Real Estate Dictionary

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RANGE - A division of land in the government survey, being a six mile wide row of townships. running North and south, and used in legal descriptions. Generally used to describe and area where livestock graze.

RAW LAND - Land in its natural state with no improvements.

READY, WILLING, AND ABLE - Capable 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 entitles to a commission, even though the seller is not bound to accept the offer. A standard listing agreement should sate this.

REAL ESTATE - Land and anything permanently affixed to the land, such as buildings, light fixtures, plumbing and heating fixtures. Personal property is not attached and is not normally considered real estate. The term is generally synonymous with real property, although some states have a fine line to distinguish real property from personal property. Real estate may refer to rights in real property as well as the property itself.

REAL ESTATE BOARD - A board comprised of regular members (real estate brokers and salespersons) and affiliated members (lenders, title companies, and etc.) for the purpose of furthering the real estate business in a given area.

REAL ESTATE BROKER - Someone licensed by the state to carry on the business of dealing with real estate. A broker may receive a commission for his or her part in bringing a buyer and seller together to transact a transfer of title. Brokers may be compensated for leasing property or for bring about an exchange of property. Broker are responsible for the supervision of Associate Brokers, Realtors, and sales agents. Commissions and all other forms of compensation related to real estate must flow through the broker.

REAL ESTATE COMMISSION - 1) A department in state government, 2) the amount paid to a broker on the sale of real property.

REAL ESTATE LICENSE - A 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 SETTLEMENT PROCEDURES ACT (R.E.S.P.A.) - Requires advance disclosure to consumers about mortgage loans and settlement costs.

REALIST - A member of the National Association of Real Estate Brokers.

REALTOR - A designation given to a real estate broker or sales associate who is a member of a board associated with the National Association of Real Estate Boards. By becoming a Realtor one must subscribe to a strict Code of Ethics in conducting any and all Real Estate business. A licensed real estate agent is not a Realtor unless they join the national association and abide by its Code of Ethics. A Realtor who is not a broker - owner works under their real estate broker's supervision.

REALTY - Real estate.

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

REBATE - A discount or reduction in price of a product or interest, not given in advance. 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) or bribe.

RECEIVER - A court appointed person who holds property which is either in dispute or cannot competently be handled by its owner.

RECIPROCITY - A mutual exchange of privileges by states, allowing attorneys, real estate brokers, and others to practice in one state while being licensed in another. Quickly being fazed our in real estate due to the liability issues caused by laws that vary from state to state.

RECONVEYANCE - An instrument used to transferring title from a trustee to the equitable owner of real estate, when title is held as collateral security for a debt. Also known as a deed of reconveyance or release.

RECORDATION - Filling instruments for public record (and notice) with a recorder (usually a county official).

RECORDED MAP - A map recorded in a county recorder's office. May be a subdivision map or it may describe a non-subdivided parcel. Reference to a recorded map is common in legal descriptions.

RECORDER'S OFFICE - The county office where instruments are recorded, giving public notice. Often referred to as the county recorder's office.

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 stature and usually requires the witnessing and notarizing of an instrument to be recorded.

RECORDING ACTS - State statutes enacted to cover the public recording of deeds, mortgages, etc, and the effect of these recording as notice to creditors, purchasers, and other interested parties.

RECORD OWNER - Owner of record.

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, not just to the property.

REDDENDUM - Technical name for a clause in a conveyancing instrument or lease, creating a reservation to the grantor or lessor.

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

REDEMPTION PERIOD - A time period during which a mortgage, land contract, deed of trust, etc., can be redeemed. Usually set by stature, and after judicial foreclosure.

RED LINING - The illegal practice of lending institutions denying loans to certain areas of a community. Strictly against the law. The term is used to describe an area on a map that lenders consider "high risk" and in the past refused to service.

REFERRAL - In the real estate business, generally the act of a past client recommending a real estate broker or agent to one currently seeking to buy or sell real property. Also refers to a referral from one real estate agent to another. This site screens agents and in effect refers them to visitors.

