|
Real Estate Glossary of Terms
Looking for the definition of a real estate
term? Click on a letter of the alphabet below to go to that letter's
corresponding page of terms.
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z RANGE
- A measurement, used in the government survey system, consisting of a strip
of land six miles wide, running in a north-south direction.
RATE
OF RETURN - The relationship
(expressed as a percentage) between the annual net income generated by a
business and the invested capital, or the appraised value, or the gross
income, etc., of the business.
RAW
LAND - Unimproved land; land in
its unused natural state prior to the construction of improvements such as
streets, lighting, sewers, and the like.
REAL
ESTATE - The physical land and
appurtenances, including any structures; for all practical purposes
synonymous with real property.
REAL
PROPERTY - All land and
appurtenances to land, including buildings, structures, fixtures, fences,
and improvements erected upon or affixed to the same; excluding, however,
growing crops.
REALTOR® - A registered word which
may only be used by an active real estate broker who is a member of the
state and local real estate board affiliated with the National Association
of REALTORS®. The use of the name REALTOR® and the distinctive seal in
advertising is strictly governed by the rules and regulations of the
National Association.
REALTY - Land and everything
permanently affixed thereto.
REBATE - A reduction or kickback
of a stipulated charge.
RECAPTURE CLAUSE - A clause usually found in percentage leases, especially in shopping
center leases, giving the landlord the right to terminate the lease (and
thus "recapture" the premises) if the tenant does not maintain a specified
minimum amount of business.
RECEIVER - An independent party
appointed by a court to impartially receive, preserve and manage property
which is involved in litigation, pending final disposition of the matter
before the court.
RECORDING - The act of entering
into the book of public records the written instruments affecting the title
to real property, such as deeds, mortgages, contracts of sale, options,
assignments, and the like. Proper recordation imparts constructive notice to
all the world of the existence of the recorded document and its contents.
REDEMPTION, EQUITABLE RIGHT OF -
The right of a mortgagor who has defaulted on the mortgage note to redeem or
get back his title to the property by paying off the entire mortgage note
prior to the foreclosure sale.
REDUCTION CERTIFICATE - An
instrument which shows the amount of the unpaid balance of a mortgage, the
rate of interest and the date of maturity.
REFINANCE - The act of obtaining a
new loan to pay off an existing loan; the process of paying off one loan
with the proceeds from another.
REFORMATION - A legal action to
correct or modify a contract or deed which has not accurately reflected the
intentions of the parties due to some mechanical error, such as a typo
graphical error in the legal description.
RELEASE - The discharge or
relinquishment of a right, claim or privilege. Releases involving real
property transactions should be acknowledged and recorded.
RELEASE CLAUSE - A provision found
in many blanket mortgages enabling the mortgagor to obtain partial releases
of specific parcels from the mortgage upon the payment of, typically, a
larger-than-pro-rata portion of the loan.
REMAINDER ESTATE - A future interest in real estate created at the same time and by the
same instrument as another estate, and limited to arise immediately upon the
termination of the prior estate.
RENEWAL OPTION - A covenant in
some leases which gives the lessee the right to extend the lease term for a
certain period, on specified terms.
RENT
- Fixed periodic payment made by a tenant or occupant of property to the
owner for the possession and use thereof, usually by prior agreement of the
parties.
RENT
CONTROL - Regulation by state or
local governmental agencies restricting the amount of rent landlords can
charge their tenants; such regulation is a valid exercise of the state's
police power.
RENTAL AGREEMENT - An agreement, written or oral, which establishes or modifies the
terms, conditions, rules, regulations, or any other provisions concerning
the use and occupancy of a dwelling unit and premises; a lease on
residential property.
RENTAL POOL - A rental arrangement
whereby participating owners of rental apartments agree to have their
apartment units available for rental as determined by the rental agent, and
then share in the profits and losses of all the rental apartments in the
pool according to an agreed formula.
REPRODUCTION COST - The cost, on the basis of current prices, of reproducing a new
replica property with the same or fairly similar material.
RESCISSION - The legal remedy of
canceling, terminating or annulling a contract and restoring the parties to
their original positions; a return to the status quo.
RESERVE FUND - Monies set aside as
a cushion of capital for future payment of items such as taxes, insurance,
furniture replacement, deferred maintenance, etc.; sometimes referred to as
an impound account.
RESIDUAL PROCESS - An appraisal process used in the income approach to estimate the
value of the land and/or the building, as indicated by the capitalization of
the residual net income attributable to it.
RESTRICTIONS - Limitations on the
use of property. Private restrictions are created by means of restrictive
covenants written into real property instruments, such as deeds and leases.
RESTRICTIVE COVENANT - A private agreement, usually contained in a deed, which restricts the
use and occupancy of real property.
RETALIATORY EVICTION - An act whereby a landlord evicts the tenant in response to some
complaint made by the tenant.
REVERSION - A future estate in
real property created by operation of law when a grantor conveys a lesser
estate than he has. The residue left in the grantor is called a reversion
which commences in possession in the future upon the end of a particular
estate granted or devised, whether it be freehold or less-than-freehold.
RIGHT
OF SURVIVORSHIP - The distinctive
characteristic of a joint tenancy (also tenancy by entirety) by which the
surviving joint tenant(s) succeeds to all right, title and interest of the
deceased joint tenant without the need for probate proceedings.
RIGHT-OF-WAY - The right or
privilege, acquired through accepted usage or by contract, to pass over a
designated portion of the property of another.
RIPARIAN - Those rights and
obligations which are incidental to ownership of land adjacent to or
abutting on watercourses such as streams and lakes.
RISK
OF LOSS - Responsibility for
damages caused to improvements. The risk of loss passes to the vendee when
either title or possession passes, and he should protect himself by securing
proper insurance.
RUNNING WITH THE LAND - Rights or
covenants which bind or benefit successive owners of a property are said to
run with the land, such as restrictive building covenants in a recorded deed
which would affect all future owners of the property.
|
