Glossary of Real Estate Terms - Courtesy of the California Department of Real Estate
T through Z
Tenant — The party who has legal possession and use of real property belonging to another.
Title — Indicates “fee'' position of lawful ownership and right to property. “Bundle of Rights”
possessed by an owner. Combination of all elements constituting proof of ownership.
Title Insurance — Insurance to protect a real property owner or lender up to a specified amount
against certain types of loss, e.g., defective or unmarketable title.
Title Report — A report which discloses condition of the title, made by a title company
preliminary to issuance of title insurance policy.
Townhouse — One of a row of houses usually of the same or similar design with common side
walls or with a very narrow space between adjacent side walls.
Transfer Fee — A charge made by a lending institution holding or collecting on a real estate
mortgage to change its records to reflect a different ownership.
Trust Deed — Just as with a mortgage this is a legal document by which a borrower pledges
certain real property or collateral as guarantee for the repayment of a loan. However, it
differs from the mortgage in a number of important respects. For example, instead of
there being two parties to the transaction there are three. There is the borrower who signs
the trust deed and who is called the trustor. There is the third, neutral party, to whom
trustor deeds the property as security for the payment of the debt, who is called the
trustee. And, finally, there is the lender who is called the beneficiary, the one who benefits
from the pledge agreement in that in the event of a default the trustee can sell the property
and transfer the money obtained at the sale to lender as payment of the debt.
Underwriting — Insuring something against loss; guaranteeing financially.
Value — See MARKET VALUE
Variable Interest Rate — (VIR or VMR, Variable Mortgage Rates.) An interest rate in a real
estate loan which by the terms of the note varies upward and downward over the term of
the loan depending on money market conditions.
