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HUD
Home Buying Glossary - R
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R
Factor - Resistance factor used to measure insulation.
Rafter
- The diagonal roof booms running from the eaves to the ridge
of the roof.
RAM
- See Reverse Annuity Mortgage.
Range
- A vertical row of townships, measured east and west from the
meridian.
Rate
and Term Refinance
- The borrower replaces a mortgage loan on the subject property
with another mortgage loan for the purpose of getting a better
interest rate and loan term.
Ratification
- The approval of an act of the agent by the principal when
the agent exceeded his or her authority. By taking the
benefits of the act, the principal also accepts its
obligations.
Real
Estate - Land.
Real
Estate Investment Trust - Unincorporated group of 100 or
more investors who have limited liability.
Real
Estate Mortgage Investment Conduit
- The mortgage
offspring of tax legislation that simplifies tax and legal
considerations when issuing multi-class , mortgage-backed
securities.
Real-Estate
Owned - A term used by lending institutions that refers to ownership
of real property acquired for investment or as a result of
foreclosure.
Real
Estate Settlement Procedures Act
- Federal
legislation designed to help home buyers compare settlement
costs among lenders and to eliminate kickbacks.
Real
Property - Land and anything permanently affixed to the land, such as
fences, buildings and those things attached to the buildings,
such as light fixtures or plumbing.
May refer to rights in real property as well as the
property itself.
Realtor©
- Anyone who is licensed to both by and sell real estate in an
area and who is an active member in the local real estate
board affiliated with the National Association of Realtors.
Recapture
Clause - A provision in a percentage lease that gives the
landlord the right to terminate the lease if a specified
volume of sales is not reached.
Recapture
Rate - The percentage of a property's original cost that
is returned to the owner as income during the remaining
economic life of the investment
Recasting
- An adjustment to the current mortgage--a loan
modification--that does not involve the issuance of a new
mortgage guaranty insurance certificate.
With a recast loan, a modification may be made in the
type of instrument involved.
In whatever form a recast loan takes, the major benefit
to the borrower is the potential for substantially reduced
mortgage payments.
Receiver
- A court-appointed person who holds property and any income
from it pending a court-ordered final resolution of the legal
dispute.
Receiver
Clause - A mortgage clause that allows a mortgagee to
appoint a receiver to collect rents between the period of
commencement of foreclosure and final foreclosure.
Recession
of Contract - To rescind or annul a contract by mutual
consent of all parties or for cause by any one party.
Recognized
Gain - The amount of money that is gained from the sale or
exchange of real property (may be subject to tax).
Reconciliation
- The final step in the appraisal process, in which the
appraiser reconciles the estimates of value received from the
cost, income capitalization and sales comparison approaches to
value, to arrive at a final estimate of market value for the
subject property.
Reconstruction
of the Operating Statement - The process of eliminating
the inapplicable types of expense items for appraisal purposes
and adjusting the remaining valid expenses if necessary.
Reconveyance
Deed - See Deed of Reconveyance.
Recordation
- The act of recording with the county recorder so as to give
constructive notice to all of the instruments recorded.
Recorded
Lot Block and Tract System - See Lot and Block System.
Recorder
- The public official in a political subdivision (such as a
county) who keeps records of transactions affecting real
property in the area.
Recourse
Loan - A type of loan in which a lender can hold the borrower
personally liable if the borrower fails to meet all the
requirements of the mortgage.
Rectangular
Survey System - A method of legal description of real
estate established in 1785 by the federal government, by which
land is referenced by proximity to principal meridians and
base lines. Also called the U.S. government survey
system and the section and township system.
Redemption
(Period) - The time period in a foreclosure in which a borrower in
default cannot be divested of legal title or evicted and can
exercise the right to redeem the property by paying the debt
in full.
Redemption
Rights - The right allowed by law in some states whereby a
mortgagor may buy back property by paying the amount owed on a
foreclosed mortgage (including interest and fees).
Redlining
- Refusing to make loans within designated areas and
considered a violation of the Civil Rights Act of 1968.
Refinance
- 1) To change a loan from one financial institution to
another, or to rewrite the terms of a loan contract within the
existing lending institution.
2) The payment of a debt from the proceeds of a new
loan, using the same property as security.
Reformation
- A court action to rectify a mistake in a deed or contract so
it reads as it was intended to read.
Regional
Multipliers - Adjustment factors by which standard cost
figures can be multiplied to allow for regional price
differences.
Registrar
of Deeds - See Recorder.
Regression
- A loss in value because a home was placed in an area of less
expensive homes.
Regular
Periodic Payment
- Payments recurring at fixed times.
Regulation
X - Federal regulation prescribed by the Secretary of Housing and
Urban Development (HUD) to implement Real Estate Settlement
Procedures Act (RESPA).
Regulation
Z - Federal regulation prescribed by the Federal Reserve Board to
carry out the purposes of the Truth-in-Lending Act.
Rehabilitation
- The restoration of real property to good use through repair
of structures or improvements of public facilities of a
declining area or neighborhood with deteriorating influences.
Reinstatement
- Occurs when a borrower cures a mortgage default.
A mortgage is reinstated if it is brought up to date by
paying all charges that had become overdue.
Reinsurer
- An insurance company that covers all or part of a loss for
primary insurers.
