Dictionary – Table of Multiples – Twisting

TABLE OF MULTIPLES – The life expectancy figures provided by the INTERNAL REVENUE SERVICE to be used in calculating the exclusion ratio for life contingent ANNUITIES after June 30, 1986. Separate tables provide the figures for JOINT AND LAST SURVIVOR ANNUITIES, ANNUITIES that contain a refund or minimum payment guarantee and for ANNUITIES that pay quarterly, semiannually, or annually.

TACKING – Adding on to a time period.

TAKEOUT FINANCING – Generally predicated upon specific CONDITIONS such as a certain percentage of UNIT sales or LEASES, a COMMITMENT to provide permanent financing following construction of a planned project.  Most construction lenders require


TAKING – 1) In land use law, application of POLICE POWER restrictions to a PARCEL of LAND that are so restrictive as to prelude any reasonable use; 2) acquisition of a PARCEL of


TANGIBLE ASSETSASSETS that are capable of being appraised.

TANGIBLE PROPERTYREAL ESTATE and other valuables which can be seen and touched.

TAR AND GRAVEL ROOF – Also known as BUILT-UP, HOT TAR and MOPPED TAR ROOF – The roof finish for flat or low-pitched roofs composed of asphalt felt and asphalt, which is then covered with decorative gravel.

TAX – A charge LEVIED upon persons or things by a government.

TAX BASIS – The cost from which profits or LOSSES are calculated for INCOME tax purposes.

TAXABLE ESTATE – The VALUE upon which ESTATE TAXES are calculated by the federal government.

TAX AND INSURANCE ESCROW – Funded through monthly contributions by the MORTGAGOR, an account required by a MORTGAGE lender to fund annual PROPERTY TAX ASSESSMENTS and HAZARD INSURANCE PREMIUMS for the MORTGAGED PROPERTY.

TAXATION – The right of the government to LEVY and collect REAL PROPERTY TAXES as a means of raising revenues for government services provided at the state, parish, county and municipal levels. Schools, libraries, street maintenance, parks and police and fire protection are usually paid for by REAL PROPERTY taxes.

TAX BASE – The collective VALUE of PROPERTY, INCOME or other taxable activity or ASSETS subject to tax. Tax revenues are computed as the TAX BASE times the TAX RATE. For PROPERTY taxation, the TAX BASE is the total ASSESSED VALUE of all taxable PROPERTY less EXEMPTIONS.

TAX BRACKET – 1) The percentage of each additional dollar in INCOME required to be paid as income taxes;  2) MARGINAL RATE for INCOME taxes.

TAX CREDIT – A reduction against INCOME tax payments that would otherwise be due.

TAX DEDUCTIBLE – A type of EXPENSE that can be used to reduce taxable INCOME.

TAX DEED – The type of instrument given to a GRANTEE by a government that has claimed the PROPERTY for unpaid TAXES.

TAX-EXEMPT PROPERTYREAL PROPERTY that is not subject, in whole or in part, to AD VALOREM PROPERTY TAXES.

TAX FORECLOSURE – The process of enforcing a LIEN against PROPERTY for nonpayment of delinquent PROPERTY TAXES. Taxing authorities hold a superior LIEN against all taxable PROPERTY to enforce payment of their TAXES.

TAX FREE EXCHANGE – Also known as IRS  CODE 1031 – Entitled “EXCHANGE of PROPERTY held for productive use or INVESTMENT,”  it declares the “non-recognition of gain or LOSS from EXCHANGES solely in kind. In general, no gain or LOSS shall be recognized on the EXCHANGE of PROPERTY held for productive use in a trade or business

or for INVESTMENT if such PROPERTY is exchanged solely for PROPERTY of LIKE-

KIND which is to be held either for productive use in a trade or business or for INVESTMENT.”

TAX LIEN – A DEBT attached against PROPERTY for failing to pay TAXES.

TAX MAP – Generally bound into books and kept as PUBLIC RECORDS at the local tax office, a document showing the dimensions, location and other information pertaining to a PARCEL of LAND subject to PROPERTY TAXES.

TAX PREFERENCE ITEMS – Certain types of INCOME or DEDUCTIONS that are added to adjusted gross income to calculate the ALTERNATIVE MINIMUM TAX.

TAX RATE – The ratio of a tax ASSESSMENT to the amount being taxed.

TAX ROLL – The list of all PROPERTIES subject to a TAX in a county or other propertytaxing jurisdiction that identifies all PROPERTIES and indicates their ASSESSED VALUES.

