Real Estate Glossary

Letter R

RAASee: Residential Accredited Appraiser.

RabbetA method of joining or fitting together wood by cutting a deep groove in one piece to allow the other to be fitted against it.

RacewayA pipe carrying electrical wiring, having outlets at close intervals.

Radiant HeatingA heating system using electrical coils, or pipes in the ceilings, walls, or floors, which heat with steam, hot water, or hot air.

RadiatorAn old fashioned, cast iron, ribbed heating fixture using hot water. Most modern systems use air for heating, because water or steam systems are more expensive.

RadonA gas in the soil that can enter a structure and cause health problems for the occupants. Since radon is odorless, colorless, and tasteless, a test must be run to determine its presence.

RafterSloped support beams that follow the pitch of the roof and serve to hold the outer roof covering. See: Joist and Rafters.

RaftersLoad-bearing timbers of a roof. Flat roof rafters are usually called joists.

Rail(1) A horizontal bar, such as the cross member of a fence. (2) Tracks on which a train runs.

RakeSloping members, such as a cornice, which run parallel to the inclination of a roof.

RAMSee: Reverse Mortgage.

Ramp(1) An inclined, concrete or wooden path, used instead of steps. (2) A roadway used as an entrance or exit to a limited access highway.

RanchTraditionally, a place for raising horses or cattle, which feed on a grazing range. More modernly, the term has been applied to the raising of other animals under controlled conditions, such as mink, chickens, etc.

Ranch Style HouseModernly, any one story house is called a ranch style. A true ranch style house is rambling, with low pitched gable roofs, and an interior of open design.

Ranch UnitThe ranch itself plus public lands used as part of the ranch operation, under permits.

Random ShinglesRoof or siding shingles of different sizes.

RangeA six-mile strip of land measured east and west from the meridian lines.

Range LinesNorth-south lines running parallel to principal meridians at six-mile intervals in the government survey system.

Ratable EstateProperty capable of being rated (assessed, taxed).

Rate Adjustment PeriodThe interval at which aborrower's interest rate changes with an ARM(adjustable rate mortgage).

Rate CapThe limit (cap) of the amount of interest increase or decrease of an adjustable rate loan.

Rate-Improvement MortgageA fixed rate mortgage under which the interest rate will go down if rates should fall. The loan is offered when rates appear to be falling. The borrower usually can request the rate reduction only once, during the first few years of the term of the loan.

Rate IndexAn index used to adjust the interest rate of an adjustable mortgage loan. For example: the change in U.S. Treasury securities (T-Bills) with a 1 year maturity. The weekly average yield on said securities, adjusted to a constant maturity of one year, which is the result of weekly sales, may be obtained weekly from the Federal Reserve Statistical Release H.15 (519). This change in interest rates is the "index" for the change in the specific Adjustable Mortgage Loan.

Rate Of ReturnThe annual percentage of return, both of and on invested capital.

RatificationAffirming a prior act which was not legally binding; the affirmation gives the act legal effect. Occurs when an unauthorized agent acts, and the principal later affirms the action, giving authority retroactively.

Rat WallA wall only a few inches above ground, but to a specified depth (according to local code) below ground, around a house to prevent rats from going under the house. Not used in all parts of the country, and only necessary where there is not a full basement or slab construction.

Raw LandLand in its natural state. Land which has not been subdivided into lots, does not have water, sewers, streets, utilities, or other improvements necessary before a structure can be constructed.

RazeTo tear down or demolish.

Ready, Willing, And AbleCapable of present performance. A broker supplying an offer from a ready, willing and able buyer, which meets the price and terms of the listing, is entitled to a commission, even though the seller is not bound to accept the offer. A standard listing agreement would state this.

Ready, willing, and able BuyerOne who is prepared to buy property on the seller's terms and is ready to take positive steps to consummate the transaction.

Real EstateLand; 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 thereto, whether by nature or by man.

Real Estate AppraiserA person who is specially trained to offer an unbiased value of real property.

Real Estate BoardA board composed of regular members (real estate brokers and sales- associates), and affiliate members (lenders, title companies, etc.) for the purpose of furthering the real estate business in a given area.

