Real Estate Dictionary Terms - R

Radiant Heating

A method of heating, usually consisting of coils or pipes placed in the floor, wall, or ceiling.



Rafter

One of a series of boards of a roof designed to support roof loads.



Range

A strip of land six miles wide, determined by a government survey, running in a north-south direction. A strip of land six miles wide, extending north and south and numbered east and west according to its distance from the principal meridian in the rectangular (government) survey system of legal description.



Rate Cap

The limit on the amount the interest rate can be increased at each adjustment period in an adjustable-rate loan. The cap may also set the maximum interest rate that can be charged during the life of the loan.



Rate Lock

A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time at a specific cost.



Ratification

The adoption or approval of an act performed on behalf of a person without previous authorization. Approval and confirmation of a prior act performed on one's behalf by another person without previous authority. Method of creating an agency relationship in which the principal accepts the conduct of someone who acted without prior authorization as the principal's agent.



Ready, Willing And Able Buyer

One who is prepared to buy property on the seller's terms and is ready to take positive steps to consummate the transaction. A purchaser of property, who is willing to buy on terms acceptable to the seller, and who further possesses the financial ability to consummate the sale. Producing such a buyer sometimes earns the broker a commission, even though a sale is not forthcoming.



Real Estate Licensee

Can be a good source to find first trust deeds that can be purchased at a discount.



Real Estate Agent

A person licensed to negotiate and transact the sale of real estate.



Real Estate Board

An organization whose members consist primarily of real estate brokers and salespersons.



Real Estate Investment Syndicate

See syndicate



Real Estate Investment Trust (REIT)

A specialized form of holding title to property that enables investors to pool their resources and purchase property, while still receiving considerable tax advantages, without being taxed as a corporation. Also known as REIT. Trust ownership of real estate by a group of individuals who purchase certificates of ownership in the trust, which in turn invests the money in real property and distributes the profits back to the investors free of corporate income tax.



Real Estate Land

A portion of the earth's surface extending downward to the center of the earth and upward infinitely into space, including all things permanently attached to it, whether naturally or artificially.



Real Estate License Law

State law enacted to protect the public from fraud, dishonesty and incompetence in the purchase and sale of real estate.



Real Estate Mortgage Investment Conduit (Remic)

A tax entity that issues multiple classes of investor interests (securities) backed by a pool of mortgages.



Real Estate Recovery Fund

A fund established in some states from real estate license revenues to cover claims of aggrieved parties who have suffered monetary damage through the actions of a real estate licensee.



Real Estate Settlement Procedures Act (RESPA)

A consumer protection law that requires lenders to give borrowers advance notice of closing costs. The federal law that requires certain disclosures to consumers about mortgage loan settlements. The law also prohibits the payment or receipt of kickbacks and certain kinds of referral fees.



Real Estate Trust

A special arrangement under federal and state law whereby investors may pool funds for investments in real estate and mortgages and yet escape corporation taxes.



Real Property

Land and appurtenances, including anything of a permanent nature such as structures, trees, minerals, and the interest, benefits, and inherent rights thereof. Land and anything affixed, incidental, or appurtenant to it, and anything considered immovable under the law. Land, buildings, and other immovable property permanently attached thereto. The interests, benefits and rights inherent in real estate ownership.



REALTOR®

A real estate broker holding active membership in a real estate board affiliated with the National Association of Realtors. A real estate agent, broker or an associate who holds active membership in a local real estate board that is affiliated with the National Association of Realtors. A registered trademark term reserved for the sole use of active members of local REALTOR(r) boards affiliated with the National Association of REALTORS®.



Rebuttable Presumption

A presumption that is not conclusive and that may be contradicted by evidence. A persumption that applies unless proven inapplicable by the introduction of contradictory evidence.



Recapture

The rate of interest necessary to provide for the return of an investment. A provision in tax laws that reduces certain benefits from claiming depreciation.



Receiver

A neutral third party, appointed by the court to collect the rents and profits from property, and distribute them as ordered by the court. Often used as a remedy when mere damages are inadequate.



Reconciliation

The final step in the appraisal process, in which the appraiser combines the estimates of value received from the sales comparison, cost and income approaches to arrive at a final estimate of market value for the subject property.



Reconveyance

A conveyance to the landowner of the legal title held by a trustee under a deed of trust. The transfer of property back from a lender who holds an interest as security for the payment?of a debt. In a deed of trust, the beneficiary reconveys property upon satisfaction of the promissory note.



Reconveyance Deed

A deed used by a trustee under a deed of trust to return title to the trustor.