TAX SALE – The sale of PROPERTY after a period of nonpayment of TAXES. The GRANTEE receives a TAX DEED. In most states the DEFAULTING party has a REDEMPTION PERIOD during which he may pay the unpaid TAXES, INTEREST, court costs and the purchase price to redeem the PROPERTY.

TAX SHELTER – A phrase used to describe any INVESTMENT which offers TAX BENEFITS to the purchaser.

TAX STOP – A clause in a LEASE that stops a LESSOR from paying PROPERTY TAXES above a certain amount.

TEASER RATE – A CONTRACT INTEREST RATE charged on an ADJUSTABLE-RATE MORTGAGE for the initial ADJUSTMENT interval that is significantly lower than the FULLY INDEXED RATE at the time. It is an incentive to encourage borrowers to accept ADJUSTABLE-RATE MORTGAGE LOANS. In general, the INTEREST RATE reverts to the FULLY INDEXED RATE at the first ADJUSTMENT date.

TEMPORARY LIFE ANNUITY – An ANNUITY payable while the ANNUITANT lives but not beyond a specified period, such as five years. No payments are to be made after the end of the STIPULATED temporary period or the death of the ANNUITANT.

TENANCY – The right of possession of REAL PROPERTY which may refer to ownership or occupancy.

TENANCY AT SUFFERENCE – Also known as HOLDOVER TENANCY and ESTATE AT SUFFERANCE – A LEASEHOLD interest of possession only which exists after the expiration of any LEASEHOLD of fee ESTATE, should the TENANT not VACATE the REAL PROPERTY. The TENANT came to posses the property legally, either by LEASE or by ownership, but now remains on the property illegally.

TENANCY AT WILL – Also known as ESTATE AT WILL – A LEASEHOLD interest which exists only with the consent of the LESSOR but without any agreement for a fixed term of possession.

TENANCY BY THE ENTIRETY – A form of CONCURRENT OWNERSHIP available only to a married couple in a SEPARATE PROPERTY STATE in which each spouse has an UNDIVIDED INTEREST in the REAL PROPERTY during his or her lifetime and, at the death of one of the owners, his or her interest automatically passes to the surviving spouse.

TENANCY FOR YEARS – Also known as ESTATE FOR YEARS – A LEASEHOLD interest for a definite period of time which has a fixed expiration date because of which there is no need for either party to notify the other of the termination of the LEASEHOLD.


TENANCY FROM YEAR TO YEAR – A LEASEHOLD interest for a definite period of time which automatically renews itself at each expiration. Because of the automatic RENEWAL, one of the parties must take some positive action, such as proper notification to the other party, to terminate the LEASEHOLD.


TENANCY FROM PERIOD TO PERIOD – A LEASEHOLD interest for a definite period of time which automatically renews itself at each expiration. Because of the automatic RENEWAL, one of the parties must take some positive action, such as proper notification to the other party, to terminate the LEASEHOLD.


TENANCY FROM YEAR TO YEAR – A LEASEHOLD interest for a definite period of time which automatically renews itself at each expiration. Because of the automatic RENEWAL, one of the parties must take some positive action, such as proper notification to the other party, to terminate the LEASEHOLD.

TENANCY-IN-COMMON – A form of CONCURRENT OWNERSHIP available to any two or more NATURAL or LEGAL PERSONS in which each owner has an UNDIVIDED INTEREST in the PROPERTY which need not be equal among the owners and are freely transferable by each owner.

TENANCY IN SEVERALTY – Ownership of PROPERTY by one person or one legal ENTITY (corporate ownership).

TENANT –  Also known as LESSEE or RENTER – One who is given possession of REAL ESTATE for a fixed period or at will.

TENANTS IN COMMON – A form of joint property ownership in which the owners may have unequal shares and which does not involve a right of SURVIVORSHIP.

TENANT FIXTURESFIXTURES added to LEASED REAL ESTATE by a LESSEE that, by CONTRACT or by law, may be removed by the LESSEE upon expiration of the LEASE.

TENANT IMPROVEMENTS (TIS) – Those changes, typically to retail, office or industrial property, to accommodate the specific needs of a TENANT which include moving interior walls or PARTITIONS, carpeting or others negotiated in the LEASE.

TEN-DAY FREE LOOK – A notice on the first page of HEALTH INSURANCE POLICIES that the INSURED has ten days in which to examine the POLICY and return it for a REFUND of premium if he is not satisfied with the POLICY.