Real Estate BrokerAny person, partnership, association, or corporation that sells (or offers to sell), buys (or offers to buy), or negotiates the purchase, sale, or exchange of real estate, or that leases (or offers to lease) or rents (or offers to rent) any real estate or the improvements thereon for others and for a compensation or valuable consideration. A real estate broker may not conduct business without a real estate broker's license.

Real Estate Brokerage Managers CouncilA division of the REALTORS National Marketing Institute, an affiliate of the National Association of Realtors, it confers the designation of Certified Real Estate Brokerage Manager (CRB) upon those brokerage owners and managers who have reached a high level of expertise in this area.

Real Estate CommissionSee: Department of Real Estate.

Real Estate Contract1. A purchase agreement. 2. Aland contract. 3. Any contract having to do withreal property.

Real Estate CyclesGeneral swings in real estate activity, resulting in increasing or decreasing activity and property values during different phases of the cycle.

Real Estate Investment TrustSee: R.E.I.T.

Real Estate Investment Trust (REIT)Ownership of real estate by a group of individual investors who purchase certificates of ownership in a trust. The trust invests in real property and distributes the profits back to the investors free of corporate income tax.

Real Estate LicenseA state license granted to one as a broker or salesperson, after passing an examination. Some states have educational requirements before the brokers' examination may be taken.

Real Estate Mortgage Investment Conduit (REMIC)Created by the Tax Reform Act Of 1986, the "Conduit" is a vehicle through which mortgage backed securities can be issued.

Real Estate Owned (R.E.O.)Most commonly refers to property owned by a lender from foreclosure of mortgages or trust deeds. This property is usually for sale.

Real Estate Owned (REO)Property acquired through foreclosure and held in inventory by alending institution.

Real Estate SalespersonA licensed real estate professional associated with a broker and, assuch, who may perform most of the acts as a broker, on behalf of him.

Real Estate Settlement Procedures ActSee: RESPA.

Real Estate TaxAn annual tax levied on the value of real property. Also called: Property Tax or General Real Estate Tax.

Real Estate Transfer TaxA tax levied on the transfer of real property.

RealistA member of the National Association of Real Estate Brokers.

Reality Of ConsentAn element of all valid contracts. Offer and acceptance in a contract usually are taken to mean that reality of consent also is present. This is not the case, however, if any of the following are present: mistake, misrepresentation, fraud, undue influence, or duress.

RealtistA real estate licensee who is a member ofNational Association of Real Estate Brokers.

Realtor®A registered trademark term reserved for the sole use of active members of local REALTORS® boards affiliated with the National Association of REALTORS®.

Realtors Land Institute (RLI)An affiliate of the NATIONAL ASSOCIATION OF REALTORS, it offers programs and education to those who specialize in various aspects of land. The designation of Accredited Land Consultant (ALC) is conferred upon those who meet the required experience and education.

Realtors National Marketing InstituteAn affiliate of the NATIONAL ASSOCIATION OF REALTORS, it is composed of the Real Estate brokerage Managers Council and The Council of Residential Specialists which offer programs and prestigious designations.

RealtyReal estate.

ReamortizationA modification of a mortgage revising the schedule of payments for the remaining life of the loan.

ReassessmentRe-estimating the value of all property in a given area for tax assessment purposes.

RebarA slang term for the steel reinforcement bars inside poured concrete.

RebateA discount or reduction in price of a product or interest, not given in advance, but handed back because of prompt payment or other reason. Many states regulate gifts and educational aids given to real estate brokers by supporting companies such as title companies, calling these in effect, a price discount (rebate).

RecaptureIn the year of sale, all depreciation or cost recovery taken on depreciable property in excess of the amount allowed by the straight-line method is subject to recapture provisions as established by the IRS, which has the effect of taxing the excess at ordinary income rates. Recapture is designed to prevent a taxpayer from taking advantage of both accelerated depreciation and capital gain treatment.

Recaptured DepreciationOccurs on a personal asset used for business purposes when the asset is sold.

Recapture Of DepreciationTaxing as ordinary income, upon the sale of property, the amount of depreciation taken above straight line depreciation.

Recapture RateThe annual rate of recapture. See: Recapture.

RecastingChanging the terms of an existing loan. Usually done when repayment under the current terms appears unlikely. If done for this reason, the payment is lowered by extending the loan period, reducing the interest rate, reducing the principal or any combination of the above.

ReceiptA written acknowledgement or admission that something has been received. Has no other legal effect, and does not in itself affirm any contractual obligation.

