R-value

An R value is a construction term that refers to the resistance of to heat loss.  The R value represents the measure of the resistance to heat flow of a particular material, and is calculated by multiplying the degrees of heat in Fahrenheit times hours times square feet per BTU (where BTU is the British Thermal Unit, used in energy comparisons).  The higher the R value of a particular material is, the slower the rate of heat loss associated with it, and the better the insulating capacity of that material.  R values are commonly used by building contractors in evaluating the efficiency and quality of the insulation material used in a home.

Radon

Radon is a ground-generated radioactive gas that is considered to be a serious health hazard.  Radon can sometimes seep into homes through sump pumps, cracks in a home´s  foundation, and other inlets.  Radon is dangerous because it is a leading cause of lung cancer and other diseases.  Radon is most often found in  the ground in the northern half of the United States.  In such locations, buyers of real estate are advised to have a radon test conducted on a property prior to committing to purchase.  Even if radon exists on a property, the problem can be treated by a professionally-installed radon reduction system.

Rafter

A rafter is one of several beams that together form the slope of a pitched roof on a home.   Rafters are analogous to floor joists, but applicable to the support of a roof.  Usually narrower than other beams, the width and weight of a rafter will vary depending on how many rafters there are supporting a roof and how much weight each is required to bear.  For example, sturdier, thicker rafters that can individually offer more support can be fewer in quantity; a roof supported by narrower rafters usually includes more rafters to ensure it has adequate structural support.

Rammed-earth construction

Rammed-earth construction is an alternative building process in which dirt on a parcel of real property is compacted into large structural frames in order to create walls.  This type of construction, also called pise de terre, has been used since ancient times, and is currently seeing a revival in its popularity as home builders and buyers investigate low-impact building materials and natural building methods.  Rammed-earth construction is most common in areas that are dry and where wood for lumber is scarce.  The walls are made of a mixture of sand, gravel, and clay, with some cement typically added as a stabilizer.

Ranch style

Ranch style refers to a type of home architecture.  Ranch style homes began to become popular in the United States in the 1930s, and became increasingly common in the 1950s when they were championed by architects such as Frank Lloyd Wright.  Ranch style homes are single-story dwellings, and have some common features, including low rooflines, simple and open floor plans, large windows, and roofs that are often cross-gabled, side-gabled, or hip style.  Many home buyers prefer a ranch style homes to two- or three-story houses because maneuvering stairs can be avoided; however, for added space, many ranch style homes include finished basements.

Rate lock

A rate lock is a situation in which interest rates are volatile, and borrowers may want to "lock in" a particular interest rate to prevent a potentially dramatic increase.  Many lending institutions will oblige to locking in an interest rate when such action is requested by a borrower because in the event that market interest rates decrease, the lender is in a position to make above the market rate.  A rate lock typically involves the lender setting a limit on the amount of time that the guaranteed interest rate is in effect.

Rate-improvement mortgage

A rate-improvement mortgage is a fixed-rate home loan, the formal contract for which includes a clause that entitles a borrower to a one-time cut in the interest rate without going through the process of refinancing the loan.  A loan agreement for a rate-improvement mortgage usually specifies the amount of time, commonly towards the beginning of the loan repayment period, during which the borrower may take advantage of the interest rate reduction.  This approach eliminates the need for the borrower to pay the closing costs associated with refinancing a mortgage, such as title and escrow fees, lender fees, appraisal fees, insurance, and taxes.

Real estate

Real estate is the term applied to a parcel of land and anything that is permanently affixed to it, including buildings, things permanently attached to structures, fences, vegetation, natural resources on the property and beneath its surface, and the like.  Real estate is a type of property called "real property."  Unlike personal property, which includes moveable items separate from land such as cars, furnishings, clothing, books, and similar items, real estate is considered to be unique-that is, no two parcels of real property are thought to be exactly alike, and the law thus favors specific performance in cases where there is a dispute as to contracts regarding real estate.

Real estate agent

A real estate agent is a professional who has a state-issued license that allows him or her to represent a buyer or a seller in a real estate transaction.  In exchange for his or her work with a buyer or seller of real estate, a real estate agent receives a payment called a commission.  The commission is paid pursuant to a representation contract entered into between the agent and his or her client, and may be in the amount of a flat fee or calculated as a percentage of the purchase price of the home that is bought or sold in the transaction.  Most agents work for real estate brokers.

