Range
A strip of land six miles wide, extending north and
south and numbered east and west according to its distance
from the principal meridian in the rectangular (government)
survey system of legal description.
Rate cap
The limit on the amount the interest rate can be increased
at each adjustment period in an adjustable-rate loan.
The cap may also set the maximum interest rate that
can be charged during the life of the loan.
Ratification
Method of creating an agency relationship in which the
principal accepts the conduct of someone who acted without
prior authorization as the principal's agent.
Ready, Willing and able buyer
One who is prepared to buy property on the seller's
terms and is ready to take positive steps to consummate
the transaction.
Real estate land
A portion of the earth's surface extending downward
to the center of the earth and upward infinitely into
space, including all things permanently attached to
it, whether naturally or artificially.
Real estate investment syndicate
See syndicate.
Real estate investment trust (REIT)
Trust ownership of real estate by a group of individuals
who purchase certificates of ownership in the trust,
which in turn invests the money in real property and
distributes the profits back to the investors free of
corporate income tax.
Real estate license law
State law enacted to protect the public from fraud,
dishonesty and incompetence in the purchase and sale
of real estate.
Real estate mortgage investment conduit (REMIC)
A tax entity that issues multiple classes of investor
interests (securities) backed by a pool of mortgages.
Real estate recovery fund
A fund established in some states from real estate license
revenues to cover claims of aggrieved parties who have
suffered monetary damage through the actions of a real
estate licensee.
Real estate settlement procedures act (RESPA)
The federal law that requires certain disclosures to
consumers about mortgage loan settlements. The law also
prohibits the payment or receipt of kickbacks and certain
kinds of referral fees.
Realtor(R)
A registered trademark term reserved for the sole use
of active members of local REALTOR(r) boards affiliated
with the National Association of Realtors(r).
Reconciliation
The final step in the appraisal process, in which the
appraiser combines the estimates of value received from
the sales comparison, cost and income approaches to
arrive at a final estimate of market value for the subject
property.
Reconveyance deed
A deed used by a trustee under a deed of trust to return
title to the trustor.
Recording
The act of entering or recording documents affecting
or conveying interests in real estate in the recorder's
office established in each county. Until it is recorded,
a deed or mortgage ordinarily is not effective against
subsequent purchasers or mortgagees.
Rectangular (Government) surver system
A system established in 1785 by the federal government,
providing for surveying and describing land by reference
to principal meridians and base lines.
Redemption
The right of a defaulted property owner to recover his
or her property by curing the default.
Redemption period
A period of time established by state law during which
a property owner has the right to redeem his or her
real estate from a foreclosure or tax sale by paying
the sales price, interest and costs. Many states do
not have mortgage redemption laws.
Redlining
The illegal practice of a lending institution denying
loans or restricting their number for certain areas
of a community.
Reduction certificate (Payoff statement)
The document signed by a lender indicating the amount
required to pay a loan balance in full and satisfy the
debt; used in the settlement process to protect both
the seller's and the buyer's interests.
Regression
An appraisal principle that states that, between dissimilar
properties, the value of the better quality property
is affected adversely by the presence of the lesser-quality
property.
Regulation Z
Implements the Truth-in-Lending Act requiring credit
institutions to inform borrowers of the true cost of
obtaining credit.
Release deed
A document, also known as a deed of reconveyance, that
transfers all rights given a trustee under a deed of
trust loan back to the grantor after the loan has been
fully repaid.
Remainder interest
The remnant of an estate that has been conveyed to take
effect and be enjoyed after the termination of a prior
estate, such as when an owner conveys a life estate
to one party and the remainder to another.
Rent
A fixed, periodic payment made by a tenant of a property
to the owner for possession and use, usually by prior
agreement of the parties.
Rent schedule
A statement of proposed rental rates, determined by
the owner or the property manager or both, based on
a building's estimated expenses, market supply and demand
and the owner's long-range goals for the property.
Replacement cost
The construction cost at current prices of a property
that is not necessarily an exact duplicate of the subject
property but serves the same purpose or function as
the original.
Reproduction cost
The construction cost at current prices of an exact
duplicate of the subject property.
Resolution trust corporation
The organization created by FIRREA to liquidate the
assets of failed savings and loan associations.
Restrictive covenants
A clause in a deed that limits the way the real estate
ownership may be used.
Reverse - annuity mortgage (RAM)
A loan under which the homeowner receives monthly payments
based on his or her accumulated equity rather than a
lump sum. The loan must be repaid at a prearranged date
or upon the death of the owner or the sale of the property.
Reversionary interest
The remnant of an estate that the grantor holds after
granting a life estate to another person.
Reversionary right
The return of the rights of possession and quiet enjoyment
to the lessor at the expiration of a lease.
Right of first refusal
Clause in a lease which gives the lesee (tenant) the
right to purchase the rented property if during the
term of the lease the lessor (landlord) receives an
offer to purchase from a buyer. Usually the lessee must
purchase on the terms and conditions of the buyer's
offer.
