Continued from…
Real Estate Glossary T [Part 1]
Tenancy in common
Tenancy by two or more people with an undivided interest in the same property, albeit not necessarily equal in each holder.
The “typical” type of direct co-ownership, which is as near to a fee simple absolute estate as possible, with the caveat that one owner cannot use the property in a way that infringes on co-owners’ rights.
A way for two or more people to own the same piece of property at the same time, where each person owns an equal share of the whole property. Each cotenant has a separate and unique title to an estate in land, and each cotenant has the right to full and undivided possession of the property based on the amount of land they own and the rights of possession of the other tenants. Unless the conveyance document says otherwise, interest is assumed to be equal. No special words are needed to make the tenancy happen. It is the most common way for two or more people to own something together, unless something else is made clear.
In a tenancy in common, there is no right of survivorship, which is not the case in a joint tenancy. If one of the cotenants dies, the interest goes to the deceased person’s heirs or beneficiaries, not to the other cotenants who are still alive. A tenant in common’s property interest must go through probate. In property held in common, there may be dower rights.
Tenants in common can sell their share of the property without the other tenants’ permission, but they can’t give away the whole thing without the permission of all tenants in common. If one of the cotenants wants to sell the whole property but the other cotenants don’t, the cotenant can bring an action for partition and ask that the property be split up in kind or sold at auction, with each cotenant paying their share of the proceeds.
Cotenants have the right to own all of the property and keep the money they make from how they use it, but they have to split the net rents they get from other people. No one can charge tenants in common rent for using the land, and no one can charge rent for the use of the land by other tenants in common. If one cotenant pays taxes or assessments that are more than her share, she usually has a lien on the pro rata share of each cotenant’s interest.
A lender usually won’t accept a tenant in common’s interest as security because the mortgagee has to pay extra money to force a partition proceeding in a foreclosure case to get back its security interest.
As with joint tenancy, if one cotenant in good faith makes improvements to the property without the other’s permission, that cotenant should be paid for the improvements in a partition action. The standard is either the percentage of the cost of improvements that the other tenant is responsible for or the proportionate share of the property’s increased value.
One problem with tenancy in common is that the interest of a cotenant who has died is subject to probate. This adds a level of uncertainty to the situation. For example, let’s say that A, B, and C all own a lakefront property together as an investment. A, a single person, dies intestate. Both of his parents and 12 brothers and sisters were still alive. Soon after, one sister dies, leaving behind a husband and six children. For the other tenants in common to sell the property to a developer, they may have to get all of A’s brothers and sisters, parents, and guardian for the minors to sign away any possible interest. “Heirs’ property” is the name for this kind of property.
Tenants in common take on the risk that their individual interest in the property could be hurt if other cotenants don’t pay their share of taxes, debt service, and other carrying costs. Also, there is a chance that one cotenant’s share of the property could be taken away because of a judgment lien or an income tax lien. This could happen if the cotenant goes bankrupt or if the property is sold or divided without the cotenant’s consent.
Without the right of survivorship, ownership by two or more persons who have undivided interests in a specific piece of property. It is not necessary for the undivided interests to be equal.
Co-ownership without the possibility of survival.
Tenancy in partnership
A partnership is an association between two or more individuals for the purpose of conducting business as co-owners and sharing profits and losses. Technically, under common law, a partnership cannot hold real estate because it is not a legal organization. The title must be conferred upon the individual partners, not the firm. Under the Uniform Partnership Act, partnership property may now be kept in the name of the partnership in the majority of states. In general, the characteristics of a tenancy in partnership as they pertain to each partner are as follows:
- Each partner has an equal stake in the property and an equal right to possession, but only for partnership purposes.
- A partner’s right cannot be assigned except in conjunction with the transfer of all partners’ rights; hence, a purchaser can acquire only the entire title.
- Except for a claim against the partnership itself, a partner’s interest is not subject to attachment or execution, and there can be no homestead exemption claim. However, the entire property may be auctioned at an execution sale to satisfy a partnership creditor. A partner’s interest cannot be seized or sold individually by a personal creditor, but a personal creditor can seek a partner’s share of the profits through an action known as a “charging order.”
