     |
     |
|
Real Estate Insurance Terms - R A l B l C l D l E l F l G l H l I l J l K l L l M l N l O l P l Q l R l S l T l U l V l W l X l Y l Z RABBET - A method of joining or fitting together wood by cutting a deep groove in one piece to allow the other to be fitted against it. RACEWAY - A pipe carrying electrical wiring, having outlets at close intervals. RADIANT HEATING - A heating system using electrical coils, or pipes in the ceilings, walls, or floors, which heat with steam, hot water or hot air. RADIATOR - An old fashioned, cast iron, ribbed heating fixture using hot water. Most modern systems use air for heating, because water or steam systems are more expensive. RAFTERS - Load bearing timbers of a roof. Flat roof rafters are usually called joists. RAIL - (1) A horizontal bar, such as the cross member of a fence. (2) Tracks on which a train runs. RAKE - Sloping members, such as a cornice, which run parallel to the inclination of a roof. RAMP - (1) An inclined, concrete or wooden path, used instead of steps. (2) A roadway used as an entrance or exit to a limited access highway. RANCH - Traditionally, a place for raising horses or cattle, which feed on a grazing range. More modernly, the term has been applied to the raising of other animals under controlled conditions, such as mink, chickens, etc. RANCH STYLE HOUSE - Modernly, any one story house is called a ranch style. A true ranch style house is rambling, with low pitched gable roofs and an interior of open design. RANDOM SHINGLES - Roof or siding shingles of different sizes. RATABLE ESTATE - Property capable of being rated (assessed, taxed). RATE OF RETURN - The annual percentage of return on investment on income property. RATIFICATION - Affirming a prior act which was not legally binding; the affirmation gives the act legal effect. Occurs when an unauthorized agent acts and the principal later affirms the action, giving authority retroactively. RAT WALL - A wall only a few inches above ground, but to a specified depth (according to local code) below ground, around a house to prevent rats from going under the house. Not used in all parts of the country and only necessary where there is not a full basement or slab construction. RAW LAND - Land in its natural state. Land which has not been subdivided into lots, does not have water, sewers, streets, utilities or other improvements necessary before a structure can be constructed. RAZE - To tear down or demolish 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 entitled to a commission, even though the seller is not bound to accept the offer. A standard listing agreement would state this. REAL ESTATE - (1) Land and anything permanently affixed to the land, such as buildings, fences and those things attached to the buildings, such as light fixtures, plumbing and heating fixtures or other such items which would be personal property, although in some states a fine distinction may be made. (2) May refer to rights in real property as well as the property itself. REAL ESTATE BOARD - A board composed of regular members (real estate brokers and salespersons), and affiliate members (lenders, title companies, etc.). for the purpose of furthering the real estate business in a given area. 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 OWNED - The real estate owned by a lending institution. Handled by its R.E.O. department. 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, but handed back because of prompt payment or other reason. 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). RECAPTURE - The return of monies invested in property, through reduction of the loan amount and appreciation; it is realized when the property is sold. RECAPTURE OF DEPRECIATION - Taxing as ordinary income, upon the sale of property, the amount of depreciation taken above straight line depreciation. RECEIPT - A written acknowledgment or admission that something has been received. Has not other legal effect, and does not in itself affirm any contractual obligation. RECEIVER - A mutual exchange of privileges by states, allowing attorneys, real estate brokers and others to practice in one state while being licensed in another. RECITAL - Setting forth in a deed or other writing some explanation for the transaction. For example: A deed may state that the property is being transferred in lieu of foreclosure. RECLAMATION - The process of bringing economically unusable land to a higher dollar value by physically changing it. For example: draining a swamp, irrigating a desert, replanting a forest. RECONDITIONING - Restoring a property to good condition without changing its plan or character, as distinguished from remodeling. Also called renovation, rehabilitation. RECONVEYANCE - An instrument used to transfer title from a trustee to the equitable owner of real estate, when the title is held as collateral security for a debt. Most commonly used upon payment in full of a trust deed. Also called a deed of reconveyance or release. RECORDATION - Filing instrument used 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 describe a non-subdivided parcel. Reference to a recorded map is commonly used in legal descriptions. RECORDED PLAT - A subdivision map filed as a matter of public record. RECORDER'S OFFICE - The county office where instruments are recorded, giving public notice. 