Right-of-way
The right given by one landowner to another to pass
over the land, construct a roadway or use as a pathway,
without actually transferring ownership.
Riparian rights
An owner's rights in land that borders on or includes
a stream, river or lake. These rights include access
to and use of the water.
Risk management
Evaluation and selection of appropriate property and
other insurance.
Rules and regulations
Real estate licensing authority orders that govern licensees'
activities; they usually have the same force and effect
as statutory law.
Refinance
Obtaining a new loan to pay off an existing loan. Refinancing
is a popular practice when interest rates drop.
Residential sales council
A not-for-profit affiliate of the NATIONAL ASSOCIATION
OF REALTORS?. The Council awards the Certified Residential
Specialist (CRS) Designation, to experienced members
who have completed an advanced course of study in residential
real estate.
Ready, willing and able
A buyer who is prepared to buy on the seller's terms
and has the financial capacity to do so.
Real estate
Refers to land and improvements and the rights to own
or use them. "A leasehold, as well as any other interest
or estate in land, whether corporeal, incorporeal, freehold,
or non-freehold, and whether the real estate is situated
in this state or elsewhere." {TRELA, Section 2(1)} In
popular usage, Real Estate is used interchangeably with
real property and realty.
Real estate board
A non profit organization representing local real estate
agents/brokers and salespeople, which provides services
to its members and maintains and operates the Multiple
Listing Service in the community.
Real estate agent
A person licensed to negotiate and transact the sale
of real estate on behalf of the property owner.
Real estate appraiser, licensed
A person licensed to legally appraise real estate property
for a fee. Texas has required its appraiser be licensed
since 1939. In 1991 the responsibility for licensing
real estate appraisers was transfered from the Texas
Real Estate Commission to a newly formed Texas Appraiser
Licensing and Certification Board (TALCB). There are
several classes of licensed real estate appraisers,
with the highest classification - Certified General
RE Appraiser, requiring a minimum of 180 classroom hours,
and 3,000 hours appraisal work over at least 2? years.
Real estate broker, licensed
To be eligible to apply for a real estate Broker License,
an individual must have not less than two (2) years
active experience in Texas as a licensed real estate
salesperson and 180 classroom hours of core real estate
coursesplus an additional 720 classroom hours in related
courses acceptable to the Commission. The applicant
must also pass the TREC Real Estate Broker's exam, and
then continue to maintain his license with mandatory
continuing education (MCE) courses .
Real estate center
In 1971, the Texas Real Estate Research Center was created
by the state legislature. It is located on the campus
of Texas A&M University, and is part of the Lowry Mays
College and Graduate School of Business. Today, the
shortened "Real Estate Center" name is used. The mission
of the Real Estate Center is to conduct real estate
related research based on needs of the Texas citizenry
and disseminate the results and findings.
Real estate inspector, licensed
A Licensed Real Estate Inspector is someone who is licensed
by TREC who holds himself out to the public as being
trained and qualified to inspect property. Formerly
known as Registered Real Estate Inspector before January
1, 1996.
Real estate salesperson, licensed
To be eligible to apply for a real estate Salesperson
License, an individual must complete core education
courses in Principles of Real Estate , Law of Agency
and Law of Contracts. An additional six (6) semester
(90 classroom) hours must be completed in core courses
or in related courses acceptable to the Commission.
The applicant must also pass the TREC Real Estate Salesperson's
exam, and then continue to maintain his license with
mandatory continuing education (MCE) courses. Recently
licensed real estate salespersons are required to complete
a total of 18 semester (270 classroom) hours of education
by the end of their third year of licensure, taking
at least 30 hours per year.
Realty
Refers to land and buildings and other improvements
from a physical standpoint. Real Estate and Real Property
tend to be used interchangeably with Realty in everyday
usage. Contrast with personalty.
Receiver
Court-appointed custodian who holds property for the
court, pending final disposition of the matter before
the court.
Recorded plat
A subdivision map filed with the county recorder's office
that shows the location and boundaries (lot and block
number) of individual parcels of land. Contrast with
government survey method and metes and bounds.
Recovery fund
A fund maintained by the Texas Real Estate Commission
which upon court order is used to reimburse the public
for monetary loss due to illegal acts of licensees.
Refinancing
To apply for a new mortgage in order to gain better
terms, usually either a lower interest rate or a different
principal amount.
Regulation 'Z'
Truth in lending law developed by the Federal Reserve
System which requires lenders to provide full disclosure
of the terms of the loan, including interest rates expressed
as an annual percentage rate (APR).
Rela
Real Estate License Act.
Release
To relinquish an interest or claim to a piece of property.
Remainder
The future interest in an estate which takes effect
after the termination of another estate, such as a life
estate; what is left at the termination of a life estate.
Rent control
Laws that limit the amount of rent landlords may charge,
and that state when and by how much the rent can be
raised. Most rent control laws also require a landlord
to provide a good reason, such as repeatedly late rent,
for evicting a tenant. Rent control exists in some cities
and counties in California, Maryland, New Jersey, New
York and Washington, D.C.
