R | RISMedia

Race notice – The concept used in recordation of a property wherein the first party to register the property becomes the recognized owner.

Racial steering – The unlawful practice of influencing a minority person’s housing choice. See Steering.

Radiant heating – A method of heating that usually consists of coils or pipes placed in the floor, wall or ceiling.

Radiator – A configuration of typically cast iron metal tubes that are heated by steam or hot water from a boiler where heat is transferred by radiation through the air by convection to the room.

Radius – A straight line extending from the center of a circle or sphere to the edge and is equal to one half of the diameter.

Radius clause – An anchor tenant shopping center lease clause that prohibits it from opening another store within a certain distance – radius – which would reduce traffic to the existing store and also the shopping center.

Radon gas – An odorless, radioactive gas which is produced by the decay of other radioactive materials in rocks under the surface of the earth.

Rafters – The sloping wood components of a roof onto which the roofing material is attached.

Ranch style – A one-story home design usually without a basement and having a rambling layout.

Range – A north-south row of townships which is the 6-mile strip of land between meridians.

Range – A strip or column of land six-miles wide determined by a government survey that runs in a north-south direction and lies east or west of a principal meridian.

Range lines – A series of government survey lines running north and south at six-mile intervals starting with the principal meridian and forming the east and west boundaries of townships.

Rate – A percentage of interest charged by a lender on the loan’s principal.

Rate adjustment date – The date on which the borrower’s note rate may change in an adjustable rate mortgage.

Rate cap – 1. The limit on the amount the interest rate can he increased at each adjustment period in an adjustable-rate loan. 2. The maximum interest rate that can he charged during the life of the loan.

Rate Of Return, ROR – A rate expressed as a percentage that is arrived at by taking the annual net operating income generated by a property and dividing it by the capital invested.

Ratification – The after-the-fact approval or adoption of an act performed by one party without the prior authorization of another party but on his or her behalf.

Ratified – Approved after the fact.

Ratio – A numerical comparison of the degree of relationship between two things that is usually expressed as a fraction.

Raw land – A parcel of land that has had no improvements made to it such as streets, utilities, drainage, landscaping or structures.

Ready, willing and able buyer – A party who is fully prepared to enter into a contract and really wants to buy and clearly meets the financial requirements to do so.

Real estate – A term that generally narrowly refers to land with or without buildings or improvements. See more broadly Real property.

Real estate agent – A generic term pointing to a person licensed by a state who holds either a real estate broker or real estate salesperson license who assists people to buy, sell, rent or lease, manage, finance or value real estate in anticipation of compensation.

Real estate board – A former name of an organization whose members consist primarily of real estate brokers and salespersons which is currently known as an Association of Realtors.

Real estate broker – A person or other legally-licensed entity by a state holding a real estate broker license who assists people to buy, sell, rent or lease, manage, finance or value real estate in anticipation of compensation.

Real estate business – A form of business that deals in rights to land and its improvements.

Real estate commission – A state agency or department that enforces its real estate license laws.

Real estate commissioner – The head of a state’s Real Estate Department or Commisssion.

Real estate developing – The preparing of land for use for constructing buildings and other improvements and making completed properties available for sale.

Real estate financing – The channeling of monies into the production and use of real estate facilitating the production and use of real estate through borrowed or equity funds.

Real estate fund – The fund used for the operation of a state’s real estate department or commission that is funded by license fees and usually includes a recovery account of some type and sometimes funds for education and research.

Real estate investment corporation – A corporation that sells its securities to the public and continues to hold a special interest in the real estate as its builder or its developer.

Real estate investment syndicate – See Syndicate.

Real Estate Investment Trust, REIT – A business trust designed similar to an investment or a mutual fund for the purpose of allowing investors to channel funds into the real estate investment market and whose organization conforms to the Internal Revenue Code which permits pooled investments in real estate and mortgages without exposure to corporate income taxes.

Real estate law – The body of laws relating to real estate which generally evolved from the English common law but now include governmental regulations such as zoning, building codes, etc.