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 statute 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 recordings as notice to creditors, purchasers and other interested parties. RECORDING FEE - The amount paid to the recorder's office in order to make a document a matter of public 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. RECTIFICATION OF BOUNDARIES - The clarification or correction of boundary lines between properties. REDDENDUM - Technical name for a clause in a conveyancing instrument or lease, creating a reservation to the grantor or lessor. REDEEMABLE RENT - Rent which by agreement, is refunded or set off against the selling price when the tenant exercises a purchase option. 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 statute, and after judicial foreclosure. REDEVELOPMENT - Generally, the improvement of land in accordance with an urban renewal project. "RED LINING" - The outlining on a map of certain "high risk" areas for real estate loan purposes. This means lenders will not extend credit in these areas for real property loans, regardless of the qualifications of the applicant. Some states have passed laws against this practice. The use of a red pen or pencil for the outlining gave rise to the term. REFEREE - One appointed by a court to take testimony and report back to the court. May be in bankruptcy or other proceedings. REFERRAL - In the real estate business, generally the act of a past client recommending a real estate broker or agent to one currently a buyer or seller. Also, any recommendation by one real estate agent of another for a referral fee. REFINANCE - (1) The renewing of an existing loan with the same borrower and lender. (2) A loan on the same property by either the same lender or borrower. (3) The selling of loans by the original lender. 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. REGIONAL SHOPPING CENTER - The largest type of shopping center, having one or more major department stores, a variety of retail stores, usually a bank or savings and loan and common parking and management. REGISTER - A grid like opening in a wall, ceiling, or floor, through which hot or cold air flows for heating or air conditioning. 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 credit portion of the purchase. REHABILITATION - Synonymous with reconditioning, except when used in connection with urban renewal, at which time it encompasses all types of changes, including structural and even street changes. REINFORCED CONCRETE CONSTRUCTION - The use of reinforced concrete in the load-bearing members, such as the frame, foundation, walls, floors, etc. REINFORCING - (1) The strengthening of concrete by positioning metal rods, mesh, etc. in said concrete when wet. (2) The strengthening of any members by propping or adding additional material. REINSTATEMENT - (1) Payment of a note, mortgage, deed of trust, etc., to bring it from default to good standing. (2) Restoring the previously used entitlement of a veteran to enable the veteran to purchase property under a VA program. (Also called Restoration of Eligibility). REINSURANCE
- The transferring of a portion of the liability to other insurers.
Example: Insurer A insures for $200,000. A insures for $100,000
and reinsures the "second" $100,000 through B insurer.