REFINANCING - The borrower pays off one loan on a property and replaces it with another.

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

REGISTRAR OF DEEDS - A term used in some states to describe the person in charge of recorded instruments. More commonly called a recorder.

REGULATION Z - Federal Reserve regulation issued under the Truth-in-Lending-Law, which requires that a credit purchaser be advised in writing of all costs connected with the

REINSTATEMENT - Payment of a note, mortgage, deed of trust, etc., to bring it from default to good standing.

REINSURANCE - The transferring of a portion of the liability to other insurers. One insurance company may insure $250,000 of a $1,000,000 policy by reinsuring the extra $750,000 with another company. The first $250,000 is known as the primary liability and the second portion only comes into play when the cost of settlement exceeds $250,000.

REISSUE RATE - A 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.

REAL ESTATE INVESTMENT TRUST (R.E.I.T.) - A method of investing in real estate in a group, with certain tax advantages. Federal and state statutes dictate procedure.

RELEASE - An instrument releasing property from the lien of the mortgage judgment, etc. When a trust deed is used, the instrument is called a reconveyance. In some areas, a "discharge" is used instead of a release.

RELEASE CLAUSE - A clause in a blanket encumbrance allowing for the "release" of certain parcels upon payment of a specified amount. A developer or builder might might have a blanket loan for a subdivision that allows for the release of each parcel upon a preset payment.

REMAINDER - An estate which vest n one other than a grantor. A grandparent might grant the use of land to a child, but leave the land to a grandchild upon the death of the parent. This also refers to the portion of property remaining after a taking under eminent domain.

REMAINDER MAN - The one entitled to the remainder.

REMISE - To give up or remit. Used in a deed, especially a quick claim deed.

REMNANT - An appraisal term used to describe the land that remains after the partial taking of a plot by eminent domain that is so small or poorly shaped as to have no economic value.

REMODELING - Improving a structure by changing its plan, characteristics or function as opposed to reconditioning which would be to improve a structure without changing its size or use.

RENEGOTIATION - An attempt to agree on new terms to an existing contract. In real estate this often refers to the repairs found during a "home inspection". Could refer to an offer when the appraisal returns a value below the price that the two parties had agreed upon.

REPLACEMENT COST - In appraising, the cost of a substitute property either identical to or of equivalent utility.

REPRODUCTION COST - The cost of reproducing a property (usually one which has been destroyed) at current prices using similar materials.

REQUEST FOR RECONVEYANCE - A request by a beneficiary under a deed of trust to the trustee, requesting the trustee to reconvey the property (release of lien) to the trustor, usually upon payment in full.

RERECORDING - The recording of a deed for a second time to correct an error contained in the deed. Also known as a correction deed, confirmation deed, or reformation deed.

RESCIND - To void or cancel in such a way as to treat the contract or other object of the precision as if it never existed.

RESIDENCE - A place where someone lives.

RESIDENTIAL BUILDING RATE - The rate of residential construction in a given area. Determined by housing starts per 1,000 population.

REAL ESTATE SETTLEMENT PROCEDURES ACT (R.E.S.P.A.) - 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 SUPERIOR - Doctrine of responsibility of a principal for the wrongful acts of an agent arising fro the authorized acts of said agent. In real estate, one of the reason for the status of independent contractor.

RESTRAINT OF ALIENATION - Restrictions placed against the transfer (vesting) or sale of property. Certain restriction are lawful but must conform to the rule against perpetuities and the free right of an owner to sell. You could not sell on the condition that the grantee could only resell to a member of a certain family as this would be too restrictive.

RESTRICTION - Most commonly used to describe a use of uses prohibited to the owner of land. Restriction are set froth by former owners n deeds or in the case of a subdivision, a declaration of restrictions is recorded by the developer. A limitation on use of the property by law (zoning ordnances) may be termed restrictions. A similar term would be covenants.

RESTRICTIVE COVENANT - See restriction

RUNNING WITH THE LAND - Usually applies to easements and covenants. Passing with the transfer of the land.

RURAL - Concerning the country, as opposed to urban - concerning the city.

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