Tenants-in-Common
An undivided interest in property taken by two or more persons. The interest need
not be equal. Upon death of one or more persons, there is no right of survivorship.
Term
The period of time which covers the life of the loan. For example, a 30-year fixed
loan has a term of 30 years.
Title
Evidence of a person’s right to possession ownership of a property.
Title Insurance
The insurance that protects the lender and if an owner's policy is purchased,
the homeowner, against loss resulting for any inconsistencies in the title of
a property from liens or other title problems relating to a property.
Title Insurance Fees
The insurance that protects a lender, and if an owner’s policy is purchased,
the homeowner, against loss resulting from incorrect information associated with
the title. This protects the lenders and owners from liens or outstanding debts
related to the property.
Title Report
A report that discloses whether there are any competing claims, liens or other
problems relating to a property. This must be done before title insurance is issued.
Also known as a 'Preliminary Title Report' or 'Prelim.'
Title Search
An examination of public records, laws, and court decisions to disclose the current
facts regarding ownership of and liens on real estate.
Total Debt Ratio
Monthly debt and housing payments divided by gross monthly income. Also known
as 'Obligations-to-Income Ratio' or 'Back-End Ratio.'
Transfer Tax
A real estate purchase transaction may require state or local taxes payable when
title passes from one owner to another.
Truth-in-Lending Act
Also known as 'Regulation Z.' A federal law requiring a disclosure of credit terms
using a standard format. This is intended to facilitate comparisons between the
lending terms of different financial institutions.