R-value
A measure of a material's resistance to heat loss. The higher the R-value, the slower the rate
of heat loss.
Radon
A radioactive gas found in some homes that, if occurring in strong enough concentrations, can cause health problems.
Rafter
One of a series of beams that form the slope of a pitched roof.
Rails
The horizontal structural members of a door. Most doors have a top
rail, a bottom rail, and a center rail connected at both ends to
vertical stiles.
Rammed-earth construction
An alternative building process in which dirt is compacted into
large structural frames to create walls.
Rate cap
The maximum interest rate allowed on the monthly payment of
an adjustable rate mortgage during an adjustment period.
Rate lock
A lender's commitment to a borrower to guarantee (or "lock in") a
specific interest rate for a limited amount of time.
Rate-improvement mortgage
A loan with a clause that entitles a borrower to a one-time interest
rate cut without going through refinancing.
Real estate
Land and anything permanently affixed to it, including buildings.
Real estate agent
A person licensed by a state to represent a buyer or a seller in a
real estate transaction in exchange for a commission.
Real estate broker
A person, corporation, or partnership licensed by a state to
represent a buyer or seller in a real estate transaction in exchange
for a commission.
Real estate investment trust (REIT)
Publicly traded companies that own, develop and operate commercial
properties.
Real estate professional
Any real estate broker, sales agent or attorney who holds a real
estate license.
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 (immovable)
Land, from the center of the earth
and extending above the surface indefinitely, including all inherent
natural attributes and any man-made improvements of a permanent
nature place thereon. For example: minerals, trees, buildings,
appurtenant rights.
Realtor
A real estate agent or broker who is a member of the NATIONAL ASSOCIATION OF REALTORS, and its local and state associations.
RECONVEYANCE
An 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.
Recorder
A public official responsible for keeping record of all real estate
transactions.
RECORDING
Filing documents affecting real property as a matter
of public record, giving notice to future purchasers, creditors, or
other interested parties. Recording is controlled by statute and
usually requires the witnessing and notarizing of an instrument to
be recorded.
Recording fee
A fee charged by real estate agents for conveying the sale of a
piece of property into the public record.
Redlining
An illegal practice by a bank or insurance company that denies
credit or insurance to people based on ethnic background or
neighborhood.
Refinancing
Paying off one loan by obtaining another; refinancing is generally done to secure better loan terms (like a lower interest rate).
Regression
The principle that the value of a better-quality property is
adversely affected by the proximity of a lesser-quality property.
Regulation Z
A federal code issued under the Truth in Lending Act that requires
a borrower be advised in writing of all costs associated with
the credit portion of a financial transaction.
Rehabilitation mortgage
A mortgage that covers the costs of rehabilitating (repairing or Improving) a property; some rehabilitation mortgages - like the FHA's 203(k) - allow a borrower to roll the costs of rehabilitation and home purchase into one mortgage loan.
REINSURANCE
A contract which one
insurer makes with another to protect the first insurer, wholly or
partially, against loss or liability by reason of a risk under a
separate and distinct contract as insurer of a third party.
Reinsurance differs from coinsurance in that, in the case of
reinsurance, only one insurer has a direct contractual relationship
with the insured, and that insurer (commonly referred to as the lead
insurer) purchases reinsurance in order to lessen or spread the
risk. The lead insurer will assume a risk up to a limit (the amount
of which is referred to as the retention) and any loss which exceeds
this limit would be borne by the reinsurers. In the case of
coinsurance, each coinsurer has a direct contractual relationship
with the insured, and the risk is shared in agreed-upon proportions
from the first dollar of loss.
Release clause
A provision in a purchase contract that allows a seller to continue
marketing their home and accept other offers.
Relocation company
A firm that administers all aspxects of relocating new employees from
one location to another.
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 for renters that covers the replacement value of
possessions.
Repayment plan
When a borrower falls behind in mortgage payments many lenders will
negotiate a repayment plan rather than go to court.
Replacement cost
The current cost of rebuilding a structure to its original
specifications.
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.
Repointing
Replacing damaged mortar in the joints between bricks or stones.
Repossess
To take back property. A lender holding a mortgage may repossess a
property if the buyer fails to make payments.
Rescission
The cancellation of a contract by law or consent from the parties
involved.
Reserve fund
Money set aside by a homeowners' association for major repairs or
improvements.
Resilient channel
A channel run across wall studs underneath wallboard to reduce sound
transmission.
RESPA
Real Estate Settlement Procedures Act; a law protecting consumers from abuses during the residential real estate purchase and loan process by requiring lenders to disclose all settlement costs, practices, and relationships.
RESTRICTIONS
Often called restrictive covenants. Provisions in
a deed or other instrument whereby an owner of land prohibits or
restricts certain use, occupation or improvement of the land.