- Upon the death of a partner, the decedent’s rights in the partnership’s real estate pass to the surviving partner(s), but his estate gets reimbursed for the value of his investment. The partner’s interest in the partnership firm is the only personal property that goes to the administrator upon his death without a will.
- The heirs have a right in the partnership but not in the partnership’s unique assets. In the absence of surviving partners, the deceased’s property rights pass to a legal representative. The vesting in the surviving partner or partners and the legal representative of the last surviving partner confers on them no higher right than the right to possess partnership property for partnership purposes.
- Dower, courtesy, and family allowances do not apply to a partner’s entitlement to specified partnership property.
- Since this property is owned by the partnership, no tax exemption granted to individual partners will apply to the partnership or its property.
- The property and income or losses of the partnership are subject to partnership income tax treatment.
Tenancy in severalty
Property that is owned by one person alone instead of by more than one person. Also called several tenancy or sole tenancy. Both the husband and wife could own property as tenants in severalty, but dower and courtesy could change their rights. No one else can claim to be the owner after this. When the only owner dies, the property is probated and given to the heirs or devisees. Often, a corporation, state, or county owns more than one piece of land or title.
The possession of property by a single individual or legal body.
Tenant
A person who leases or rents a property
Someone who rents from another person.
A person who holds or possesses property exclusively, such as a life tenant or a tenant for years; commonly used to refer to the lessee under a lease. The exclusive occupancy of a tenant is always subordinate to the owner’s rights. Not necessarily a renter, a tenant is an occupant.
One who pays rent in exchange for the use of real land.
Someone or something that has leased the property and is currently in possession of it. Depending on the context, a tenant may also be called a lessee.
Tenant allowance
A monetary payment given by the developer to a tenant (typically on income property) to allow the tenant to do the interior work on the leased premises rather than the developer.
Tenant alternative costs
Costs associated with constructing and renovating a property to make it suitable for a specific tenant. These expenses may be borne by either the landlord or the tenant, or they may be split as a result of negotiations.
Tenant contributions
All costs incurred by the renter in excess of the contract rent provided in the lease. One example is area upkeep.
Tenant farmer
A person who rents a farm. Usually, the rent is paid in crops, cash, or a mix of both.
Tenant improvement allowance
The amount of money that the owner of a commercial property must contribute toward the cost of upgrading the space to fulfill the needs of the tenant.
Tenant improvements
Tenant-paid improvements to the property.
The special modifications a building owner makes to rental space under a lease agreement in order to set up the space for the requirements of that specific tenant.
Premises preparation prior to or during a tenant’s occupancy, the cost of which may be borne by the landlord, the tenant, or both parties.
Tenant mix
The synergy formed by the proper tenant grouping, which results in the proper tenant mix, which “makes the whole larger than the sum of its parts.”
A mix of different types of tenants in a rented building.
How to choose and place retail tenants to bring in the most money for the landlord and boost business in general. Stores in a shopping centre should be set up so that the foot traffic brought in by one store helps the other stores and competition doesn’t hurt anyone.
Tenant reps
Brokers or agents who specialize in assisting tenants in locating suitable rental space.
Tenant union
A local group of people who rent their homes and work for their rights and interests.
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Tenant-paid tenant improvements (TPTI)
The sum of all tenant improvements minus any landlord allowance.
Tenants in common
A situation where two or more people own the same or different amounts of a thing.
Tender
An offer by one party to a contract to do her part of the deal without any conditions. For example, when a seller wants to force a buyer to pay the purchase price under the terms of a sales contract, the seller must first make a tender of the deed. Some states do this by putting the money into escrow. This is necessary because the buyer’s responsibility to pay goes along with the seller’s responsibility to hand over the deed. Also, if the buyer makes a tender of performance, such as by putting the purchase money in escrow, the seller is in default if she doesn’t accept it and give the deed.
When someone owes money, giving the amount owed gets rid of any lien that was put on the debt as security, releases any sureties, and stops the debt from getting any more interest.
When there is an anticipatory repudiation or the seller has already sold the property to a third party, it is clear that they do not intend to keep the contract. In these cases, a tender is not necessary because it would be a waste of time. The parties can look for the right solutions, such as getting money for not doing what they agreed to do. Sellers shouldn’t try to resell the property until they can prove that a valid offer has been made or that the other party has broken the contract.
