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63 Cards in this Set

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Tacking
The process of combining successive periods of continuous occupation of real property by different adverse possessors in order to establish the required statutory period of continuous possession. Usually limited to blood relatives.
Take-out commitment
A lender's commitment to a contractor that permanent financing will be available to pay off a construction loan when the building is completed.
Tax certificate
A document which entitles the successful bidder in a tax sale to receive a deed after the original owner's period of redemption has ended.
Tax deed
A deed used to convey title to property sold by the government for nonpayment of taxes.
Tenant
One who leases or rents property from a landlord. Also called lessee.
Tender
An unconditional offer to perform under the terms of a contract. If the party to whom tender is offered does not perform; the other party usually enters a suit for damages or specific performance and files a legal notice of lis pendens.
Testate
To die leaving a valid will.
Testator
A person who executes a will.
Thrift institutions
Savings and Loan Associations and Savings Banks.
Tie-in
A contract provision which obligates the buyer when reselling to list the property for sale with a specific broker. This business practice is considered in restraint of trade.
Time deposits
A bank's savings deposits that may be used to finance real estate pledged as security for the debt.
Time is of the essence
A contract provision which makes it essential that all time limits in the agreement be strictly met.
Title
The evidence of ownership of real property.
Title insurance
Insurance which protects either an owner or mortgagee (lender) against losses arising from title defects except those specifically excluded in the policy.
Title theory
The legal position adopted by some states holding that a mortgage conveys title to the lender. Upon payment of the debt; the mortgage is defeated and all full rights of ownership are restored to the borrower.
Topographic map
A map that shows the elevations of the earth's surface. Also called a contour map.
Topography
The nature or shape of the earth's surface; such as hills; valleys; level; or rolling. Also called contour.
Torrens certificate of title
A registered title which lists the property owner and all adverse legal claims; liens; or encumbrances.
Torrens system
A system of title registration which lists the property owner and all adverse legal claims; liens; and encumbrances on a certificate issued and recorded by a public official. The current condition of title can be determined from the certificate without the traditional search through the public records.
Township
A parcel of land in the rectangular survey system that is six miles square.
Tract index
A public recording system which assigns a map reference number to each parcel of land in the county. By locating a parcel on the map; the reference number will guide a title examiner to a page which lists the book and page numbers of all recorded documents relating to that particular parcel.
Trade fixture
An item of personal property attached to the land or building leased by a tenant who uses the item in their trade or business.
Trust account
A separate account which a broker must maintain for the deposit of all funds coming into his/her possession that belong to others. Before a broker's license will be issued; the broker must authorize the Commission to examine the account at any time.
Trust account journal
A bookkeeping system which accounts for all trust fund deposits and disbursements. The journal must show the name of the parties; amount of money received; date deposited; property address; and details of all disbursements.
Trust deed
A deed used in some states in lieu of a mortgage. Title is held by a trustee on behalf of a lender (beneficiary) until the borrower (trustor) repays the loan.
Trustee
A neutral third party who holds title on behalf of a lender until the debt is paid.
Trustee's deed
A deed which; when properly executed and delivered by a trustee; conveys title to real estate held in trust.
Trustor
Borrower who executes a trust deed.
Truth-in Lending Law
Federal law which requires a lender to disclose the exact cost of credit on certain loans so the borrower can compare costs from other credit sources before committing to take the loan.
Undue influence
Using a position of trust and confidence to take unfair advantage of another person in order to obtain a contract.
Unearned increment
An increase in value due to no effort on the part of the owner.
Unenforceable contract
A contract which does not entitle the parties to seek legal remedy upon default because it fails to meet some legal requirement; such as the statute of frauds or statute of limitations.
Uniform settlement statement
A pre-printed form on which RESPA requires the lender of certain loans to itemize all settlement charges.
Uniform vendor and purchaser risk act
A law in some states that places the burden of loss on the seller if the property is destroyed or substantially destroyed after a sales contract is signed but prior to closing.
