Dictionary of Terms - R

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Radon: A naturally occurring gas that is suspected of causing lung cancer.
Range Lines: In the rectangular survey system, a north-south line spaced six miles apart used to define a township.
Range: 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 maximum interest rate allowed on the monthly payment of an adjustable rate mortgage during an adjustment period.
Rate Lock: A lender's commitment to a borrower to guarantee (or "lock in") a specific interest rate for a limited amount of time.
Rate Of Interest: The rate on borrowed money; the lending or borrowing rate.
Rate-improvement Mortgage: A loan with a clause that entitles a borrower to a one-time interest rate cut without going through refinancing.
Ratification: 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.
Real Estate: Physical land and appurtenances, including structures affixed thereto.
Real Estate Broker: Any person, partnership, association or corporation that, for a compensation or valuable consideration, sells or offers for sale, buys or offers to buy, or negotiates the purchase, sale or exchange of real estate, or who leases or offers to lease, or rents or offers for rent any real estate or the improvement thereon for others. Such a broker must secure a state license. For a license to be issued to a firm, it is usually required that all active partners or officers be licensed real estate brokers.
Real Estate Investment Syndicate: See syndicate.
Real Estate Investment Trust (REIT): Trust which invests in real property and distributes profits back to the investors free of corporate income tax.
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 Salesperson: Any person who, for a compensation or valuable consideration, is employed either directly or indirectly by a real estate broker to sell or offer to sell, or to buy or offer to buy, or to negotiate the purchase, sale or exchange of real estate, or to lease, rent or offer for rent any real estate, or to negotiate leases thereof or improvements thereon. Such a salesperson must secure a state license.
Real Estate Settlement Procedures Act (RESPA): 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: Refers to land and improvements and the rights to own or use them. An identified parcel or tract of land, including improvements, if any (USPAP)
Real Estate: Land; a portion of the earth's surface extending downward to the center of the earth and upward into space including fixtures permanently attached thereto by nature or by man, anything incidental or appurtenant to land and anything immovable by law; freehold estate in land.
Real Property: The rights of ownership of real estate, often called the bundle of rights; for all practical purposes, synonymous with real estate.
Realizable Value: The net amount of cash expected to be derived from the sale of an asset.
REALTOR ™: A registered trademark term reserved for the sole use of active members of local REALTOR (tm) boards affiliated with the National Association of REALTORS(tm).
Realty: Refers to land and buildings and other improvements from a physical standpoint.
Recapture Rate: The percentage of a property's original cost that is returned to the owner as income during the remaining economic life of the investment.
Reconciliation: The final step in the appraisal process, in which the appraiser reconciles the estimates of value received from the sales comparison, cost and income capitalization approaches to arrive at a final estimate of market value for the subject property.
Reconstruction Of The Operating Statement: The process of eliminating the inapplicable expense items for appraisal purposes and adjusting the remaining valid expenses, if necessary.
Reconveyance Deed: A deed used by a trustee under a deed of trust to return title to the trustor.
Recorded Plat: A subdivision map filed in the county recorder's office that shows the location and boundaries (lot and block number) of individual parcels of land.
Recording Fee: A fee charged by real estate agents for conveying the sale of a piece of property into the public record.
Recording: 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.
Rectangular Survey System: A system established in 1785 by the federal government, which provides for the surveying and describing of land by reference to principal meridians and base lines; also called U.S government survey system and section and township system.
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.
Redemption: The right of a defaulted property owner to recover his or her property by curing the default.
Redlining: the illegal practice of a lending institution denying loans or restricting their number for certain areas of a community.
Redlining: The illegal practice of refusing to originate mortgage loans, or limiting their numbers, in certain neighborhoods upon the basis of race or ethnic composition.
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.
Refinancing: The process of replacing an older mortgage with a new mortgage.
Regional Multipliers: Adjustment factors by which standard cost figures can be multiplied to allow for regional price differences.
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: A federal code issued under the Truth in Lending Act that requires 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.
Release Deed: A documental so 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.
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.
Remainder: The remnant of an estate that has been conveyed to take effect and be enjoyed after the termination of a prior estate; for instance, when an owner conveys a life estate to one party and the remainder to another. (For the case in which the owner retains the residual estate, see reversion.)
