A Title Abstract, or Abstract of Title, is a comprehensive summary of the history of a piece of real estate. It includes a chronological record of all historical transactions, liens, easements, encumbrances, and other activities affecting ownership rights.
A Title Binder is a temporary form of title insurance that signifies the intent to issue a title insurance policy at a later date. Typically used in real estate transactions, it offers interim coverage from the time the property sale contract is signed until the closing, when a full title insurance policy is issued.
A title company plays a crucial role in the real estate transaction process by examining titles, holding earnest money, and issuing title insurance. Their services ensure that the title to a property is free from any liens or disputes before the transaction is finalized.
Title defect refers to any issue or claimant that challenges the legal ownership of a property, preventing the owner from presenting a clear or marketable title. These defects can arise due to various reasons such as missing signatures on the deed, current liens, or interruptions in the title records.
In a title insurance policy, a title exception refers to a statement detailing items or conditions that are not covered by the policy. Understanding these exceptions is crucial for assessing potential risks before purchasing a property.
A title guarantee is a type of protection that ensures the title of a property is clear of any claims or encumbrances. It provides assurance to buyers and lenders that they are purchasing a legitimate piece of real estate, free from past issues.
Title insurance is a protective policy that assures the transfer of clear title in real estate transactions. It protects against potential disputes over ownership and ensures that both lenders and buyers have security over any claims that might arise after the property transfer.
A Title Opinion is a professional judgment provided by an attorney or a title company attorney concerning the validity of an owner’s rights to a property, following a comprehensive title search.
A Title Plant is an organized database containing comprehensive information on land parcels and improved real estate properties, maintained by title insurance companies to facilitate the process of title searches and ensure accurate title documentation.
A document that indicates the current state of the title, detailing easements, covenants, liens, and any defects, but not describing the chain of title. It assures the buyer of clear title to a property.
Title search is an examination of public records to determine the ownership and encumbrances affecting real property. It is an essential step in the purchase of real estate to ensure the buyer receives clear title to the property.
Title theory states are where 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. Lenders are granted a more immediate cure for a default than in lien theory states.
A 'To Have and to Hold Clause,' also known as a Habendum Clause, is an essential part of real estate deeds that defines the extent of ownership and rights transferred in the transaction.
Topography refers to the arrangement of the natural and artificial physical features of an area. It encompasses the terrain, elevation, and landforms, and significantly influences real estate value, construction feasibility, and property management.
The Torrens System is a land registration system that provides conclusive evidence of land ownership and simplifies the process of verifying property title status, eliminating the need for comprehensive title searches.
A tort is a wrongful act or an infringement of a right (other than under contract) leading to civil legal liability. It is distinct from criminal acts and contract breaches, but it nonetheless renders the perpetrator liable to the victim for damages.
A townhouse is a type of multi-story dwelling unit that is usually attached to other similar units by shared sidewalls. Typically found in planned unit developments (PUDs) and condominium developments, townhouses often combine aspects of both single-family homes and apartments.
A township is a 6-mile square tract delineated by a government rectangular survey system used primarily in the United States to specify land ownership and real estate bounds.
Toxic assets refer to financial assets that have lost most or all of their value and are difficult or impossible to sell due to a lack of functioning market. These assets can significantly harm the balance sheets of institutions that hold them.
Toxic mold, scientifically known as Stachybotrys chartarum, is a type of greenish-black mold that can cause severe health issues. It is known for its association with poor indoor air quality and water-damaged materials.
Toxicity refers to the degree to which a substance can cause harm to an organism. In the real estate context, it often pertains to the contamination levels in properties, affecting their habitability and market value.
A strong track record can significantly influence a developer's ability to secure financing and attract investors for new projects, ensuring successful and timely project completion.
A large area of land, usually subdivided into smaller parcels for the purposes of development or sale.
A tract house refers to a dwelling that shares a similar style and floor plan with other houses in a development. This type of construction is commonly used in subdivisions and is often associated with mass production techniques.
A trade area, also known as a market area, refers to the geographical region from which a business, especially a retail or service enterprise, draws its customers. This concept is crucial in real estate and retail industries for strategic planning, marketing, and site selection.
Trade fixtures are objects placed in rented commercial properties by tenants to facilitate their business operations. These fixtures can typically be removed by the tenant before the lease's expiration. However, if they are not removed in a timely manner after the lease ends, they may become the property of the landlord.
Trade or business property, as referenced in Section 1231, refers to property used in a trade or business activity that can provide tax benefits upon sale or exchange. Such properties are subject to specific tax regulations that can impact depreciation and capital gains treatment.
Trading Up refers to the process of buying a larger or more expensive property, often done to accommodate growing families, enhance lifestyle, or secure better investment opportunities.
Traffic counts are tallies of vehicular traffic conducted by state departments of transportation or local governments to help in traffic management, road planning, and retail site selection.
A tranche refers to a piece, portion, or slice of a deal or structured financing. Each tranche offers a different risk-reward ratio to suit different investor appetites.