REIT
- See Real Estate Investment Trust.
Release
Clause - A provision in a blanket encumbrance (mortgage)
allowing separate releases from the encumbrance by paying a
stated sum of money.
Release
of Lien - An instrument discharging secured property from
a lien.
Reliction
- See Dereliction.
Relief
Provision - A formal arrangement designed to help a
borrower resolve a delinquency.
Remainder
Depreciation - The depreciation that an owner has left to
take.
Remainder
Estate - A future interest in a property created in
someone other than the grantor, which is or may become
possessory upon the natural expiration of the prior particular
estate.
Remainder
Interest - An interest that a third person has in a
property after the death of a life tenant.
Remainderman
- The person who owns an estate in remainder; therefore, the
person who will receive title upon termination of the prior,
particular estate.
Remaining
Economic Life - The number of years of useful life left to
a building from the date of appraisal, that is, the remaining
number of years in which it can be used for its intended
purpose.
REMIC
- See Real Estate Mortgage Investment Conduit.
Renegotiable-Rate
Mortgage - A type of adjustable rate mortgage (ARM).
The interest rate and terms of the mortgage are
completely renegotiated at regular intervals and at the
lender’s discretion, unlike other ARMs where fluctuations in
interest are controlled by a pre-selected index.
Renewal
of Lease - A new lease. An extension of a lease only
continues the old lease.
Renovate
- Restore to a former condition or to upgrade the
condition.
Rent
- Income received for use of the property.
Rent
Control - Regulation by a local government agency of
rental charges, usually according to set formulas for
increase.
Rent-Loss
Method of Depreciation - See Capitalized Value Method.
REO
- See Real-Estate Owned.
Replacement
Cost - Cost to reproduce a structure of the same
desirability and utility values using modern methods and
materials.
Reproduction
Cost - An estimate of how much it would cost to construct a similar
home with equal utility.
Rescind
- To avoid or cancel in such a way as to treat the contract or
other object of the rescission as if it never existed.
Reservation
- The retention of a right such as an easement when property
is conveyed. (An exception retains part of the
property).
Reserve
for Replacement - A reserve fund established to replace an
asset.
Residence
- A place where someone lives.
Residential
Home Mortgage - A mortgage covering a one-to four-family
dwelling. Mortgages for larger residential buildings are
classified as multi-family housing loans.
Residual
- The value remaining after all deductions have been made.
RESPA
- See Real Estate Settlement Procedures Act.
Restraining
Order - A prohibitive writ issued by a court of equity that forbids a
party or a party’s agents to do some act which is threatened
or attempted.
Restriction
- See Restrictive Covenants.
Restrictive
Covenants - Private beneficial restrictions whereby
owners are limited as to the use of their property.
Examples include include restrictions on parking cars in the
street, setback provisions, uniformity in appearance.
Restrictive
Endorsement - Endorsement on a negotiable instrument that
restricts any further endorsement (such as writing "For
Deposit Only" on the back of a check).
Revenue
Stamps - Formerly a federal tax on real property
conveyances that, when abandoned by the federal government,
was adopted by many states.
Reverse
Annuity Mortgage
- A non-traditional mortgage in which someone who owns their
home free and clear (that is, has paid off all mortgages on
the property) receives monthly payments from a lender for a
short period of time, usually less than 10 years.
At the end of the mortgage, the owner agrees to
refinance the loan or sell the property to pay off the loan.
Such payments from the lender are often beneficial for
retired people, who know they won’t be in a house for more
than five or 10 years, because the payments can help them make
tax and insurance payments.
Reversionary
Interest - An interest whereby a property goes back to the
original grantor upon occurrence of an event, such as the
death of a life tenant.
Review
Underwriter
- Usually an underwriter from the mortgage insurer or mortgage
investor. The
review underwriter takes a less comprehensive look at the loan
package and relies more on the findings of the primary
underwriter.
Rezoning
- Change of zoning as opposed to a variance, which is an
exception to zoning.
Rider
- A supplement or an addition to, and indorsement to a
document.
Ridge
Board - The highest board in a house, located between the
tops of the opposing rafters.
Right
of Correlative User - Right of a landowner to the
reasonable use of underground percolating water (water table).
Right
of First Refusal - A right sometimes given to a tenant to
meet the price and terms at which the owner is willing to sell
or lease the property to another party. The owner first
must offer it to the holder of the right before a sale or
lease can be made made to another. Unlike an option, the
owner is not required to sell or lease.
Right
of Prior Appropriation - A right to water use based on who
was first user. Exercised primarily in western states.
Right
of Way - The right to pass over another's land, such as in
an easement.
Riparian
Right - Right of the landowner to reasonable use of the
flowing water located on, under or adjacent to his/her
property.
Risk
Rate - See Interest Rate.
Rod
- A measure of length equal to 16.5 feet.
Roll-Over
Mortgage - A type of adjustable-rate mortgage (ARM).
With a roll-over mortgage, the interest rate and
payment terms can be renegotiated, usually every 5 years.
RRM
- See Renegotiable Rate Mortgage.
Rule
Against Perpetuities - Restricts unlimited private trusts
to a statutory life limit. (The deceased is limited as to how
long he/she can continue to exercise control over property
after death).
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