Continued from…
Real Estate Glossary T [Part 3]
Transit-oriented development (TOD)
A type of community planning that incorporates mixed-use residential and commercial areas within walkable areas, frequently centered on public transportation such as train stations, bus stops, or bicycle paths. These developments are intended to promote healthier lifestyles while also reducing air pollution and greenhouse gas emissions from household driving.
Transmitter (garage door)
A mechanism that opens and closes the garage door.
Transport breakpoints
Points on key transportation routes when the mode of transit must be changed.
Property Finance Made Easy
We specialise in Development funding | Commercial finance | Construction loans | Portfolio refinancing & Property investment loans in Australia.
Click Here to strategise with Amber
Trap
A plumbing component that maintains water pressure to keep air, gas, and pests from reentering a fixture.
A pipe that is inserted within a plumbing fixture and has a S or U shape.
Tread
The part of a step that is flat and rests on the riser. Steps are made on the tread.
The stairway tread that a person places their foot on to walk on.
Treasury index
The Federal Reserve Board makes available the Treasury Index, which is the weekly average yield on US Treasury securities adjusted to a constant term of one, three, or five years.
Treated lumber
A piece of wood that has been treated with chemical insecticides like CCA (Chromated Copper Arsenate) to prevent insects or wood rot.
Treble damages
Statutory damages in certain cases, such as an antitrust suit; actual damages may be tripled. When a landlord wrongfully and willfully retains all or part of a tenant’s security deposit, for example, a court may have the authority to award treble damages.
Trespass
Any wrong, unauthorized entry onto someone else’s land by someone who has no legal right or title to be there. Trespassing can happen on land, in the ground, or even in the air. Some trespasses are allowed, like trespasses to stop waste, to serve legal process, or to use a reasonable amount of airspace for aeroplane flights.
Unauthorized possession of real property is just trespassing, and it can’t turn into ownership unless all the conditions of adverse possession are met. Because a tenant has the right to exclusive possession of the leased premises, not just against third parties but also against the landlord, any unauthorized entry by either the landlord or a third party would be considered trespass.
Most of the time, a landowner is not responsible for injuries caused by trespassers who are not known to be there. But if the landlord knows about the trespass, they can’t do anything that could put the trespasser in danger.
Trim (plumbing, heating, electrical)
Things like door and window casings, moldings, and hardware can be made of wood or metal.
The contractor’s final responsibilities as the project approaches completion and occupancy.
When the home is getting close to completion and occupancy, the “mechanical” contractors finish the work they are responsible for.
Trim interior
The materials used to complete buildings, such as moldings applied to the floor and ceiling of rooms, window and door trim, and other openings (baseboard, cornice, and other moldings).
Trimmer
The vertical piece of a door, window, or other opening that holds up the header.
Triple A tenant
A business tenant with a high credit score. An anchor tenant in a shopping centre is especially desirable.
A prime tenant is a renter who has a triple A credit rating.
Triple mint
A home in pristine condition is described as being in triple mint condition.
Triple net lease
A lease in which the lessee pays all taxes, insurance, and maintenance costs while the lessor receives a net sum.
In a net-net-net lease, in addition to the stated rent, the lessee is responsible for all operating expenses related to the property. This covers both fixed expenditures, such as taxes and insurance, and running costs, such as maintenance and repair charges. In certain instances, the triple-net tenant pays the interest on the lessor’s mortgage on the leased property.
The term triple-net lease (also known as a net-net-net lease) is redundant because the term “net lease” sufficiently defines the scenario. Instead of relying on labels, however, the parties must review the lease clauses to determine the tenant’s responsibilities.
In a triple net lease, in addition to the rent, the lessee is required to cover all property-related costs.
Triplex
A building with three apartment units.
Three interconnected residential units under one roof.
A three-story apartment is referred to as a triplex.
Truck well
A depression adjacent to a loading dock that is deep enough to allow direct loading from the floor of the building onto the bed of a truck that has been backed into the well.
True Lease
A particular kind of long-term lease in which the lessee does not acquire ownership of the asset.
Truss
A roof construction that uses a rigid framework of beams or members to support the roof load and typically achieves relatively wide spans between its supports.
A roof support member that has been engineered and manufactured with “zigzag” framing members. Does the same job as a rafter but is designed to span a greater distance.
