Real Estate Glossary "R"

range lines - Lines that run north and south and are measured from the principal meridian. Used in the rectangular survey system of describing real estate.

ranges - Strips of land running north and south and mea­sured from the principal meridian. Used in the rectangular survey system of describing real estate.

raw land - Land that has no improvements. Also called unimproved land.

real estate - Land plus any artificial things permanently attached.

real estate assistant - An individual who assists a broker or salesperson in the real estate business. Assistants may be licensed or unlicensed.

Real Estate Investment Trust (REIT) - Allows small investors to participate in real estate investments. Investors transfer title to real estate to a trustee, who manages the property for the benefit and profit of the investors. Funds from the issuance of investment trust certificates to investors are used to pur­chase real estate investments for the benefit of the investors.

Real Estate Mortgage Investment Conduit (REMIC) - Issues investor securities backed by mortgage loan pools.

Real Estate Settlement Procedures Act (RESPA) - The primary purpose of this federal law is to ensure that the parties in a residential real estate transaction are informed of settlement costs. The law's requirements include good-faith estimate of closing costs, use of HUD's settlement statement, providing a HUD information booklet and prohibiting kick­backs.

real property - All components of real estate plus the legal rights and interests associated with its ownership.

REALTOR® - A registered trademark of the NAR that can be used only by its members.

recapture clause - Allows a lessor to take back the premises if a minimum sales amount is not met. Used in percentage leases.

reciprocal agreements (reciprocity) - Agreements between states that make it easier for brokers to obtain licenses in other states.

recovery fund - An account operated by the state used to pay uncollectible judgments against licensees.

rectangular survey system - Established by Congress as a method of describing real estate. Established a grid of intersecting lines to describe the location of a property. Also known as the government survey system.

redemption - The rights of an owner whose property is sold (or is being sold) to satisfy a lien against the real estate to recover the property. Redemption rights are commonly given when property is being sold to satisfy mortgage loans and real estate taxes. See also statutory redemption, equitable redemption.

redlining - Refusing to make loans or issue insurance policies in certain areas, based on the presence of a protected class.

regression - The idea that the value of a better property will decrease if it is near a poorer quality property. A principle of value used in appraisal.

Regulation Z - Federal regulation issued by the Fed to implement the Truth-in-Lending Act. See also Truth-in-Lending Act.

release deed - A deed given by a trustee when a loan is repaid. Also called a trustee's deed of reconveyance.

reliction - The gradual subsiding of water leaving additional land.

remainder interest - A third party who has a future ownership interest in property.

renouncing the will - A spouse's election to receive the benefits of the estate that are allowed under state law rather than those given by the will.

replacement cost - Estimates the current cost of constructing similar or equivalent improvements. Used in the cost approach to estimating value.

reproduction cost - Estimates the current cost of con­structing duplicates of the property improvements. Reproduction creates an exact replica, while replacement cost creates similar improvements. Used in the cost approach to estimating value.

reserve requirement - The portion of a bank's deposits that may not be loaned. By adjusting the reserve requirement, the Fed can control interest rates and the flow of money in the economy.

residential property - Property used for housing. Includes single-family housing, condos, cooperatives and apartment buildings.

reverse annuity mortgage - A loan designed for elderly people with little or no debt on their houses. The lender pays the borrower a fixed amount of money each month based on the equity in the property and the owner's life expectancy. The loan is repaid when the owner dies, sells the house or moves out of the house.

reversion interest - Under this arrangement property "reverts," returns, to the original owner.

right of first refusal - In a lease arrangement, allows the tenant the opportunity to buy the property if the owner receives a purchase offer. In a cooperative or condominium, the corporation or condominium board can require the shareholders to offer their shares, or unit, to the corporation or board before selling them to others.

right of survivorship - When tenants in a joint tenancy die, their ownership share goes to the surviving joint tenants.

riparian rights - Rights pertaining to land bordering flowing water, such as streams or rivers.

run with the land - Easement rights that are passed on to successive owners of the property.

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