The "first" $100,000 is called primary liability. R.E.I.T. (REAL ESTATE INVESTMENT TRUSTS) - A method of investing in real estate in a group, with certain tax advantages. Federal and state statues 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. Example: A builder mortgages an entire subdivision under one loan. A builder mortgages an entire subdivision under one loan. As the builder sells each house, the lender releases the lien upon that house upon a specified payment by the builder. RELICTION - An increase of land by the permanent withdrawal of the sea, a river, lake or other body of water. REMAINDER - (1) An estate which vests in one other than a grantor, after the termination of an intermediate estate. Example: A grants land to B for life, then back to A, it is not a remainder, but reversion. (2) The portion of a property remaining after a taking under eminent domain. REMAINDERMAN - The one entitled to the remainder. REMAINING ECONOMIC LIFE - Number of years between the time of an appraisal and the point in time when an improvement becomes economically valueless. REMISE - To give up or remit. Used in a deed, especially a quitclaim deed. REMNANT - An appraisal term. A parcel of land, after a partial taking by eminent domain, so small or poorly shaped as to have practically no value. REMODELING - Improving a structure by changing its plan, characteristics, or function, as opposed to reconditioning. RENEGOTIABLE RATE MORTGAGE - A real property loan calling for an adjustment in the interest rate at a given time. Example: A loan with a 15-year amortization is adjusted to current interest rates after 2 years. The lender agrees to make the adjusted loan at the new rate as long as the old loan is not in default. The Federal Reserve Board allows the original loan to be treated either as a balloon payment loan or a variable rate loan. However, points must be figured into the A.P.R. based on the time or renegotiation.(2 years rather than 15). RENEWAL - (1) To cause a lease to begin again for another term. (2) To rebuild, as in urban development (urban renewal). RENEWAL OPTION - The right of a tenant to renew (extend the term of) a lease for a state period of time and rent which can be determined. RENT - Consideration paid for the occupancy and use of real property. A general term covering any consideration (not only money). RENTABLE AREA - The area (square footage) for which rent can be charged. For example: An office building would not rent the space used for stairways, elevators public washrooms, hallways, etc. RENTAL AGENT - One who (for a fee) aids a landlord to find a tenant or a tenant to find property. Generally concerned with residential property and may not require a real estate license (or may require a special license) in some states. RENTAL AGREEMENT - A lease. The term is mainly used when concerning residential property. RENTAL VALUE - The fair rental value of a property; the market rental value. RENT CONTROLS - A legal maximum on rental price. Used extensively during World War II. Modernly, a control in subsidized housing, where the rent is paid partly by a governmental agency and a maximum rent is established, not by the landlord, but by the agency. REPAIRS - The general upkeep of property without major replacement or change of the plan or characteristics of the building. REPLACEMENT - The substitution of a portion of a structure with one of substantially the same nature, such as a new furnace, new roof, etc. 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 the lien) to the trustor, usually upon payment in full. RESCIND - To void or cancel in such a way at to treat the contract or other object of the rescission as if it never existed. RECISION OF A CONTRACT -- Annulling or abrogating a contract and placing the parties to it in a position as if there had not been a contract. RESERVATION - (1) A right created and retained by a grantor. The reservation may be temporary (such as a life estate) or permanent (such as an easement running with the land). (2) Public land reserved for a special purpose, such as an Indian reservation. RESERVE - A setting aside of funds, usually for indefinite contingencies, such as future maintenance of a structure or to pay future claims, such as insurance claims. RESERVOIR - A body of water used as household water (drinking, washing, etc.), irrigation, or other domestic or commercial uses. The water is usually treated and its purity is monitored. 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. RESIDENTIAL PROPERTY - Land designated by zoning ordinances as "residential". May be vacant or improved. RESIDENT MANAGER - A manager of an apartment project who lives on the property. Some states require a resident manager in apartment projects above a certain number of units. The manager is not required to have a real estate license. RESIDUARY ESTATE - That property of a deceased after expenses of administration and after all bequests and devises. RESORT PROPERTY - Generally, any property where people would go for purposes of fun and vacations. In some states the term may have legal significance, and regulations may exist regarding advertising and selling property as resort property. RESPA - (REAL ESTATE SETTLEMENT PROCEDURES ACT) - 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 from the authorized acts of said agent.
