Glossary - T
- Target market
- Generally speaking, the term target market denotes a specific market segment which forms the hub of a marketing campaign. In the context of real estate, the expression target market refers of a specific group of seller and buyers in a real estate marketplace. Deriving its name from the conventional archery target, majority of the target markets are considered to be a solitary hub with expanding circumjacent circles. Geographically, the widening circles are frequently classified and recognized as primary and secondary real estate markets. Theoretically, these circles may also be relevant to different types of sellers and buyers, for instance, those intimately related to preferred properties or services gradually shifting towards the outside to less important levels of requirement and impetus.
Whereas target markets may be pertinent to any real estate area of proficiency, most frequently this portrayal speaks about commercial properties. The selection of a target market establishes the prospect of any marketing proposal and the related marketing plan that generates from the offer. Although there are numerous techniques to reach the target audiences or clients, usually marketing experts make use of some specific methods that are true and tested. In fact, majority of the booming marketing methods includes the use of publications and direct mailings that are essentially linked to the target market. In fact, the seller may also offer helpful contribution to the marketing plan time and again. Having made investments in a property, the seller may most often have a fine experience for the incentives for the prospective clients and discover helpful contacts. In effect, targeting generally includes the creation of marketing packages and texts with the objective of distributing them directly or placing them in special publications.
- Teaser rate
- The term teaser rate denotes a very small, but provisional introductory interest rate on an adjustable rate mortgage. The teaser rate is usually very attractive and offered with a view to bring in clients who might later on also purchase the other standard services of the lender. The teaser rate is also referred to as the initial interest rate.
- The term tenancies denote the interests in realty as delineated in the title deed. This term is a highly imperative aspect as it depicts the manner in which the title or ownership in a property is possessed. The term also refers to the possession or occupation of a property, such as an office, by any kind of title or right.
- In real estate, the term tenant refers to an individual or an entity, such as a business, that pays a periodic rent for a temporary right to occupy, possess and/ or use someone else's property. This is a right that has been granted to the individual or entity by the owner of the property or landlord by means of a lease or tenancy agreement. It may be noted here that whereas 'tenancies' normally express types of property ownership, a 'tenant' never owns the property occupied or used by him or her.
- Generally speaking, the expression term refers to a time period for any policy, agreement or bond. It denotes a fixed time frame for which a loan, insurance plan or bond is issued, a time for which a fixed deposit is made or the term of a contract. A term may be an express term that is affirmed clearly and directly or an implied term that is incorporated by the courts of law or any decree. In the context of real estate, the word term may denote the time by which a loan or mortgage payment ought to be made or the period when interest payments on the loan would be made on a certificate of deposit or a bond.
- Term advances
- The expression term advances denotes preset monthly reverse mortgage loan advances for the duration of the borrower living in a home. In other words, it refers to the fixed monthly payment received by a home owner securing a reverse mortgage from the lender or mortgagee for as long as he or she continues to reside in that particular house.
- Terminal capitalization rate
- The term terminal discount rate denotes a capitalization fee that reveals the relationship between anticipated net operating earnings at the time of disposal and an equivalent sale price. This term is used to find out the present value of a stream of earnings afterwards. For instance, if an outlay analysis includes 10-year term (EOY10), the value found at the closing of the tenth year on the basis of the estimated net operating income (EOY10) together with an appropriate terminal ceiling rate. The best guess made is that the real estate asset will sell on or before the end of the tenth year. Evaluators may employ or utilize the predicted net operating income for (EOY11) to arrive at a value depending on the approximate calculation that the real marketing and sale of the property will take place during the ensuing year.
- Termites are pale-hued social bugs that create large settlements and many species survive in warm or tropical areas. These insects feed on wood and a very devastating to trees as well as wooden structures. These insects have the ability to bore into wood and teem and harm homes. It may be noted that in most instances of real estate sales a termite inspection is almost a must to demonstrate that the property is free of termites and other insects that destroy wood. Whenever such inspections are undertaken, they ought to list any damage done by the insects.
- In the real estate context, the term timeshare refers to a property that is owned jointly or leased by time-sharing. These properties are normally resort condominium units where numerous parties hold rights to use the property, and each sharer is allotted a period of time (usually one week, and almost always the same time every year) when they may use the property. Timeshare is a comparatively new perception in property ownership that is usually under two broad categories - free ownership interest and right-to-use ownership.
Free ownership interest denotes the privilege to block, convey or otherwise pass on the interest for all times in future.
Right-to-use ownership refers to a non-fee interest in the selected property where the buyer does not receive an ownership that can be registered. As an alternative, the holder of this interest possesses a contractual right to enjoy the use of the property for a particular time.
- Title, Title insurance, Title search
- In matters pertaining to real estate, the term title refers to a legal deed that establishes the proof of ownership of a property. In other words, it denotes a legal expression for a collection of rights in a property where a party may possess a legal claim or equity. It may be mentioned here that the rights in the collection may be split and held by separate persons or entities. If the owner needs to pass on the ownership rights on to another person or entity, he or she would be requiring a conveyance of the deed. It may be noted that the term title is different from the expression possession - a right that habitually denotes ownership, but is not essentially sufficient to establish the ownership. In the majority of cases, the possession as well as title may be transferred individually and not depending on one another.
