Page 44 - Home Buyers and Sellers Guide - Hawaii

Tenancy in Common: An estate or interest in land held Title Examination: To peruse and study the instruments in a Total Loan Costs: Fees the lender charges to make the
by two or more persons, each having equal rights of chain of title and to determine their effect and condition in
possession and enjoyment, but without any right of order to reach a conclusion as to the status of the title.
succession by survivorship between the owners.
Title Insurance Underwriter: An insurance company that
Tenant: Any person occupying real property with the issues insurance policies either to the public or to another
owner’s permission. insurer.
Testament: Another term for a will. Commonly referred to as Title Insurance: An agreement to indemnify the insured
“last will and testament.” against loss arising from a covered defect in title to a
particular parcel of real property, which is typically issued
Testate: The state or condition of leaving a will at death. “To to both the buyer to protect their property rights (through
die testate.” an owner’s title insurance policy), and the lender to
protect its lien rights (through a lender’s title insurance
Testator: A man who makes or has made a testament or will.
policy).
Testatrix: A woman who makes or has made a testament or Title Insurance Policy: A written contract of title insurance.
will.
Title Plant: The total facilities (records, equipment, fixtures,
Three-Day Review Period: For covered transactions under and personnel) required to function as a title insurance
the TILA-RESPA Integrated Disclosure (TRID) Rule the operation in some parts of the country. Technically, the
creditor is generally required to ensure that the consumer organization of official records affecting real property
(borrower) receives the Closing Disclosure no later than into a system, which allows quick and efficient recovery
three business days prior to the consummation of the of title information.
loan.
Title Search: An examination of public records, laws and
Title: (i) ownership of real property, which stands against court decisions to disclose the current facts regarding
the right of anyone else to claim the property; (ii) the ownership of real estate.
evidence of right which a person has to the ownership
and possession of land. Tolerances: See “Variances.”
Title Agent: See “Agent.” Torrens Title: A system whereby, after court proceedings,
a certificate is issued setting forth the extent of the
Title Defect: Any legal right held by others to claim property applicant’s estate in land, subject to the exceptions
or to make demands upon the owner.
shown.
Title Commitment: A report issued by a title insurance Total Interest Percentage (TIP): The total amount of interest
company or its agent, committing the title insurance that the consumer will pay over the life of the loan as
company to issue the form of policy designated in the a percentage of the principal of the loan, assuming the
commitment upon compliance with and satisfaction of consumer makes each monthly payment in full and on
requirements set forth in the commitment.
time, and does not make any overpayments.
41
W
loan, as well as fees paid to providers selected by the
lender and fees paid to providers chosen by the borrower. Walk-Through: Depending on the terms of the contract
Total Loan Costs are found under Section D of the Loan of sale or based on local custom, a walk-through or
Estimate. pre-settlement inspection may be scheduled prior to
settlement or closing of the transaction. The primary
Township: A division of territory approximately six miles purpose of this type of inspection is to make certain the
square, containing approximately 36 sections or 36 property is in the agreed-upon condition, repairs (if any)
square miles. from the home inspection are complete, and to confirm
that nothing has gone wrong with the property since the
Tract: A particular parcel of land.
buyer’s last viewing.
Trust: A property right held by one as a fiduciary for the Warranty: A limited promise by the grantor of real property
benefit of another.
that he or she is the owner and will be responsible to the
Trustee: A person holding property in trust as a fiduciary for buyer if title is other than as represented.
the benefit of another.
Will: A written document providing for the distribution of
V property owned by a person after his or her death.
Variable Rate Mortgage: A loan in which the interest rate Z
fluctuates with the cost of funds or some other index.
Zoning: The right of a municipality to regulate and
Variances: The comparison made between fees and/ determine the compatible character and use of property.
or charges listed on the Loan Estimate (or Good Faith
Estimate) and those listed on the final Closing Disclosure The terms contained in this booklet are defined in their
(or HUD-1). Not all fees are exposed to such scrutiny but most commonly used form. Should
for those that are the creditor/lender is held accountable more precise interpretations of these terms be
for the excessive charges. There are two levels of necessary, we advise you to seek the counsel
tolerance based on the type of fee. Variance may also be of an attorney.
referred to as Tolerance. contained in this booklet are defined in their most
Vendee: A purchaser of real property under land contract. commonly used form. Should
more precise interpretations of these terms be necessary,
Vendor: A seller of real property under land contract. we advise you to seek the counsel
Vest: To pass to a person an immediate right or interest. of an attorney.
Title may be said to vest in John Smith.
42