ReceiverThe court-appointed custodian of property involved in litigation, pending final disposition of the matter before the court.

Receiver Of TaxesMunicipal official responsible for managing the day-to-day operations of the Office of Receiver of Taxes, which collects local taxes. Other functions include tax billing and collection, banking, record maintenance, mailand accounting functions.

ReciprocityA mutual exchange of privileges by states, allowing attorneys, real estate brokers, and others to practice in one state while being licensed in another.

RecissionThe termination of a contract by mutual agreement of the parties.

RecitalSetting forth in a deed or other writing some explanation for the transaction. For example: A deed may state that the property is being transferred in lieu of foreclosure.

ReclamationThe process of bringing economically unusable land to a higher dollar value by physically changing it. For example: draining a swamp, irrigating a desert, replanting a forest.

Recognition AgreementAn agreement between three parties—the lender, the co-op, and the shareholder—that recognizes the rights oflenders who finance the shareholder.

Reconciliation1. The final step in the appraisal process in which the appraiser reconciles the estimates of value received from the market/data, cost, and income approaches to arrive at a final estimate of market value for the subject property. 2. An accounting procedure that balances a trust account by comparing the general ledger with the combined total of the account's individual ledger balances.

ReconditioningRestoring a property to good condition without changing its plan or character, as distinguished from remodeling. Also called renovation, rehabilitation.

ReconveyanceAn instrument used to transfer title from a trustee to the equitable owner of real estate, when title is held as collateral security for a debt. Most commonly used upon payment in full of a trust deed. Also called a deed of reconveyance or release.

RecordationFiling instruments for public record (and notice) with a recorder (usually a county official).

Recorded MapA map recorded in a county recorder's office. May be a subdivision map or describe a non-subdivided parcel. Reference to a recorded map is commonly used in legal descriptions.

Recorded PlatA subdivision map filed as a matter of public record.

Recorder's OfficeThe county office where instruments are recorded, giving public notice.

Recording ActsState statutes enacted to cover the public recording of deeds, mortgages, etc., and the effect of these recordings as notice to creditors, purchasers, and other interested parties.

Recording FeeThe amount paid to the recorder's office in order to make a document a matter of public record.

Record OwnerSee: Owner of Record.

RecourseThe right of the holder of a note secured by a mortgage or deed or trust to look personally to the borrower or endorser for payment, not just to the property.

Recovery FundA fund established in some states from real estate license funds to cover claims of aggrieved parties who have suffered monetary damage through the actions of a real estate licensee. To protect the public, some states mandate errors and omissions insurance as a requirement for licensure.

Rectangular Survey SystemA system established in 1785 by the federal government that provides for surveying and describing land by reference to principal meridians and base lines.

Rectification Of BoundariesThe clarification or correction of boundary lines between properties.

ReddendumTechnical name for a clause in a conveyancing instrument or lease, creating a reservation in the grantor or lessor.

Redeemable RentRent which, by agreement, is refunded or set off against the selling price when the tenant exercises a purchase option.

RedemptionThe process of canceling a defeasible title to land, such as is created by a mortgage foreclosure or tax sale.

Redemption PeriodA period of time established by state law during which a property owner has the right to redeem her or his real estate from a foreclosure or tax sale by paying the sales price, interest, and costs. Many states do not have mortgage redemption laws.

RedevelopmentGenerally, the improvement of land in accordance with an urban renewal project.

RedliningThe illegal practice of denying loans or restricting their number for certain areas of a community.

Red LiningThe outlining of a map of certain "high risk" areas for real estate loan purposes. This means lenders will not extend credit in these areas for real property loans, regardless of the qualifications of the applicant. Some states have passed laws against this practice. The use of a red pen or pencil for the outlining gave rise to the term.

Reduction Option MortgageA fixed rate mortgage that gives borrowers a limited opportunity to reduce the interest rate once during the course of the loan, provided certain conditions are met.

Re-EntryThe right to resume possession reserved when the possession was given to another. Not automatic and court action may be necessary.

RefereeOne appointed by a court to take testimony and report back to the court. May be in bankruptcy or other proceedings.

Referee’s DeedDeeds that contain no covenants orwarranties although ownership is implied.

Reference To A PlatA description on a deed thatincludes the property's location on a plat map.