To submit a proposal.
Tenement
A common-law real estate term for permanent real property rights that belong to the land and are transferred with the land, such as buildings and improvements. It also refers to things that are attached to the land. Tenements include not only land but also rights in real property that can be seen and felt. Modernly, the word is used to talk about apartment buildings, especially old, run-down ones in cities.
Tenure
A common-law term referring to the ownership of land, such as fee simple or leasehold. The practice of holding lands or tenements in subordination to a superior right, which was the principal characteristic of real estate ownership in feudal times.
A label that indicates whether a household is occupied by a renter or a homeowner.
Term
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The period of time. A mortgage term, for example, is the amount of time the loan must be paid off (as specified in the mortgage). A lease term is the period of time during which the tenant has the legal right to occupy the premises (as specified in the lease), such as 60 days, ten years, or life. An option term is the amount of time specified in the option agreement for the optionee to exercise the agreement’s rights.
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A contract’s clause or condition.
The amount of time a debt must be repaid within.
Term for amortization
On a mortgage, the time period that defines the payment, as well as the schedule of interest and principal installments, is referred to as the amortization period.
Term mortgage
A short-term mortgage that secures a loan with interest-only payments until the maturity date, when the entire principal is due and payable.
During the mortgage period, only interest is paid; the principle is then due. This type of mortgage has interest-only payments.
Term to maturity
A balloon loan term that specifies when the entire outstanding balance on the loan must be paid in full.
Term, amortization
The length of time during which interest and principal payments on a loan must be made is known as the amortization term.
Terminal capitalization rate
The rate at which annual net cash at the conclusion of an expected holding period is converted into an estimate of future sale price.
Terminal value
The estimated sale price at the end of the holding term.
The market value of an investment at the moment it is sold.
Termination of listing
The end of an employment contract between a broker and a principal. If a listing doesn’t say when it will end, it will end after a reasonable amount of time. This kind of listing can be canceled by the seller at any time before the broker finds a buyer who is ready, willing, and able to buy on the terms of the listing. If, on the other hand, the listing has a specific end date, which is usually required for all exclusive listings, the seller can’t pull the listing before that date without being responsible for the broker’s marketing costs, like advertising the property. Most state laws and courts don’t like provisions that automatically extend the listing period, such as “30 days and continuing indefinitely until written cancellation is given.”
A listing is basically a contract with an agency, and it can be canceled in the following ways, based on general agency and contract rules:
- The principal or agent dies or goes crazy
- End of the time for listing
- Mutual agreement
- Enough notice in writing
- When the agreement is fulfilled. For example, if an open listing is used, the sale by one broker would end the agency for all brokers.
- The property in question being taken away or destroyed
- If either party goes broke
- The broker gives up on the agency (broker might be liable for damages)
- Cancellation by the owner (broker may recover damages)
- A change in the law that stops the property from being used as it is now
Termination statement
A document that is filed to get rid of a financing statement that was filed under the Uniform Commercial Code.
Termite shield
A metal sheet installed in the exterior walls of a house near ground level, usually under the sill, to keep termites out. Termite shields should be installed on all exterior wood in the house as well as around pipes entering the structure. Shields are commonly built with an overhanging lip to allow for water runoff.
A barrier made often of galvanized metal that is positioned within or on top of a foundation wall or all around pipes to keep termites out.
Termites
Insects that consume wood.
Terms
The terms and conditions set forth in a contract.
Terra cotta
Masonry units made of a ceramic substance.
Terrace
A row of homes on the same block that share walls between them. Most of the time, all of the homes are built in the same way.
Terraserver
Satellite images with a very high resolution (less than 2 metres) (panchromatic digital imagery is orthorectified and georeferenced).
Terre tenant
The person who actually owns the land.
Testament
A determination.
Testamentary trust
A trust founded on will.
Testate
Real estate is conveyed in line with a will when a property owner dies.
Making a legally binding will.
Testator
A person who leaves a will is said to have died testate. Devisees inherit real estate, taking title to it subject to any liens in favor of the estate’s creditors.
Someone who writes a will.