Real estate license law – The state law that regulates the practice of real estate brokers and salespersons.

Real estate market – All of the potential buyers and sellers for various real properties such as the housing market, office market, condominium market or land market who are all currently active and seeking the same type of real property.

Real estate market function – The process of placing real property and its related services into the hands of consumers.

Real estate marketing – The process of exposing real property and its related services like property management to the marketplace.

Real estate operator – A person engaged in the real estate business who acts for himself rather than as an licensee.

Real Estate Owned, REO – A term used for property acquired through lender foreclosure which is currently held in inventory.

Real estate recovery fund – A fund established in some states that is administered by the real estate commissioner to which licensees are required to contribute and the revenue is used to reimburse aggrieved persons who have suffered monetary harm through the fraudlent actions of a real estate licensee and who was unable to get reimbursed by the licensee.

Real estate salesperson – A person who holds a valid real estate salesperson’s license and who for compensation or anticipated compensation has contracted to work under a real estate broker to assist people to buy, sell, rent or lease, manage, finance or value real property on a full or part time basis.

Real Estate Settlement Procedures Act, RESPA – A federal law passed in 1975 requiring the disclosure to borrowers by means of a pamphlet and forms prescribed by the U.S. Department of Housing and Urban Development, HUD of the settlement, closing, procedures and costs.

Real Estate Settlement Statement – The final settlement statement often referred to as the HUD-1 form that is used to itemize the charges and credits for the buyer, seller, broker and lender at closing.

Real estate syndicate – See Syndicate.

Real estate tax – A money charge levied upon real property to fund local government and to provide public services such as public schools.

Real estate trust – A special arrangement under federal and state laws whereby investors may pool funds for investments in real estate and mortgages and be able to avoid corporate taxation by having the profits passed to individual investors who pay the taxes.

Real property – The land from the center of the earth and extending above the surface indefinitely including all natural attributes plus any man-made improvements of a permanent nature attached to it or erected on it but not including anything that may be severed from the it such as minerals, trees, buildings and appurtenant rights.

Real property sales contract – A term used in some states for an agreement having the intention to convey real property title upon the satisfaction of specified conditions and which does not require conveyance within one year of the formation of the contract. See Land contract.

Realized gain – An Internal Revenue Code term used to notice gain or profit earned from the sale of property but not taxable. See Recognized gain.

Realtist – A licensee who is affiliated with and a member of the National Association of Real Estate Brokers, Inc., NAREB.

REALTOR® – A licensee who is either a broker or a salesperson and is affiliated with and a member of a local, state and the National Association of REALTORS®, NAR.

REALTOR®-Associate – A licensed salesperson and not a broker who is a member of the National Association of REALTORS®, NAR.

Realty – The land and all fixtures permanently attached to it. See Real estate.

Reappraisal lease – A lease having a clause calling for periodic appraisals to establish the periodic reevaluation of rents.

Reassessment – The process of revising or updating the value estimate of property for ad valorem taxation purposes.

Recapture – A process by which an owner can recover money invested by engaging and using an interest rate that provides for the full return of an investment over the investment period. This should not be confused with the interest rate which the earnings on an investment.

Recapture of excess depreciation – The need to pay income taxes on taken depreciation that is in excess of the straight line depreciation permitted by the IRS.

Recapture rate – The rate of depreciation that needs to be taken to provide for a full return of an investment. See Recapture.

Receiver – A party appointed by a court to take control and possession of property that is in litigation and awaiting some type of final order by the court.

Receiver clause – A mortgage clause that prevents the evaporation of value of a secured asset which provides for the orderly appointment of a receiver to take charge and to rent and manage property abandoned by the mortgagor.

Recession – A general economic slowdown in the general business economy and/or a condition officially declared by the government after two consecutive quarters of reduced Gross Domestic Product.

Reciprocity – The mutual exchange of privileges between groups or states which in real estate would be the recognition of the license of one state in another which very few states do.

Reclamation – Any method used to bring natural resource waste back into productive use.

