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Glossary of Real Estate Terms
R
| 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 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. |
| 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. |
| Real estate |
| Land and anything permanently affixed to it, including buildings, fences and other items attached to the structure. |
| 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. |
| 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. |
| Real property |
| Land and any permanent fixtures on it, including buildings, trees and minerals. |
| Realtist |
| A designation for an agent or broker who is a member of the National Association of Real Estate Brokers. |
| Realtor |
| A designation for an agent or broker who is a member of the National Association of Realtors. |
| Recission |
| The cancellation of a contract by law or consent by the parties involved. |
| Reconveyance |
| When a borrower completely paysoff 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 fee |
| A fee charged by real estate agents for conveying the sale of a piece of property into the public record. |
| Redlining |
| The practice by a bank or insurance company to deny credit or insurance to people based on ethnic background or neighborhood. |
| Refinancing |
| The process of replacing an older loan with a new mortgage with better terms. |
| 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. |
| Relocation benefits |
| Benefits provided by employers for new workersand 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. |
| Remaining balance |
| The amount of unpaid principal on a home loan. |
| Remaining term |
| The original loan term minus the number of payments made. |
| Rent loss insurance |
| A policy that covers any loss of rent or rental value in the event of fire or other damage that renders the property uninhabitable. |
| Renter's insurance |
| A policy that covers the replacement value of possessions. |
| Repayment plan |
| When a borrower falls behind in mortgage payments, many lenders will negotiate a repayment plan rather than go to court. |
| 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. |
| 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 fund |
| All homeowners associations set aside a certain amount of money for major repairs or improvements. |
| Restructured loan |
| A mortgage in which new terms are negotiated. |
| Return on investment |
| The amount of profit a property generates. |
| Reverse mortgage |
| A special type of loan available to equity-rich, older ownersRepayment is not necessary until the borrower sells the property or moves into a retirement community |
| 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 first 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 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. |
| Rough-in |
| The installation of plumbing, electrical and other mechanical systems. |
| 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. |
