Your Online Legal Resource Center for Property Management

RADIANT HEATING - See hot water heating.

RADON - A ground-generated radioactive gas that seeps into some homes through sump pumps, cracks in the foundation and other inlets. A leading cause of lung cancer, radon is found in mostly the northern half of the country.

RAFTER RAFTERS - form the slope of a pitched roof and are analogous to floor joists.

RAMMED EARTH CONSTRUCTION - An alternative building process in which dirt is compacted into large structural frames to create walls.

RANCH - style Modern ranch-style homes, popularized in the 1950s, were championed by such architectural giants as Frank Lloyd Wright.

RATE - improvement mortgage A loan with a clause that entitles a borrower to a one-time cut in the interest rate without going through refinancing.

RATE OF RETURN - The amount of profit earned based on a percentage on investment made during one year.

RATE LOCK - When interest rates are volatile, many borrowers want to "lock in" an interest rate and many lenders will oblige, setting a limit on the amount of time the guaranteed interest rate is in effect.

RATIFICATION - Agreeing to an act after it has taken place in order to make it legal or give it authority, such as a minor ratifying a contract made prior to his becoming of legal age.

RAW LAND - Bare land without improvements.

READY, WILLING AND ABLE - Refers to the points in time when a broker's commission is considered earned; when he procured a buyer who is ready, willing and able to meet all of the seller's terms and price under the listing agreement.

REAL ESTATE - Land and anything permanently affixed to it, such as fences and structures, and any fixtures attached to those structures.

REAL ESTATE AGENT - A real estate agent has a state license to represent a buyer or a seller in a real estate transaction in exchange for a commission. Most agents work for real estate brokers.

REAL ESTATE ATTORNEY - Lawyers who specialize in real estate transactions.

REAL ESTATE BROKER - A real estate agent who is licensed by the state to represent a buyer or seller in a real estate transaction in exchange for a commission. Most brokers also have agents working for them, and are entitled to a portion of their commissions.

REAL ESTATE INVESTMENT TRUSTS - (REITs) The trusts are publicly traded companies that own, develop and operate commercial properties. An association of investors formed under a trust agreement, who derive 90% of income for the trust from real estate; 100 persons or less following income tax laws and federal regulations who form an asssociation for the purpose of real estate investment.

REAL ESTATE LICENSE - A license issued by a state to a qualified broker or salesperson who successfully completed tests for the same.

REAL ESTATE SECURITY - Stock owned by an investor in a real estate investment trust or corporation dealing in real estate investment trust or corporation dealing in real estate investment.

REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) - A federal law designed to make sellers and buyers aware of settlement fees and other transaction-related costs. RESPA also outlaws kickbacks in the real estate business.

REALIST - A designation for an agent or broker who is a member of the National Association of Real Estate Brokers.

REALTOR - A member of the Board of the National Association of Real Estate Boards.

REALTY - Real property.

REBATE - Part of a purchase price returned as reward for making the purchase or for prompt or early payment of a bill.

RECAPTURE - Money regained that was part of the original investment, upon the sale of the investment.

RECAPTURE CLAUSE - A lease agreement clause that established terms for repossession of property or provides for receiving part of the profit over and above a fixed rent amount.

RECAPTURE OF DEPRECIATION - Extra depreciation taken on investment property or provides for receiving part of the profit over and above a fixed amount.

RECASTING - Redoing an existing loan for a borrower owing backpayments in order to avoid default and foreclosure; the interest rate and term may be readjusted to lower payments.

RECEIPT - A written note or clause stating that something has been received , such as a receipt for a deposit of money.

RECIPROCITY - An agreement with another state whereby licensed attorneys and real estate brokers may legally conduct business in more than one state in exchange for the same privilege.

RECISION OF A CONTRACT - Withdrawing from a contract, as though one never existed.

RECISSION - The cancellation of a contract by law or consent by the parties involved.

RECONCILIATION - A balancing of different methods of appraisal to determine a final estimate of value for a property.

RECONVEYANCE - Releasing title to an original owner after clearing a debt under a mortgage or deed of trust.

RECONVEYANCE - When a borrower completely pays off the mortgage, the property is reconveyed to them from the lender.

RECORDER - a public official responsible for keeping the records of all real estate transactions.

RECORDING - The filing of a specific document to the appropriate government entity.

