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Real Estate
Dictionary
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by - Gulf Beach Realty Inc.
Find the
meaning of all the key terms used in Real Estate Vocabulary. Click on the corresponding
letter to find the word, which are all listed in alphabetical order.
We hope this service helps you further.
Select the
Letter that Correspond to the word
R VALUE:
A method of measuring the insulation capabilities of
materials.
RADON:
A radioactive gas which may cause health problems for
occupants of some buildings.
RANCH HOUSE:
A description of a one-storey house, developed from
the old, western-style homes.
RANGE LINES:
From Government Surveying Method, lines which run
parallel to the principal meridian six mile apart to create "ranges" of land.
RATE CAP:
A limit of how much an interest rate
can change in a variable of adjustable
rate mortgage either in a given period or over the life of the loan.
RATE COMMITMENT:
A written promise by a lender to lend money to a
borrower at a stated rate of interest -- usually time limited.
RATE LOCK-IN:
See "rate commitment". A written agreement in which
the lender guarantees the borrower a specified interest rate, provided the loan
closes within a set period of time.
RATIFIED SALES CONTRACT:
A firm and binding agreement for the
purchase and sale of land.
RAW LAND:
Property that has not been developed or improved.
READY, WILLING, AND ABLE:
A term of art meaning in a position to
complete a contract. In order to enforce a contract against another party, you
must be ready, willing and able to complete the contract yourself.
REAL ESTATE:
Term for land and all fixtures
to land, including buildings and other improvements.
REAL ESTATE AGENT:
A trained professional involved in the purchase,
sale and marketing of real property. The "listing agent" acts for the vendor,
the "selling agent" for the successful purchaser.
REAL ESTATE BROKER:
A real estate professional who is licensed to
run a real estate firm, to hold trust funds, etc.
REAL ESTATE COMMISSION:
1. The fee paid to the real estate agents
after a transaction.
2. An agency that enforces real estate license laws.
REAL ESTATE EDUCATORS ASSOCIATION:
An organization of
post-secondary teachers of real estate courses.
REAL ESTATE MARKET:
A term for the pool of potential buyers and
sellers of property at a given time.
REAL ESTATE SALES PROFESSIONAL:
See "real estate agent" or "real
estate broker".
REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA):
Statute requiring
lenders to provide advance notice to borrowers of fees and charges to be paid at
closing.
REAL PROPERTY:
Also known as "real estate". Land, property, plus
improvements to land.
REALTOR:
Professional designation for a member of the National
Association of REALTORS or its affiliated local groups. Must be a real estate
broker.
REALTOR'S ASSOCIATE:
Professional designation of a licensed real
estate agent or salesperson who is a member of the National Association of
Realtors but who has not been licensed as a broker.
REALTY:
See "real
estate".
REAPPRAISAL LEASE:
A rental agreement
in which the periodic payment is adjustable according to scheduled re-appraisals
of the rental value of the premises.
REASSESSMENT:
A change in the estimated value of a property for
realty, municipal or ad valorem tax purposes.
REBATE:
Any refund of all or a portion of money paid.
RECAST PAYMENT:
Adjustment of the periodic payment on an adjustable
or variable
rate mortgage to ensure that the mortgage will be paid out by maturity date.
RECASTING:
Adjusting the terms of a loan agreement in light of new
developments (i.e. lower rates, possible default).
RESCISSION OF CONTRACT:
The act of declaring a contract null and
void and taking the necessary actions to return the parties to the position they
were in prior to entering the contract.
RECITAL:
An unsworn statement of fact included in a document. In
many jurisdictions, recitals in registered documents are deemed true and
unassailable if unchallenged after a certain period of time.
RECONVEYANCE:
The return of title to property to its original
owner. May occur as a result of the pay-out of a mortgage or at the end of a
limited estate.
RECORDING:
The act of entering title instruments in the public
records, thus giving notice to any interested parties of the existence of the
instrument.
RECORDING FEES:
The fees paid to have an instrument recorded in the
public record.
RECOURSE:
The right of a lender to pursue a borrower personally for
moneys owed.
RECOVERY FUND:
A pool of money made up of contributions from
licensed brokers used to compensate members of the public with claims against
brokers.
RECTANGULAR SURVEY:
See "government
rectangular survey method".
REDEEM:
To bring mortgage payments up-to-date after the lender has
begun default proceedings. Once a borrower (or other lien holder) redeems, the
mortgage is back in good standing and the relationship continues as before the
default.
