Real Estate Glossary

This list is provided for reference only. Each state has it's own real estate laws, terms and regulations for Realtors. In Arizona, your Realtor and Title Company handle most real estate transaction activities that involve attorneys in many other states. However, you have the right to seek the advice of an attorney or other professional counsel in any real estate transaction.

Tax Lien - Lien for nonpayment of taxes.

Tax Sale - Public sale of property at auction by governmental authority, after a period of nonpayment of property taxes.

Tenancy by the Entirety - A form of ownership by husband and wife whereby each owns the entire property. In event of death of one, the survivor owns the property without probate.

Tenancy in Common - A type of ownership in which two or more people have an undivided interest in property, without the right of survivorship. Upon death of one of the owners, his/her interest passes to his.her heirs or devises. Also see Joint Tenancy - .

Tenement - Everything that may be occupied under a lease by a tenant.

Term - The actual life of a mortgage, at the end of which the mortgage becomes due and payable unless the lender renews the mortgage.

Time is of the Essence - A clause, which if included in a contract, makes failure to perform by a specified date a material breach or violation of the contract.

Timeshare - An arrangement under which a purchaser receives an interest in real property and the right to use an accommodation or amenities, or both, for a specified period and on a recurring basis. Used primarily for selling vacation properties.

Title - Often used interchangeably with the word ownership. It indicates the accumulation of all rights in property by the owner and others.

Title Company - A company that provides title insurance policies. In Texas title companies also act as escrow agents, conduct title searches and hold closings.

Title Insurance - An insurance policy which protects the insured (purchaser and lender) against loss arising from defects in title.

Title Search - Checks all the records relating to the property to determine whether the seller can sell the property, and can do so free of liens.

Title Theory State - The system in which the lender has legal title to the mortgaged property and the borrower has equitable title. Also see Lien Theory State - .

Torrens System - A system of land registration in which clear title is established with a governmental authority, which issues title certificates to owners.

Townhouse - A dwelling unit usually with two or three floors, and shared walls. It can be individually owned, a condominium, a cooperative, or rental property.

Transaction Broker - A broker who acts as an Transaction Broker in a transaction does not represent either party. He may not do anything that would give any party to the transaction an advantage over any other party. Extremely limited in services he can offer to either party. Also know as Facilitator - , Intermediary - , Mediator, or Non-Agent - . Also see Dual Agency - , Non-Agent - and Exclusive Agency - . Caution: This form of agency offers a reduced level of service and should never be considered unless you are very knowledgeable about real estate.

Transaction Fee - A fee which may be charged each time you draw on a home equity credit line.

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.