RECORDING - Placing on file in the public record of the county, documents which pertain to real property transfers, liens, etc.

RECORDING FEE - A fee charged by real estate agents for conveying the sale of a piece of property into the public record.

RECOURSE - Action against the borrower himself for repayment of a mortgage balance and not just against the property encumbered.

REDDENDUM - A clause in a deed, lease or other assignment instrument which reserves some right for the assignor.

REDEMPTION - The right of a defaulted prior owner to regain title to his property within a period of time after foreclosure upon payment of the mortgage balance and related expenses.

RED HERRING - A term for a security which has been filed with the state by not yet approved; a red stamp on the left margin states it may no be sold until registration is approved; hence the name red herring.

RED LINING - The practice of lenders refusing to loan on high risk properties in certain outlined inner city or core areas; illegal in some states.

REDLINING - The practice by a bank or insurance company to deny credit or insurance to people based on ethnic background or neighborhood.

REFERRAL - Recommeding to real estate associate the name of a friend or acquaintance who may be interested in selling or buying real estate.

REFINANCING - The process of replacing an older loan with a new mortgage with better terms.

REFINANCE - Increasing or adding to the original principal amount of a mortgage by the same borrower through the same or another lender.

REFORMATION - Changing a deed or a document to correct an error or fraud.

REGRESSION - The appraisal factor which determines that the value of a better quality property is affected by the location of nearby properties of lesser value.

REGISTRATOR OF DEEDS - The county official, usually called the recorder, who is responsible for real estate documents on public file.

REGULATION Z - The federal code issued under the Truth-in-Lending Act which requires that a borrower be advised in writing of all costs associated with the credit portion of a financial transaction.

REHABILITATION MORTGAGE - A mortgage that provides for the costs of repairing and improving a resale home or building.

REINSTATEMENT - Bringing a defaulted note or mortgage up-to-date by paying back-payments.

REINSURANCE - Apportioning liability amoung several insurers to lessen the risk.

REISSUE RATE - A reduced rate on title insurance that has recently been issued on the same property with a prior owner.

R.E.I.T. - See Real Estate Investment Trust.

RELATION -Back Doctrine - In the event of death of a grantor while a deed, documents and purchase money are in escrow, the prior date of singing the initial agreement to sell takes priority; the death of the grantor does not automatically terminate the transaction.

RELEASE - A recorded document which states that a lien or mortgage has been satisfied and the property is released from liability thereon.

RELEASE CLAUSE - When there are several parcels named in one mortgage, each may be singly released by prior agreement, upon payment of a specifed amount.

RELICTION - An addtion of land created by receding water of a lake, or other body of water.

RELIEF MAP - A map showing surface elevations.

RELOCATION BENEFITS - Benefits provided by employers for new workers and can include moving costs, reimbursement for temporary housing and transportation, real estate agent assistance and discounted loans.

RELOCATION COMPANY - A firm that administers all aspects of moving in new employees to the community.

REMAINDER ESTATE - An estate created simultaniously with another estate, but which does not take effect until terminaion of the other estate, such as the heir who receives an estate upon the death of a party who had a life estate interest.

REMAINING BALANCE - The amount of unpaid principal on a home loan.

REMAINING ECONOMIC LIFE - The balance of time remaining during which a structure is said to have economic worth as determined by appraisal; the full economic life of a wood structure is said to be 30 years and the balance remaining after 10 years would be 20.

REMAINING TERM - The original loan term minus the number of payments made.

REMISE - A term used in a quitclaim deed to terminate a prior interest.

REMNANT - A small usually irregular or landlocked parcel, left after the majority of a parcel has been used for the purpose taken, such as under eminent domain.

RENEGOTIATION CLAUSE - A clause found in a long term lease which calls for negotiating the rent after a period of time.

RENEWAL OPTION - A lessee's option stated in a lease which allows him or her to renew a lease agreement for another period of time at a renegotiated rental rate.

RENTABLE AREA - The amount of space in a commerial building which can actually be used as rented area excluding stairways, restrooms, halls, etc.

RENTAL AGENT - One who is paid a fee to find a residence for a renter, or a property for a tenant.

RENTAL POOL - A group of apartment units which may be rented out and whose owners share the income and expenses as a group rather than individually.

RENT CONTROLS - Restrictive legislation controlling maximum rental rates owners may charge on their available units.