ReferendumWhen citizens vote on an issue.

ReferralIn the real estate business, generally the act of a past client recommending a real estate broker or agent to a current buyer or seller. Also, any recommendation by one real estate agent of another for a referral fee.

Refinance(1) The renewing of an existing loan with the same borrower and lender. (2) A loan on the same property by either the same lender or borrower. (3) The selling of loans by the original lender.

ReformationAn action to correct a deed or other document which, through mistake or fraud, does not express the real agreement or intent of the parties.

Regional Shopping CenterThe largest type of shopping center, having one or more major department stores, a variety of retail stores, usually a bank or savings and loan, and common parking and management.

RegisterA grid-like opening in a wall, ceiling, or floor, through which hot or cold air flows for heating or air conditioning.

Registrar Of DeedsA term used in some states to describe the person in charge of recorded instruments. More commonly called a recorder.

RegressionWhen the value of the “best” home in a given area is negatively affected by other homes in the area.

Regulation1. A rule adopted by an administrative agency. 2. Any governmental order having the force of law.

Regulation ZA regulation of the Federal Reserve Board designed to ensure that borrowers and customers in need of consumer credit are given meaningful information with respect to the cost of credit.

RehabilitationSynonymous with reconditioning, except when used in connection with urban renewal, at which time it encompasses all types of changes, including structural and even street changes.

Rehabilitation Mortgage(1) A loan secured by a mortgage that covers the costs of repairing or improving the property. (2) A loan secured by a mortgage used both to purchase property and make repairs and improvements. It may be more than 100% of the appraised value.

Reinforced ConcreteConcrete strengthened by reinforcing (addition of steel bars, mesh, etc.).

Reinforced Concrete ConstructionThe use of reinforced concrete in the load-bearing members, such as the frame, foundation, walls, floors, etc.

Reinforcing(1) The strengthening of concrete by positioning metal rods, mesh, etc. in said concrete when wet. (2) The strengthening of any members by propping or adding additional material.

Reinstatement(1) Payment of a note, mortgage, deed of trust, etc., to bring it from default to good standing. (2) Restoring the previously used entitlement of a veteran to enable the veteran to purchase property under a VA program. (Also called Restoration of Eligibility).

ReinsuranceThe transferring of a portion of the liability to other insurers. Example: Insurer A insures for $200,000. A insures for $100,000 and reinsures the "second" $100,000 through B insurer. The "first" $100,000 is called "primary liability".

Reissue RateA charge for a title insurance policy if a previous policy on the same property was issued within a specified period. The reissue rate is less than the original charge.

R.E.I.T.(Real Estate Investment Trusts)A method of investing in real estate in a group, with certain tax advantages. Federal and state statutes dictate procedure.

ReleaseTo relinquish an interest in or claim to a parcel of property.

Release And Assignment Of Security DepositA form used to have a tenant give up his/her interest in a security deposit. Frequently used when there is more than one tenant (roommates). A new roommate makes arrangements with the departing one for his/her portion of the security deposit and the landlord doesn't have to be involved.

Release ClauseA clause in a blanket encumbrance allowing for the "release" of certain parcels upon payment of a specified amount. Example: A builder mortgages an entire subdivision under one loan. As the builder sells each house, the lender releases the lien upon that house upon a specified payment by the builder.

RelictionAn increase of land by the permanent withdrawal of the sea, a river, lake, or other body of water.

ReliefSee: Topography.

Relief MapA map showing the topography of an area.

Relocation ServiceAn organization that aids a person in selling a property in one area and buying another property in another area.

RemainderThe 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.

Remainder Interest:A future interest that becomes possessory when a life estate terminates and that is held by someone other than the grantor of the life estate. Compare: Reversionary Interest.

RemaindermanThe one entitled to the remainder.

Remaining Economic LifeNumber of years between the time of an appraisal and the point in time when an improvement becomes economically valueless.

RemedyThe means by which a court enforces a right, imposes a penalty, or makes some other order to impose its will. Compare: Equitable Remedy and Legal Remedy.

RemicSee: Real Estate Mortgage Investment Conduit.

RemiseTo give up or remit. Used in a deed, especially a quitclaim deed.

RemnantAn appraisal term. A parcel of land, after a partial taking by eminent domain, so small or poorly shaped as to have practically no value.

