Tax Rate

The ratio of a tax assessment in regard to the amount being taxed.
Example: The tax rate for a certain community is $3.00 per $100 of assessed value. ABC Company's property is valued at $300,000. ABC pays a yearly tax of $9,000.

3.00 x 300,000 = $9,000

Tenant Improvements (TI)

Improvements or renovations made to leased premises according to the Tenant's requirements. The cost responsibilities are defined in the Lease.

Time is of the essence

A clause in a contract that requires punctual performance by both parties. The non-performing party breaches the Contract.

Title Defect

A title problem which "clouds" the property's title. It can be a person or entity who had interest in the property and never surrendered it, a Lien, or any other claim that prevents marketable title.
Example: A title defect was discovered on the property Baker is selling. The property was previously owned by Baker's parents and a Deed had never been signed over to Baker.

Title Search

A review of all public records to identify Liens, encumbrances and ownership rights, with regard to a property.
Example: To ensure clear title to the property being purchased by ABC Company, it orders a Title Search. Once a clear title is confirmed, ABC is issued title insurance by the title company.

Transaction Costs

The costs incurred during the sale and purchase of property, such as title search, appraisal fees, and brokerage commission.

Transfer Tax

Government tax paid when transferring title from the Seller to the Buyer.

Triple-Net Lease

Rent stipulated in a Lease which requires the Tenant to pay its proportionate share of real estate taxes, insurance and operating expenses. In the real estate industry, the terms Triple Net and Net are often used with the same meaning.