Real Estate Glossary

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rate lock

A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time at a specific cost.

real estate agent

A person licensed to negotiate and transact the sale of real estate.

Real Estate Investment Trust

A company that purchases and manages real estate or real estate loans, using money invested by its shareholders. (REIT)

Real Estate Settlement Procedures Act (RESPA)

A consumer protection law that requires lenders to give borrowers advance notice of closing costs.

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 agent, broker or an associate who holds active membership in a local real estate board that is affiliated with the National Association of Realtors.

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 the registrar's office of the details of a properly executed legal document, such as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgage, thereby making it a part of the public record.

refinance transaction

The process of paying off one loan with the proceeds from a new loan using the same property as security.

REIT

See Real Estate Investment Trust

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 loss insurance

Insurance that protects a landlord against loss of rent or rental value due to fire or other casualty that renders the leased premises unavailable for use and as a result of which the tenant is excused from paying rent.

repayment plan

An arrangement made to repay delinquent installments or advances.

replacement reserve fund

A fund set aside for replacement of common property in a condominium, PUD, or cooperative project -- particularly that which has a short life expectancy, such as carpeting, furniture, etc.

RESPA

Real Estate Settlement Procedures Act - Protects consumers buying real estate by requiring disclosure of all closing costs. The Act required lenders to give mortgage applicants a standard form estimating the settlement costs, and it prohibited kickbacks for referrals among settlement service providers (as title insurers).

revolving debt

A credit arrangement, such as a credit card, that allows a customer to borrow against a pre approved line of credit when purchasing goods and services. The borrower is billed for the amount that is actually borrowed plus any interest due.

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.