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A method of heating usually consisting
of coils or pipes placed in the floor, walls or ceiling.
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.
The sloping wood components of a roof onto which the roofing material is attached.
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
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
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.
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.
A parcel of land that has had no improvements made to it such as landscaping, structures, utilities, drainage
A person licensed by a state to negotiate and transact the sale of real estate on behalf of the property
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.
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.
Land and any improvements permanently affixed to it such as buildings and other structures, trees and
the interest, benefits, and inherent rights thereof.
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).
The process of paying off one existing loan with the proceeds from a new loan using the same property
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.
The amount of principal on a loan that has not been repaid to the lender.
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 is a term used to describe a property that goes back to the mortgage company after an unsuccessful
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.
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.
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.
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.
A privilege of someone to pass over land belonging to someone else.
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
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any liabilities or losses claimed or incurred as a result of using this information. (Real Estate Terms,
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