Unilateral contract
A contract involving the promise of only one party in exchange for an act or forbearance of another. Only the party making the promise is obligated to perform.
Unilateral rescission
When one party to a contract defaults; the injured party notifies the defaulting party that the contract is terminated and offers to return all consideration received. The injured party is then entitled to a return of any consideration paid.
Unit-in-place
A method of estimating the current cost of reconstructing an improvement by estimating the cost of each component part (foundation; walls; roof; heating system; etc.) in place.
Universal agent
One who has the authority to perform any lawful act the principal could perform him/herself. An agent who has authority without limitations; usually granted by a general power of attorney.
Unlawful detainer
A legal action which puts a tenant on notice to pay the past due rent or move out. If the tenant refuses to do either; the landlord can then obtain a court order directing the sheriff to forcibly remove the tenant from the leased premises.
Usury
The legal limit of interest imposed by state laws; does not apply to VA and FHA loans.
Utility
The ability of a property to fill a need or create a desire.
Utility value
Value to an owner or user of property; a subjective value based upon the ability to use or enjoy a property.
VA guaranteed loan
A mortgage loan where the VA guarantees a lender against loss at foreclosure up to a certain amount for a qualified veteran.
Valid contract
A contract that contains all the essential elements of a contract. To be enforceable it must also be in writing as required by the statute of frauds in each particular state.
Valuable consideration
Money or anything of a monetary value; such as property; service; or a forbearance; when received as a benefit by one party resulting from a detriment suffered by another.
Value
The amount a property will bring on the open market.
Variance
Authorization from a zoning board; or similar body; for a property owner to deviate from the existing required use of land. This right is generally granted only to property owners who are successful in demonstrating that the required zoning creates a hardship and normally within the same zoning classification.
Vendee
A buyer.
Vendee's lien
A buyer's lien against the property of a seller who defaulted on a contract to sell.
Vendor
A seller.
Vendor's lien
Also known as a purchase money mortgage or seller's lien. When a seller finances part of the purchase price and the purchaser pledges the property as security for the debt; the seller holds a vendor's lien against the property.
Vested remainder
A nonpossessory estate created when a fee simple owner grants a lesser estate and designates another person to take possession of the fee simple estate upon termination of the lesser estate.
Void contract
A contract which has no legal effect because one or more essential elements of a contract is not present. A void contract; under the law; never existed.
Voidable contract
A contract that appears valid and enforceable on its face; but is subject to recision by the party or parties acting under a disability.
Voluntary alienation
A transfer of title to real property initiated by the owner.
Voluntary lien
A lien recorded with the owner's consent. One created by agreement.
Warehousing
A loan correspondent's practice of holding mortgages in his/her own name until they can be assembled into a package of loans and sold to an investor. The lender usually has a warehouse line of credit at a bank; against which the warehoused mortgages are pledged until they are sold in the secondary mortgage market; and the warehouse line of credit is replenished.
Warranty deed
A deed which guarantees good title through the expressed or implied covenant of seizing covenant against encumbrances; covenant of quiet enjoyment; covenant of warranty forever; and the covenant of further assurances. Depending on the extent of the grantor's liability; the deed may be either general or special.
Waste
Willful misuse; destruction; or neglect of real estate by a person rightfully in possession that results in a decrease in value of the premises; to the detriment of another person who holds a future right of possession. ( e.g.; Life Tenant and Reversionary Estate or Remainder Estate; Lessee and Lessor.)
Water rights
A landowner's rights to use and enjoy water adjacent to; underneath; or on his/her land.
Water table
The level at which percolating water is found below the earth's surface.
Wraparound mortgage
A junior mortgage which includes the amount of any existing loan(s) plus the balance of the seller's equity after deducting the buyer's downpayment. The holder of the wraparound continues to make payments on the existing loan(s).
Writ of execution
"A court order directing the sheriff to seize and sell enough of a debtor's property to satisfy a judgment and to pay expenses of the sale. Also referred to as ""levying upon"" the debtor's property."