Trust
A legal arrangement in which the grantor (or trustor) transfers legal title to property to a trustee, who then holds and manages it for the benefit of another named beneficiary. In a trust agreement, the grantor and trustee may be the same individual at first (i.e., a “declaration of trust”). Equitable title is held by the beneficiary. Trusts can be actual or constructive, and they can be created by verbal agreement or by operation of law. There are two types of trusts for estate planning: inter vivos (or alive) trusts and testamentary trusts.
A transaction in which a property is given to or retained by a third party or trustee.
Trust account
A bank account distinct from and aside from a broker’s personal finances, into which a broker is obligated by state law to deposit any monies received for customers. The same as an escrow or special account.
Trust agreement
A document that specifies the parameters of security arrangements and directs the trustee in the case of a default.
Trust beneficiary
The person who a trust is set up for. The person who gets the benefits or money from the trust is called the beneficiary. The beneficiary can be the same person as the grantor.
Trust deed
A transfer of property to a third party for the purpose of holding it for the benefit of another.
Trust fund account
An account established at a bank or other recognized depository by a broker, attorney, or other agent into which the broker deposits all funds entrusted to the agent by the principal or others; also known as an earnest money or escrow account. The trust fund for a brokerage firm account must name the principal broker as trustee and must allow funds to be withdrawn on demand.
In general, a principal broker may authorize a broker-in-charge of a branch office to have custody and control of trust funds on behalf of the principal broker on transactions occurring at that branch office. The principal broker and the broker-in-charge are typically jointly liable for any trust funds that the principal broker authorizes the broker-in-charge to handle. Because a broker is liable for the actions of the salespeople, the broker is liable to the buyer if one of the salespeople embezzles earnest money deposited in a trust fund account. Also, if a broker deposits or spends earnest money in his or her own personal bank account, the broker may be guilty of commingling, which is a violation of most state license laws. However, most license laws permit a broker to keep a small amount of personal funds in a client trust account to keep the account open. Even if the client owes the broker a valid debt, the broker cannot use trust fund funds to offset it.
Trustee
The individual in a trust relationship who retains property for the benefit of another (the beneficiary).
Person who holds the deed in a deed of trust on behalf of both the borrower and the lender in mortgage financing.
-
One who holds property in trust for someone else as a fiduciary and is responsible for protecting, preserving, and increasing its value and making the best and highest use of it. Care should be taken to spell out in the trust agreement what the trustee can and can’t do.
-
A person who holds someone else’s property in trust to make sure they keep their promise. In states where trust deeds are used as security, the trustee holds the property’s legal title until the borrower or trustor pays off the debt or promissory note. Most of the time, the trustee is a bank, trust company, or title insurance company. In some states, the title is held in trust for the lender by a public trustee. In a trust deed, a trustee’s two main jobs are to sell the property at public auction if the debt is not paid and the trust deed gives the trustee the power to do so, and to execute a reconveyance (release) if the beneficiary asks them to do so when the debt has been paid off. In the case of a deed of trust, many financial institutions have set up a separate company to act as the trustee. In this case, the corporation is more of a common agent than a true trustee.
A trustee is a person who holds property in trust for another.
Trustee in bankruptcy
One who is chosen by the court to protect and take care of a bankrupt person’s assets.
Trustee’s deed
An executor and administrator of an estate, a guardian of a minor, a bankruptcy trustee, or possibly an attorney in divorce proceedings may issue a deed in a court-supervised property disposition.
A deed signed by a trustee that transfers trust property.
Trustor
A person who gives property to a trustee.
You are missing out if you haven’t yet subscribed to our YouTube channel.
Truth-in-Lending Act (TILA)
The Truth in Lending Simplification and Reform Act, which went into force in July 1969 as part of the Consumer Credit Protection Act, was implemented by the Federal Reserve Board’s Regulation Z and was updated in 1982 and later by the Truth in Lending Simplification and Reform Act. TIL’s major goal is to ensure that borrowers and customers in need of consumer credit are provided with useful information about credit costs so that they can compare the various credit arrangements accessible to them. The TIL statute simply creates a disclosure device and does not impose any maximum or minimum interest rates or credit charges. Furthermore, some states have enacted their own truth-in-lending legislation.
Regulation Z applies to all real estate credit granted to a natural person (the consumer), but not to business, commercial, or agricultural operations. Personal property credit transactions worth more than $25,000, as well as credit extended to the owner of a home with more than four family housing units or a building loan to a function Object() { [native code] }, are exempt from Regulation Z. (this is considered a business purpose). The transaction is covered by Regulation Z if the credit is secured by real property or personal property that is used or expected to be utilized as the consumer’s primary residence (manufactured home). The credit granted must either include a finance charge or be payable in more than four installments per written agreement.