Reserves
Amounts of money set aside by a mortgage company to
assure payment of property taxes, homeowners' association
dues, and insurance premiums. The money is kept in an
escrow account.
Reservation
A right reserved by a grantor in the sale or lease of
a property. In a sale, the title of all property passes
to the grantee, but the use may be reserved for the
grantor. Contrast with exception.
Respa
Real Estate Settlement Procedures Act is a federal law
which deals with the procedures to be followed in a
real estate closing, and is intended to make borrowers
more knowledgeable about possible costs and charges.
Restrictions
Limitations on the use or occupancy of real estate contained
in a deed or in local ordinances pertaining to land
use.
Right of survivorship
The right of a surviving joint tenant to take ownership
of a deceased joint tenant's share of the property.
See joint tenancy.
Riparian owner
One who owns land bounding upon a river or water course
(stream, creek, bayou, etc.).
Road utility district (RUD)
Pursuant to Article III, Section 52 of the Texas Constitution,
a Road Utility District may be created to construct,
acquire, improve and provide financing for a road facility.
The term "road facility" is defined as a road constructed,
acquired or improved by a district; or property, an
easement, or work constructed, acquired, or improved
by a district and necessary or appropriate for, or in
aid of the improvement of, a river, creek, or stream
to prevent overflow; or the construction and maintenance
of a pool, lake, reservoir, dam, canal or waterway for
the purpose of drainage, if the property, easement,
or works is related to, or in furtherance of, the construction,
acquisition, or improvement of a road.
Running with the land
A phrase used in property law to describe a right or
duty that remains with a piece of property no matter
who owns it. For example, the duty to allow a public
beach access path across waterfront property would most
likely pass from one owner of the property to the next.
Rural fire prevention district (RFPD)
A special taxing district created to provide rural residents
with fire-fighting, fire prevention and other emergency
services.
Radon
A radioactive gas found in some homes that in sufficient
concentrations can cause health problems.
Rate-improvement mortgage
A fixed-rate mortgage that includes a provision that
gives the borrower a one-time option to reduce the interest
rate (without refinancing) during the early years of
the mortgage term.
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. See lock-in.
Real estate agent
A person licensed to negotiate and transact the sale
of real estate on behalf of the property owner.
Real estate settlement procedures act (RESPA)
A consumer protection law that requires lenders to give
borrowers advance notice of closing costs.
Real property
Land and appurtenances, including anything of a permanent
nature such as structures, trees, minerals, and the
interest, benefits, and inherent rights thereof.
Recission
The cancellation or annulment of a transaction or contract
by the operation of a law or by mutual consent. Borrowers
usually have the option to cancel a refinance transaction
within three business days after it has closed.
Recorder
The public official who keeps records of transactions
that affect real property in the area. Sometimes known
as a "Registrar of Deeds" or "County Clerk."
Refinance transaction
The process of paying off one loan with the proceeds
from a new loan using the same property as security.
Rehabilitation mortgage
A mortgage created to cover the costs of repairing,
improving, and sometimes acquiring an existing property.
Remaining balance
The amount of principal that has not yet been repaid.
See principal balance.
Remaining term
The original amortization term minus the number of payments
that have been applied.
Rent with option to buy
See lease-purchase mortgage loan.
Repayment plan
An arrangement made to repay delinquent installments
or advances. Lenders' formal repayment plans are called
"relief provisions".
Replacement reserve fund
A fund set aside for replacement of common property
in a condominium, PUD, or cooperative project -- particularly
that which has a short life expectancy, such as carpeting,
furniture, etc.
Revolving liability
A credit arrangement, such as a credit card, that allows
a customer to borrow against a preapproved line of credit
when purchasing goods and services. The borrower is
billed for the amount that is actually borrowed plus
any interest due.
Rural housing service (RHS)
An agency within the Department of Agriculture, which
operates principally under the Consolidated Farm and
Rural Development Act of 1921 and Title V of the Housing
Act of 1949. This agency provides financing to farmers
and other qualified borrowers buying property in rural
areas who are unable to obtain loans elsewhere. Funds
are borrowed from the U.S. Treasury.
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 at a specific cost.
Reconveyance clause
The clause in a trust deed that gives the title back
to the borrower when the loan is paid in full.
Repayment plan
An arrangement made to repay delinquent installments
or advances.
Replacement reserve fund
A fund set aside for replacement of common property
in a condominium, PUD, or cooperative project -- particularly
that which has a short life expectancy, such as carpeting,
furniture, etc.
Revolving debt
A credit arrangement, such as a credit card, that allows
a customer to borrow against a pre-approved line of
credit when purchasing goods and services. The borrower
is billed for the amount that is actually borrowed plus
any interest due.
Right of ingress or egress
The right to enter or leave designated premises.
Right of refusal
A provision in an agreement that requires the owner
of a property to give another party the first opportunity
to purchase or lease the property before he or she offers
it for sale or lease to others.
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 and as a result
of which the tenant is excused from paying rent.
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