APPLY
NOW / LOGIN
GLOSSARY
Traditional whole life policy
Traditional whole life policy is a life insurance agreement that doesn't expire. The policy ends when the insured dies and the agreed-upon payment is made to the insured's beneficiaries. Whole life policies build up cash value over time, which can be borrowed against or withdrawn by the insured. If the insured cancels the policy before death, he may receive a cash surrender value.
Transaction broker or agency
The company that works for both the buyer and seller but makes it clear that they are not in a fiduciary relationship with either side. The broker will be hired to help them reach an agreement. The Switzerland of real estate.
Transaction broker or transaction agency
Transaction broker, or transaction agency, is a real estate agent or firm that represents both buyer and seller in a real estate transaction. Neither buyer nor seller is represented by an agent that will pursue their best interests. Conflicts are sometimes resolved by bringing in an independent real estate professional.
Transaction date
Transaction date is the actual date that a sale was made, or an account action was taken. The transaction date may differ from the settlement date, which is the date on which the details of the transaction are recorded and finalized.
Transfer
Transfer is the switch of ownership rights to an asset from one party to another. A transfer can also be the movement of money from one account to another. Specific to IRAs, a transfer is the movement of assets from one retirement plan to another, where such movement qualifies as a tax-free, non-reportable incident.
Transfer of risk
Transfer of risk is a basic premise of insurance. The arrangement between an insured and insurance provider is always transfer of risk, because the insurance provider accepts financial responsibility for losses associated with certain events, should those events occur. The insurance company accepts a fee or premium for accepting the risk transfer.
Transfer on death - TOD
Transfer on death, or TOD, is a designation that can be placed on securities positions or accounts that keeps these assets out of probate when the owner dies. If the owner designated a TOD beneficiary, the securities will be immediately transferred to that beneficiary upon death. There's no change in the owner's rights to the assets while the owner is alive.
Transfer tax
A tax issued on the transfer of title in a real estate transaction.
TransUnion
One of the three largest credit reporting agencies along with Experian and Equifax.
Treasury bill or Treasury note
Treasury bill, or Treasury note, is short-term debt security that's issued and backed by the U.S. government. Treasury bills are sold at a discount, so that the value of the bond increases as the maturity date approaches. Investors realize yield by purchasing the bond at a discount, and then selling it for a higher price at a later date.
Treasury index
A grouping of indexes that are used to determine the interest rate changes on adjustable rate mortgages.
Treasury note or bill
A US government debt with a maturity from one to ten years. Expressed as a note.
Triple net lease
Triple net lease is a lease that assigns responsibility for taxes, insurance, and maintenance costs to the lessee rather than the property owner. Triple net leases are sometimes called net-net-net leases, or hell or high water leases.
Trojan horse
A Trojan horse is a malicious software program that's disguised as being legitimate, so that users inadvertently open the program and run it. Trojans are used by hackers to gain unauthorized access to other computers and files.
Trust
Similar to a will. A relationship where a person transfers valuables or assets to a trustee who manages this property for the benefit of the beneficiary.