Recordation

Filing of instruments for record in the office of the county recorder. The act of having a document filed for record in the county recorder's office. Once recorded, the instrument gives constructive notice to the world.



Recorder

The public official who keeps records of transactions that affect real property in the area. Sometimes known as a "Registrar of Deeds" or "County Clerk."



Recording

The noting in the registrar’s office of the details of a properly executed legal document, such as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgage, thereby making it a part of the public record. The act of entering or recording documents affecting or conveying interests in real estate in the recorder's office established in each county. Until it is recorded, a deed or mortgage ordinarily is not effective against subsequent purchasers or mortgagees.



Rectangular (Government) Survey System

A system established in 1785 by the federal government, providing for surveying and describing land by reference to principal meridians and base lines.



Redemption

Buying back one's property after a judicial sale. The repurchasing of one's property after a judicial sale. The right of a defaulted property owner to recover his or her property by curing the default.



Redemption Period

A period of time established by state law during which a property owner has the right to redeem his or her real estate from a foreclosure or tax sale by paying the sales price, interest and costs. Many states do not have mortgage redemption laws.



Redlining

The illegal practice of a lending institution denying loans or restricting their number for certain areas of a community.



Reduction Certificate (Payoff Statement)

The document signed by a lender indicating the amount required to pay a loan balance in full and satisfy the debt; used in the settlement process to protect both the seller's and the buyer's interests.



Refinance Transaction

The process of paying off one loan with the proceeds from a new loan using the same property as security.



Reformation

A legal action to correct a mistake in a deed or other document.



Regression

An appraisal principle that states that, between dissimilar properties, the value of the better quality property is affected adversely by the presence of the lesser-quality property.



Regulation Z

Implements the Truth-in-Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit.



Reinstatement

A right available to anyone under an accelerated promissory note secured by a deed of trust or mortgage on property. If a deed of trust is foreclosed by trustee's sale, the debtor may have up to three months from the recording of the notice of default to pay the amount in arrears plus interest and costs, thereby completely curing the default (reinstating) without penalty.



Rejection

Refusal to accept an offer. Repudiation of an offer automatically terminates the offer.



Release

To give up or abandon a right. The release of rights may be voluntary, as when one voluntarily discharges an obligation under a contract. The release may be involuntary, by operation of the law; for example, one's wrongful conduct may bar him from asserting his rights. In deeds of trust a partial release clause frees certain property from the security of the deed of trust upon the payment of specified sums of money.



Release Clause

A stipulation in a deed of trust or mortgage that upon the payment of a specific sum of money to the holder of the deed of trust or mortgage, a particular lot or area shall be removed from the blanket lien on the whole area involved.



Release Deed

A document, also known as a deed of reconveyance, that transfers all rights given a trustee under a deed of trust loan back to the grantor after the loan has been fully repaid.



Reliction

The gradual lowering of water from the usual watermark.



Remainder

An estate that vests after the termination of the prior estate, such as after a life estate. Example: A life estate may be granted to Adams, with the remainder granted to Baker. Most commonly, an estate (future interest) that arises in favor of a third person after a life estate.



Remainder Interest

The remnant of an estate that has been conveyed to take effect and be enjoyed after the termination of a prior estate, such as when an owner conveys a life estate to one party and the remainder to another.



Remaining Balance

The amount of principal that has not yet been repaid. See principal balance.



Remaining Term

The original amortization term minus the number of payments that have been applied.



Remand

To send back to a lower court for further action.



Remedy

The means by which a right is enforced, preserved, or compensated. Some of the more common remedies are damages, injunctions, rescission, and specific performance.



Rent

The consideration paid by a tenant for possession of property under a lease. A fixed, periodic payment made by a tenant of a property to the owner for possession and use, usually by prior agreement of the parties.



Rent Loss Insurance

Insurance that protects a landlord against loss of rent or rental value due to fire or other casualty that renders the leased premises unavailable for use and as a result of which the tenant is excused from paying rent.



Rent Schedule

A statement of proposed rental rates, determined by the owner or the property manager or both, based on a building's estimated expenses, market supply and demand and the owner's long-range goals for the property.



Rental Property

Renting property to the first person that comes along can be a costly mistake. Rental income from a smaller property may show a higher rate of profit than from a more expensive property.



Renunciation

Is the cancellation of an agency relationship by the real estate agent requires written notice to the principal.



Repayment Plan

An arrangement made to repay delinquent installments or advances.



Replacement Cost

The construction cost at current prices of a property that is not necessarily an exact duplicate of the subject property but serves the same purpose or function as the original.