Transaction Brokerage is an arrangement in which a broker facilitates a real estate transaction without representing either the buyer or the seller. The broker remains neutral throughout the process, focusing on administrative duties to ensure the smooth execution of the transaction.
Transaction costs are the expenses incurred during the process of buying and selling real estate, ranging from legal fees to broker commissions, and various other charges ensuring the successful transfer of property.
A Transfer of Development Rights (TDR) is a zoning ordinance mechanism that allows property owners in low-density or conservation areas to sell their development rights to other property owners. This system supports low-density development, such as historic preservation or open space conservation, while permitting higher density developments elsewhere, effectively balancing real estate utilization.
A transfer tax is a tax imposed when the title or ownership of property is transferred from one person to another, often seen in real estate transactions.
Transferable Development Rights (TDR) are a zoning tool that allows property owners to transfer the right to develop one parcel of land to another parcel, facilitating controlled urban development and the preservation of resources.
A transition room, commonly known as a mudroom, is an entryway space in a house designed to serve as a barrier between the outdoors and the home interior. It typically includes storage for outerwear and footwear, providing a place to remove and store dirty or wet garments before entering the main living areas.
A transmittal letter introduces a larger document, such as an appraisal report, and provides essential information about the origin and purpose of the accompanying document.
TransUnion is one of the three major credit reporting agencies (along with Experian and Equifax) in the United States, responsible for collecting and providing consumer credit information to lenders and other entities.
Trespass refers to the unlawful entry or possession of someone's property without permission. It can involve physical intrusion or unlawful occupation, thereby infringing on the possessor's rights.
A tri-level home, also known as a split-level home, is a type of house that separates living spaces on different levels, typically with short flights of stairs connecting each set of rooms.
A Triple-A (AAA) Tenant is a tenant with an excellent credit rating, typically characterized by a minimal likelihood of defaulting on lease obligations.
A Triple-Net Lease (NNN) is a type of lease agreement where the tenant agrees to pay all the operating expenses of the property, including property taxes, insurance, and maintenance, in addition to the rent.
A triplex is a type of residential building that contains three separate apartment or townhouse units within one structure. Each unit typically has its own entrance, and the building can offer different living spaces and layouts for tenants or owners.
A landmark property that is well known by the public and highly sought by institutional investors such as pension funds and insurance companies. Generally features one-of-a-kind architectural designs, the highest quality of materials, and expensive finishes. These properties are more desirable than Class A buildings and are likely to stand for hundreds of years.
Trulia is a popular website that provides comprehensive information on residential real estate, including homes for sale and detailed property features. It's designed to connect potential buyers with real estate brokers who are members of Trulia.
A legal arrangement where property is transferred to a trustee, who manages it for the benefit of the beneficiary.
A trust account, also known as an escrow account in some states, is a separate bank account required by state law for brokers to deposit all client monies. This ensures that client funds are kept separate from the broker's own funds.
A trust deed is a conveyance of real estate to a third party to be held for the benefit of another. Commonly used in certain states in place of mortgages, it conditionally conveys title to a lender.
A trustee is an individual or organization that holds or manages property or assets for the benefit of another party. Trustees are often seen in trust deeds, and they have a fundamental role in ensuring the terms of the trust are adhered to, typically within a fiduciary or neutral capacity.
A Trustee's Deed is a legal document that conveys property ownership from a trustee to a buyer, commonly used in real estate transactions involving foreclosed properties.
A trustee's sale is a type of foreclosure sale conducted by a trustee under the stipulations of a deed of trust, where the property is auctioned off to recover the owed debt.
A trustor is an individual or entity that creates a trust by transferring assets to a trustee for the benefit of beneficiaries. In real estate, a trustor may also refer to someone who gives a deed of trust as collateral for a loan.
The Truth in Lending Act (TILA) is a federal law designed to promote the informed use of consumer credit by requiring disclosures about its terms and cost. Implemented by Regulation Z, it aims to standardize and safeguard credit transactions, ensuring consumers are aware of and understand key aspects of the financial agreements they enter.
The Truth-in-Lending Act (TILA) is a federal law designed to promote fairness and clarity in credit and lending practices. It requires lenders to disclose clear and standardized information about the terms and costs of loans to protect consumers.
Tudor-style homes are an English-style architectural design that exude an imposing and fortress-like aesthetic. These homes typically feature materials such as stone and brick, often accented with stucco and decorative half-timbering. The windows and doors are characterized by molded cement or stone trim, adding to the grandeur of the design.
A turnkey project is a type of development where the developer completes the entire project on behalf of a buyer, turning over the keys upon completion. This comprehensive approach includes all necessary activities such as land purchases, permits, planning, and construction.
Turnover rate refers to the percentage of tenants, employees, or salespeople that leave a property, company, or organization within a specific time frame, typically within a year.
A Two-Step Mortgage, also known as a Hybrid Mortgage, combines an initial fixed interest rate period with an adjustable rate for the remainder of the loan term.
