We hope this Glossary of Mortgage and Real Estate Terms helps you understand the home buying and financing process. Should you have any further questions, please do not hesitate to contact your Loan Officer for answers.

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T Terms

Take-Out Commitment:  A promise to make a loan at a future specified time.  It is most commonly used to designate a higher-cost, shorter-term, back-up commitment as a support for construction financing until a suitable, permanent loan can be secured.

 

Tax Lien:  A lien on a property by local, state or federal government for the amount of due and unpaid taxes.

 

Tenancy in Common:  In law, the type of tenancy or estate created when real or personal property is granted, devised or bequeathed to two or more persons in the absence of express words creating a joint tenancy.  There is no right of survivorship.

 

Tenant:  One who is not the owner, but occupies real property (see Real Property) with the consent of the owner.  The tenant is entitled to exclusive possession and enjoyment of the property for a specified period of time and is responsible for the payment of rent as specified in a lease.

 

Tender:  To offer or present for acceptance.

 

Term:  The time period granted for repayment of a loan.  Also known as "loan term."

 

Third Party:  A general term that includes anyone not a party to a contract, agreement, instrument, etc.

 

Thrifts:  A term referring to lending institutions such as savings and loan associations, credit unions and mutual savings banks.  The name "thrift" stems from the early history of these institutions when they were organized to promote thrift, generally among the laboring poor."

 

TIL:  See Truth-in-Lending Act.

 

Title:  The evidence of the right to or ownership in property.  In the case of real estate, the documentary evidence of ownership is the title deed, which specifies in whom the legal state is vested and the history of ownership and transfers.  Title may be acquired through purchase, inheritance, devise, gift, or through the foreclosure of a mortgage.

 

Title Insurance Binder:  1) A report issued by a title insurance company stating the condition of title to certain property as of a certain date and also stating conditions which, if satisfied, will cause a policy of title insurance to be issued. Also called "commitment."  2) A policy of title insurance (used primarily by investors) calling for a reduced rate for a future policy if the property is sold within a specified period.

 

Title Insurance Policy:  A contract by which the insurer, usually a title insurance company, indicates who has legal title and agrees to pay the insured a specific amount of any loss caused by clouds, claims or defects of title to real estate, where the insured has an interest as owner, mortgagee or otherwise.  (a) Owner's Title Policy: Usually issued to the landowner himself.  The owner's title insurance policy is bought and paid for only once and then continues in force without any further payment.  Owner's Title Insurance policies are not assignable.  (b) Mortgagee's Title Policy: Issued to the mortgagee and terminates when the mortgage debt is paid.  In the event of foreclosure, or if the mortgagee acquires title from the mortgagor in lieu of foreclosure, the policy continues in force, giving continued protection against any defects of title which existed at, or prior to, the date of the policy.

 

Total Principal Balance:  The sum of the outstanding principal balances of the loans in the package.

 

Trustee:  1) Someone who holds the legal title to another's property, usually as security for a debt that person owes a lender.  2) A fiduciary who holds or controls something for the benefit of another. 3) A third party to whom property is legally committed in trust.

 

Trustor:  In a deed of trust, the borrower is referred to as the trustor.

 

Truth-in-Lending Act:  Federal legislation that provides borrowers with specific information on the cost of obtaining credit.