TENDER – 1) to pay or deliver; 2) to perform under a CONTRACT; 3) An offer to perform an obligation, together with actual performance or evidence of present ability to perform.

TENEMENTS – 1) FIXTURES; 2) anything permanently attached to the LAND by man.

TENURE – 1) An indication of whether one is an owner or a TENANT; 2) the nature of an occupant’s ownership rights.

TENURE IN LAND – The mode in which a person holds an ESTATE in LANDS.

TERM – The period of time during which something is in effect.

TERM, AMORTIZATION – 1) Generally, the time needed to AMORTIZE the LOAN in full; 2) for a LOAN, the period of time during which PRINCIPAL and INTEREST PAYMENTS must be made.

TERM INSURANCE – 1) LIFE INSURANCE payable to a BENEFICIARY only when an INSURED dies within a specified period; 2) LIFE OR HEALTH INSURANCE protection during a limited number of years but expiring without VALUE if the INSURED survives the stated period.

TERMITE CLAUSE – A provision in a sales CONTRACT that allows the buyer to have the PROPERTY INSPECTED for termite infestation. In general, if termites are discovered, the buyer may required the seller to treat the PROPERTY or the buyer may cancel the CONTRACT. Most clauses now use the term wood-destroying insects to protect against other types of insects that harm STRUCTURES, such as the powder post beetle and old house borer.

TERMITE INSPECTION – Often required by the terms of a sales contract,  an examination of a STRUCTURE by qualified personnel to determine the existence of infestation by termites.

TERMITES – Insects that bore into wood and destroy it.

TERMITE SHIELD – The metal sheet laid into the exterior walls of a building near ground level, usually under the SILL plate, to keep termites out.

TERM LOAN – One with a set MATURITY date, typically without AMORTIZATION.

TERMS – Conditions and arrangements specified in a CONTRACT.

TESTAMENT – Also known as WILL, and LAST WILL AND TESTAMENT – A WILL generally to dispose of PERSONAL PROPERTY.

TESTAMENTARY TRUST 1) An estate-planning device created and funded at the death of the REAL PROPERTY owner through his /her LAST WILL AND TESTAMENT; 2) a

TRUST created through the WILL of its creator.

TESTATE – Having a WILL. A man who has made a WILL is a TESTATOR; a woman who has made a WILL is a TESTATRIX.

TESTATOR – A person who makes a WILL.

TESTATRIX – A woman who makes a WILL.

TESTS FOR A FIXTURE – Any item may become a FIXTURE if it meets three criteria; not meeting these criteria would cause the item to remain PERSONAL PROPERTY. The three tests for a fixture are (1) the intention of the annexor (“intention”), (2) method of attachment (“attachment”), and (3) the adaptation to use (“adaptation”).

TESTIMONIUM A clause that cites the act and date in a DEED or other CONVEYANCE.

THIRD PARTY – 1) One who is not directly involved in a transaction or CONTRACT but may be involved or affected by it; 2) the claimant under a LIABILITY POLICY, so called because the person making the CLAIM is not one of the two parties, INSURED and INSURER, to the


THIRD PARTY CLAIM – A demand made by a person against a POLICYHOLDER of another company and any payment that will be made by that company.

THIRD PARTY OVER SUIT – A lawsuit where a THIRD PARTY tries to recover

DAMAGES assessed against that party by bringing suit against the employer.

THRESHOLD – The beveled strip of wood or metal used above the finished floor under the exterior doors.

THRESHOLD (NO-FAULT) – The point, measured in money, time or other ways, beyond which TORT LIABILITY can be established. Until that point is reached, reparations must be paid within the provisions of the no-fault plan with no recourse to the courts.

TIERS – Also known as TOWNSHIP STRIPS – Six-mile wide strips of LAND, which runs east and west parallel to the BASE LINE. Each TOWNSHIP STRIP is identified by its distance north and south of the BASE LINE.

TIME IS OF THE ESSENCE – The clause in a CONTRACT emphasizing punctual performance as an essential requirement of the CONTRACT.

TITLE – The evidence one has to the rights or ownership of REAL PROPERTY.

TIME LIMIT – The period of time during which a NOTICE of CLAIM or PROOF OF LOSS must be filed.

TIME LIMIT ON CERTAIN DEFENSES – The two- or three-year time period in HEALTH POLICIES after which the INSURER cannot deny a CLAIM or VOID the POLICY because of PRE-EXISTING CONDITIONS or misstatements on the application.

