutual savings banks.  The name “thrift” stems from the early history of these institutions when they were organized to “promote thrift, generally among the laboring poor.”  

Tier - A horizontal row of townships, measured north or south from the baseline.

TIL -  See Truth-in-Lending Act.  

Time is of the Essence - A statement that makes prompt performance mandatory.  

Timeshare - Interval ownership plan used for vacation property.

Title -  The evidence of the right of ownership in property.  In the case of real estate, the documentary evidence of ownership is the title deed, which specifies in whom the legal state is vested and the history of ownership and transfers.  Title may be acquired through purchase, inheritance, devise, gift or through the foreclosure of a mortgage.  

Title Company - A company that issues title insurance and may handle the escrow process of a closing.

Title Examination - See Examination of Title.

Title Insurance Binder -  1) A report issued by a title insurance company stating the condition of title to certain property as of a certain date and also stating conditions which, if satisfied, will cause a policy of title insurance to be issued.  All called “commitment.”  2) A policy of title insurance (used primarily by investors) calling for a reduced rate for a future policy if the property is sold within a specified period.

Title Insurance Policy -  A contract by which the insurer, usually a title insurance company, indicates who has legal title and agrees to pay the insured a specific amount of any loss caused by clouds, claims or defects of title to real estate, where the insured has an interest as owner, mortgagee or otherwise.

a) Owner’s Title Policy:  Usually issued to the landowner himself.  The owner’s title insurance policy is bought and paid for only once and then continues in force without any further payment.  Owner’s Title Insurance policies are not assignable.

b) Mortgagee’s Title Policy:  Issued to the mortgagee and terminates when the mortgage debt is paid.  In the event of foreclosure, or if the mortgagee acquires title from the mortgagor in lieu of foreclosure, the policy continues in force, giving continued protection against any defects of title which existed at, or prior to, the date of the policy.  

Title I Loans - FHA home improvement loans. 

Title II Loans - FHA home loans for one to four unit residential properties.   

Title Search - The examination and research in the history of title to a specific property in order to develop a chain of title.

Topographical Lines - Lines on a map indicating the contour of land. 

Topography - The surface elevations of a property. 

Torrens Title - A system of registering ownership in which the court keeps the record of title and issues certificates of title.

Total Principal Balance -  The sum of the outstanding principal balance of the loans in the package.  

Townhouse - Row housing having common walls with adjoining housing. 

Township - An area established by U.S. government survey that is six miles square and contains 36 sections. 

Tract - A parcel of land that is subdivided into smaller parcels of land called lots.

Trade Fixture - Personal property installed by a tenant to carry on a trade or business; remains personal property and can be removed by the tenant any time prior to the lease expiration.   

Transfer Tax - A tax levied by the city or county on the transfer of title to real property. 

Treasury Index - An index that is commonly used to determine interest rate changes for adjustable rate mortgages.

Treaty -  A reinsurance contract that covers all risks identified in the contract; a group of risks as opposed to an individual risk.

Trespass - A wrongful intrusion on the land of another.  

Triple Net Lease - See Net Lease. 

Trust - A right of property, real or personal, held by one party for the benefit of another.  

Trust Account - A special account wherein monies held in trust are maintained separately from other monies.

Trust Deed - See Deed of Trust.

Trustee -  1) Someone who holds the legal title to another’s property, usually as security for a debt that person owes a lender.  2) A fiduciary who holds or controls something for the benefit of another.  3) A third party to whom property is legally committed in trust.

Trustor -  In a deed of trust, the borrower is referred to as the trustor.

Truth-in-Lending Act -  Federal legislation that provides borrowers with specific information on the cost of obtaining credit.  

Turnover - The number of times an inventory is sold in one year. 

Twisting - Generally, an illegal practice of inducing a person to cancel an insurance policy in order to take out a new one. 

Two-Step Mortgage - A type of adjustable rate mortgage in which the interest rate can be adjusted only one time, usually after five or seven years, and then remains constant for the remaining term of the loan.