REDEMPTION PERIOD:
The length of time during which the borrower may
redeem a mortgage.
REDEVELOP:
To remove existing improvements and buildings on a
parcel of property and replace them with new, more useful and profitable
improvements.
REDLINING:
An illegal practice, refusing to lend money to owners of
property in certain neighborhoods or to owners on the basis of their race,
color, religion, creed, age, gender, etc.
REDUCTION CERTIFICATE:
A mortgage statement setting out the amount
owing on the loan as of a given date. May be used for discharges or assumptions.
REEVALUATION LEASE:
See "reappraisal
lease".
REFERRAL:
A recommendation, a suggestion to a client of the value
of the services of a person or firm. (i.e. a real estate agent may refer a
purchaser to a particular banker or lawyer.)
REFINANCE:
To replace an existing and perhaps mature mortgage with
a new mortgage on the same property. New mortgage may have different terms than
the old one.
REGENCY HOUSE:
A two-storey or three-storey house in a traditional
English style of the Regency Period, symmetrical in construction with a hip
roof. May have a small, eight-sided window above the front door.
REGISTRAR:
The person who has the task of collecting, recording,
and maintaining instruments related to title of land. May also have
responsibility of ruling on the acceptability of documents submitted for
registration and for making decisions as to how to correct title defects.
REGISTRATION:
The submission for recording in the public records of
instruments relating to title in land. Each jurisdiction may have specific
requirements as to documents which will be accepted for registration; once
registered, documents will be given a registration number and recorded on the
title abstract index for the property to which the apply.
REGULATION Z:
A federal rule which requires lenders to provide
borrowers with full disclosure of the terms of a loan.
REHABILITATE:
To restore, refurbish, bring back to original
condition.
REHABILITATION TAX CREDIT:
A tax provision allowing a tax credit of
up to 20% for the refurbishing of historic properties.
RE-ISSUE RATE:
A reduction in the fee for title insurance on a
property which was previously title insured.
RELEASE CLAUSE:
A term of a mortgage which allows the borrower to
pay out the loan and have the mortgage removed from title.
RELEASE OF LIEN:
A document which, once registered, removes certain
kinds of claims from title to property.
RELICTION:
The gradual migration of a body of water such that
additional dry land is left behind.
RELOCATION CLAUSE:
A term in a lease which allows the landlord to
move the tenant to a new unit, within the same building or elsewhere.
RELOCATION NETWORK:
An organization of real estate professionals in
a number of different areas specifically designed to allow information to be
shared to allow easier movement of clients from one area to another.
RELOCATION SERVICE:
A firm that specializes in helping employees
who are transferred by their employer to a new area take care of the move.
REMAINDER:
An interest in property that only arises once another
interest ends.
REMODEL:
To refurbish, redesign, redecorate.
RENEWAL OPTION:
A right which arises out of a term in a contract
and takes effect at or near the termination date of a contract; the party who
enjoys the right may choose to continue the agreement on terms as set out in the
option clause or to treat the contract as at an end upon the termination date.
RENOVATE:
Similar to remodel, with an emphasis on upgrading the
existing property.
RENT:
1. Verb -- to lease premises from the owner or a
representative of the owner.
2. Noun -- the periodic payments made by a
tenant to the landlord for the right to occupy the
premises.
RENT-BACK:
A real estate transaction in
which the buyer rents or leases the property back to the seller for a specific
period of time. Also called sale-leaseback.
RENT CONTROL:
Government initiative to control raises in the amount
charged for the lease by tenants of residential premises.
RENT-FREE PERIOD:
An inducement to enter a lease, a specified
number of months at the beginning of the lease in which the tenant is not
required to pay the periodic rental payments.
RENTABLE AREA:
See "net
leasable area".
RENTAL RATE:
The amount charged for the occupation of a property.
REPAYMENT PLAN:
A schedule arranged between a lender and borrower
to set out how a debt is to be paid out.
REPLACEMENT COST:
An insurance term, the total cost of erecting a
new home or building which adequately takes the place of the existing one.
REPORT:
A document sent by a lawyer to a bank certifying that title
to the subject property is clear and marketable.
REPORTING LETTER:
A letter sent by a lawyer to a client after a
transaction is completed (or when sent during the process of the transaction,
called "interim reporting letter") in which the lawyer certifies title to the
property and informs the client of all other matters relating to the
transaction.
