Real Estate Glossary T

T

tenancy by the entirety

A type of joint tenancy of property that provides right of survivorship and is available only to a husband and wife. One spouse dies the property goes to the other spouse. Contrast with tenancy in common and joint tenancy.

tenancy in common

Tenancy in common is a type of joint tenancy in a property without right of survivorship. Contrast with tenancy by the entirety and with joint tenancy.

Third party fees

Fees collected by lender for services provided by other companies, such as an appraiser.

third-party origination

A process by which a lender uses another party to completely or partially originate, process, underwrite, close, fund, or package the home loan. See mortgage broker.

title

Title is a legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or an equitable interest The rights in the bundle may be separated and held by different parties. It may also refer to a formal document that serves as evidence of ownership. Conveyance of the document may be required in order to transfer ownership in the property to another person.

title company

A title company is a company that specializes in examining and insuring titles to real estate.

title insurance

Title Insurance protects the lender (lender's policy) or the buyer (owner's policy) against loss arising from disputes over ownership of a property.

title search

A check of the title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding.

total expense ratio

Total obligations as a percentage of gross monthly income. The total expense ratio includes monthly housing expenses plus other monthly debts. Used to help qualify a potential borrower for a home loan.

Total monthly payment

See Monthly PITI payment.

Townhome

In architecture and city planning, a terrace(d) or row house or townhouse (though the latter term can also refer to patio houses) is a style of medium-density housing that originated in Europe in the late 17th century, where a row of identical or mirror-image houses share side walls. The first and last of these houses is called an end terrace, and is often larger than those houses in the middle.

Transaction Fee

A fee charged each time the borrower draws on the credit line.

transfer of ownership

Any means by which the ownership of a property changes hands. Lenders consider all of the following situations to be a transfer of ownership: the purchase of a property "subject to" the mortgage, the assumption of the mortgage debt by the property purchaser, and any exchange of possession of the property under a land sales contract or any other land trust device. In cases in which an inter vivos revocable trust is the borrower, lenders also consider any transfer of a beneficial interest in the trust to be a transfer of ownership.

transfer tax

State or local tax payable when title to a property passes from one owner to another.

treasury index

An index that is used to determine interest rate changes for certain adjustable-rate mortgage (ARM) plans. It is based on the results of auctions that the U.S. Treasury holds for its Treasury bills and securities or is derived from the U.S. Treasury's daily yield curve, which is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market. See adjustable-rate mortgage (ARM).

Truth-in-Lending

Truth-In-Lending is a federal law that requires lenders to fully disclose, in writing, the terms and conditions of credit, such as a mortgage, including the annual percentage rate (APR) and other charges.

two- to four-family property

A property that consists of a structure that provides living space (dwelling units) for two to four families, although ownership of the structure is evidenced by a single deed. See multi-dwelling-units.

trustee

A fiduciary who holds or controls property for the benefit of another.