The finance charge and annual percentage rate (APR) are the two most crucial disclosures. They serve as a quick reference for consumers, notifying them of the amount of credit they are paying and the percentage cost of that credit. Note that if the transaction is less than $1,000, a $5 cushion or tolerance is provided, and if the transaction is greater than $1,000, a $10 cushion is provided.
Interest, loan fee, loan-fee, finder’s time-price difference, discount points, service fee, and premium for credit life insurance if it is a condition for providing credit are all fees the consumer must pay, directly or indirectly, for obtaining credit. Purchase costs that would be paid regardless of whether credit is issued are not included in the finance charge, as long as they are genuine, fair in quantity, and not removed to circumvent the rules.
The annual percentage rate (APR) is not interest under Regulation Z, albeit interest is factored in with the other financial charges when calculating the annual percentage rate. The annual percentage rate (APR) is the ratio of the entire finance charge to the total amount to be financed, calculated to the eighth percentile.
The total dollar amount of the “finance charge,” the annual percentage rate, the number, amounts, and timing of payments, the total of payments, the amount charged for any late payments, the fact that the creditor may acquire a security interest in the property, prepayment privileges or penalties, and more must all be included in the disclosure statement for real estate transactions. The borrower’s right to rescind continues for three years after the date of consummation of the transaction or upon sale of the property, whichever occurs first, if the required disclosures were not made or a notice of rescission was not delivered to the borrower.
Right to cancel: A borrower’s right to terminate or repudiate a credit transaction is limited. This cancellation is meant to protect the homeowner from unscrupulous sellers of home upgrades, appliances, or furnishings who secure the credit advance by taking out a second mortgage on the buyer’s home. The borrower has the right to cancel the transaction (in writing) by midnight of the third business day (including Saturdays) following the date of consummation, delivery of the notification of right to rescind, or delivery of all material disclosures, whichever comes first. The right to cancel does not apply to the initial loan used to buy or build the consumer’s primary residence.
Creditors: All creditors who frequently extend credit must comply with this law. Only if a person extended credit more than 25 times (or five times for transactions secured by a residence) in the previous calendar year qualifies them as “frequently extending credit.” Even when selling under a contract for deed payable in more than four payments, the owner/occupants of a single-family home are usually exempt from Regulation Z’s disclosure requirements. Brokers who are operative builders, subdividers, brokers selling property on their own account (save for the sale of their own permanent abode), or brokers who take out a second mortgage as a commission may be considered creditors and must follow the law.
Regulation Z covers any advertising to facilitate or encourage any extension of consumer credit, including window displays, fliers, billboards, multiple-listing cards if exposed to the public, and direct mail literature, regardless of who the advertiser is.
When certain credit terms are stated in an advertisement, additional information is required to be disclosed. The goal of this criterion is to provide a complete and accurate image of the transaction to the prospective buyer.
Any advertisement that cites an interest rate but does not include the APR or the phrases annual percentage rate is breaking the law. Any advertisement that contains any trigger term (Column A) but does not include all of the mandatory disclosures (everything in Column B) is in violation.
“Small down payment OK,” “FHA financing available,” and “compare our reasonable rates” are not needed disclosures. When advertising a mortgage assumption, the rate of financing charge might be stated without any other information. The finance fee, on the other hand, must be disclosed as an annual percentage rate, together with whether or not an increase is feasible. For example, “assume 7% mortgage” is incorrect, but “assuming 712% annual percentage rate mortgage” is OK. Advertisements can include the interest rate alongside, but not more prominently than, the annual percentage rate. Also, while “annual percentage rate” is normally written out, it is acceptable to shorten it to APR. Bait advertising is illegal; for example, an ad promising new homes for “$1,000 down” is illegal if the seller generally does not accept this amount as a down payment, even if all other credit criteria are provided in the ad.
Creditors shall preserve records of all compliance with the federal Truth in Lending Act’s disclosure obligations for at least two years after the date disclosures are required or action is required. Any variable rate clause in a credit contract that could result in a rise in the customer’s credit cost must be disclosed in advance.
Each consumer whose ownership interest is subject to the security interest has the right to obtain disclosures, notification of the right to rescission, and the requirement to sign a waiver of such right when joint ownership is involved.