Recognized gain – The recognition by the IRS of the capital gain profit received upon the sale of an asset as now being taxable.

Reconciliation – The final step also know as correlation in the appraisal process by the appraiser involving the interpretation of the data derived from the cost approach, the market approach and the income approach leading to a final single determination of market value for the subject property.

Reconstructed operating statement – A standard accounting format that permits a comparison of operating revenue and expenses with similar properties.

Reconveyance – The instrument used to transfer of the title to land when it is held as collateral security for a debt from one party to the immediately-preceding equitable owner upon full payment of a trust deed. In a mortgage situation it is usually called a release. See release.

Reconveyance deed – A commonly used instrument executed by a trustee reconveying or returning the legal title to real estate secured by a trust deed back to the trustor, borrower, upon full payment of the debt.

Recordation – A system by which documents concerning title and other legal matters are collected in one convenient, public place, commonly the county recorder’s office and when properly recorded, constitute constructive notice as to their contents.

Recorder of deeds – The county government officer in charge of the office of land records who in some places is know as a registrar of deeds.

Recording – The process of placing a document affecting real property on file which usually requires witnessing and notarizing, to serve as public notice usually called constructive notice or legal notice, with the county recorder of deeds who proves the fact by placing a recording stamp on it indicating the time of day and the date when it was officially placed on file.

Recording acts – The laws providing for the recording instruments affecting title to be a matter of public record and further to preserve such evidence so it can serve as notice of existence and content.

Recording Fee – The charge made by a register of deeds to record a legal document.

Recourse – The right of a lender to a claim against the property and the borrower for nonpayment of the note.

Rectangle – Any four-sided plane figure that contains four right 90 degree angles.

Rectangular survey system – The survey system established in 1785 by the federal government of land description known for being adaptable to the measurement of extensive land territories by reference to principal meridians and base lines and for being of great accuracy. See United States Government Survey System.

Recurring costs – The expenses that a property owner can expect year after year such as property taxes and fire insurance.

Red flag – Anything that would warn a reasonably observant person of a potential problem that would require further investigation

Redeem – The act of buying back, repurchasing or recovering property lost through a judicial foreclosure sale.

Redemption – The regaining of title to real property after a judicial foreclosure sale.

Redemption period – A period of time established by law in mortgage states during which a property owner has the right to repurchase or recover his or her real property following a foreclosure or tax sale by paying the sales price, interest and costs.

Redevelopment – The process of clearance and reconstruction of blighted areas.

Redlining – An illegal lending policy of denying real estate loans on properties in specific older, changing urban geographical areas usually with large minority populations because of assumed higher lending risks without due consideration being given by the lender to the credit worthiness of the loan applicant.

Reduction certificate – See Payoff statement.

Reentry – The legal right of a landlord to take back possession of a the property when the term of a tenant has expired.

Referral – The act by which one party suggests that another party use a certain licensee.

Refinancing – The paying off of an existing mortgage loan obligation by extending or renewing existing financing or taking on a new loan obligation in its place.

Reformation – An action taken to correct a mistake or error in a deed or other legal document.

Regime – In a condominium project it referrs to the governing group that generates the system of rules or regulations that the owners must follow.

Regional analysis – A process applied to real estate that pertains mainly to importance of the local economy and its surrounding areas and where for other purposes the region may be more broadly defined.

Regional shopping center – One of several standard classes of shopping centers recognized by The Urban Land Institute which has three or more full-line department stores of more than 100,000 square feet each and a total of about 600,000 to more than 1,500,000 square feet and serves 200,000 or more people with an extensive variety of general merchandise, apparel, furniture, and home furnishing stores.

Registrar of deeds – An alternative name for Recorder of deeds which see.

Registration recording – The inserting into an official register.

Registry laws – An alternative name for Recording acts which see.

Regulation Z – The regulations issued by the Board of Governors of the Federal Reserve System to aid in the implementation of the Truth-in-Lending Act that require lending institutions to disclosure to and inform borrowers of the true cost of obtaining credit. Also known as the Truth-in-Lending Act.