RENTER'S INSURANCE - A policy that covers the replacement value of possessions.

RENT LOSS POLICY - A policy that covers any loss of rent or rental value in the event of fire or other damage that renders the property uninhabitable.

REPAYMENT PLAN - When a borrower falls behind in mortgage payments, many lenders will negotiate a repayment plan rather than go to court.

REPLACEMENT COST - An appraisal method for determining value by substituting a like property.

REPLACEMENT FUND- A pool of money contributed to by members of a homeowner's association in a condominium subdivision, planned unit development, etc., which provides for replacement of commonly owned property, such as the roof or exterior siding.

REPLACEMENT RESERVE FUND - Money that is set aside from homeowners' assessments to replace common property, such as furniture in a planned development's community room.

REPOSSESSION - When a house is repossessed, it is taken back by the lender holding the mortgage.

REPRODUCTION COST - The appraisal of property by estimating the cost to replace it.

RERECORDING - See Correction Deed.

RESALE VALUE - The future value of a piece of property that can be affected by many factors, including the surrounding neighborhood, school scores, and economic and housing market conditions.

RESERVE - An amount of money set aside to pay future expenses, such as property taxes, insurance, etc.

RESERVE FUND - All homeowners associations set aside a certain amount of money for major repairs or improvements.

RESIDENTIAL BUILDING RATE - The number of housing units began in one year, per 1000 population.

RESPA - Real Estate Settlement Procedures Act. Requires informing a borrower who will be obtaining a federally insured loan, of all costs involved.

RESPONDEAT SUPERIOR - The idea that a broker (principal) is responsible for the acts of others acting on his authority, such as a real estate agent.

RESTRAIN OF ALIENATION - Restrictions involving the resale of property.

RESTRUCTERED LOAN - A mortgage in which new terms are negotiated.

RESUBDIVISION - Changing a prior established subdivision.

RETAINING WALL - A barrier to retain earth.

RETALITATORY EVICTION - An eviction by a landlord against a tenant who has complained about poor maintenance or need repairs on an apartment or other rental unit; not legal in some states.

RETURN ON INVESTMENT - The amount of profit a property generates.

REVENUE STAMPS - A stamp on a conveying instrument which reflects a state tax on the sale of property.

REVERSE MORTGAGE - A special type of loan available to equity-rich, older owners

Repayment is not necessary until the borrower sells the property or moves into a retirement community

REVERSION - The right of cancellation of an agreement.

RIDGE BOARD - A horizontal board that serves as the apex of the roof structure.

RIDGE VENT - A vent located along the ridge board of the roof that allows moisture to escape.

RIGHT OF REFUSAL - An agreement by a property owner to give another person the right to buy or rent the property before it goes on the open market.

RIGHT OF REDEMPTION - See Redemption.

RIGHT OF SURVIVORSHIP - Under a joint tenancy deed, the right of the surviving tenant to the property of a deceased tenant.

RIGHT OF WAY - A right of entry and exit across land belonging to another through an easement granted under condemnation or by agreement.

RIGHT TO RECISSION - A provision in the federal Truth-in-Lending Act that allows borrowers to cancel certain kinds of loans within three days of signing.

RIPARIAN - Rights commonly attached to land which borders a river, stream or body of water, such as the right to use the water for boating, swimming, etc., and the right to claim the land deposited by alluvium.

RISK CAPITAL - Money invested as speculation that a property will increase in value.

RISK RATING - The process of rating by lenders, the ability of people and property to repay the amount of mortgage applied for to determine the amount of risk involved.

ROCK WOOL - Molten fiber insulation, made through application of steam to molten rock..

ROLL-OVER PAPER - Interim or bridge financing which may be turned in to long term financing after the short term not falls due.

ROOM COUNT - The determination of the number of rooms in a residence for sale, which usually excludes the bathrooms.

ROUGH-IN - The installation of plumbing, electrical and other mechanical systems.

ROW HOUSES - The forerunner of the condominium or townhouse where common walls are shared between owners of single units.

RUNNING WITH THE LAND - Attached to land and its transfer of ownership, such as an easement.

RURAL HOUSING SERVICE - A U.S. Department of Agriculture program that provides financing to farmers and certain borrowers to purchase rural property when other funds are not available.

R-VALUE - A construction term that refers to the resistance of to heat loss. The higher the R-value, the slower the rate of heat loss.