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Legal Term |
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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
- 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.
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.
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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