Testimonium clause
A part of a legal document that starts with “In Witness Whereof…” and then lists the act and date of when the document was signed.
Theme/festival center
The architecture and, to some extent, the wares sold in each store at such malls are all meant to fit into a larger, overarching theme. Restaurants and other forms of entertainment can serve as the main draw for visitors to these complexes. These facilities are frequently part of mixed-use developments and can be found in urban settings, where they are often repurposed from older, sometimes historic, buildings. [Descriptions of Retail Facilities from the International Council of Shopping Centers (ICSC)]
Theme/specialty center
A shopping mall with a variety of formats, sizes, and market orientations. The architectural architecture of these centres is typically consistent throughout. These areas are typically anchored by restaurants and entertainment venues that cater to both visitors and locals. The renters frequently have interesting items to sell.
Theorems
The fundamental mathematical laws from which all other mathematical operations are derived.
Thermoply
An external wall’s side protective casing made of laminate.
Thermostat
A gadget that regulates temperature by turning on and off AC units.
Thin capitalization
Too much debt compared to equity in a company’s capital structure. This causes the Internal Revenue Service to treat at least some of the debt capitalization as equity, which means that the tax benefits of debt are lost.
Thin market
A real estate market with few buyers and sellers and slow property turnover. This makes it hard to find reliable information about comparable sales. Also called a restricted market.
Third party
A person who is not a party to a contract but may be affected by it, such as a broker or escrow agent; one who is not a principal in the transaction. For instance, the for-sale-by-owner seller is the unrepresented third party in a transaction where the real estate licensee represents the buyer.
Third-party foreclosure auction sale
When a foreclosed property is sold to a third-party bidder unrelated to the bank that is foreclosing, it is known as a third-party foreclosure auction sale.
Threatened Species
A species with a fast diminishing population that is likely to become endangered, according to the United States Endangered Species Act.
Three-dimensional shingles
An additional layer or tabs added to architectural laminated shingles.
Threshold
A door frame’s bottom plate, which can be made of wood or metal. They may typically be adjusted to maintain a tight fit with the door slab.
Threshold population
The bare minimum of customers, clientele, or sales volume required to keep a company afloat.
Thrifts
Depository institutions are financial institutions that primarily gather and invest household money. Credit unions are not included in the phrase, which usually refers to (previous) savings and loan associations and savings banks. Until roughly 1980, thrifts were the backbone of house mortgage finance in the United States, investing primarily in home mortgage loans.
TI allowance from owner
Update to the tenant’s cash flow form. An amount that the building owner has agreed to put toward TI.
Tidewater land
Land under the water from the low-tide mark to the edge of a state’s territory.
Tie-in contract
A contract wherein one transaction is contingent upon another. A developer may agree to sell a prime property only if the buyer agrees to purchase a less desirable property from the developer or agrees to list the property with the developer’s brokerage firm. Such arrangements may be in violation of state and federal antitrust laws.
Tier
A line of townships that extends east to west.
Tier line
A characteristic of a government rectangular survey used to number townships south and north of the base line.
Tight money market
As shown by high interest rates, an economic situation in which the supply of money is restricted and the demand for money is high.
Time and materials contract
A construction contract that includes prices for each component of the work, such as labour costs per hour, overhead costs, and profit.
Time is of the essence
A clause in a contract that says that being on time is an important part of the contract. So, if one of the parties to the agreement doesn’t perform by the “drop-dead” date, that party is in default, as long as the other party has made a valid offer to perform. If no offer is made, the clause could be left out. The clause can also be waived if the parties do something else, like accept late payments or sign escrow instructions that give them more time to do what they agreed to do.
In equity, time is not important to a contract unless it seems clear that the parties want it to be. The idea works both ways. Buyers are expected to make payments on time, and sellers must also act quickly to protect their rights if a buyer doesn’t pay. In option contracts, time is of the essence. If the option is not used by the option date, it is no longer valid.
A contract clause requiring that any references to certain dates and times of day stated in the contract be construed precisely.
Time On Market
The amount of time it takes for a property to sell when it is listed for the first time.
Time preference for money
Preference for faster rather than later receipt of cash, such that investment advantages are more valuable the sooner they are obtained.