TIME-SHARING – Most commonly applied to resort and VACATION properties, a form of PROPERTY ownership under which a PROPERTY is held by a number of people, each with the right of possession for specified travel times.

TIME VALUE OF MONEY – A concept that money available now is worth more than the same amount in the future because of its potential earning CAPACITY.

TITLE – Evidence that the owner of LAND is in lawful possession thereof; See also CLEAR TITLE, COLOR OF TITLE, CLOUD ON THE TITLE and MARKETABLE TITLE.

TITLE COMPANY – One in the business of examining TITLE to REAL ESTATE and/or issuing TITLE INSURANCE.

TITLE DEFECT – An unresolved CLAIM against the ownership of PROPERTY which prevents presentation of MARKETABLE TITLE. Such CLAIMS may arise from current LIENS against the PROPERTY,  failure of the owner’s spouse or former part owner to sign a DEED or an interruption in the TITLE records to a PROPERTY.


TITLE REPORT – A written report made by a TITLE INSURANCE COMPANY which discloses the condition of the TITLE, usually preliminary to the issuance of a TITLE INSURANCE POLICY.

TITLE SEARCH – A search of the PUBLIC RECORDS by a TITLE INSURANCE COMPANY or an ABSTRACTOR to determine what DEFECTS exist in the CHAIN or TITLE.

TITLE THEORY STATES – Those states which consider the lender to have LEGAL TITLE to any COLLATERALIZED PROPERTY.

TOPOGRAPHY – Also known as LAY OF THE LAND – A reference to the relief features or surface of the earth.

TORNADO – Usually very violent and destructive in a narrow path, often for many miles, a whirling wind over LAND accompanied by a funnel-shaped cloud.

TORRENS SYSTEM – A system used in some states by which TITLE to LAND is registered with a REGISTRAR of LAND TITLES instead of being recorded.

TORT – 1) A wrongful act, injury or DAMAGE such as NUISANCE, NEGLIGENCE or libel, for which a civil action can be brought; 2) a civil wrong, other than a BREACH OF CONTRACT, for which a court of law will afford legal relief, i.e. harming another by an act of NEGLIGENCE in driving an auto.

TOTAL DISABILITY – An illness or injury which prevents an INSURED person from continuously performing every duty pertaining to his/her occupation or engaging in any other type of work

TOWN HOUSE – A DWELLING UNIT generally having two or more floors and attached to other similar UNITS via party walls. TOWN HOUSES are often used in PLANNED UNIT DEVELOPMENTS and CONDOMINIUM DEVELOPMENTS which provide for CLUSTERED or attached HOUSING and common OPEN SPACE.

TOWNSHIP – Under the GOVERNMENT SURVEY METHOD, a UNIT of LAND measurement six miles square containing thirty-six square miles or thirty-six SECTIONS.

TOWNSHIP LINES – Imaginary east-west lines six miles apart which run parallel to, and north and south of, the BASE LINE. They create TOWNSHIP STRIPS or TIERS.

TOWNSHIP STRIPS – Also known as TIERS – Six-mile wide strips of LAND, which runs east and west parallel to the BASE LINE. Each TOWNSHIP STRIP is identified by its distance north and south of the BASE LINE.

TRACK RECORD – A DEVELOPER or builder’s reputation for producing on a timely and economical basis. A good track record can be helpful in arranging financing or attracting investors for a new project.

TRACT – 1) A SUBDIVISION; 2) a PARCEL of LAND generally held for SUBDIVIDING.

TRACT HOUSE – A house that is similar in style and floor plan to other homes in a particular


TRADE FIXTURESPERSONAL PROPERTY installed by a LESSEE on LEASED REAL PROPERTY in connection with a business. Although TRADE FIXTURES are often permanently attached to function properly, they remain PERSONAL PROPERTY and are removable by the LESSEE prior to the expiration of the LEASE.

TRADING UP – Buying a larger, more expensive PROPERTY.

TRANSFERABILITY – Any arrangement under which the accumulated BENEFIT credits of a terminating participant, or their actuarial VALUE, are transmitted from one plan to another or to a central agency.

TRANSACTION COSTS – The costs associated with buying and selling REAL ESTATE.

TRANSFERABLE DEVELOPMENT RIGHTS (TDR) – A type of ZONING ORDINANCE that allows owners of property zoned for low-density DEVELOPMENT or conservation use to sell development rights to other PROPERTY owners. The development rights purchased permit the landowners to develop their PARCELS at higher densities than otherwise. The system is designed to provide for low-density uses, such as historic preservation, without unduly PENALIZING some landowners.

