Glossary of Debt Related Terms

Tacking

(1) Annexing a lien to one superior to it in order to gain the priority of the superior lien and defeat an intermediate lien. Generally not allowed. (2) Annexing periods of possession to add up to enough time for successful adverse possession. For example; A begins adverse possession, A dies and A's son takes up possession, adding A's time to his own. Not always allowed.

Take Out Commitment

Agreement by a lender to place a long term (take out) loan on real property after completion of construction.

Tax Base

The assessed valuation of real property, which is multiplied by the tax rate to determine the amount of tax due.

Tax Deed

(1) Deed from tax collector to governmental body after a period of non-payment of taxes according to statute. (2) Deed to a purchaser at a public sale of land taken for delinquent taxes. The purchaser receives only such title as the former owners had and strict procedures must be followed to prevent attachment of prior liens.

Tax Lien

A statutory lien imposed against real property for nonpayment of taxes.

Tenancy In Common

An undivided ownership in real estate by two or more persons. The interests need not be equal. and, in the event of the death of one of the owners, no right of survivorship in the other owners exists.

Tenant At Will

One who holds possession of premises by permission of the owner or landlord, but without agreement for a fixed term of possession.

Terra Cotta Lumber

Very porous earthenware which can hold a nail and be cut without breaking or shattering.

Time Sharing

A concept of ownership increasing in popularity as real estate prices rise. The purchase of an undivided interest (usually in a resort area condominium) for a fixed or variable time period. For example: Fifty-two different purchasers buy one condominium: each agrees to possession for one week per year. Costs (taxes, insurance, maintenance, etc.) are shared equally. Possession may be fixed, or by reservation, by lease, license, etc. Some developers provide several projects in different parts of the world, so that a person owning one week in a project in Hawaii could elect to spend that week in a connected project in France or other area.

Title Plant

The information warehouse of a fide company in which it has accumulated and is constantly updating the records of properties in its area which it can use to search title to real property.

Ton

(1) A measure of weight; two thousand pounds. (2) A measure of capacity of an air conditioner. One ton equally twelve thousand British thermal units (B.T.U.'s).

Townhouse

Originally a house in a city as opposed to a country estate. More recently the term is applied to certain types of row houses, whether planned unit developments or condominiums.

Transfer Tax

State tax on the transfer of real property. Based on purchase price or money changing hands. Check statutes for each state. Also called documentary transfer tax.

Treasury Bills

Interest bearing U.S. Government obligations sold at a weekly sale. The change in interest rates paid on these obligations is frequently used as the Rate Index of Adjustable Mortgage Loans.

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.

Trustee In Bankruptcy

One appointed by a bankruptcy court, and in whom the property of the bankrupt vests. The trustee holds the property in trust, not for the bankrupt, but for the creditors.

Trustor

The borrower under a deed of trust. One who deeds their property to a trustee as security for repayment of a loan.

Truth-in-Lending

A federal law requiring disclosure of the Annual Percentage Rate to homebuyers shortly after they apply for the loan.

Two-Step Mortgage

A mortgage in which the borrower receives a below-market interest rate for a specified number of years (most often seven or 10 years), and then receives a new interest rate adjusted (within certain limits) to market conditions at that time. The lender sometimes has the option to call the loan, due within 30 days notice at the end of seven or 10 years. Also called "Super Seven" or "Premier" mortgage.