RemodelingImproving a structure by changing its plan, characteristics, or function, as opposed to reconditioning.

RenderingSee: Artist's Conception.

Renegotiable Rate MortgageA mortgage loan that is granted for a term of 3 to 5 years and secured by a long-term mortgage of up to 30 years with the interest rate being renegotiated or adjusted each period.

RenegotiationAn attempt to agree on new terms to an existing contract (in real estate, usually a lease). A lease, for example, may call for renegotiation of rent after 5 years. Since renegotiation needs agreement of the parties, a set formula to determine the rent, such as an escalation clause, would not be renegotiation. Arbitration may be provided for in the event renegotiation fails.

Renewal(1) To cause a lease to begin again for another term. (2) To rebuild, as in urban development (urban renewal).

Renewal OptionThe right of a tenant to renew (extend the term of) a lease for a stated period of time and rent which can be determined.

Renewal PremiumRecurring fee to continue an insurance policy.

RenovationSee: Reconditioning.

RentA fixed, periodic payment made by a tenant of a property to the owner for possession and use; usually by prior agreement of the parties.

Rentable AreaThe area (square footage) for which rent can be charged. For example: An office building would not rent the space used for stairways, elevators, public washrooms, hallways, etc.

Rentable Square FootageThe amount of space used in calculating a lease payment; rentable square footage is larger than the actual space tenants occupy because it includes their share of the property's service areas like the lobby,corridors, and other common areas.

Rental AgentOne who (for a fee) aids a landlord to find a tenant or a tenant to find property. Generally concerned with residential property and may not require a real estate license (or may require a special license) in some states.

Rental AgreementA lease. The term is mainly used when concerning residential property.

Rental ValueThe fair rental value of a property; the market rental value.

Rent ControlGovernmental restrictions on how much rent a landlord can charge.

Rent ControlsA legal maximum on rental price. Used extensively during World War II. Modernly, a control on subsidized housing, where the rent is paid partly by the government agency, and a maximum rent is established, not by the landlord, but by the agency.

Rent-Free PeriodSee: Free Rent.

Rent RollSpreadsheet or listing of key information about a property (i.e., total number of units, tenant names and apartment numbers, lease dates, and the rent each tenant pays).

Rent ScheduleA 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.

Rent SubsidySee: Subsidy.

Rent-Up PeriodThe length of time to rent a property newly constructed or renovated.

RenunciationWhen someone who has been granted something or has accepted something later gives it up or rejects it; as when an agent withdraws from the agency relationship.Compare: Revocation.

R.E.O.See: Real Estate Owned.

RepairsThe general upkeep of property without major replacement or change of the plan or characteristics of the building.

ReplacementThe substitution of a portion of a structure with one of substantially the same nature, such as a new furnace, new roof, etc.

Replacement CostThe cost of construction at current prices of a building having utility equivalent to the building being appraised but built with modern materials and according to current standards, designs, and layout.

Replacement Cost (R/C)The cost, for insurance purposes, of replacing property without deduction for depreciation.

ReplevinA legal action to recover goods wrongfully taken, where damages are not satisfactory.

RepresentationSee: Per Stirpes.

ReproductionBuilding an exact replica of an original building, duplicating the materials,design, functional layout, workmanship, and even inadequacies.

Reproduction CostThe cost of construction at current prices of an exact duplicate or replica using the same materials, construction standards, design, layout, and quality of workmanship and embodying all the deficiencies, superadequacies, and obsolescences of the subject building.

Request For ReconveyanceA request by a beneficiary under a deed of trust to the trustee, requesting the trustee to reconvey the property (release the lien) to the trustor, usually upon payment in full.

RerecordingThe recording of a deed for a second time to correct an error contained in the deed when originally recorded. Also called a correction deed, confirmation deed, or reformation deed.

Resale MarketThe selling of property after the initial sale. Example: A builder sells a house. The homeowner subsequently "resells" the house. The second sale is in the resale market.

Resale ProceedsSee: Proceeds.

RescindTo void or cancel in such a way as to treat the contract or other object of the recision as if it never existed.

RescissionSee: Rescission of a Contract.

Rescission Of A ContractAnnulling or abrogating a contract and placing the parties to it in a position as if there had not been a contract.

