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Real Estate Terms / Real Estate Dictionary




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-R-

Radiant Heating
A method of heating usually consisting of coils or pipes placed in the floor, walls or ceiling.

Radon Gas
An odorless, radioactive gas found in some homes that in sufficient concentrations can cause health problems. It 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 Home
A rectangular shaped single story home with a simple floorplan which maximizes openness and makes efficient use of space. Some common names are American Ranch, Western Ranch, or California Rambler. A ranch home features many of the following:

  • Low pitched gable roof
  • Deep-set eaves
  • Attached garage
  • Usually does not have a basement, but if it does, it is called a 'Basement Rancher'
  • Sliding glass doors which lead out to a deck or patio
  • Rambling layout: Long, narrow, and low to the ground
  • Simple exterior design of Rectangular shape, L-shaped or U-shaped

Rate Lock
A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time. Also referred to as a Locked-in Rate.

Rate of Return (ROR)
A rate expressed as a percentage, calculated by taking the annual net operating income generated by a property and dividing it by the capital invested.

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

Real Estate Agent
A person licensed by a state to negotiate and transact the sale of real estate on behalf of the property owner.

Real Estate Broker
A person or other legally-licensed entity by a state holding a real estate broker license who assists others to buy, sell, rent or lease, manage, finance or estimate the value of real estate for some type of anticipated compensation.

Real Estate Settlement Procedures Act (RESPA)
A federal consumer protection law that requires lenders to give borrowers the right to review information about loan settlement costs after you apply for a loan and again at the closing.

Real Property
Land and any improvements permanently affixed to it such as buildings and other structures, trees and the interest, benefits, and inherent rights thereof.

Realtor®
A real estate broker or an associate who holds active membership in a local real estate board that is affiliated with the National Association of Realtors (NARS).

Refinance Transaction

The process of paying off one existing loan with the proceeds from a new loan using the same property as security.

Rehabilitation
The process of restoring and improving a property to a satisfactory condition by repair and renovation but not drastically changing the floor plan, form or style of architecture.

Remaining Balance
The amount of principal on a loan that has not been repaid to the lender.

Remaining Term

The original amortization term less the number of payments that have been made towards the loan.

Rent Loss Insurance

Insurance that protects a landlord against loss of rent or rental value due to fire or other casualty that renders the leased premises unavailable for use.

Rent With Option To Buy

A financing option that allows a potential home buyer to lease a property with the option to buy. Often constructed so the monthly rent payment covers the owner's first mortgage payment, plus an additional amount as a savings deposit to accumulate cash for a downpayment. A seller may agree to a lease-purchase option if the housing market is saturated and the seller is having difficulty selling the property.

REO (Real Estate Owned)
REO is a term used to describe a property that goes back to the mortgage company after an unsuccessful foreclosure auction.

Replacement Reserve Fund
A fund set aside for the replacement of common property in a condominium, PUD, or cooperative project -- particularly that which has a short life expectancy, such as carpeting, furniture, etc.

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

Reverse Annuity Mortgage (RAM)
Also known as "Reverse Mortgage" and "Senior Mortgage", this mortgage is popular among many older Americans, especially retirees living on fixed incomes, the equity in their paid-for or almost-paid-for home represents a large but liquid asset. The RAM is designed to help supplement those homeowners' income.

The lender who will issue a RAM appraises the property and makes the loan based on a percentage of its current value. The homeowner retains ownership, and the property secures the loan. The lender then pays an annuity to the borrower, usually on a monthly basis, up to an amount equal to the equity they have in the home.

The advantage of this loan is that of receiving a monthly tax-free income. This income may be available for life or until the house is sold. The schedule of payments depends on the value of the home and the ages of the owners.

There are many risks involved with this type of loan. If the homeowner wants to move and buy a new house, there may not be enough equity left in the home to sell it for more than what is owed on the RAM. Or the lender may consider only the current market value of the home rather than any future appreciation when deciding on the monthly payments to the homeowner. Reverse Mortgage Lenders tend to have higher interest rates and fees and there are huge incidents of fraud in this industry. The Federal Trade Commission lists a Reverse Mortage as one of the top kinds of fraud going on right now.

Revolving Liability
A credit arrangement, such as a credit card, that allows a customer to borrow against a pre-approved line of credit when purchasing goods or services. The borrower is billed for the amount that is actually borrowed plus any interest due.

Right of First Refusal
A provision in an agreement stating that a specified party must be given an opportunity—before any others—to either accept or reject an offer. For example, if an owner decides to sell a rental property, the property must first be offered to a specified party—the tenant. Upon refusal by the specified party, the property may then be offered under the same terms and conditions to others.

Right of Survivorship

In joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant.

Right of Way
A privilege of someone to pass over land belonging to someone else.

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

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The definitions of Real Estate Definitions found on 10Realty.com are for general information only. All information is subject to change and should be independently verified. 10Realty.com makes no representations or warranties of any nature with regard to the information found on the pages therein. 10Realty.com assumes no responsibility for any liabilities or losses claimed or incurred as a result of using this information. (Real Estate Terms, Investment Terms, Banking Terms explained, definitions, legal definitions, legal terms and definitions)

 

 



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