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Tap Fee: A one-time charge imposed by a utility company or municipality for connecting a property to the public water or sewer system. It covers the costs associated with accessing and connecting to the utility infrastructure.
Tax Deduction: An allowable expense or reduction in taxable income that can be claimed by individuals or businesses to lower their overall tax liability. Deductible expenses can include items such as mortgage interest, charitable contributions, or business-related expenses.
Tax Lien: A legal claim placed on a property by a government authority due to unpaid property taxes. It grants the government the right to seize and sell the property to recover the outstanding tax debt.
Tax Shelter: A legal strategy or investment vehicle that helps individuals or businesses reduce their tax liabilities by minimizing taxable income or deferring taxes to a later date. Tax shelters can include options like certain retirement accounts, real estate investments, or specific business structures that provide tax advantages.
Tear Down House: A property that is in a state of disrepair or no longer meets the desired standards, making it more cost-effective to demolish the existing structure rather than renovating or repairing it. This term is often used when referring to properties that are slated for demolition to make room for new construction or redevelopment.
Teaser Rate: An initial, temporary, and usually lower interest rate offered by lenders to attract borrowers. The teaser rate is typically offered for a limited period at the beginning of a loan or credit agreement and is often followed by a higher, adjustable rate. Borrowers should carefully evaluate the terms and conditions beyond the teaser rate to ensure they understand the long-term costs and implications of the loan or credit.
Testator: An individual who creates a last will and testament, outlining their wishes for the distribution of their property and assets after their death. The testator is responsible for drafting and signing the will, ensuring that it reflects their intentions and desires for the disposition of their estate.
Timeshare: A type of property ownership or vacation arrangement where multiple individuals or groups share the right to use a property for a specified period each year. Typically, timeshares involve the purchase or lease of a specific unit within a resort or vacation property, granting the owner or lessee the right to use the property for a designated timeframe.
Title: Legal ownership of a property or an interest in a property.
Title Company: A company that specializes in conducting title searches, examining property records, and issuing title insurance policies. Title companies play a crucial role in real estate transactions by ensuring that the property being sold has a clear and marketable title, free from any liens, encumbrances, or ownership disputes. They also facilitate the closing process and handle the transfer of funds and legal documents between the parties involved in the transaction.
Title Insurance: Insurance that protects against financial losses resulting from defects or issues with the title of a property, such as undisclosed liens or ownership disputes.
Title Search: A thorough examination of public records to determine the history and legal ownership of a property's title, ensuring there are no encumbrances or claims that could affect ownership.
Townhouse: A type of housing unit that is part of a row of attached houses, typically having two or more floors and sharing walls with neighboring units.
Tract Home: A type of residential housing that is mass-produced by a developer and typically built on a large plot of land subdivided into individual lots. Tract homes are often designed with similar layouts and architectural styles, resulting in a cohesive and uniform neighborhood. These homes are usually more affordable due to the economies of scale involved in their construction and are commonly found in suburban areas.
Trade-Up Buyer: A buyer who is selling their current property in order to purchase a more expensive or larger property.
Transfer Tax: A tax imposed by the government or municipality on the transfer of property ownership from one party to another.
Transitional Market: A real estate market that is in a state of change, transitioning between a buyer's market and a seller's market.
Triple Net (NNN): A lease agreement in which the tenant is responsible for paying property taxes, insurance, and maintenance costs, in addition to the base rent. In a triple net lease, the tenant assumes a significant portion of the property's operating expenses, while the landlord receives a predictable rental income.
Trust Account: An account held by a real estate brokerage or lawyer to hold funds on behalf of clients, such as deposit money or earnest money.
Turnkey Property: A property that is move-in ready and requires little or no additional work or improvements.
Two-Step Mortgage: A mortgage that has an initial fixed interest rate for a specified period and then adjusts to a variable rate for the remaining term.
Type B Accessory Dwelling Unit (Type B ADU): A secondary self-contained dwelling unit located within a single-family home, typically with separate entrances and basic amenities.
Type C Accessory Dwelling Unit (Type C ADU): A secondary self-contained dwelling unit located on the same property as a single-family home but in a separate building, such as a detached garage or a garden suite.
Type D Accessory Dwelling Unit (Type D ADU): A secondary self-contained dwelling unit located within a multifamily building, such as a basement apartment or an attic apartment.
Type E Accessory Dwelling Unit (Type E ADU): A secondary self-contained dwelling unit located within an existing primary dwelling, such as a basement suite or an attic suite.
Type F Accessory Dwelling Unit (Type F ADU): A secondary self-contained dwelling unit located within an accessory building on the same property as a single-family home, such as a detached garage or a coach house.