Real estate attorney

A real estate attorney is a lawyer who specializes in real estate transactions.  Real estate attorneys are able to help their clients with respect to real estate transactions in a number of ways.  For example, a real estate attorney may help a client interpret legal language in the contract entered into between a buyer and a seller, the loan agreement between a buyer and a mortgage issuer, and any other documents involved in a transaction.  In addition, a real estate attorney can ensure that a particular property meets all applicable laws and regulations, such as building code requirements and zoning ordinances.

Real estate broker

A real estate broker is a real estate agent who is professionally licensed by a particular state, allowing him or her to represent a buyer or seller in a real estate transaction in exchange for a commission, payment of which is specified in a representation agreement between the broker and the client.  Most brokers also have other agents working for them; this is true especially for real estate brokers who are successful and have a good reputation, or who otherwise have a lot of business in their particular market.  Brokers who have other agents, called subagents, working for them are usually entitled to a portion of the commissions earned by the subagents.

Real estate investment trusts (REITs)

Real estate investment trusts are trusts that are in the form of publicly traded companies that own, develop and operate commercial properties.  A real estate investment trust operates as a for-profit entity that pools various commercial properties, as well as mortgages and other real estate assets, and offers shares of that pooled property for purchase or sale on the stock market.  Such trusts lower the risk of investing for real estate investors by distributing their investment among a variety of properties and assets rather than limiting investment to a single parcel of real property.

Real Estate Settlement Procedures Act (RESPA)

The Real Estate Settlement Procedures Act, abbreviated RESPA, is a federal law that is designed to make sellers and buyers of real property aware of settlement fees and other transaction-related costs.  The Act serves as a consumer protection approach, educating parties to a real estate transaction regarding what the money they pay in the form of various fees and costs is used for.  RESPA also outlaws kickbacks in the real estate business, which are situations in which an agent, lender, or other professional involved in a real estate transaction receives a payment from another source at the expense of the buyer or seller involved in the transaction.

Real property

Real property, also referred to as real estate, is a parcel of land and anything that is permanently affixed to it, including buildings, things permanently attached to structures, fences, vegetation, natural resources on the property and beneath its surface, and the like.  Unlike personal property, which includes moveable items separate from land such as cars, furnishings, clothing, books, and similar items, real property is considered to be unique-that is, no two parcels of real property are thought to be exactly alike, and the law thus favors specific performance in cases where there is a dispute as to contracts regarding real property.

Realtist

Realtist is a designation for a real estate agent or a real estate broker who is a member of the National Association of Real Estate Brokers, which is a minority trade association.  Realists are brought together by the National Association of Real Estate Brokers in an effort to support them as minorities in the real estate field.  The Association offers education, ethical requirements, and support, distributes publications, and holds meetings and workshops.  Realtists must submit a membership application and, upon approval, are required to participate in certain ways in the Association and to pay membership dues.

Realtor

Realtor is a designation for a real estate agent or a real estate broker who is a member of the National Association of Realtors, a professional organization whose stated mission is to help its members become more profitable and successful through a variety of resources, including professional development, research, education, and exchange of information, as well to educate the public regarding real estate issues.  Realtors are bound by a strict code of ethics, and must have completed certain educational requirements and demonstrated specific skills, performance, and knowledge with respect to the real estate industry.

Recission

Recission is the act of cancellation of a contract by law or by consent by the parties to the contract.  In the real estate context, recission may occur in a number of scenarios.  For example, recission may be ordered by a court of law with respect to a contract between a buyer and a seller of a parcel of real property in situations where there was some defect in the contract, such as that it was entered into by fraud or by undue influence of one party on the other.  Recission may also occur by mutual agreement with a refinancing contract, in which borrowers are commonly given the option to cancel the refinance transaction within a particular time period, usually three days, after it has closed.

Reconveyance

A reconveyance is the term applied to the time at which a parcel of real property is reconveyed, or conveyed back, to the property purchaser from a lending institution that holds the mortgage on the property once the borrower has completely paid off his or her mortgage.  Reconveyance is usually accomplished pursuant to a deed of trust, by which the lender holds the property in trust as collateral security for repayment of the loan; the title is conveyed to the lender for the duration of the loan, and then reconveyed to the debtor when the loan is repaid.