Time sharing
A kind of ownership in which a property is held by a group of people for a set amount of time.
A contemporary approach to communal ownership and use of real estate that allows multiple purchasers to buy undivided interests in real property (typically in a resort condominium or hotel) with the right to use the facility for a fixed or variable time period. The owners split the costs of common expenses. Time-sharing programmes may have a reservation system or a rotation-of-units system in place, allowing tenants in common to occupy their unit at different times of the year and in different years. Other time-share programmes sell specific time periods throughout the year. Some time-sharing programmes require the purchase or lease of property (ownership programmes); others require only licenses to use the property (right-to-use or license contracts).
States frequently regulate the time-sharing industry by requiring special disclosure reports, escrow accounts, agent licensing, review of promotional material, and complete disclosure of the details of any exchange programme in which time-share units can be exchanged for other properties. The procedures for billing real property taxes, tax delinquencies, and the assessment valuation problem (i.e., whether the building is valued at the same figure as a similar building that is not time-share or at an amount determined by the cost and number of timeshare interests) have been among the difficult questions.
The Uniform Real Estate Time-Share Act, which has already been adopted in several states, covers all aspects of time-sharing. Residential time-share units are subject to the federal Fair Housing Act’s antidiscrimination provisions. money’s time value An economic principle stating that the value of a dollar received today exceeds the value of a dollar received in the future.
A property occupation arrangement in which many individuals enjoy use of property but, unlike typical forms of co-ownership, the interests are at various time intervals rather than concurrent. A time sharing arrangement may include actual co-ownership, leasehold interests, or simply the right to dwell (i.e., license).
Time value of money (TVM) techniques
The idea that a dollar today can earn more than the same dollar tomorrow is central to economics.
The idea that the worth of money is determined by when it is received.
Standard methods for calculating the impacts of time and risk on value.
Time-price differential
The difference between the purchase price of a property and the higher total price it would cost if it were bought in installments (including finance charges). Under the Truth in Lending Act, a lender must tell you about the difference between the price you pay now and the price you pay over time, as well as any and all finance charges.
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Timeshare
A kind of property ownership in which different clients control different portions of the same asset.
Timeshare ownership plan (TSO)
Tenants in common is a type of ownership in which more than one person has legal title to a condo unit or other piece of real estate and has the right to use it for a certain amount of time each year. Most tenants in common have a “separate use agreement” that spells out each owner’s rights and responsibilities, such as whether or not they have the right to trade units in other resort areas.
Ownership can be for a set number of years, which is also called “interval ownership.” After that, all time-share owners become “tenants in common” and are free to sign a new agreement, rent out the property, or sell it.
TIN
An irregular triangulated network. A surface representation made up of randomly spaced points and break lines. Each sample point has an x, y, and z (surface) coordinate as well as a value.
Tinner
An identification of the heating contractor.
Tipup Gutter Extensions
Water is directed away from the property’s gutter system by the downspout extension.
Title
Evidence of real property ownership indicating a person’s right to own, use, and dispose of property.
The evidence of the right to an estate; the title to the ownership of land. The bundle of rights that an owner holds; the sum of rights and property that a person possesses. Individually, jointly, in trust, or as a corporation or partnership, title can be held. The phrase “title” refers to the facts that, if proven, would allow someone to reclaim or keep possession of anything.
A person is considered to have title to real property if they own it outright. Original or derivative titles are available. Only the state can have the original title. This is a title obtained by the state through discovery, occupation, conquest, or cession. All other titles are derived and belong to certain people. Titles by descent (no will) and titles by purchase are two types of titles (deed, land contract, will).
A legal document that establishes a person’s right to own real estate.
Title abstract
All documents detailing the chain of title are compiled into a chronological book and then presented to an attorney for final interpretation.
Title evidence in the traditional sense.
Title closing
The gathering of the parties to a sales contract at a predetermined location and time for the purpose of carrying out the contract.
Title company
A firm that investigates a property’s title before issuing title insurance.
Title deeds
documentation demonstrating ownership or possession
Title defect
A potential legal issue that might limit the title’s marketability.
Other people’s legal right to claim property or make claims on the owner.
Title evidence
A document that certifies or proves a person’s ownership of a particular piece of property.
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