Real Estate Terms Glossary
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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.
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
A lawyers who specializes 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 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 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 that has 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 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.
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 owners. Repayment
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.