T

Tenements - Possessions that are permanent and fixed; structures attached to land.

Term - The amount of time (usually computed in months) until the balance of a mortgage or land contract is due and payable. For example, a land contract may fully amortize over a 10-year period (120 months). However, the contract may also call for a balloon payment to be made at the end of the fifth year (60th month). In this case, the term of the land contract would be 60 months or five years.

Title - Evidence that the owner of the land is in lawful possession thereof.

Title Insurance - A form of insurance purchased to protect against any losses or defects in the title of a particular piece of property.

Title Search - An examination of public records, law, and court decisions to disclose the past and current facts regarding ownership of real estate.

Township - A six-mile-square tract delineated by a government rectangular survey.

Trust Deed - A claim against real estate similar to a mortgage but title is held by a third party called a Trustee for the Beneficiary.

Trustee - One who holds property in trust for another to secure performance of an obligation.

U

Underlying Debt - An original loan that is still in existence. This loan may be owed on a mortgage, trust deed or land contract.

Use Restrictions - A clause in a deed which places limitations or restrictions on the property's use. For example, "this property can never be used to sell liquor" or "this property can never be used to raise farm animals." These limitations "run with the land" and are therefore binding on subsequent owners.

V

Vendee - A person who buys property; another word for "Purchaser."

Vendor - A person who transfers property by sale; another word for "Seller."

W

Warranties - Promises contained in a contract. For example, a Seller may warranty that a property sold is structurally sound.

Warranty Deed - A deed that conveys or transfers title from one party to another with covenants assuring that the title transferred is free from all encumbrances.

Waste - See "Commit Waste."

Y

Yield - The rate of return on an investment. For example, if one invests $100 and receives $15 after the first year, one's yield is 15% on the invested cash for the first year.