Reservation(1) A right created and retained by a grantor. The reservation may be temporary (such as a life estate) or permanent (such as an easement running with the land). (2) Public land reserved for a special purpose, such as an Indian reservation.

Reservation In A DeedThe creation by a deed to property of a new right in favor of the grantor. Usually involves an easement, a life estate, or a mineral interest.

ReserveA setting aside of funds, usually for indefinite contingencies, such as future maintenance of a structure, or to pay future claims, such as insurance claims.

Reserve AccountAn account maintained by abroker for the deposit of client's money (i.e.,good faith deposits). Also called: Trust Account.2. An account maintained by a lender for thedeposit of borrowers' extra 1/12 monthlydeposits to cover next year's insurance and taxpayments. Also called: Escrow Account.

Reserve RequirementsThe percentage of customers' deposits commercial banks are required to keep on deposit, either on hand at the bank or in the bank's own accounts; money the bank cannot lend to other people.

ReservoirA body of water used as household water (drinking, washing, etc.), irrigation, or other domestic or commercial uses. The water is usually treated and its purity is monitored.

ResidenceA place where someone lives. See also: Domicile (1).

Residential Accredited AppraiserA designation awarded by the NATIONAL ASSOCIATION OF REALTORS to a member who is a state certified Residential Appraiser and has the required additional required experience and tested education.

Residential BrokerA licensed real estate broker specializing in the sale of residential property, such as single family homes, PUDs and condominiums.

Residential Building RateThe rate of residential construction in a given area. Determined by housing starts per 1,000 population.

Residential Lead-Based Paint Hazard ReductionactResidential Lead-based Paint Hazard ReductionAct

Residential Market AnalysisIn-depth study of alisting as it stands on its own, as well as in light ofcurrent market conditions.

Residential PropertyLand designated by zoning ordinances as "residential". May be vacant or improved.

Resident ManagerA manager of an apartment project who lives on the property. Some states require a resident manager in apartment projects above a certain number of units. The manager is not required to have a real estate license.

ResidualAmount remaining. Example: The income remaining after deducting for vacancies and operating expenses of apartment units. The amount can then be divided by the market capitalization rate to estimate the present value of the property.

Residual IncomeThe amount of income a borrowerhas left after subtracting taxes, housingexpenses, and all recurring debts and obligations(used for VA loan qualifying).

Residuary EstateThat property of a deceased after expenses of administration and after all bequests and devises.

Resort PropertyGenerally, any property where people would go for purposes of fun and vacations. In some states, the term may have legal significance, and regulations may exist regarding advertising and selling property as resort property.

RESPA (Real Estate Settlement Procedures Act)A federal statute effective June 20, 1975, requiring disclosure of certain costs in the sale of residential (one to four family) improved property which is to be financed by a federally insured lender.

Respondeat SuperiorDoctrine of responsibility of a principal for the wrongful acts of an agent arising from the authorized acts of said agent. In real estate, one of the reasons for the status of independent contractor.

RestitutionRestoring something to a person of which she was unjustly deprived.

Restoration(1) Repair (may be very extensive) to a building to cause it to look like it did at an earlier time. (2) Returning land to a former state. Examples: Replanting trees after cutting them down, leveling strip mines, gravel pits, etc.

Restraint Of AlienationRestrictions placed against the transfer (vesting) or sale of property. Certain restrictions are allowed but must conform to the rule against perpetuities and free right of an owner to sell. For example: Selling on the condition that the grantee could resell only to members of a certain family would be too restrictive and not valid.

RestrictionA limitation on the use of real property, generally originated by the owner or subdivider in a deed.

Restrictive CovenantSee: Restriction.

ResubdivisionSubdividing an existing subdivision. (1) Frequently done when the wishes to change the size or shape of the lots. (2) Some states have held that one who buys several properties in the same subdivision (even if already with buildings) must resubdivide before selling. This has been carried to the point of including one who buys two condominiums in the same subdivision. However, a simpler and less costly procedure has been provided in such cases.

Resulting TrustSee: Constructive Trust.

Retail Investment PropertyWhere a specific typeof business activity occurs—retail sales andrelated business activities.

Retaining WallA wall used to contain or hold back dirt, water, or other materials of a similar nature.

Retaliatory EvictionForcing a tenant to vacate as revenge for complaints filed by the tenant against the landlord for failure to adequately maintain the property. Laws prevent retaliatory eviction by forbidding eviction without cause for a specified time period after the complaint.

