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Frequently
Asked Questions
Glossary
of Real Estate Terms
Glossary for "R"
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-improvement
mortgage
A loan with a clause that entitles a borrower to a one-time cut
in the interest rate without going through refinancing.
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.
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.
Renter's insurance
A policy that covers the replacement value of possessions.
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.
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.
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