RANGE
In the US public land surveying system, 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 limit on the amount the interest rate can be increased at each adjustment period or over the life of the loan. The cap may also set the maximum interest rate that can be charged during the life of the loan.
RATIFICATION Method of creating an agency relationship in which the principal accepts the conduct of someone who performed on behalf of a person without previous authorization.
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 LAND A portion of the earth's surface extending downward to the center of the earth and upward infinitely into space, plus anything permanently fixed to it, including buildings, sheds, and other items whether naturally attached to the structure. With the exception of a global recession, real estate is affected primarily by local factors.
REAL ESTATE INVESTMENT TRUST (REIT) Trust ownership of real estate established for the benefit of a group of real estate investors who purchase certificates of ownership in the trust, which in turn invests the money in real property and distributes the profits back to the investors free of corporate income tax. The yield is generally liberal since REITs are required to distribute as much as 90% of their income. Real estate investments commonly include office buildings, apartment houses and shopping centers.
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 through which an issuer can sell multiple class securities with call protection to investors. In order to qualify, REMIC must confine its investments to mortgages, cash, government securities, foreclosure property acquired in connection with imminent default of a mortgage, or other REMICs.
REAL ESTATE RECOVERY FUND A fund established in some states from real estate license revenues to cover claims of victims of fraud, misrepresentation and deceit committed by a real estate licensee, where the aggrieved parties are otherwise unable to recover on a court judgement.
REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) The consumer protection law that requires certain disclosures to consumers to examine information on known or estimated settlement cost once after application and once prior to or at a settlement. The law requires lenders to furnish the information after application only. The law also prohibits the payment or receipt of kickbacks and certain kinds of referral fees
REAL PROPERTY The interests, benefits and rights inherent in real estate ownership
REALTOR(R) A registered trade name reserved for the sole use of active members of local REALTOR(r) boards affiliated with the National Association of REALTORS(r) or with the National Association of Real Estate Boards. REALTORS® subscribe to a strict Code of Ethics which governs their conduct.
RECONCILIATION The final step in the appraisal process of adjusting comparables to arrive at a final estimate of market value for the subject property.
RECONVEYANCE DEED A deed used by a trustee under a deed of trust to return title to the trustor.
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.
REDEMPTION The right of a defaulted property owner to recover his or her property by curing the default
REDEMPTION PERIOD A period of time established by state law during which a property owner has to pay the Tax Lien by paying the sales price, interest and costs before the property is foreclosed upon. Many states do not have mortgage redemption laws. If the property owner doesn't pay within the redemption period, the Tax Lien Certificate holder may be issued a deed to the property.
REDLINING The illegal practice of a lending institution denying credit or insurance to people based on ethnic background or neighborhood. Redlining also refers to setting prohibitively high fees for financial services in a high-risk area.
REDUCTION CERTIFICATE (PAYOFF STATEMENT) The document signed by a lender indicating the remaining balance, date of maturity and interest rate to pay in full and satisfy the debt. It is used in the settlement process to protect both the seller's and the buyer's interests.
REGRESSION An appraisal principle that explains that, between dissimilar properties, the value of the better quality property is affected negatively by the presence of the lesser-quality property.
REGULATION Z Enforcing the Truth-in-Lending Act Regulation Z states that a borrower be advised in writing of all costs associated with the credit portion of a financial transaction.
RELEASE DEED A document, also 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 residual ownership of an estate that has been conveyed to take effect and be enjoyed after the interest of a previous beneficiary or the life tenant has terminated. This means that the landowner still has the primary claim to the land and the trust holds the remainder. Full ownership is not transferred to the trust until after the donor's death.
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.
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.
REPLACEMENT COST The construction cost at current prices of a property damaged or lost with similar property, that is not essentially an exact duplicate of the subject property but serves the same purpose or function as the original. It is done without deduction for depreciation.
REPRODUCTION COST The construction cost at current prices of an exact duplicate of the subject property using the same materials, construction standards, design, layout, and quality of workmanship.
RESOLUTION TRUST CORPORATION The organization created by FIRREA in 1989 to sell assets (primarily real estate) that had been held as collateral against most of the bad loans of savings and loan associations.
RESTRICTIVE COVENANTS A clause in a deed that limits the way the real estate ownership may be used.
REVERSE-ANNUITY MORTGAGE (RAM) An alternative mortgage loan program under which the homeowner receives monthly payments based on his or her accumulated equity rather than a lump sum. This type of loan is usually taken out by an older, retired person who has substantially paid for a home, and now needs additional income to live on. The loan must be repaid at a prearranged date or upon the death of the owner or the sale of the property.
REVERSIONARY INTEREST The remnant of an estate that the grantor holds after granting a life estate to another person. Upon termination of that possession, the property will revert back to the grantor. A reversionary interest is not the same as a contingent interest because people with a reversionary interest already have an interest in the trust.
REVERSIONARY RIGHT The return of the rights of possession and quiet enjoyment to the lessor (landlord) at the expiration of a lease.
RIGHT OF FIRST REFUSAL Clause in a lease which gives the lesee (tenant) the right to buy a property at the same price and on the same terms and conditions as those contained in a third party offer that the owner has expressed a willingness to accept. Usually the lessee must purchase on the terms and conditions of the buyer's offer.
RIGHT-OF-WAY An easement given by one landowner to another to pass over the property, land, or interest therein without actually transferring ownership.
RIPARIAN RIGHTS A principle of common law under which a land owner is entitled to use the water on or bordering his property and diversion or misuse that will enable his neighbor to utilize the same waters undiminished in quantity and undefiled in quality.
RISK MANAGEMENT Evaluation and selection of appropriate property and other insurance.
RULES AND REGULATIONS Real estate licensing authority orders that govern licensees' activities; they usually have the same force and effect as statutory law.