Replacement Reserve Fund

A fund set aside for replacement of common property in a condominium, PUD, or cooperative project -- particularly that which has a short life expectancy, such as carpeting, furniture, etc.



Reproduction Cost

The construction cost at current prices of an exact duplicate of the subject property.



Rescission

The unmaking of a contract, and the restoring of each party to the same position each held before the contract arose.



Rescission Of Contract

The canceling of a contract by either mutual consent of the parties or legal action.



Reservation

A right or interest retained by a grantor when conveying property; also called an exception.



Residue

That portion of a person's estate that has not been specifically devised.



Resolution Trust Corporation

The organization created by FIRREA to liquidate the assets of failed savings and loan associations.



RESPA

Prohibits the giving and receiving of of kickbacks and unearned fees.



Respondeat Superior

This Latin phrase, "let the master answer," means that an employer is liable for the tortious acts of an employee, and a principal is liable for the acts of an agent. To be liable, the acts must be within the "course and scope" of the agency or employment. For example, an employer would not be liable for the acts of an employee while at home and not doing work for the employer.



Respondent

The person against whom an appeal is taken; the opposite of an appellant.



Restriction
A limitation on the use of real property arising from a contract or a recorded instrument. An encumbrance on property that limits the use of it; usually a covenant or condition.



Restrictive Covenants

A clause in a deed that limits the way the real estate ownership may be used.



Retaliatory Eviction

A landlord's attempt to evict a tenant from a lease because the tenant has used the remedies available under the warranty of habitability.



Reverse-Annuity Mortgage (Ram)

A loan under which the homeowner receives monthly payments based on his or her accumulated equity rather than a lump sum. The loan must be repaid at a prearranged date or upon the death of the owner or the sale of the property.



Reversion

The right a grantor keeps when he or she grants someone an estate that will or may end in the future. Examples: The interest remaining with a landlord after he or she grants a lease, or the interest an owner of land has after he or she grants someone a life estate. Any future interest (estate) left in the grantor. The residue of an estate left in the grantor after the termination of a lesser estate.



Reversionary Interest

The remnant of an estate that the grantor holds after granting a life estate to another person.



Reversionary Right

The return of the rights of possession and quiet enjoyment to the lessor at the expiration of a lease.



Revocation

Withdrawal of an offer or other right, thereby voiding and destroying that offer or right. It is a recall with intent to rescind.



Revolving Debt

A credit arrangement, such as a credit card, that allows a customer to borrow against a preapproved line of credit when purchasing goods and services. The borrower is billed for the amount that is actually borrowed plus any interest due.



Ridge

The horizontal line at the junction of the top edges of two sloping roof surfaces. (The rafters at both slopes are nailed at the ridge.)



Ridge Board

The board placed on edge at the ridge of the roof to support the upper ends of the rafters; also called roof tree, ridge piece, ridge plate, or ridgepole.



Right Of First Refusal

A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he or she offers it for sale or lease to others.



Right Of First Refusal

Clause in a lease which gives the lesee (tenant) the right to purchase the rented property if during the term of the lease the lessor (landlord) receives an offer to purchase from a buyer. Usually the lessee must purchase on the terms and conditions of the buyer's offer.



Right Of Ingress Or Egress

The right to enter or leave designated premises.



Right Of Survivorship

In joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant. The right to acquire the interest of a deceased joint-owner. It is the distinguishing feature of a joint tenancy. See Joint Tenancy.



Right Of Way

The right to pass over a piece of real property or to have pipes, electrical lines, or the like go across it. An easement granting a person the right to pass across another's property. The right given by one landowner to another to pass over the land, construct a roadway or use as a pathway, without actually transferring ownership.



Riparian Rights

The right of a landowner with regard to a stream crossing or adjoining his or her property. An owner's rights in land that borders on or includes a stream, river or lake. These rights include access to and use of the water.



Riser

The upright board at the back of each step of a stairway. In heating, a riser is a duct slanted upward to carry hot air from the furnace to the room above.



Risk Management

Evaluation and selection of appropriate property and other insurance.



Rule Against Perpetuities

A complex set of laws designed to prevent excessive restrictions on the transferability of property. The rule holds that "no interest is good unless it must vest, if at all, not later than 21 years after some life in being at the creation of the interest."



Rules And Regulations

Real estate licensing authority orders that govern licensees' activities; they usually have the same force and effect as statutory law.



Rumford Act

Prohibits discrimination in employment and housing. Is enforced by the Department of Fair Employment and Housing.