Remainderman: The party designated to receive a remainder estate. There are two types: vested remainderman (one who is known and named) and contingent remainderman (one whose identity is not certain or who is to be selected).
Remaining Balance: The amount of unpaid principal on a home loan.
Remaining Economic Life (REL): The estimated time period during which operating income will be greater than operating expenses; the period during which improvements will continue to contribute to property value.
Remaining Term: The original loan term minus the number of payments made.
Renewal Option: Lease provision that allows the lessee to renew the lease for the same term or some other stated period, usually with a rent increase at a stated percentage or based on an index or other formula.
Rent Loss Method Of Depreciation: (See capitalized value method of depreciation.)
Rent Roll: a summary of the tenants for a real estate property. Most rent rolls include fields of data such as the name of the tenant, amount of rent, amount of space, suite number, lease start date, lease termination date and other income if applicable.
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.
Rent: 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.
Replacement: The substitution of a capital asset which has become exhausted or inadequate with one of fundamentally the same type or utility. If the cost of the substitution is greater than the value of the asset replaced, the difference is a betterment. Minor replacements are in the nature of repairs; that is, expenditures for articles or labor which do not increase the original value of that which is replaced.
Replacement Cost: The current construction cost of a building having exactly the same utility as the subject property.
Report: Any communication, written or oral, of an appraisal, review, or consulting service that is transmitted to the client upon completion of an assignment. (USPAP)
Reproduction Cost: The current construction cost of an exact duplicate of the subject building reserves for replacement. Allowances set up for replacement of building and equipment items that have a relatively short life expectancy.
Rescission: The practice of one party canceling or terminating a contract which has the effect of returning the parties to their original positions before the contract was made.
Reservation: A right reserved by a grantor in the sale or lease of a property. In a sale, the title of all property passes to the grantee, but the use may be reserved for the grantor.
Residual Value: In connection with a tangible asset, the term refers to the value of an asset after expiration of its normal useful life. Normally, salvage value represents the lower limit of residual value.
Residual: In appraising, the value remaining after all deductions have been made.
Resolution Trust Corporation (RTC): Federal agency created by the Financial Institutions Re-form, Recovery and Enforcement Act of 1989 to oversee management and liquidation of assets of failed savings and loan associations.
Resolution Trust Corporation: The organization created by the Financial Institutions Reform Recovery and Enforcement Act (FIRREA) to liquidate the assets of failed savings and loan associations.
RESPA: Real Estate Settlement Procedures Act. A federal law that deals with the procedures to be followed in a real estate closing; it is intended to make borrowers more knowledgeable about possible costs and charges.
Restrictions: Limitations upon the use or occupancy of real estate contained in a deed or in local ordinances pertaining to land use.
Restrictive Covenants: A clause in a deed that limits the way the real estate ownership may be used.
Retroactive Liability: Liability is not limited to the current owner but includes people who have owned the site in the past.
Reverse Mortgage: A special type of loan available to equity-rich, older home owners. Repayment is not necessary until the borrower sells the property. Many downsides exist to these loans.
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 upon the sale of the property.
Reversion: The remnant of an estate that the grantor (as opposed to a third party) holds after he or she has granted a limited estate such as a leasehold or life estate to another person and that will return or revert back to the grantor. (See also remainder.)
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.
Review Appraisal: The act or process of critically studying a report prepared by another.
Right Of Survivorship: See joint tenancy.
Right To Rescission: A provision in the federal Truth in Lending Act that allows borrowers to cancel certain kinds of loans within three (3) days of signing.
Right-of-way: The right that one has to travel over the land of another; an easement.
Riparian Rights: 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.
Riparian Rights: Rights of an owner of land that borders on or includes a stream, river, lake or sea. These rights include definition of (and limitations on) access to and use of the water, ownership of streambed, navigable water and uninterrupted flow and drainage. (See also accretion.)
Risk Management: Evaluation and selection of appropriate property and other insurance.
Risk Rate: (See interest rate.)
Rod: A measure of length, 16 1/2 feet.
Royalty: Compensation paid to an owner or other party maintaining an interest in property, the amount of which may be determined with reference to the income generated through the use of the property. Usually paid for the use of copyrighted or patented material or for the extraction of mineral properties.
Rules And Regulations: Real estate licensing authority orders that govern licensees' activities; they usually have the same force and effect as statutory law.

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