RATE CAP The limit on the amount the interest rate can be increased at each adjustment period or over the life of the loan. The cap may also set the maximum interest rate that can be charged during the life of the loan.
RATIFICATION Method of creating an agency relationship in which the principal accepts the conduct of someone who performed on behalf of a person without previous authorization.
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 LAND A portion of the earth's surface extending downward to the center of the earth and upward infinitely into space, plus anything permanently fixed to it, including buildings, sheds, and other items whether naturally attached to the structure. With the exception of a global recession, real estate is affected primarily by local factors.
REAL ESTATE INVESTMENT TRUST (REIT) Trust ownership of real estate established for the benefit of a group of real estate investors who purchase certificates of ownership in the trust, which in turn invests the money in real property and distributes the profits back to the investors free of corporate income tax. The yield is generally liberal since REITs are required to distribute as much as 90% of their income. Real estate investments commonly include office buildings, apartment houses and shopping centers.
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 through which an issuer can sell multiple class securities with call protection to investors. In order to qualify, REMIC must confine its investments to mortgages, cash, government securities, foreclosure property acquired in connection with imminent default of a mortgage, or other REMICs.
REAL ESTATE RECOVERY FUND A fund established in some states from real estate license revenues to cover claims of victims of fraud, misrepresentation and deceit committed by a real estate licensee, where the aggrieved parties are otherwise unable to recover on a court judgement.
REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) The consumer protection law that requires certain disclosures to consumers to examine information on known or estimated settlement cost once after application and once prior to or at a settlement. The law requires lenders to furnish the information after application only. The law also prohibits the payment or receipt of kickbacks and certain kinds of referral fees
REAL PROPERTY The interests, benefits and rights inherent in real estate ownership
REALTOR(R) A registered trade name reserved for the sole use of active members of local REALTOR(r) boards affiliated with the National Association of REALTORS(r) or with the National Association of Real Estate Boards. REALTORS® subscribe to a strict Code of Ethics which governs their conduct.
RECONCILIATION The final step in the appraisal process of adjusting comparables to arrive at a final estimate of market value for the subject property.
RECONVEYANCE DEED A deed used by a trustee under a deed of trust to return title to the trustor.
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.
REDEMPTION The right of a defaulted property owner to recover his or her property by curing the default
REDEMPTION PERIOD A period of time established by state law during which a property owner has to pay the Tax Lien by paying the sales price, interest and costs before the property is foreclosed upon. Many states do not have mortgage redemption laws. If the property owner doesn't pay within the redemption period, the Tax Lien Certificate holder may be issued a deed to the property.
REDLINING The illegal practice of a lending institution denying credit or insurance to people based on ethnic background or neighborhood. Redlining also refers to setting prohibitively high fees for financial services in a high-risk area.
REDUCTION CERTIFICATE (PAYOFF STATEMENT) The document signed by a lender indicating the remaining balance, date of maturity and interest rate to pay in full and satisfy the debt. It is used in the settlement process to protect both the seller's and the buyer's interests.
REGRESSION An appraisal principle that explains that, between dissimilar properties, the value of the better quality property is affected negatively by the presence of the lesser-quality property.
REGULATION Z Enforcing the Truth-in-Lending Act Regulation Z states that a borrower be advised in writing of all costs associated with the credit portion of a financial transaction.
RELEASE DEED A document, also 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 residual ownership of an estate that has been conveyed to take effect and be enjoyed after the interest of a previous beneficiary or the life tenant has terminated. This means that the landowner still has the primary claim to the land and the trust holds the remainder. Full ownership is not transferred to the trust until after the donor's death.
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.
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.
REPLACEMENT COST The construction cost at current prices of a property damaged or lost with similar property, that is not essentially an exact duplicate of the subject property but serves the same purpose or function as the original. It is done without deduction for depreciation.
REPRODUCTION COST The construction cost at current prices of an exact duplicate of the subject property using the same materials, construction standards, design, layout, and quality of workmanship.
RESOLUTION TRUST CORPORATION The organization created by FIRREA in 1989 to sell assets (primarily real estate) that had been held as collateral against most of the bad loans of savings and loan associations.
RESTRICTIVE COVENANTS A clause in a deed that limits the way the real estate ownership may be used.
REVERSE-ANNUITY MORTGAGE (RAM) An alternative mortgage loan program under which the homeowner receives monthly payments based on his or her accumulated equity rather than a lump sum. This type of loan is usually taken out by an older, retired person who has substantially paid for a home, and now needs additional income to live on. The loan must be repaid at a prearranged date or upon the death of the owner or the sale of the property.
REVERSIONARY INTEREST The remnant of an estate that the grantor holds after granting a life estate to another person. Upon termination of that possession, the property will revert back to the grantor. A reversionary interest is not the same as a contingent interest because people with a reversionary interest already have an interest in the trust.
REVERSIONARY RIGHT The return of the rights of possession and quiet enjoyment to the lessor (landlord) at the expiration of a lease.
RIGHT OF FIRST REFUSAL Clause in a lease which gives the lesee (tenant) the right to buy a property at the same price and on the same terms and conditions as those contained in a third party offer that the owner has expressed a willingness to accept. Usually the lessee must purchase on the terms and conditions of the buyer's offer.
RIGHT-OF-WAY An easement given by one landowner to another to pass over the property, land, or interest therein without actually transferring ownership.
RIPARIAN RIGHTS A principle of common law under which a land owner is entitled to use the water on or bordering his property and diversion or misuse that will enable his neighbor to utilize the same waters undiminished in quantity and undefiled in quality.
RISK MANAGEMENT Evaluation and selection of appropriate property and other insurance.
RULES AND REGULATIONS Real estate licensing authority orders that govern licensees' activities; they usually have the same force and effect as statutory law.