Recorder

A recorder is a public official who is responsible for keeping various public records, including the records of all real estate transactions.  Different documents that are associated with a particular real estate transaction, such as a deed, a mortgage, a release, a certificate, or other documents, usually have different requirements for their recordation.  These requirements are enforced by the recorder.  A recorder usually serves county-wide.  The recorder´s office is where members of the public and, more specifically, prospective property buyers, property owners, or title search agencies, go to investigate the title to a particular piece of real property.

Recording

Recording is the process of filing of a specific document with the appropriate government entity.  In the real estate context, for example, a title to a parcel of real property is usually recorded with a County Recorder´s office in the county in which the real estate that is the subject of the title is located; such recording allows for a chronological public record of the ownership of the property.  When a document is recorded, it is established as part of the public record of the locality, such as a county, which the recorder represents; copies are also provided to the owner of the property and often to lenders issuing a loan thereon.

Recording fee

A recording fee is a fee that is charged by a real estate agent for conveying the sale of a piece of property into the public record.  At a closing on a parcel of real property, upon payment by the buyer of the property to the seller, the seller usually gives the buyer the keys to the property and transfers title, or ownership, thereto.  However, title to a property can only be enforced by the purchaser once the title has been recorded with the appropriate authority, usually the County Recorder in the jurisdiction in which the property that is the subject of the transaction is located.  The real estate agent for the buyer is normally responsible for this recordation, and he or she will charge a recording fee for that task.

Redlining

Redlining refers to the practice by a bank or an insurance company to deny credit or insurance or to increase the cost thereof to some people based on their ethnic background or neighborhood.  The practice of redlining is illegal in the United States; the federal government has strict regulations in place to prevent unfair treatment by banks and insurance companies of people based on their race, religion, gender, family status, disability, or ethnic origin.  The term "redlining" comes from the marking of red lines on a map, which banks at one time did in order to clearly mark those neighborhoods in which they were not willing to issue loans.

Refinancing

Refinancing is the process of replacing an older, existing loan on a particular parcel of real property with a new mortgage that has better terms that are more favorable to the borrower.  Some homeowners choose to refinance in order to reduce the interest rate that they owe from that associated with their existing mortgage; to pay off other debts that are not directly associated with the real property for which the original mortgage was issued; to reduce periodic payment obligations, as by taking on a term that has a longer term; to reduce the risk associated with an existing loan by, for example, switching from an adjustable-rate mortgage to a fixed-rate loan; or to liquidate some or all of the equity that the borrower has accumulated over the course of his or her ownership of the property.

Regulation Z

Regulation Z is the federal code issued under the Truth-in-Lending Act which requires that a borrower be advised in writing of all costs associated with the credit portion of a financial transaction.  Regulation Z requires lenders to disclose all credit information to borrowers in a format that is consistent from one lending entity to another.  Two major pieces of information are particularly emphasized on a Truth-in-Lending form, which is a disclosure form required to be provided by lenders pursuant to Regulation Z:  the finance charge associated with the loan, and the Annual Percentage Rate, or APR, which is the interest that is charged on the loan.

Rehabilitation mortgage

A rehabilitation mortgage is a type of mortgage that provides for the costs of repairing and improving a resale home or building.  Many private, for-profit lending institutions offer rehabilitation mortgage options, but perhaps the most well-known and most frequently utilized rehabilitation loan is that offered through the United States Department of Housing and Urban Development, or HUD.  HUD´s rehabilitation loan offers money that a property owner can use to make repairs and updates on his or her property prior to listing it for sale on the real estate market.

Relocation benefits

Relocation benefits are certain benefits associated with relocation for reasons related to one´s employment that are provided by employers for new workers.  Relocation benefits are designed to ease the cost of moving for an employee and his or her family and to entice employees to relocate to a new geographical area for their employment.  Such benefits are not required by law, but are at an employer´s discretion, and what is covered varies greatly among employers.  Relocation benefits may include, for example, actual moving costs (such as truck rental or airline tickets), reimbursement for temporary housing and transportation, real estate agent assistance, and discounted home loans.