Penalties: The penalty for breaking Regulation Z is double the amount of the finance charge, plus court costs, attorney fees, and any actual damages, up to a maximum of $1,000. Willful violation is a misdemeanor punishable by up to $5,000 in fines, one year in prison, or both. Regulation Z is regulated by the Federal Trade Commission.
One of a number of current consumer protection statutes that require lenders to fully disclose the rates of interest, additional charges, and the terms and conditions of each loan in writing and plainly stated.
A federal legislation mandating lenders to offer estimates of total finance charges and annual percentage rate to home loan applicants (APR).
Truth-in-Lending disclosure
According to federal law, the lender is required to provide this paperwork to the home buyer three business days after receiving the loan application.
Tsunami damage
When a tide comes in, it can cause damage. Flood-prone property owners must get insurance to cover damage from floods and tsunamis, since the federal government no longer pays for all of this kind of damage. Lending institutions now need flood insurance in order to give a mortgage loan to a building or its apartments that are in an area that is known to flood or be vulnerable to a tsunami. So, if the condo association doesn’t get enough insurance to meet the new federal requirements, an owner who wants to sell a beachfront resort condo might have trouble doing so.
Tub trap
A part of a bath tub drain pipe that is “U” shaped and contains a water seal to stop sewer gases from seeping into the house through the tub’s water drain.
Turnaround property
A property that can be made to return a positive cash flow with imaginative planning and hard effort.
Turnkey
A project in which the owner or builder prepares a property so that the occupier can move in and start doing business right away.
A term used when a subcontractor supplies all necessary materials (as well as labour) for a work.
Turnkey project
A term in development that means the whole building process, from breaking ground to finishing the building. The only thing left to do is “hand over the keys” to the buyer. Some government housing projects are “turnkey,” which means that a private developer builds a neighborhood and then the government buys the whole thing to use as low-income family housing. A “package deal,” which usually includes financing, is not the same as a “turnkey job.”
In a turnkey lease, the landlord agrees to give the rented space to the tenant in a state where it is ready to be used.
A type of development in which a developer completes a project and then sells it to a buyer.
Turnover
-
The number of times real estate is bought and sold in a certain area.
-
How often people move in and out of an apartment building. When there is a lot of turnover, the landlord has to pay more.
Turpentine
Petroleum, a volatile oil used as a paint thinner and a varnish solvent
Twostep mortgage
A mortgage with an initial fixed interest rate that lasts for a set amount of time before changing at a predefined time to reflect current market rates.
Tenancy schedule
A list of each tenancy in a building, including the name, number, area, start and end dates of the lease, rent, date and type of rent review, outgoings, and rent review mechanism.
Tenant’s agent
A tenant’s agent, who represents a tenant in a commercial property transaction, should be a licenced real estate agent.
Time weighted average annual rate of return
The geometric mean of the rates of return for each individual period. It eliminates the impact of cash flow timing and is thus the preferred method for evaluating a manager’s performance.
Total active return
The total excess return over the benchmark in attribution analysis, i.e. the sum of sector allocation, property selection, and interaction effects.
Total operating costs
Include all costs associated with the facility’s day-to-day operation. Maintenance and repair costs (both fixed and variable), administrative costs, management fees, labour costs, rates, land taxes, income taxes, insurances, light, power, fuel, security, cleaning, and all costs associated with grounds and car parking are examples of such costs.
Tranche
A type of security. According to seniority and risk, Commercial Mortgage Backed Securities (CMBS) offerings are generally divided into rated and unrated classes, or tranches. Higher-rated tranches allow for internal credit enhancements, whereas lower-rated classes provide investors with higher yields.
Transaction dates
A property transaction has two dates: the date of contract exchange and the date of settlement, which is the date of legal completion and transfer of title.
Transferable goodwill
This is an intangible asset that comes from a property’s name and reputation, customer loyalty, location, products, and other similar things that bring in money. It comes with the specialized trading property and will go to the new owner when the property is sold.
Turnover rent
Any kind of lease rental agreement where the renter pays the landlord based on how much money they make. One type of turnover rent is the percentage rent.
Turnover schedule
The standard monthly reports prepared by shopping centre managers that show the recorded sales or turnover of each retailer in the centre. Turnover is typically reported in two ways: for the most recent month and for the most recent year (the latter form is also known as Moving Annual Turnover).