Return Of InvestmentThe recovery of invested capital.

Return On InvestmentThe profit from invested capital.

RevaluationSee: Reassessment.

Revaluation ClauseA clause in a lease calling for a periodic revaluation (appraisal) of the leased property, and subsequent adjustment of rent.

Revenue StampsFormerly federal tax on sale of real property. Canceled and replaced by state tax stamps. The stamps (similar to postage stamps) are affixed to the conveyancing instrument (deed), or a rubber stamp is used to show the amount of the tax.

ReverseTo overturn a lower court's decision on appeal, ruling in favor of the appellant. Compare:Affirm.

Reverse Annuity MortgageA mortgage loan that allows the owner to receive periodic payments based on the equity in the home.

Reverse Equity MortgageWhen a homeowner over age 62 with little or no outstanding liens, mortgages her home to a lender and, in return,receives a monthly check. Also called: Reverse Mortgage.

Reverse LeverageSee: Negative Leverage.

Reverse MortgageA loan, secured by a first mortgage on the borrower's residence, under which the lender makes periodic payments to the borrower which are repaid in one lump sum. The loan is available to senior citizens (62 and over) with FHA insurance. For specific variations see: Combination Advance Reverse Mortgage; Credit Line Reverse Mortgage; Lump Sum Reverse Mortgage; Monthly Advance Reverse Mortgage; Tenure Monthly Advance Reverse Mortgage; Term Monthly Advance Reverse Mortgage.

ReversionThe remnant of an estate that the grantor holds after he or she has granted a life estate to another person; the estate will return or revert to the grantor. Also called a reverter.

Reversionary InterestAn interest held in a reversion (future right to property in possession of another).

Reversionary RightAn owner's right to regain possession of leased property on termination of the lease agreement.

RevocableCapable of being revoked.

RevocationWhen someone who granted or offered something withdraws it, as when aprincipal withdraws the authority granted to the agent, an offeror withdraws the offer. Compare:Renunciation.

RevokeTo cancel, annul, reverse, take back, etc.

RezoneAn amendment to a zoning ordinance, usually changing the uses allowed in a particular zone. Also called: Zoning Amendment. Compare:Spot Zoning.

RezoningThe process involved in changing the existing zoning of a property or area.

R-FactorA way to measure the insulating value or resistance to heat flow through a material or an object. The more effective the insulation, the higher the R-Value it will have.

Ribbon(1) A narrow strip; a strip of wood to add support to studs and joists. (2) A driveway consisting of two cement strips, the same distance apart as tires on a car.

RiderSee: Addendum.

RidgeThe meeting of the roof rafters of a gable or other roof with two sloping sides.

RidgeboardThe highest horizontal member of a roof, running along the ridge, and receiving the rafters at right angles.

Right Of AnticipationThe right to prepay without penalty. See: Or More Clause.

Right Of DisposalA right to transfer all or some of aperson's ownership interest in real property.

Right Of EnjoymentA right to enjoy the benefits of land ownership without outside interference.See: Quiet Enjoyment.

Right Of RedemptionSee: Redemption.

Right Of RescissionLaws that allow a borrower (there must be financing involved) to cancel a transaction within three business days after signing the agreement to purchase. It applies to certain real estate and personal property transactions. The borrower need not state a reason for the cancellation.

Right Of UseThe right landowners have to makeproperty productive (part of bundle of rights).

Right Of WayA strip of land which is used as a roadbed, either for a street or railway. The land is set aside as an easement or in fee, either by agreement or condemnation. May also be used to describe the right itself to pass over the land of another.

Right Of Way (ROW)An easement giving the holder the right to cross another person’s land.

RightsA general term which encompasses those things a person may do unopposed, even though a burden on another occurs, as in the right of a tenant, holder of an easement, etc.

Right To RescindThe consumer's right to rescind any credit transaction involving her principal residence as collateral (except first mortgages), up to midnight of the third business day after the transaction.

Rill ErosionErosion caused by heavy rainfall on freshly cultivated ground, which produces channels in the loose soil.

RiparianBelonging or relating to the bank of a river or stream. Land within the natural watershed of a river or stream.

Riparian OwnerOne who owns land along the bank of a river or stream.