Relocation company

A relocation company is a firm that administers all aspects of the process of moving in new employees to the community into which they are relocated.  Relocation companies may be part of or related to a real estate agency, or may be an entirely independent resource.  Relocation company services may include providing comprehensive information about a particular geographical area, conducting newly relocated persons with an orientation of the area, locating appropriate living accommodations, assisting with the securing of mortgage approval and issuance, providing information on services such as schools, or managing the shipment of personal property to the new location.  

Remaining balance

A remaining balance is the existing amount at a particular point in time of unpaid principal on a home loan.  In a home mortgage, each installment payment that is made by the borrower to pay of the loan typically encompasses partly an interest payment and partly a portion of the principal, or the total amount of the loan issued at the beginning of the loan term.  As payments are made over the term of the loan, every payment usually decreases in part the balance of the loan, and the amount left to be paid by the borrower subsequent to each payment is known as the remaining balance.

Remaining term

The remaining term of a home loan is the amount of time left before full repayment of the loan is due by the borrower.  The remaining term of a particular loan is calculated to be the amount of time established in the original loan term minus the number of payments that have been made toward the total amount at a given point in time.  The full term of a loan is established at the first issuance of the loan, and is expressed in the lending agreement between the borrower and the lending institution; however, the full term, and thus the remaining term, may ultimately be shorter if the borrower is able and willing to pay more towards the satisfaction of the loan in each installment payment than required.

Rent loss insurance

Rent loss insurance is a type of insurance policy that covers any loss of rent or rental value in the event of fire or other damage that renders the property uninhabitable.  Rent loss insurance, also commonly called loss or rent payment insurance, covers the monthly rent due on a particular property for any time during which it lies empty following a disaster.  Rent loss insurance usually is capped at a maximum total payout of between 20 and 30 percent of the total appraised value of the property that is insured, in order to avoid payment over an indefinite period of time.

Renter's insurance

Renter´s insurance is a type of insurance policy that covers for a rental tenant the cost of replacement of his or her possessions in the event that such possessions are destroyed with the destruction of the rental property.  Renter´s insurance is typically issued in proportion to the value of the personal property located on the rental property; for items that have the potential to be particularly expensive to replace, an insurance provider may require the property owner to provide an assessment of the value of the property as evidence.  Most renter´s insurance policies also protect property against theft, but some limitations exist to coverage depending upon the insurance provider.

Repayment plan

A repayment plan is an alternative schedule of payments designed to assist a borrower in repaying his or her outstanding loan balance.  Sometimes, for a variety of financial reasons, a borrower may fall behind in his or her mortgage payments, putting him or her in default; often, such failure to pay can result in massive late charges that decrease the likelihood that the borrower will be able to pay off the loan.  Many lending institutions are willing to negotiate a repayment plan with the borrower rather than go to court to recover the money; a repayment plan may involve lower monthly installment payments, forgiveness of late charges, and similar efforts.

Replacement reserve fund

A replacement reserve fund is an account that holds money that is set aside from a homeowners' assessments in order to replace common property, such as furniture in a planned development's community room.  Typically, in a planned community that has a homeowners´ association, or HOA, the HOA collects dues, usually monthly or annually, from homeowners in the community to use for maintenance of common areas.  Part of this money is likely to be delegated to the replacement reserve fund, to ensure that all homeowners in the community contribute to the replacement of items that are owned and used by all.

Repossession

Repossession refers to a situation in which a house is taken back by the lender holding the mortgage.  A house may be repossessed when the borrower of the loan applied to the purchase of that particular property is not repaid according to the terms of the loan agreement between the lending institution and the borrower.  When a repossession occurs, the property is repossessed from the borrower and is generally sold at auction.  The proceeds from the sale of the property are applied to the outstanding balance due on the borrower´s loan.  Any excess funds from such a sale that remain after satisfaction of the loan are normally returned to the borrower, reflecting his or her equity, if any, in the home.

Resale value

The resale value of a parcel of real property is the future value of the property at a later point in time at which the property owner decides to sell it.  Resale value for a particular property can be affected by many factors, and can change over time as the affecting factors change.  Factors that commonly affect resale value include the neighborhood surrounding the property, performance of district schools, the physical condition and age of the property itself, and economic and housing market conditions on both the local and on the national scale..

