A tax assessor is an official who determines the value of properties within a specific jurisdiction for the purpose of calculating property taxes.
A tax deed is an instrument given to a grantee by a government that has claimed the property due to unpaid taxes. It legally transfers ownership of the property from the government to the buyer at a tax sale.
A tax sale is the sale of a property after the owner has failed to pay property taxes for an extended period. The grantee of such a sale receives a tax deed.
A clause in a lease agreement that limits the lessor's obligation to pay property taxes above a certain specified amount, ensuring that any tax increases above this threshold are the responsibility of the lessee.
A tax-deferred exchange, commonly known as a 1031 exchange, allows for the deferral of capital gains taxes on an exchange of like-kind properties.
Tax-Exempt Property refers to real property that is not subject to ad valorem property taxes. This commonly includes properties such as churches, homesteads, and government-owned land and buildings in many local communities.
A Tax-Free Exchange, Delayed is a transaction where property is traded with the promise to provide a like-kind replacement in the near future, allowing deferral of tax on the gain under stringent conditions.
A teaser rate is an initially low interest rate applied to a mortgage loan for a limited period, which is designed as a marketing technique and is typically lower than the rate justified by the index determining the interest rate.
Tenancy at sufferance is a type of tenancy that arises when a tenant lawfully takes possession of a property but continues to occupy the premises without the landlord's consent after the lease expires.
Tenancy at will is a flexible rental arrangement where the tenant is allowed to occupy property without a formal lease and can vacate or be asked to vacate at any time, reflecting an agreement that can be either written or oral.
A lease agreement where the duration is fixed and agreed upon by both parties, running for a specific term such as two months, three years, ten years, and so on.
Tenancy in severalty refers to the ownership of property by a single person or a single legal entity. It is a form of ownership where the owner has exclusive rights and control over the property.
A tenant is an individual or entity who leases or occupies a premises, land, or estate under various terms and rights.
Tenant fixtures refer to fixtures added to leased real estate by lessees, which, by contract or by law, may be removed by the lessee upon expiration of the lease.
A tenement refers to any type of dwelling inhabited by a tenant, including both corporeal and incorporeal real property. In modern contexts, it commonly denotes multi-occupied buildings, often in poor conditions, such as dilapidated apartment dwellings.
The mode in which an individual holds an estate in land, impacting the legal rights and obligations associated with land use and ownership.
The detailed conditions and arrangements specified within a contract, particularly relating to sales, include various elements such as price, financing, contingencies, closing costs, and personal property items included in the sale.
Time-Sharing is a method employed in both computing and real estate contexts to optimize resource utilization by allowing multiple users or owners to access the same resource within designated intervals. In computing, it refers to the execution of multiple programs simultaneously, while in real estate, it pertains to multiple owners sharing possession of a property during specified time intervals.
A title abstract, often referred to as an abstract of title, is a brief history of the ownership of a particular piece of real estate. It includes a summary of legal actions, claims, and other notations that might affect the property's ownership.
A title company is a firm that examines and validates ownership titles of real estate properties, ensures they are marketable, and may also issue title insurance to protect property buyers and lenders against issues or defects in the title.
A title defect is an unresolved claim or issue against the ownership of property that prevents the presentation of a marketable title. Such claims may arise from various issues including failure of the owner's spouse or former part owner to sign a deed, current liens against the property, or interruptions in the title records of a property.
Title guaranty, often associated with title insurance, is a legal arrangement that ensures real estate titles are free from defects and claims. This protects property buyers and lenders from potential disputes over property ownership.
A Title Guaranty Company is an entity that provides title insurance, ensuring the validity and legality of a property title, thus protecting property buyers and lenders against potential title disputes and claims.
Title insurance is an insurance policy that protects the holder from loss sustained through defects in the title. Mortgage lenders virtually always require borrowers to buy a mortgagee's policy of title insurance. The premiums paid on a business title insurance policy are normally tax deductible.
A title report provides a detailed depiction of the current state of a property title, including easements, covenants, liens, and any other defects. It does not, however, describe the chain of title.
A title search is an investigation of documents in the public record office to determine the state of a title, including all liens, encumbrances, mortgages, future interests, and so on, affecting the property; it is the means by which a chain of title is ascertained.
A Title-Theory State is one in which the law splits the title to 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. In a title-theory state, mortgage lenders may possess the property upon default of the borrower.
A Torrens Registration System is an organized method of land registration where a government registrar certifies the title's condition, making it easier to ascertain ownership and any encumbrances without extensive title searches.
A town house is a dwelling unit, generally having two or more floors and attached to other similar units via party walls. Town houses are often used in planned unit developments and condominium developments, which provide for clustered or attached housing and common open space.
