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Real Estate Glossary
To view a real estate term, click on one of the letters below.
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Rate - This is the annual interest rate applied to the outstanding balance of
the loans.
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.
Rate Lock - A commitment issued by a lender to a borrower guaranteeing a
specified interest rate for a specified period of time. See lock-in.
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.
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.
Real Property - Land and appurtenances, including anything of a permanent nature
such as structures, trees, minerals, and the interest, benefits, and inherent
rights thereof.
Realtor? - A real estate broker or an associate who holds active membership in a
local real estate board that is affiliated with the National Association of
Realtors.
Recording - Filing a document in the public records, thereby giving constructive
notice to the world of the existence of the document and its contents.
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.
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).
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."
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.
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.
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 often called "relief provisions."
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.
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.
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.
Right Of Ingress or Egress - The right to enter or leave designated premises.
Right Of Survivorship - In joint tenancy, the right of survivors to acquire the
interest of a deceased joint tenant.
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.
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