Reserve fund

A reserve fund is a fund established by a homeowners´ association in a planned community, the money in which is intended to be used for major repairs of improvements to the community common property.  A portion of the dues collected from homeowners in a community by the homeowners´ association is usually deposited into a reserve fund and is not used for routine maintenance; rather, it is saved for the potential situation in which the community needs a major repair or improvement, so that funds are available to cover a potentially expensive expenditure.

Restructured loan

A restructured loan is a mortgage in which new terms, different from those associated with the originally issued mortgage, are negotiated.  A loan may be restructured for a variety of reasons.  For example, the new terms of a restructured loan may update or pay off any delinquent accounts.  A restructured loan may lengthen the term of the housing loan, or lower the monthly payments due or the date on which installments are payable.  Most lending institutions require a borrower who seeks a restructured loan to pay a down payment related to the restructured loan; the interest rate may also differ from that of the original mortgage.

Return on investment

A return on investment is the amount of profit that a parcel of real property generates for the owner.  In the case of a residential property where the owner of the property is also the resident, the return on investment is the amount by which the resale price on the home exceeds the price at which the owner purchased the property, less any expenses associated with ownership thereof.  For investment property, such as an apartment building, commercial building leased to a business, or other rental property, the return on investment is the income the property owner makes from leasing his or her property to the tenant or tenants.

Reverse mortgage

A reverse mortgage is a special type of home loan that is usually only available to equity-rich, older home owners. Repayment of a reverse mortgage is not necessary until the borrower sells his or her property or moves away from it into a retirement community.  A home owner must be age 62 or older to qualify for a reverse mortgage.  This type of mortgage allows the owner to convert part of his or her home equity into tax-free income without having to sell the property or make mortgage payments while he or she remains in residence on the property.

Ridge board

A ridge board is a horizontal board that serves as the apex of the roof structure of a home.  The ridge board is the topmost horizontal framing member of the entire roof.  The tops of a roof´s rafters are affixed to the ridge board.  To install a ridge board on am existing roof, it is necessary to cut a length of board with an angle on one end that matches the slope of the roof, and to nail the board to the last truss at the end and to the existing roof at the ridge point.

Ridge vent

A ridge vent is a vent that is located along the ridge board of the roof.  The ridge vent allows moisture to escape.  The function of the ridge vent is crucial to protect against leaks into a home through the roof or other roof damage or instability that can be caused by moisture.  Ridge vents provide evenly distributed ventilation along the underside of a roof, and allow for a higher volume of airflow than other fixed-vent systems.  Changes in wind direction generally do not have a significant effect on the performance of a ridge vent.

Right of first refusal

A right of first refusal (commonly referred to in the real estate industry as ROFR) is an agreement by a property owner to give another specific person the right to buy or rent the property from him or her before the property is offered for sale or lease on the open market.  A right of first refusal establishes that if the seller of the property receives another acceptable offer on his or her property, the buyer who holds the right of first refusal is to be notified and have a specific amount of time to purchase the property.  If the person holding the right chooses not to purchase the property, his or her earnest money is returned and the subsequent offer may be accepted.

Right to recission

A right to recission is a provision that is included in the federal Truth-in-Lending Act.  This right allows borrowers to cancel certain kinds of loans within three days of signing.  Sometimes, a borrower may have changed his or her mind or desire additional time to check on other available financing options.  A right to recission gives the borrower extra time to consider his or her decision to accept a mortgage, and if during those three days he or she does decide that the mortgage is not what he or she expected, the buyer can cancel the loan and all attendant responsibilities.

Rough-in

A rough-in is the installation of plumbing, electrical, and other mechanical systems in the process of construction of a home or other structure.  These fundamental systems must usually be installed into a home following the structural construction but prior to any finishing work, and often even before the foundation is laid.  Each system also is likely to be performed by a separate subcontractor who is a professional in the respective field.   A rough-in is important and must be done accurately, because subsequent repairs can be costly and expensive.

Rural Housing Service

The Rural Housing Service is a program established and implemented by the United States Department of Agriculture.  The Rural Housing Service, or RHS, provides financing to farmers and certain other borrowers for the purchase of rural property when other funds are not available.  Loans are issued based on certain eligibility criteria, and are designed to assist farmers and those in rural areas, who frequently have limited financial resources, in purchasing and developing land.  Eligibility is dependent on the particular property for the purchase of which an RHS loan is sought and on the income of the loan applicant.