Property placed on or annexed to rented real estate by a tenant for the purpose of conducting a trade or business. The law makes provisions for, and leases often expressly permit (or require), the tenant's removal of such fixtures at the end of their tenancy.
Transaction costs are the expenses incurred during the process of buying or selling investments. They are critical to consider as they can significantly impact the net gains from transactions.
Trespass refers to the unlawful entry or possession of another person's property without permission. It is a legal concept in property law covering physical intrusion on land, buildings, or personal space.
A trust account is a separate bank account, segregated from a broker's own funds, where the broker is required by state law to deposit all monies collected for clients. This account is often also known as an escrow account in some states.
A trust deed is a legal document that outlines the terms and conditions of a trust, typically including the names of the trustees, the identity of the beneficiaries, the nature of the trust property, and the powers and duties of the trustees.
A Trustee's Sale is a foreclosure sale conducted by a trustee under the stipulations of a deed of trust, where the trustee is authorized to foreclose the mortgage and sell the property upon the borrower's default.
Underlying debt refers to outstanding financial obligations secured by collateral, typically used in real estate and securities contexts, involving senior debt or debt of municipal government entities with broader credit responsibility.
An underlying mortgage, also known as a first mortgage, refers to the original mortgage on a property that remains in place when a wraparound mortgage is created.
Undivided interest describes an ownership right to use and possession of a property that is shared among co-owners, with no one co-owner having exclusive rights to any portion of the property.
Unearned increment refers to the increase in the value of real estate that occurs without any effort or investment from the property owner. This often results from factors such as population growth, economic development, or improvements in the surrounding area.
Real estate with free and clear title; property owned in fee simple, meaning there are no liens or encumbrances affecting its ownership or title.
The Uniform Settlement Statement, commonly known as the HUD-1 form, is a document prescribed by the Real Estate Settlement Procedures Act (RESPA). It is used for federally related mortgage loans to provide a detailed account of all charges and credits to the buyer and seller in a real estate transaction.
Unimproved property refers to land that has not received any development, construction, or site preparation. It qualifies for capital gain or loss treatment, unlike improved property which is subject to ordinary income tax treatment.
An unrecorded deed is an instrument that transfers title from one party (grantor) to another party (grantee) without providing public notice of change in ownership. Recording a deed is essential to protect one’s interest in real estate.
Upfront charges are fees that are charged to homeowners at the time of closing a real estate purchase. These include various costs such as points, recording fees, mortgage title policy, appraisal, and credit report.
Upgraders are individuals or families who currently own a home and are in the process of seeking to buy a new one that they consider an improvement over their current residence, often referred to as 'move-up' buyers.
An upside-down mortgage, also known as an underwater mortgage, is a situation where a homeowner owes more on their mortgage loan than the current market value of the property. This results in negative equity, making it challenging for the homeowner to sell or refinance the property without incurring a financial loss.
A usufructuary right enables an individual to use or benefit from property owned by another person temporarily, without altering the ownership of the property.
A utility easement is a legal agreement that allows utility companies to use a portion of a property for the purpose of laying and maintaining infrastructure such as gas, electric, water, and sewer lines.
VA Mortgage, or Veterans Affairs Mortgage, is a home loan program provided by the U.S. Department of Veterans Affairs to help veterans, active-duty service members, and eligible surviving spouses buy, build, repair, retain, or adapt a home for personal occupancy.
In real estate and property management, vacancy refers to the state of a property that is unoccupied. A vacant building or unit is one that is presently empty and not leased or rented out.
Vacancy rate is a key metric used in real estate to measure the percentage of all units or space that is unoccupied or not rented. It is essential for estimating potential income and making informed investment decisions.
Vacant land refers to land not currently being used for developed purposes. It might have utilities and off-site improvements but lacks significant buildings or structures.
Vacant property refers to real estate that is currently unoccupied and not being used, whether it is residential, commercial, or industrial. Such properties can present unique challenges and opportunities for owners and managers.
Understanding the different applications of the term 'vacate' in real estate, law, and other contexts.
Value represents the worth of all the rights arising from ownership, commonly referring to the quantity of one thing that will be exchanged for another.
A vendee is a buyer, particularly in the context of a contract for the sale of real estate.
A vendor is a seller, particularly one involved in the sale of real estate, but also encompassing suppliers, retailers, or street peddlers.
A Vendor's Lien is a collateral granted to the seller of a property as security for a promissory note taken by the seller as part of the selling price.
A voluntary conveyance refers to the sale or transfer of property done willingly by the owner, without any form of external compulsion or legal coercion. It stands in contrast to involuntary acts such as condemnation or eminent domain.
A voluntary lien is a legal claim against a property, typically agreed upon by the property owner, often involving mortgages or other secured loans.
A warranty deed is a legal document used in real estate transactions to convey property ownership with guarantees regarding the status of the title.