In real estate, one of the reasons for the status of independent
contractor. RESTRAINT OF ALIENATION - Restrictions places against the transfer (vesting) or sale of property. Certain restrictions are allowed but must conform to the rule against perpetuities and free right of an owner to sell. For example: Selling on the condition that the grantee could resell only to members of a certain family would be too restrictive and not valid. RESTRICTION - Most commonly used to describe a use or uses prohibited to the owner of land. Restrictions are set forth by former owners in 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 ordinances) may also be termed a restriction. RE-SUBDIVISION - Subdividing an existing subdivision (1) Frequently done when the original subdivision was not build upon, and the present builder wishes to change size or shape of the lots. (2) Recently, some states have held that one who buys several properties in the same subdivision (even if already with buildings) must re-subdivide before selling. This has been carried to the point of including one who buys two condominiums in the same subdivision. However, a simpler and less costly procedure has been provided in such cases. RETAINING WALL - A wall used to contain or hold back dirt, water or other materials of a similar nature. REVALUATION CLAUSE - A clause in a lease calling for a periodic revaluation (appraisal) of the leased property and subsequent adjustment of rent. REVENUE STAMPS - Formerly federal tax on sale of real property. Cancelled and replaced by state tax stamps. The stamps (similar to postage stamps are affixed to the conveyancing instrument (deed) or a rubber stamp is used to show the amount of the tax. REVERSION - The right to possession of the residue of an estate in a grantor or successors of a grantor or testator, commencing upon the termination of a particular estate, granted or devised. Example: A grants B for life, then back to A upon B's death. A has an estate in reversion. REVERSIONARY INTEREST - An interest held in a reversion (future right to property in possession of another). RIBBON - (1) A narrow strip; a strip of wood to add support to studs and joists. (2) A driveway consisting of two cement strips, the same distance apart as tires on a car. RIDGE - The meeting of the roof rafters of a gable or other roof with two sloping sides. RIDGEBOARD - The highest horizontal member of a roof, running along the ridge and receiving the rafters at right angles. RIGHT OF SURVIVORSHIP -- The right of a survivor of a deceased person to the property of said deceased. A distinguishing characteristic of a joint tenancy relationship. RIGHT OF WAY - A strip of land which is used as a roadbed, either for a street or railway. The land is set aside as an easement or in fee, either by agreement or condemnation. May also be used to describe the right itself to pass over the land of another. RIGHTS - A general term which encompasses those things a person may do unopposed, even though a burden on another occurs, as in the right of a tenant, holder of an easement, etc. RILL EROSION - Erosion caused by heavy rainfall on freshly cultivated ground, which produces channels in the loose soil. RIPARIAN - Belonging or relating to the bank of a river or stream. Land within the natural watershed of a river or stream. RIPARIAN OWNER - One who owns land along the bank of a river or stream. RIPARIAN RIGHTS - Rights of an owner to riparian lands and water. RIPARIAN WATER - Water within the normal flow of the stream or river. An abnormal flow (flood) is not riparian water. RIPRAP - A loosely composed wall of rocks and stones used to hinder the flow of water, thereby preventing erosion. RISE - The vertical measurement of a slope in relation to its horizontal measurement, such as a rise of three feet vertically over a horizontal distance of fifty fees. RIVER - A large, natural stream of water, which flows in a permanent channel or bed and may empty into a lake or the sea. RIVER BED - The land between the banks of a river during its normal course. ROAD - (1) A rural travelway for the use of pedestrians and/or vehicles. (2) Any travelway for the use of pedestrians and/or vehicles. ROCK WOOL - A fibrous insulation material made from molten rock. ROD - A unit of linear measure equal to 16 ½ feet. ROLL-OVER PAPER - Short term notes which may be extended (rolled over) or converted to installment payments, after the initial due date. ROMAN BATH - A bathroom constructed to resemble the public baths of ancient Rome. Usually there is a large sunken tub and a use of marble or marble-like tiles as the principal covering of the floors, vanities, etc. ROMAN BRICK - Brick which shows a narrower face than standard building brick. ROOF - A general term meaning the top of a building. ROOM - A fully enclosed section of the interior of a building, having access through a door or doorway. In residential property, rooms are described specifically, such as living room, dining room, etc. ROOM COUNT - The number of rooms in a residential property. There is not national method of counting but, generally, bathrooms are specified and counted separately. ROTUNDA - A room or building shaped in a circle and usually with a domed roof. ROW HOUSES - A method of construction of individual houses with common side walls and a common roof. Modernly called townhouses. ROYALTY - A fraction or percentage of the value of a natural resource (oil, sand, etc.) paid to the owner of the resource by those extracting and selling it. RULE AGAINST PERPETUITIES - Principle that a property interest is void unless it must vest not later than the remaining time of a life or lives in being, plus gestation time, plus twenty-one years. (The time has been modified by statute and should be checked in each state). RUNNING WITH THE LAND - Usually concerned with easements and covenants. Passing with the transfer of the land. RURAL
- Concerning the country, as opposed to urban (concerning the
city). |