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 • Notes on Using this Glossary - T -Tax: As applied to real estate, 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 interests of the general public. Tax Deed: A deed given where property has been purchased at public sale because of the owner’s nonpayment of taxes. Tax Sale: A sale of property for nonpayment of taxes assessed against it. Tenant: One who holds or possesses land or tenements by any kind of title, either in fee, for life, for years, or at will. The term is most commonly used for one who has, under lease, the temporary use and occupation of real property that belongs to another person or persons. The tenant is the lessee. Time is of the Essence: A phrase meaning that time is of crucial value and vital importance and that failure to fulfill time deadlines will be considered to be a failure to perform the contract. Title: As generally used, the rights of ownership and possession of particular property. In real estate usage, title may refer to the instruments or documents by which a right of ownership is established (title documents), or it may refer to the ownership interest one has in the real estate. Title Insurance: Protects lenders or homeowners against loss of their interest in property due to legal defects in title. Title insurance may be issued to a mortgagee’s title policy. Insurance benefits will be paid only to the “named insured” in the title policy, so it is important that an owner purchase an “owner’s title policy” if he desires the protection of title insurance. Title Search or Examination: A check of the title 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 out standing restrictive covenants filed in the record that would adversely affect the marketability or value of title. Trust: A relationship under which one person, the trustee, holds legal title to property for the benefit of another person, the trust beneficiary. Trustee: A party who is given legal responsibility to hold property in the best interests of or “for the benefit of” another. The trustee is a person who is placed in a position of responsibility for another, a responsibility enforceable in a court of law. Truth-in-Lending Act: Federal law requiring written disclosure of the terms of a mortgage (including the APR and other charges) by a lender to a borrower after application. Also requires the right to a rescission period. - U -Underwriting: In mortgage lending, the process of determining the risks involved in a particular loan and establishing suitable terms and conditions for the loan. Unimproved: As relating to land, vacant or lacking in essential appurtenant improvements required to serve a useful purpose. Useful Life: The period of time over which a commercial property can be depreciated for tax purposes. A property’s useful life is also referred to as its economic life. Usury: Charging a higher rate of interest on a loan than is allowed by law. - V -Valid: Having force or binding forces; legally sufficient and authorized by law. Valuation: The act or process of estimating value; the amount of estimated value. Value Ability to command goods, including money, in exchange; the quantity of goods, including money, that should be commanded or received in exchange for the item valued. As applied to real estate, value is the present worth of all the rights to future benefits arising from ownership. Variance: An exception to a zoning ordinance granted to meet certain specific needs, usually given on an individual case by case basis. Void: That which is unenforceable; having no force or effect. - W -Waiver: Renunciation, disclaiming, or surrender of some claim, right, or prerogative. Warranty Deed: A deed that transfers ownership of real property and in which the grantor guarantees that the title is free and clear of any and all encumbrances. - Z -Zoning Ordinances : The acts of an authorized local government to establish building codes and set forth regulations for property land usage. |