Regulations – A set of rules for controlling activities or procedures. 1. An inductive regulation provides incentives for compliance. 2. A coercive regulation provides penalties for noncompliance.

Rehabilitate – See Rehabilitation.

Rehabilitation – A process of eliminating blight and restoring one or more properties to a satisfactory condition by repair and renovation but not drastically changing the floor plan, form or style of architecture.

Rehabilitation tax credit – The Tax Reform Act of 1986 provides a maximum percentage credit for rehabilitating certified historic structures, and a different percentage credit for other buildings that were placed in service after 1936.

Reinstate – The act of bringing something current or to restore.

Reinsurance – A contract that one insurer makes with another to protect itself wholly or partially against loss or liability by reason of a risk it has under a separate and distinct contract as the insurer of a third party. See Coinsurance.

REIT – See Real Estate Investment Trust.

Release – The act of giving up a right or claim by a party in whom it exists to a party against whom it might have been enforced.

Release clause – A stipulation by a holder of a blanket mortgage that upon the payment of a specific sum of money that the lien to the specifically-described lot or area shall be removed from the blanket lien on the whole area involved.

Release deed – An instrument executed by the mortgagee or the trustee reconveying or returning the title to the real estate secured by the loan back to the mortgagor or trustor upon full payment of the debt. Also known with a trust deed as a Reconveyance deed.

Release statement – A form prescribed by the Uniform Commercial Code for indicating the release of all or part of a security interest.

Reliction – The exposure of land that has been covered by water that occurs when the water recedes.

Remainder – An estate which is a future possessory interest in real property that takes effect upon the termination of a prior estate such as a life estate.

Remainder depreciation – The possible future total loss in value of a real property improvement.

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

Remainderman – The party entitled to receive the estate upon the expiration of a life estate.

Remaining economic life – The period of time that is stated in years which usually starts at this point in time and extends into the future, during which the improvements will add value to the land or will be depreciated for tax purposes. See Economic life.

Remodel – To make physical alterations that are significantly greater than simply keeping the property in good state of maintenance and repair.

Renegotiable Rate Mortgage, RRM – A loan secured by a long term mortgage which provides for its interest rate to be adjusted at predetermined intervals to a maximum set percentage variation over the life of the mortgage.

Rent – The price one party pays for the use of land or real property to its owner as a return on his or her investment.

Rent control – The legal regulation as to the maximum rental charge that can be made for the use of certain real property.

Rent schedule – A plan to establish the rental amounts to be paid and also the records of the rents actually paid during a specific period.

Rental value – The amount of rent a prospective tenant is justified in paying for a set period of time such as a month, a year, etc., for the right to occupy and use real property under certain prescribed or assumed conditions.

Replace – To restore something to a former plan or condition.

Replacement cost – The cost to build something that is substantially similar to the original but is constructed with modern materials and according to current standards, design and layout and having equal utility.

Replacement reserves – The major funds set aside for the replacement of major building components such as roofing, mechanical equipment, etc.

Replevin – 1. An action to recover personal property claimed or said to be taken unlawfully. 2. The legal document or legal procedure in such an action.

Representation – The principle upon which the children of a deceased person takes or inherits the share of an estate his or her immediate ancestor would have taken or inherited if he or she were still living.

Reproduction cost – The cost to build something with one that is as close to an exact replica as possible and having the same quality of workmanship, design and layout so as to duplicate an asset.

Request for notice – A request by a party having an interest in a mortgaged property to a governmental body that he or she be promptly informed of any possibility of default.

Rescind – See Rescission

Rescission – The abandonment, cancellation, revocation or annulment of a contract by the mutual consent of the parties with or without cause and the restoration of the parties to the same position they held before entering into the contract.

Research and development – The process of creating new products or new methods.

Reservation – A right retained by a grantor when conveying title to a property.

Reserve fund – An accumulation of funds collected from owners in common interest subdivisions which is set aside in a reserve fund for future replacement of the common elements and in some cases for major maintenance.

