Take-Out Loan
When a builder has successfully sold an unfinished unit that has been financed by an interim short-term construction loan, a more permanent, long-term mortgage loan may then replace (or "take-out") the construction loan. |
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Tenancy At Will
A property may be occupied strictly by permission of the legal owner and without any formally defined fixed term. The owner may terminate the occupancy at his or her discretion, though some form of advance notice is usually required. |
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Tenancy By Entirety
In some cases, property acquired by a husband and wife during marriage may be legally defined as being jointly and equally owned by the couple, with the right of survivorship automatically bestowed upon the surviving spouse in the event of the death of the other. |
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Tenancy In Common
Real Estate may be jointly owned by two or more parties whose interest in the property may or may not be equal. In such situations, each party holds an undivided interest in the entire property and is not automatically granted the right of survivorship. |
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Term Mortgage
Also called a "straight loan" or "straight term mortgage", a term mortgage loan has a short term (typically under 5 years), during which time only interest is paid, with the principal being due in one lump sum upon the expiration of the term. |
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Time-share
Typically utilized for vacation homes or resort properties, timeshare ownership allows for the use and occupancy of a property for a specific time frame (either fixed or variable) and usually on an annual basis. |
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Title Insurance
There is always a chance that a title search may fail to detect legal defects in a property title. Consequently, title insurance may protect the lender, the borrower or both from any potential loss of interest in the property due to any unforeseen legal challenges to property title. |
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Title Search (Title Examination)
Prior to the execution of any real estate transaction, the legal history of a property must be thoroughly researched and reviewed, and all available public records must be examined. This is to ensure that there are no unknown or hidden liens, unpaid taxes or special assessments, undisclosed restrictive covenants, or any other claims which could adversely affect the value and/or legal integrity of the property title being transferred. |
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Township
A township is a small regional subdivision, usually (in the United States) between 6 and 54 square miles. Individual property locations for deeds and grants are denoted on a survey township, which is simply a geographic reference. This is not to be confused with a civil township, which is a local government entity that is normally subordinate to the county government. |
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Triple Net (NNN)
A triple net lease requires the tenant to pay for all expenses associated with the property, including taxes, insurance, maintenance and utilities. |
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Trustee
A trustee is one who has been granted legal responsibility and privilege to hold property for another person or party, and is presumed and expected to act in the best interest of that person or party. |
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Two-Step Mortgage
Also called a "hybrid loan" (because it combines features of both fixed rate and adjustable rate mortgages), a two-step mortgage is segmented into two terms. The first term (normally 5-7 years) is assigned a rate which is usually lower than the current normal fixed rate. At the conclusion of the first term, the interest rate is adjusted, and will remain at the adjusted level for the life of the loan. |
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