TRANSFER TAX – One paid upon the passing of TITLE to PROPERTY or to a VALUABLE interest.


TRAVEL ACCIDENT POLICY – A LIMITED CONTRACT covering only ACCIDENTS while an INSURED person is traveling, usually on a commercial carrier.

TREASURER’S DEED – Also known as TAX DEED – A DEED issued by the county or parish treasurer as the result of a TAX FORECLOSURE sale.

TREASURER’S SALE – Also known as TAX SALE – The sale of REAL PROPERTY made by the county or parish treasurer to obtain funds in LIEU of unpaid PROPERTY TAXES.

TREATY – An agreement between a REINSURER and a CEDING INSURER setting forth details of the REINSURANCE arrangement.

TRESPASSER – One who unlawfully goes onto the REAL PROPERTY of another.

TRI -LEVEL – Also known as SPLIT -LEVEL – A popular style of home, best suited for sideto-side slopes, in which a one-story wing is attached between the levels of a two-story wing.

TRIM – The wood or metal interior finishing pieces such as moldings and door and window casings.

TRIPLE-A TENANT – One with an excellent credit record.

TRIPLE-NET LEASE – One in which the TENANT is to pay all OPERATING EXPENSES of the PROPERTY and the LANDLORD receives a net RENT.

TROPHY BUILDING – A LANDMARK PROPERTY that is well known by the public and highly sought by institutional INVESTORS such as PENSION funds and INSURANCE companies. Generally one-or-a-kind architectural designs with the highest quality of materials and finish and expensive trim, these PROPERTIES will require RENOVATION over time and are likely to be standing for hundreds of years.

TRUSS – A type of roof construction employing a rigid framework of BEAMS and members which supports the roof load and can achieve wide spans between its supports.

TRUST – A legal arrangement whereby PROPERTY is transferred to a trusted THIRD PARTY by a GRANTOR. The TRUSTEE holds the PROPERTY for the BENEFIT of another.

TRUST ACCOUNT – In some states called an ESCROW ACCOUNT; a separate bank account, segregated from a BROKER’S own funds, in which the BROKER is required by state law to deposit all monies collected for CLIENTS.

TRUST DEED – A CONVEYANCE of REAL ESTATE to a THIRD PARTY to be held for the BENEFIT of another. Commonly used in some states in place of MORTGAGES, they CONDITIONALLY CONVEY TITLE to the lender.

TRUSTEE – 1) the THIRD PARTY holding the limited power of sale under a DEED OF TRUST; 2) the owner of the REAL PROPERTY under a LIVING, TESTAMENTARY or LAND TRUST; 3) one who holds the TITLE to REAL PROPERTY for the BENEFIT of another, usually as SECURITY for a DEBT. The TRUSTEE has the right to sell the PROPERTY in the event of a DEFAULT.

TRUSTEED PLAN – Also known as SELF-ADMINISTERED or DIRECTLY INVESTED PLAN – A plan funded through a FIDUCIARY, generally a bank but sometimes a group of individuals, which directly INVESTS the accumulated funds. Retirement payments are made from the fund as they fall due.

TRUSTEE’S DEED – A DEED issued by the TRUSTEE as the result of a non-judicial FORECLOSURE.

TRUSTEE’S SALE – The sale of REAL PROPERTY made by a TRUSTEE to obtain funds in LIEU of an unpaid DEBT.

TRUSTOR – 1) The borrower under a DEED OF TRUST; 2) the creator of a TESTAMENTARY, LIVING or LAND TRUST.

TRUTH IN LENDING LAW (TIL) – Federal law which requires a FULL DISCLOSURE of a LOAN amount, FINANCE CHARGES and APR.

TUDOR – An English-style imposing-looking house with fortress lines. Siding is chiefly stone and brick with some stucco and half timbers. Windows and doors have molded cement or stone trim around them.

TURNKEY PROJECT – A DEVELOPMENT in which a DEVELOPER completes the entire project on behalf of a buyer then the DEVELOPER turns over the keys to the buyer at completion.

TURNOVER RATE – The RATE at which employees terminate covered service other than by death or retirement. Expected future turnover can be taken into account in translating CONTRIBUTIONS into BENEFITS.

TWISTING – The practice of inducing by MISREPRESENTATION, or inaccurate or incomplete comparison, a POLICYHOLDER in one company to LAPSE, FORFEIT or SURRENDER his/her INSURANCE for the purpose of taking out a POLICY in another company.

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