Reserves – 1. An accumulation of mortgage loans funds collected from the borrower by the lender as part of monthly mortgage payments that is allocated to pay property taxes and insurance when due. 2. In business, an amount of earnings allotted to take care of possible losses in the conduct of business and shown on the balance sheet as a liability item. See Reserve fund.

Residence – A dwelling in which one lives as his or her home.

Resident manager – An agent of a building owner who is employed on a salary basis to manage the property in which the manager resides.

Residential – 1. A zoning code classification. 2. A reference to a type of property namely housing in general. 3. Pertaining to one’s home.

Residential broker – A party who lists and sells, rent and leases residential property such as single family homes, condominiums, apartment complexes and apartment rental projects.

Residential rental property – A property from which 80 percent or more of the gross rental income is from dwelling units

Residual – The remainder or that which remains or is left after deduction.

Residual technique – An appraisal technique used to estimate the amount of net annual income derived from the land or the building by allocating a portion of the income to one part of an asset with the remainder or residual flowing automatically to the remainder of the asset. See Land residual technique. See Building residual technique.

Resolution Trust Corporation, RTC – An organization created by the Financial Institutions Reform, Recovery, and Enforcement Act, FIRREA to liquidate the assets of failed savings and loan associations.

RESPA – See Real Estate Settlement Procedures Act.

Restoration – The returning a building to its original form.

Restricted license – A probationary real estate license that contains specific limitations.

Restriction – A public or private limitation on the use of real property to restrain or prohibit people from doing certain things relating to the property or using the property for certain purposes. Zoning ordinances are examples of public limitations. Private restrictions can be created by owners by inserting appropriate clauses in deeds or in agreements or in general plans of entire subdivisions which take the form of a covenant or promise to do or not to do a certain thing.

Restrictive covenant – A clause in a deed which a grantor has placed there which prohibits or restricts certain use, occupation or improvement of the land and to which the grantee must agree in order for the property to be conveyed and which will be binding on all subsequent owners.

Retaliatory eviction – An act of eviction of a tenant by a landlord in response to some complaint made by the tenant.

Retroactive liability – A liability which is not just limited to the current owner but also includes parties who have owned the site in the past.

Retrospective value – The value of the property often needed for estate tax purposes as of a previous date.

Return – The profit or yield from an investment.

Return of investment – 1. A recapture of investment either from a sale or through depreciation. 2. An allowance in appraisal for the return of an capital investment is termed an accrual for future depreciation.

Return On Investment, ROI – The percentage ratio arrived at by dividing the amount an investor earned by the amount he or she invested.

Revenue sharing – See Participation loan.

Revenue stamps – The stamps issued by the state government that must be purchased and affixed to documents or instruments involving original issues, sales and transfers of deeds of conveyance, stocks and bonds in the amounts provided by law to serve as evidence that the correct transfer taxes have been paid.

Reverse Annuity Mortgage, RAM – A loan under which the homeowner receives monthly payments based on his or her accumulated equity rather than in a lump sum and which must be repaid upon the death of the owner or upon the sale of the property or at a prearranged date.

Reversion – The right to future possession or enjoyment of an estate by the person who created it or his or her heirs.

Reversionary interest – See Right of reversion.

Reversionary right – See Right of reversion.

Reversionary value – The estimated value of an estate such as a leasehold estate or a life estate as of a given date or a right of reversion determined actuarially.

Reversioner – A party to whom property returns to through a right of reversion which is typically upon the death of the life tenant.

Reverter – That portion of an estate which returns or goes back to an owner, or reverts, or his or her heirs after the end or termination of an estate such as a leasehold or a life estate.

Revocation – A right to take back or recall a previously-conferred power or authority such as to revoke a license or withdraw an offer prior to its acceptance.

Revoke – The act of recalling and making something void.

Rhomboid – A parallelogram that contains oblique angles and whose opposite sides are equal.

Rider – An addition, amendment or endorsement to a document.

