| Radon |
A radioactive gas found in some homes that in sufficient
concentrations can cause health problems. |
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| Rate Caps |
Rate caps limit how much the interest rate can move up or
down. |
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| Rate Guarantee |
The lender's guarantee, usually for a specified period of
time, that the interest rate in effect the date you apply for a loan (or at the
time of approval) will be the final rate on your loan when closed. |
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| Rate Lock Option |
An agreement guaranteeing the home buyer a specified interest
rate provided the loan is closed within a set period of time. |
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| Rate Reduction Option |
A fixed-rate mortgage that includes a provision that gives the
borrower an option to reduce the interest rate (without refinancing) at a later
date. It is similar to a prearranged refinancing agreement, except that it does
not require re-qualifying. |
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| Rate |
This is the annual interest rate applied to the outstanding
balance of the loans. |
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| Ready, Willing and Able |
A buyer who is prepared to buy on the seller's terms and has
the financial capacity to do so. |
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| Real Assets |
Real estate or real property owned by an individual or
business. |
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| Real Estate Agent |
A person who is normally licensed by the state and who, for a
commission or a fee, assists in negotiating a real estate transaction. |
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| Real Estate Broker |
A middle man or agent who buys and sells real estate for a
company, firm, or individual on a commission basis. The broker does not have
title to the property, but generally represents the owner. |
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| Real Property |
Land and appurtenances, including anything of a permanent
nature such as structures, trees, minerals, and the interest, benefits, and
inherent rights thereof. |
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| Real Estate Settlement Procedures Act (RESPA) |
A consumer protection law that, among other things, requires
advance disclosure of settlement costs to home buyers and sellers, prohibits
certain types of referral and other fees, sets rules for escrow accounts, and
requires notice to borrowers when servicing of a home loan is transferred. |
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| 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. |
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| Real Estate |
Refers to land and improvements and the rights to own or use
them. In popular usage, Real Estate is used interchangeably with Real Property
and Realty. |
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| Real Estate Broker |
A middle man or agent who buys and sells real estate for a
company, firm, or individual on a commission basis. The broker does not have
title to the property, but generally represents the owner. |
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| Real Estate Agent |
A licensed person who works under the direction of a broker
selling and renting real estate. |
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| Realtor® |
A Realtor is a real estate professional who is a member of the
National Association of Realtors and subscribes to its strict Code of Ethics.
This professional is committed to protecting and promoting private ownership of
real property, establishing and maintaining high professional standards of
practice, and creating unity in the National Association of Realtors
organization and respect for the real estate profession. |
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| 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. |
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| Receiver |
Court-appointed custodian who holds property for the court,
pending final disposition of the matter before the court. |
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| Recision |
The cancellation of a contract. With respect to mortgage
refinancing, the law that gives the homeowner three days to cancel a contract
in some cases once it is signed if the transaction uses equity in the home as
security. |
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| Recital |
Setting forth in a deed or other writing some explanation for
the transaction. |
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| 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. |
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| 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." |
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| Recording |
The noting in a book of public record of the terms of a legal
document affecting title to real property, such as a deed, a mortgage note, a
satisfaction of mortgage, or an extension of mortgage. |
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| Recourse |
The right of the holder of a note secured by a mortgage or
deed of trust to look personally to the borrower or endorser for payment. |
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| Redlining |
The illegal practice of refusing to originate mortgage loans,
or limiting their number, in certain neighborhoods on the basis of racial or
ethnic composition. |
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| Reduced Documentation |
A method used to determine income when qualifying a
borrower(s) for a loan. Borrower(s) provide their income, however no
verification documentation is typically required. |
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| Refinance Transaction |
The process of paying off one loan with the proceeds from a
new loan, typically using the same property as security for the new loan. |
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| Refinance |
Replacing an existing loan with a new one to get a lower rate,
switch from one loan type to another, or convert equity to cash. A refinance
loan will involve various loan fees, just as with any other mortgage. |
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| Refinancing |
To apply for a new mortgage in order to gain better terms,
usually either a lower interest rate or a different principal amount. |
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| 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). |
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| Rehabilitation Mortgage |
A mortgage created to cover the costs of repairing, improving,
and sometimes acquiring an existing property. |
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| Reissue rate |
A charge for a title insurance policy if a previous policy on
the same property was issued within a specified period. Reissue is less than
the original charge. |
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| REIT (Real Estate Investment Trusts) |
A method in investing in real estate in a group, with certain
tax advantages. |
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| RELA |
Real Estate License Act. |
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| Release |
An instrument releasing property from the lien of the
mortgage, judgment, etc. |
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| 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. |
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| Remaining Balance |
The amount of principal that has not yet been repaid. See
principal balance. |
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| Remaining Term |
The original amortization term minus the number of payments
that have been applied. |
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| Rental Agreement |
A legal document setting forth the agreement between the
Landlord and Tenant. It explains under what conditions the Tenant is allowed to
occupy the property and the responsibilities of the Landlord. The terms Lease
and Rental Agreement are interchangeable but often a Lease is for a term of a
year or more and a Rental Agreement is for a shorter period. |
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| Rent With Option To Buy |
See lease-purchase mortgage loan. |
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| Repayment Plan |
An arrangement made to repay delinquent installments or
advances. Lenders' formal repayment plans are often called "relief
provisions." |
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| Request For Notice of Default |
A recorded document that obligates the holder of the first
mortgage lien to notify subordinate lien holders in the event of default by the
borrower. |
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| Rescission |
The act of cancellation or annulment of a transaction or
contract by the operation of a law. Borrowers usually have the option to cancel
certain credit transactions, including a refinance or home equity transaction,
within three business days after consummation (when the consumer becomes
contractually obligated by, for example, signing the loan documents). |
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| 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. |
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| RESPA |
Short for the Real Estate Settlement Procedures Act. RESPA is
a federal law that allows consumers to review information on known or estimated
settlement costs once after application and once prior to or at a settlement.
The law requires lenders to furnish the information after application only.
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| Restrictions |
Limitations on the use or occupancy of real estate contained
in a deed or in local ordinances pertaining to land use. |
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| Restrictive Covenants |
Private restrictions limiting the use of real property.
Restrictive covenants are created by deed and may "run with the
land," binding all subsequent purchasers of the land, or may be
"personal" and binding only between the original seller and buyer.
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| Revenue Stamps |
Formerly federal tax on a sale of real property. Canceled and
replaced by state tax stamps. |
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| Reverse Annuity Mortgage - RAM |
A form of mortgage in which the lender makes periodic payments
to the borrower using the borrower's equity in the home as Satisfaction of
Mortgage: the document issued by the mortgagee when the mortgage loan is paid
in full. |
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| Revolving Liability |
A credit arrangement, such as a credit card or HELOC, that
allows a customer to borrow against a predetermined line of credit when
purchasing goods and services. The borrower makes payments on the amount that
is actually borrowed plus any interest due. |
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| Right Of Survivorship |
In joint tenancy, the right of survivors to acquire the
interest of a deceased joint tenant. |
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| Right Of Ingress or Egress |
The right to enter or leave designated premises. |
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| Right Of First 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. |
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| Riparian Owner |
One who owns land bounding upon a river or water course
(stream, creek, bayou, etc.). |
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| Rural Housing Service (RHS) |
An agency within the Department of Agriculture. 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. |