R

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

R-value
A term used to describe the effectiveness of various kinds of insulation to indicate their resistance to heat flow. If more than one layer of insulation is used, the R-value of the individual layers are added together to indicate a total R-value.

radon
A naturally occurring gas that is suspected of causing lung cancer. (See carcinogen)
National Safety Council on Radon

rafter
1.Rafters are beams that extend from the ridge line of a roof to the eave. 2. A roof structural support system using “2 by” wood components that are nailed together (as opposed to trusses that are connected using press-on metal plates). (See truss)

rafters
1.Rafters are beams that extend from the ridge line of a roof to the eave. 2. A roof structural support system using “2 by” wood components that are nailed together (as opposed to trusses that are connected using press-on metal plates). (See truss)

ranch house
A one-story house that may be built over a concrete slab foundation, crawlspace, or basement.

random access memory (RAM)
The place in computers where stored data is accessed in any order – that is, at random; The place in a computer where the operating system, application programs, and data in current use are kept so that they can be quickly reached by the computer’s processor. (See ROM, DRAM, SRAM, SDRAM)

random sample
A subset of a population of variates in which every variate is chosen by chance, with an equal probability of being picked.

range
1. A measure of the difference between the highest and lowest variates. 2. A strip of land six miles wide, extending north and south and numbered east and west according to its distance from the principal meridian in the rectangular (government) survey system of legal description. For example, Range 3 East would be a strip of land between 12 and 18 miles east of its principal meridian.

ranges
In the rectangular survey system of land description, ranges are townships running east and west of a meridian. (See meridians)

rate
Interest rate is percentage of loan amount that must be paid as fee for loan.

rate cap
The limit on the amount the interest rate can be increased at each adjustment period in an adjustable rate loan. Interest caps come in two versions: a periodic adjustment cap that limits the amount the interest rate can adjust up or down from one adjustment period to the next after the first adjustment, and a lifetime cap that limits the interest-rate increase over the life of the loan. By law, virtually all ARMs must have a lifetime cap. (See adjustable rate mortgages (ARMs))

rate factor
The number of dollars required to pay off each $1,000 of a mortgage loan.

rate lock
Once a buyer/borrower gets a property under contract (in escrow) the mortgage lender will quote the current interest rate/points – the “price of a loan (the price changes many times each day) and buyer/borrower will agree to, or “lock in” the current price when they are ready.

rate lock
Once a borrower/buyer gets a property under contract (in escrow) the mortgage lender will quote you the current interest rate/points – the “price of a loan (the price changes many times each day) and the borrower/buyer will agree to, or “lock in” the current price when you are ready.

rate of exchange
The rate or price at which the currency of one country can be exchanged for the currency of another country.

rate of return
A tool for measuring performance, including appreciation (or depreciation), realized capital gains (or losses), and income.

rate-lock commitment fee
A rate-lock commitment fee is points or other fees, or discounts taken by a mortgage broker for transmittal to a mortgage lender, or taken directly by a mortgage lender, as consideration for the making of a mortgage loan rate-lock commitment.

ratification
Method of creating an agency relationship in which the principal accepts the conduct of someone who acted without prior authorization as the principal’s agent.

raw land
A parcel or tract of land with no improvements, for example, infrastructure or vertical construction. When an appraisal of raw land includes entitlements, the appraisal should disclose when such entitlements will expire if improvements are not completed within a specified time period and the potential effect on the value conclusion.

read-only memory (ROM)
A type of computer memory on which data can be recorded and read, but cannot be removed. (See RAM, DRAM, SRAM, SDRAM)

ready, willing and able buyer
Real estate term describing a buyer who is prepared to comply with the terms and conditions of a purchase contract, and has the financial ability to complete the transaction. If the real estate broker secures a client who is a ready, willing, and able buyer, then he or she is entitled to a commission.

Ready, willing, and able buyer
Real estate term describing a buyer who is prepared to comply with the terms and conditions of a purchase contract, and has the financial ability to complete the transaction. If the real estate broker secures a client who is a ready, willing, and able buyer, then he or she is entitled to a commission.

real estate
Real estate is physical land at, above and below the earth’s surface with all appurtenances, including any structures; any and every interest in land whether corporeal or incorporeal, freehold or non-freehold; for all practical purposes, the term real estate is synonymous with real property. (See real property)

Real Estate Advisory Commission
The Real Estate Advisory Commission is a ten member panel appointed by the Real Estate Commissioner, who presides over its meetings. Six commission members must be licensed CA real estate brokers, and four must be non licensed members of the public. Commission members serve without compensation. The Commission makes recommendations to the Real Estate Commissioner on relevant matters.

