Commercial Glossary: T

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Tail: The back or second half to a payment stream or debt instrument.

Tangible Personal Property: Non-real estate personal property which includes, automobiles, boats and other assets.

Tax Free Exchange: Under certain IRS code, a business may transfer the gain of a sale onto another business property.

Tenancy By Entirety: A form of joint ownership and survivorship that is only available to a husband and a wife.

Tenancy in Common: This form of joint ownership does not allow a right to survivorship.

Tenant: An occupier of property through a rental or lease agreement.

Term: The period of time a debt transaction or repayment will take place.

Term Loan: A loan with a specified time or term for repayment.

Terminal Rental Adjustment Lease (TRAC Lease): This is a form of lease for motor vehicles or trailers that permits modification of the rent at the end of the lease.

Third Party Soft Costs: These are costs that are not directly related to the construction of a building but that are incurred during the construction of the building.

Time Value of Money: Concept and theory of how and why the value of money changes over time.

Title: The claim of ownership and right to possession of property or land.

Title Commitment: Commitment from an insurance issuer to give a title insurance policy upon closing after a title search has been performed.

Title Company: These companies insure titles to properties and also perform and participate in closings.

Title Policy: This is insurance on a title to property that protects against defects in a title.

Title Search: This is a search to see if a title is clear and the seller of the property is the legal owner and it is free of any liens and claims.

Treasuries: U.S. Department of the Treasury issued debt instruments that are backed by the full faith and credit of the U.S. Treasury.

Treasury Securities: They are used along with treasury bills as common indexes for adjustable rate mortgages.

Trial Balance Printout: Used for portfolio transactions, trial balance printouts show the balances and payment schedules for loans in a portfolio.

True Lease: Compliant with IRS true lease requirements in a tax-oriented lease.

Truth in Lending (TIL): Requires that lenders fully disclose all closing costs and fees in advance to borrowers.

Turnkey Financing: Financing the sell or purchase of a business that is setup in such a way that the buyer is able to start running the business just by getting the financing.

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