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 interest of the
general public.
Tax Impound
Money paid to and held by a lender for annual tax
payments.
Tax Lien
Claim against a property for unpaid taxes.
Tax Sale
Public sale of property by a government authority
as a result of non-payment of taxes.
Temporary Buy-downs
A loan on which the interest rate has been
"bought down" for a temporary period of
time at the beginning of the loan by escrowing
funds at the time of closing, which will be
applied to the total monthly mortgage payment as
each becomes due.
Tenants-in-common
An undivided interest in property taken by two or
more persons. The interest need not be equal. Upon
death of one or more persons, there is no right of
survivorship.
Term
The period of time between the beginning loan date
on the legal documents and the date the entire
balance of the loan is due.
Title
A formal document establishing ownership of
property.
Title Company
A company that insures title to property.
Title Search
Examination of municipal records to ensure that
the seller is the legal owner of a property and
that there are no liens or other claims against
the property.
Total debt ratio
Townhouse
An architectural type of construction; a row house
on a small lot that has exterior limits common to
other similar units; title to the unit and its lot
is vested in the individual owner with a
fractional interest in common areas, if any.
Transfer Tax
Tax paid when title passes from one owner to
another.
Trustee
A party who is given legal responsibility to hold
property in the best interest of or "for the
benefit of" another. The trustee is one
placed in a position of responsibility for
another, a responsibility enforceable in a court
of law.
Truth-in-lending
The Truth-in-Lending Act requires lenders to
disclose the cost of credit and other loan terms
to consumers, and also provides a 3 day right of
rescission on refinancing of owner occupied
primary residences.