real estate assistant
A real estate assistant (also known as a personal assistant or professional assistant) is a combination of office manager, marketer, organizer and facilitator with a fundamental understanding of the real estate industry.

real estate broker
A real estate broker is a person employed for a fee by another to carry on any of the activities listed in the Real Estate Law definition of a broker.

real estate brokerage
A Real Estate Brokerage is a business in which real estate license-related activities are performed under the authority of a real estate broker. (See broker)

real estate brokerage activity
A real estate brokerage activity is any activity that involves offering or providing real estate brokerage services to the public, including acting as a real estate agent or broker for a buyer, seller, lessor, or lessee of real property.

Real Estate Commissioner
The Real Estate Commissioner is appointed by the governor and serves at the governor’s discretion. The Real Estate Commissioner determines administrative policy and enforces that policy in the best interests of those dealing with real estate licensees. The person selected as commissioner must have been a practicing real estate broker in California for five years or otherwise engaged in real estate activity for five of the past ten years.

real estate dealer
A real estate dealer holds property primarily for resale to customers in the course of business, in contrast to a real estate investor who holds property for personal investment. Dealers are denied certain income tax benefits available to investors.

Real Estate Educators Association (REEA)
A professional organization established by and for real estate educators, including individuals and institutions. REEA is international in scope and represents every aspect of real estate education which include, degree programs, continuing education, sales training, GRI (Graduate, REALTORS Institute), prelicense, graduate studies, consulting, research and publishing. Members of this association come from colleges, universities and proprietary schools, regulatory agencies, real estate organizations, boards and associations, and other delivery systems.

real estate employment agreements
There are three types of real estate employment agreements. They are the: listing agreement, buyer representation agreement, and property management agreement. These employment agreements create an express agency between the brokerage and the principal.

Real Estate Fraud Prosecution Trust Fund
Authorized by state law for any county that wishes to establish such a fund to help district attorneys and law enforcement agencies deter, investigate, and prosecute real property fraud crimes; up to $2 may be added to the county’s recording fees for such a fund.

Real Estate Investment Trust (REIT)
A method of pooling investment money using the trust form of ownership. In the 1960s Congress provided favored tax treatment for certain business trusts by exempting from corporate tax certain qualified REITs that invest at least 75 percent of their assets in real estate and that distribute 95 percent or more of their annual real estate ordinary income to their investors. As an alternative to the partnership or corporate methods of investing in real estate, the REIT offers some of the flow-through tax advantages of a partnership or syndication while retaining many of the attributes and advantages of a corporate operation. (See noninstitutional lenders)

real estate investor
A real estate investor holds property for personal investment reasons, in contrast to a real estate dealer who holds property primarily for resale to customers. Investors are allowed certain income tax benefits denied to dealers.

real estate law
Real Estate Law is a portion of the California Business and Professions Code regarding licensing of real estate brokers and salespeople and the activities of the California Bureau of Real Estate. It also includes Subdivided Lands Law. (See Business and Professions Code)

real estate license (Arizona definition)
License means the whole or part of any agency permit, certificate, approval, registration, public report, charter or similar form of permission required by this chapter.

real estate license law
State law enacted to protect the public from fraud, dishonesty and incompetence in the purchase and sale of real estate.

Real Estate Mortgage Investment Conduit (REMIC)
A tax entity that issues multiple classes of investor interests (securities) backed by a pool of mortgages. (See securitization)

real estate owned (REO)
A term used by lenders to refer to properties acquired through foreclosure. (See foreclosure)

real estate purchase contract and receipt for deposit
Form of real estate sales contract commonly used in California. It is a Legally binding contract to be used to purchase real estate.

real estate recovery fund
A fund established in some states from real estate license revenues to cover claims of aggrieved parties who have suffered monetary damage through the actions of a real estate licensee.

real estate salesperson
A real estate salesperson is a person employed directly or indirectly by a licensed real estate broker. A salesperson performs various tasks and responsibilities that may include selling and/or buying real estate; negotiating purchase, sale or exchange of real estate; or negotiating leases, rents and/or improvements. (See broker)

Real Estate Settlement Procedures Act (RESPA)
A federal law, enacted in 1974 and later revised, that ensures that the buyer and seller in a real estate transaction have knowledge of all settlement costs when the purchase of a one-to-four-family residential dwelling is financed by a federally related mortgage loan. Federally related loans are broadly defined to include loans made by savings and loan associations or other lenders whose deposits are insured by federal agencies, insured by the FHA or VA, administered by the Department of Housing and Urban Development or intended to be sold by the lender to Fannie Mae or a similar federal agency.

real estate syndicate
An organization of real estate investors, typically in the form of a limited partnership. (See limited partnership)

Real Estate Transfer Disclosure Statement
As required by California Civil Code Sections 1102-1102.14, a transferee (buyer) of residential real property is entitled to a statement from the transferor (seller) which provides information regarding the physical condition of the property.

real property
Real estate plus all the interests, benefits, and rights inherent in ownership. Often referred to as real estate.

real property (Arizona definition)
For purposes of this article, “real property” or “subject real property” means the real property interest that is owned by the person who is the party to the agreement with the real estate broker.