- Total debt service ratio
- The term total debt service (TDS) ratio refers to the proportionality of the yearly or monthly mortgage fees for the principal loan amount, interest on that sum, taxes as well as payments on different other balance due, usually loans secured from banks and financial institutions, in comparison to the gross income or earnings of the borrower. It is important to distinguish the total debt service ratio from the gross debit service (GDS) ratio rooted in only principal, interest and taxes. In fact, the lenders make use of a debit service computation as a criterion to offer a opening assessment of whether a prospective borrower is already deep in too much debt.
- Torrens System
- The Torrens System refers to a land registration method whereby the government is the custodian of all land and ownership records and a land title functions as a documentation of complete, impregnable and legitimate ownership. Named after the 19th century British reformer of Australian land laws Sir Robert Torrens, the Torrens System has been approved by many states in the United States and Canadian provinces. This method enables one to find the condition of the ownership of a land without going through a title search. Under this method, a government office helper maintains the Torrens System title deed records and ensures a clear title in the event of the ownership of a land being reassigned. A portion of the payments charged for the registration and transfer of ownership are utilized for funding a Torrens insurance endowment in every jurisdiction with a view to recompense the petitioners for damages owing to errors. The primary purpose of the Torrens System was to offer security in the land registration methods and declarations that the present entries were legitimate.
It may be mentioned here that Sir Robert Torrens was of the view that the method applicable for registration of ships could also be relevant in the case of land ownership. Hence, in the mid-1800s, he established a method that ensured the registered ownership attained or purchased by a naive party. In itself, the proprietor of a real estate asset as registered as per the Torrens System could not be harassed as far as the legitimacy of his or her ownership is concerned. In effect, the ownership as registered with the authorities was impregnable, i.e. not capable of being nullified by other parties. While adhering to the common guidelines defined in the Torrens System, the prevailing laws pertaining to land registration in different provinces have some omissions and restrictions to the perception of impregnability. In addition, the land registration methods will vary in terms of modus operandi as well as variety in the different provinces.
- The term tort refers to any civil wrong, barring a breach of contract that may invite legal proceedings for damages. In other words, tort usually denotes causing harm to a property, any person's repute or an individual's business concerns. Although the tort of negligence is considered to be the most widespread tort, other wrongful actions under this category involve nuisance, deception or falsification, wrongful detention, physical attack and battering, spiteful trial, invading privacy, trespassing and defamation (slander and libel).
The tort law deals with the ever-increasing instances of damages endured by people owing to the wrongful activities spreading rapidly in our multifaceted social order. The main objective of the tort law is to recompense the victims of tormenting actions and not to otherwise reprimand the offenders. The job of punishing the offenders is left to the criminal law when specific tormenting activities tantamount to criminal offences. In fact, automobile accidents are among the most widespread causes of injury or damages. For instance, when an intoxicated driver rams his or her vehicle against a parked vehicle, the owner of the parked vehicle is entitled to sue the driver in tort for compensation and the Crown or the police may indict the driver with drunken driving and enforce fines as per the provisions in the local provincial laws. The relevance of the tort law may be best understood when one examines the foundation of tort dependability, the factors for a tort action, responsibilities of professionals as well as the related accountability.
- Trust account
- A trust account, sometimes also called an escrow account, denotes a discrete bank account that is kept apart from a broker's personal funds and where the provincial law makes it mandatory for the broker to deposit all funds pulled together on behalf of clients. In matters pertaining to real estate, the provincial authorities spell out the prerequisites regarding the setting up of a trust account, ways of making payments or expenditure, persons allowed to sign in favor of the brokerage firm as well as the modus operandi for making settlements. In this case, the real estate brokerage firms may perhaps be allowed to hold several real estate trust accounts. In fact, the trust account is usually a second bank account that is utilized for property management. Representatives of the provincial regulatory bodies are entitled to inspect the trust accounts held by the brokerages from time to time with a view to make sure that these accounts fulfill the legal and governmental instructions. In the case of trust accounts, it is essential to make the settlements on a monthly basis to make sure that the records maintained by the real estate brokerage firms support the statements provided by the financial institutions.
- Trust ownership
- In the real estate context, the term trust ownership refers to an exceptional association whereby one person, referred to as a trustor or settler, gives his or her property or other assets by means of an agreement to another person, called trustee, to eventually deal with them for the use or gain of yet another person, known as the beneficiary. Traditionally, trust ownership subsisted when the title of the property was in the name of a listed owner who usually held the real estate asset on behalf of the actual or beneficial owner. In fact, this perception introduced the legal notion of real estate to applications where the possession was held for the prospective buyer. Even though the conception of ownership to uses is now substituted with other models, the trust ownership continues to exist.