Riparian RightsAn owner's rights in land that borders flowing water, such as a stream or river. These rights include access to and use of the water.

Riparian WaterWater within the normal flow of a stream or river. An abnormal flow (flood) is not riparian water.

RiprapA loosely composed wall of rocks and stones used to hinder the flow of water, thereby preventing erosion.

RiseThe vertical measurement of a slope in relation to its horizontal measurement, such as a rise of three feet vertically over a horizontal distance of fifty feet.

Riser(1) The vertical board rising from the back of each step in a stairway. (2) A warm air duct rising from a furnace.

RiskIn lending, the chance of being repaid. High risk may result from poor credit, a high loan to value ratio, poor general economic conditions, etc. Generally, the greater the risk, the greater the required return (higher interest rate and points).

Risk ManagementIdentifying, managing, and minimizing the potential risks on the property.

RiverA large, natural stream of water, which flows in a permanent channel or bed, and may empty into a lake or the sea.

River BedThe land between the banks of a river during its normal course.

RLISee: Realtors Land Institute.

RMA designation conferred by the Appraisal Institute upon member appraisers who are qualified to appraise residential properties of one to four units. See also: MAI; SRA; SREA; SRPA.

RNMISee: Realtors National Marketing Institute

Road(1) A rural travelway for the use of pedestrians and/or vehicles. (2) Any travelway for the use of pedestrians and/or vehicles.

Rock WoolA fibrous insulation material made from molten rock.

RodA unit of linear measure equal to 16 1/2 feet.

Rollover LoanA loan which is periodically reviewed, adjusted (usually to reflect current interest rates) and extended. Short term loans can be rolled over into long term loans. The process is by initial agreement or by necessity.

Roll-Over PaperShort term notes which may be extended (rolled over) or converted to installment payments, after the initial due date.

Roll RoofingAn asphalt paper or fiber material, which is used in rolls, being unrolled and fastened to the roof surface under the shingles.

Roman BathA bathroom constructed to resemble the public baths of ancient Rome. Usually there is a large sunken tub and the use of marble or marble-like tiles as the principal covering of the floors, vanities, etc.

Roman BrickBrick which shows a narrower face than standard building brick.

RoofA general term meaning the top of a building. (See specific types for more detail).

Roof SheathingSee: Sheathing.

RoomA fully enclosed section of the interior of a building, having access through a door or doorway. In residential property, rooms are described specifically, such as living room, dining room, etc.

Room CountThe number of rooms in a residential property. There is no national method of counting but, generally, bathrooms are specified and counted separately.

RotundaA room or building, shaped in a circle, and usually with a domed roof.

Rough-InsItems hidden by finished walls, but that are vital to the operation of the house.

Row HousesA method of construction of individual houses with common side walls and a common roof. Modernly called townhouses.

RoyaltyA fraction or percentage of the value of a natural resource (oil, sand, etc.) paid to the owner of the resource by those extracting and selling it.

RPT (Reported)Abbreviation used on many listing forms.

RRMSee: Renegotiable Rate Mortgage.

Rule Against PerpetuitiesPrinciple that a property interest is void unless it must vest not later than the remaining time of a life or lives in being, plus gestation time, plus twenty-one years. (The time has been modified by statute and should be checked in each state).

Rule Of 78'sThe Rule of 78's is a commonly used accounting method for allocating interest or insurance charges in a credit transaction. This allocation method assumes that the portion of the total charge contained in each credit installment payment is computed as a direct ratio of the number of the remaining unpaid installments to the sum if the original number of installments.

Running With The LandUsually concerned with easements and covenants. Passing with the transfer of the land.

RuralConcerning the country, as opposed to urban (concerning the city).

Rural DevelopmentA federal agency of the U.S. Department of Agriculture that channels credit to farmers and rural residents and communities; formerly known as the Farm Service Agency and Farmer's Home Administration (FmHA).

Rural Housing Service (RHS)An agency of the U.S. Department of Agriculture that helps rural communities and individuals by providing loans and grants for housing and community facilities. It provides fund-ing for single family homes, apartments for low-income persons or the elderly, housing for farm laborers, childcare centers, fire and police stations, hospitals, libraries, nursing homes, schools and other services.

R-ValueInsulation's R-Factor multiplied by theamount of material. See: R-Factor