Ridge – The horizontal top edge were the two sloping roof surfaces meet and where the rafters for both slopes are nailed.

Ridge board – A board placed on its edge at the ridge of the roof so as to support the upper ends of the rafters; also called a roof tree, ridge piece, ridge plate or ridge pole.

Right angle – An angle of 90 degree made where two straight lines that are perpendicular to each other meet.

Right of occupancy – A right to occupy and use property for a specified period of time under the terms of a contract such as a lease or other formal agreement.

Right of redemption – The right that a party has to buy back or repurchase and recover property lost through a judicial sale and which give the borrower the right of to retain occupancy of the property during the redemption period as well as the right to regain the title within a permitted set period after a foreclosure sale by paying the full amount owned. See Equity of redemption.

Right of reversion – 1. The remainder of an estate that the party creating an estate, a grantor, holds to future repossession and enjoyment by that party or that party’s heirs after granting a life estate to another person. 2. The lessor, landlord, grants the right of possession to the lessee, tenant, but retains the right to retake possession at the expiration of the lease term.

Right of survivorship – The right, which is the distinguishing feature of joint tenancy, of a surviving tenant or tenants to become owner of the entire interest of a deceased tenant.

Right of way – A privilege operating as an easement upon land which an owner by grant or by agreement gives to another the right to pass over a specific part of the owner’s land such as a highway or railroad, to construct or use such as a driveway, to pass over the land to install telephone or electric power lines or to place underground water mains, gas mains or sewer mains.

Right to rescind – A unilateral or one side right to terminate a contract.

Right, title and interest – A term used in deeds to denote that the grantor is conveying all of that to which he or she held claim.

Riparian – A referral to a flowing waterway such as a river or stream or belonging or relating to the banks thereof.

Riparian grant – A transfer of riparian rights.

Riparian lease – A document defining the terms, conditions and date of expiration of the rights to use lands lying between the high water mark and the low water mark.

Riparian owner – A party who owns land adjoining a flowing waterway.

Riparian rights – The rights that an owner of land that borders on a river, stream or waterway has to use and enjoy the water which is adjacent to the land or flows over it provided that use does not cause any injure to riparian owners downstream.

Riser – 1. A vertical board at the rear of each step of a stairway. 2. A heating duct slanted upward to carry hot air from the furnace to the rooms above.

Risk – The degree of danger of future loss of capital or income.

Risk analysis – A study usually made by a lender of the various factors that might affect the repayment of a loan.

Risk evaluation – The amount of risk involved in an investment as determined by an investor which is usually exppressed as a percentage of interest.

Risk management – The evaluation and selection of appropriate insurance coverage for fire and casualty and liability protection.

Risk rating – A quatifiable rating system used by a lender that usually employs grids to develop precise and relative figures for the purpose of determining the overall soundness of a loan.

Rod – A linear measure that is equal to a length of 5,112 yards.

ROI – See Return On Investment.

Rollover loan – A mortgage that at its termination can be rewritten or renewed and whose terms may be changed with each rollover period.

Rollover of gain – A deferral of gain from the sale of one personal residence to another personal residence.

Row houses – A series of individual houses having similar architectural features with a common wall between adjacent units.

Rule of thumb – A simple guideline or averaging that are sometimes used to assist in determining the value of a property such as gross rent multipliers, prices per square foot, prices per front foot, costs per room and costs per apartment which are accurate because of the user’s experience with the same unit of measurement.

Rules and regulations –The orders of the regulatory authority in real estate licensing that govern licensees’ activities and which usually have the same force and effect as statutory law.

Runs with the land – A covenant which grants either the right to take advantage of the land or the liability to perform something and which passes to the subsequent grantees of that land is said to run with the land.

Rural – An area outside larger and moderate-sized cities and surrounding population concentrations that typically has farms, ranches, small towns and unpopulated regions. See Suburb.

R-value – A measurement of heat conductivity that generally applies to insulating materials for roofs, exterior walls and windows and doors where the higher the R-value means the better the material is as insulation from heat transfer.