Mortgage and Real Estate Glossary
Alberta Equity's glossary contains hundreds of terms. With this tool, you can click or search through the largest real estate and mortgage glossary in Canada!
- Takeout Mortgage Loan
- A long term mortgage loan that is advanced to borrower on completion of construction or in compliance with any other conditions in the loan commitment. The funds are normally used to pay off or take out the construction lender.
- Tangible Personal Property
- Assets other than real estate that physically exist. Business equipment and vehicles are tangible personal property. Assets such as stock certificates and franchises only represent value and are therefore intangible property.
- Tax Deduction
- An expense that governments allow you to subtract from your income before computing your income tax.
- Tax Deferral
- The postponement of taxes to a later year, usually by recognizing income or a gain at a later time. Remember, this only delays your tax liability; it doesn't eliminate it.
- Tax Exempt
- Income that is not subject to tax. Income exempt from federal tax may, however, be subject to provincial taxation.
- Tax Liability
- The total amount of tax you owe.
- Tax Lien
- A claim, or obstacle, to the sale of property because of unpaid taxes. The property's title can't be transferred until liens are paid.
- Tax Sale
- A government sale of property to recover unpaid taxes.
- Tax-sheltered
- A tax shelter is a savings/investment plan which offers significant tax savings.
- Taxable Income
- Adjusted gross income less itemized or standard deductions, less personal and dependent exemption amounts.
- Tear-down Condition
- A house that is bought so it can be razed to make room for a newer house; usually located in a spectacular setting.
- Teaser Rate
- Often called the introductory rate, it is the below-market interest rate offered to entice customers to switch credit cards or lenders.
- Tenancy by the Entirety
- Ownership by spouses in which each spouse owns an undivided interest in the entire property. When one spouse dies, the other has title to the entire property.
- Tenancy In Common
- Ownership of ad by two or more persons: unlike joint tenancy in that interest f deceased does not pass to the survivor, but is treated as an asset o the deceased's estate.
- Tenants in Common
- Ownership by two or more people in which each person owns an undivided interest in the entire property and all have equal rights to use the property. When one tenant in common dies, that person's interest may be sold, mortgaged or transferred to another in a will.
- Tenure
- The act, fact, or condition of holding something in one's possession such as real estate. A period during which something is held.
- Term
- The length of time you commit to repay a lender or bank at an agreed upon interest rate and payment schedule. The interest rate usually remains constant during this term unless the commitment states otherwise. For example, a five year fixed rate mortgage has a term of five years.
- Term Deposit
- An investment product in which you deposit a fixed sum of money for a set period of time and are paid interest.
- Term Loan
- A loan intended for medium-term or long-term financing to supply cash to purchase fixed assets such as machinery, land or buildings or to renovate business premises.
- Third-party Originator
- One who takes all or part of the mortgage application and transfers or sells it to a lender.
- Time Deposit
- A type of deposit account with a stated maturity at which time the account reverts to another type of account or is "rolled over" for another fixed period of time.
- Timeshare
- A form of multiple ownership of a piece of property in which each owner has access to the property for a period during the year. Most timeshares are vacation homes in resort areas.
- Title
- Evidence of a person's right to possession ownership of a property.
- Title Company
- A company that checks a property's title for liens and other obstacles to sale, fixes any clouds to title, supervises the closing transaction, and makes sure that money transfers in a purchase are processed correctly.
- Title Defect
- A legal claim by others to property, or the right to make demands upon an owner.
- 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 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
- A check of public records to make sure that the owner of real property has the right to transfer ownership. A title search is designed to spot gaps in the chain of title, liens, problems with the legal description of the property, judgments against the owner, and the like.
- Torrens System
- System of title recordation provided by provincial law, it is a system for the registration of land title, indicating the state of the title, including ownership and encumbrances without the necessity of an additional search of the public records. Also known as the "Land Titles System."
- Total Debt Service
- The ratio of a borrower's total monthly debt payments to his or her monthly gross income. Lenders use this ratio to determine how much of a loan a borrower is qualified for.
- Total Expense Ratio
- The percentage of monthly debt payments compared to total before-tax income.
- Trade Equity
- A swap of property, such as real estate or a car, as part of a down payment for other real estate.
- Trade-in Value
- The amount that the dealership will credit you for the vehicle you provide as partial or full payment for another vehicle. Amount credited is frequently about 5 percent below the wholesale value of the vehicle.
- Trading Down
- Selling a more-expensive house to buy a less-expensive dwelling.
- Trading Up
- Selling a house to buy a more-expensive house.
- Trans Union
- One of the major credit bureau companies in Canada along with Equifax.
- Transaction
- Action in a bank account. It may be a deposit, withdrawal, debit card payment, service charge or interest payment.
- Transaction Date
- The date that goods or services were purchased or the date the cash advance was made.
- Travellers' Cheques
- These are a safe way to carry large amounts of money if you are going on a trip. They are considered to be the same as cash, but can be replaced if they are lost or stolen. You can buy them at your bank for a small fee. If you have a special service package, you may not have to pay this fee.
- Treasury Bills (T-Bills)
- Short-term government obligations that are payable to the bearer and sold on a discount basis; the difference between a T-bill's market or discounted price and its face or redemption value is effectively interest if the T-bill is held to maturity.
- Trust
- A fund established like a will, specifying how money or property will be disbursed, lists the recipients or beneficiaries and names one or more trustees to manage the assets. An irrevocable trust can't be changed after the terms are finalized; a revocable trust has more legroom in how much can be transferred, but is usually costlier to maintain.
- Trust Account
- An account used by a law firm or real estate agent to handle earnest money, funds set aside for repairs and other money that the buyer and seller put up before closing.
- Trustee
- A person who holds and manages assets for the benefit of beneficiaries.