REPRODUCTION COST:
The cost of making an exact duplicate of a
property.
REQUIRED CASH:
Collective term for the total sum of money required
to complete a transaction, including purchase price, taxes, legal fees, mortgage
fees, etc.
RESCIND:
To treat a contract as being at an end, to withdraw one's
offer or acceptance of an agreement.
RESCISSION:
The act of treating a contract as being at an end as a
result of the failure, breach or misconduct of another party.
RESERVE FUND:
A pool of money held for use for future
contingencies, usually in the management of a building, condominium corporation
or cooperative unit.
RESERVE PRICE:
The amount set prior to an auction which must be met
in the bidding for a particular item before the item will be sold. Also known as
"reserve bid".
RESIDENCE:
The dwelling in which a person lives, may also refer to
the country or state where a person lives.
RESIDENTIAL BROKER:
A real estate professional who deals in
dwelling properties.
RESIDENTIAL PROPERTY:
Real estate that is occupied by the owner.
RESIDENTIAL SERVICE CONTRACT:
A warranty or insurance contract
which covers services such as electrical, plumbing etc. in a resale home.
REISSUE RATE:
See "re-insurance
rate".
RESTORE:
To refurbish a building or other asset to its original
condition.
RESTRAINT ON ALIENATION:
Any limit on the ability of an owner to
sell or transfer property.
RESTRICTION:
Any limit or control on the owner's ability to use the
property. May be contained in a deed and be binding on the land and future
owners of it.
RESTRICTIVE COVENANT:
See "restriction".
RETIRE (A DEBT):
To fulfill one's obligations under a loan or
mortgage so that the lender has no further claims against the borrower.
REVERSE ANNUITY MORTGAGE (RAM):
A type of mortgage where the equity
in the home serves as security for periodic payments made by the lender to the
borrower. Mortgage is generally paid out upon the sale of the property.
REVERSE LEVERAGE:
A term for the situation where the income from
ownership of property is lower than the rate of interest paid to finance the
ownership.
REVERSION:
The return of a property to the original grantor upon
the occurrence of an event specified in the grant.
REVERSIONARY INTEREST:
The legal right to a property of a person
under a reversion clause.
REVERSIONARY VALUE:
The value of the property at the time of
reversion.
REVOCATION:
Taking back, recalling. One might revoke a power of
attorney or a consent given.
REZONING:
The amendment of the classification of a property under
use and building by-laws or ordinances. A property may rezoned from industrial
to residential to allow a warehouse to be converted into condominiums.
RIDER:
A document which contains additional or amending clauses to
a contract.
RIGHT OF FIRST REFUSAL:
The ability to make an offer for a property
before the owner puts it up for sale on the open market.
RIGHT OF REDEMPTION:
See "equity
of redemption".
RIGHT OF SURVIVORSHIP:
The legal term for the right of a surviving
joint tenant to take title to a property alone upon the death of the other joint
tenant.
RIGHT TO RESCISSION:
Being legally entitled to treat a contract as
being at an end.
RIGHT-OF-WAY:
A form of easement, the legal entitlement to pass
over a portion of the land of another.
RIPARIAN OWNER:
A person who has title to land bordering on a body
of water.
RIPARIAN RIGHTS:
The rights of an owner of land bordering a body of
water to use or control that body of water or a part thereof.
ROD:
160 feet measured in a line, a unit of measurement.
ROLLOVER LOAN:
A loan where the
amortization
period is much longer than the term and the borrower is allowed to refinance at
the end of the term at the interest rate then applicable.
ROOT DEED:
The first conveyance in a chain of title. If a
jurisdiction has legislation which cures any title defects that are older than a
certain number of years, the root deed will be the first deed beyond that
period.
ROOT OF TITLE:
Any defect in ownership of property which throws
into question the very basic issue of who actually owns the property. An
unresolved problem going to the root of title is grounds for rescission of the
Agreement of Purchase and Sale no matter when it is discovered before closing.
ROW HOUSE:
A dwelling that is attached to its neighbors by way of
common walls.
RULE OF 72'S:
To calculate the number of years it will take to
double money while earning compound interest, divide the interest rate into 72.
Money invested at 10 percent compound interest will take 7.2 years to double.
RUN WITH THE LAND:
A legal term which suggests that a rule,
restriction, right or obligation forms part of the land itself and is
transferred to each new owner along with the land.
RURAL:
A term to describe something which is not of an urban
center.
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