A GLOSSARY OF REAL ESTATE TERMS

T


T-111 Exterior
Textured plywood siding; an inexpensive exterior wall surface both commercial and residential structures.
Tax
Tax as applied to real estate is an enforced charge imposed on persons, property, or income to be used to support the State. The governing body in turn utilizes the funds in the best interest of the general public.
Tax Lien
Lien for nonpayment of taxes.
Tax Sale
Public sale of property at an auction by a governmental authority, due to non payment of property taxes.
Ten Year Treasury
An index published by the Federal Reserve Board based on the average yield of a range of Treasury securities, all adjusted to the equivalent of a 10-year maturity. Yields on Treasury securities at constant maturity are determined by the U.S. Treasury from the daily yield curve. That is based on the closing market-bid yields on actively traded Treasury securities in the over-the-counter market.
Tenancy
A holding, as of land, by any kind of title, occupancy of land, a house or the like under a lease or on payment of rent or tenure.
Tenancy at Sufferance
A tenancy which arises when a tenant holds over after expiration of his lease.
Tenancy at Will
A tenancy which may be terminated at the will of either the Lessor or lessee.
Tenancy by the Entirety
A form of ownership by husband and wife whereby each owns the entire property. In event of the death of one, the survivor owns the property without probate.
Tenancy in Common
Ownership of property by two or more individuals, each of whom has an undivided interest, without the right of survivorship.
Tenant
Any person in possession of real property with the permission of the owner.
Tenant Improvements (TI’s)
Improvements or renovations made to the property to attract new tenants to new or vacated space which may include new improvements or remodeling. May be paid by tenant, landlord or both. Typically, tenants are provided with a market rate TI allowance ($/sq. ft.) that the owner will contribute towards improvements. Amounts above the TI allowance that the tenant wants must be paid for by the tenant.
Tenant Name
Identifies the name of the tenant; and editable field. If entering vacant space, identify the unit and select the "Check if Vacant" option.
Testate
Having made a will before death.
TI’s & LC’s
Tenant Improvements refers to the expense to physically improve the property to attract new tenants to new or vacated space which may include new improvements or remodeling. May be paid by tenant, lessor, or both. Typically, tenants are provided with a market rate TI allowance ($/sq. ft.) that the owner will contribute towards improvements. The tenant must pay for amounts above the TI allowance desired by the tenant. A Leasing Commission is an amount, usually a percentage of the total lease transaction, earned by a real estate broker or leasing agent for his services. Combined, the annual projected cost of tenant improvements and leasing commissions (TILC’s) are deducted from the net operating income prior to determining the net cash flow available for debt service coverage.
Tie-in Arrangement
A contract where one transaction depends upon another transaction.
Time is of the Essence
Legal phrase in a contract requiring punctual performance of all obligations.
Title
Often used interchangeably with the word ownership. It indicates the accumulation of all rights in property by the owner and others.
Title, Escrow and Closing Agent Fees
These companies charge various fees for their services.
Title Insurance
An insurance policy which protects the insured (purchaser and lender) against loss arising from defects in title.
Title Search
A review of the public records generally at the local courthouse, to make sure the buyer is purchasing a house from the legal owner and there are no liens, overdue special assessments, or other claims or outstanding restrictive covenants filed in the records, which would adversely affect the marketability or value of title.
Tort
A wrongful act or violation of a legal right for which a civil action will lie.
Townhouse
A Multifamily subtype; a one-, two- or three-story apartment dwelling; typically a row house on a small lot which has exterior limits common to other similar units. Title to the unit and its lot is vested in the individual buyer with a fractional interest in common areas, if any.
Traffic
Identifies the overall traffic flow at the property. Generally, traffic volume may be advantageous or disadvantageous to a property, depending on other conditions that affect its highest and best use. High-volume local traffic in commercial areas is usually an asset; heavy through traffic is deleterious to most retail stores, except those that serve travelers; high volume commercial traffic may have a negative impact on residential properties. The volume of traffic is typically determined by a traffic count, which is usually obtained from local or state transportation departments.
Trailing 12 Months
Information from only the 12 months proceeding the month of the analysis. Income and expenses realized during the past 12 months from the month in which the loan file was created; used to calculate the most recent 12 months, often used to determine net cash flow for multifamily and hotel properties.
Tranche
A term applied to describe classes of CMBS securities, i.e., ""AAA" Tranche".
Transfer Tax
A levy by a state or local government on the change of ownership of real estate.
A lease requiring tenants to pay all utilities, insurance, taxes, and maintenance costs.
A triple net lease designates the tenant or lessee as being solely responsible for bearing all the costs related to the asset being leased.
Trust
A borrowing entity structured wherein a fiduciary relationship whereby legal title to a property is transferred to a trustee with the intention that such property be administered by the trustee for the benefit of another, the beneficiary, who holds equitable title to such property.
Trust Account
An account used by a real estate broker or escrow agent to handle earnest money, funds set aside for repairs and other money that the buyer and seller put up before closing.
Trustee
A party who is given legal responsibility to hold property in the best interest of or "for the benefit of" another. The trustee is one placed in a position of responsibility for another, a responsibility enforceable in a court of law. (See deed of trust).
A federal government regulation that provides details of the cost of obtaining a mortgage loan. Lenders must provide this shortly after the loan application has been completed Usury
Two-step Mortgage
A home loan in which the interest rate stays the same for a period (often the first five or seven years), then changes to another interest rate for the remainder of the loan period.
Simple Interest, Compound Interest, Real Interest, Cummulative Interest/return