Real Property Loan Law
Part of the California Real Estate Law that covers loans solicited or negotiated by a real estate broker.

real property sales contract
A real property sales contract is a legally binding agreement between a buyer and seller concerning the sale and purchase of real estate. This contract outlines the terms and conditions of the transaction, such as the sale price, property description, financing terms, contingencies, and closing date. It serves as the foundation of the real estate transaction process.

real property securities dealer
A real property securities dealer is a broker who sells an existing trust deed and guarantees a return on it.

real property security
A guaranteed loan or a loan where the broker will assume payments.

real property taxation

reality of consent
Although a contract may meet all of the basic requirements, it may still be void or voidable, according to the realty of consent, which states that a contract must be entered into as a free and voluntary act of each party, and each party must be able to make a prudent and knowledgeable decision without undue influence. A mistake, misrepresentation, fraud, undue influence or duress would deprive a person of that ability, and if any of these circumstances were present, the contract would be voidable by the injured party. If the other party were to sue for breach, the injured party could use lack of voluntary assent as a defense.

realized capital gain
When a property is sold, a capital gain or loss is realized. (See capital gains, excluded capital gains, deferred capital gains, recognized capital gains)

Realtist
A member of a national organization, generally composed of African-American real estate brokers, known as the National Association of Real Estate Brokers (NAREB)

REALTOR-ASSOCIATE® (RA)
A licensed salesperson who is a member of the National Association of REALTORS® focusing its efforts on the marketing and brokerage of land.

REALTOR®
A registered trade name that may be used only by members of the state and local real estate boards affiliated with the National Association of REALTORS® (NAR). The term REALTOR®, designates a professional who subscribes to associations of REALTORS®, to govern real estate practices of members of the board. The use of the name REALTOR®, and the distinctive seal in advertising is strictly governed by the rules and regulations of the national association. (See National Association of Realtors)

REALTORS® Code of Ethics
A written system of standards of ethical conduct. Because of the nature of the relationship between a broker and a client or other persons in a real estate transaction, a high standard of ethics is needed to ensure that the broker acts in the best interests of both the principal and any third parties.

reasonable accommodations
One type of disability discrimination prohibited by the Act is the refusal to make reasonable accommodations in rules, policies, practices, or services when such accommodations may be necessary to afford a person with a disability the equal opportunity to use and enjoy a dwelling.3 HUD and DOJ frequently respond to complaints alleging that housing providers have violated the Act by refusing reasonable accommodations to persons with disabilities. (For further information, see HUD public statement.)

reasonable care and skill
Reasonable care and skill is the real estate agent’s obligation to conduct their principal’s business with appropriate expertise and consideration.

reasonable modifications
Such modifications as may be necessary to afford a disabled person full enjoyment of the premises. Examples of reasonable modifications are: installation of grab bars, handrails, signaling devices, ramps, interior door hardware, widening of a doorway.

reasonable suspicion
A legal standard in United States law that a person has been, is, or is about to be engaged in criminal activity based on specific and articulable facts and inferences. Reasonable suspicion is evaluated using the “reasonable person” or “reasonable officer” standard, in which said person in the same circumstances could reasonably believe a person has been, is, or is about to be engaged in criminal activity; such suspicion is not a mere hunch. Police may also, based solely on reasonable suspicion of a threat to safety, frisk a suspect for weapons, but not for contraband like drugs. A combination of particular facts, even if each is individually innocuous, can form the basis of reasonable suspicion.

reasonable time
In the absence of an express or fixed time established, a reasonable time is any period of time which is not manifestly unreasonable under the circumstances. This is defined as that amount of time which is fairly necessary, conveniently, to do what is required to be done. The reasonableness or unreasonableness of time used or taken by a party may be the subject of Judicial Review in light of the nature, purpose, and circumstances of each case.

reasonably competent
Because they possess specialized knowledge that is superior to the average Joe or Jane, the professional conduct of a real estate licensee is measured on the basis of what a skilled and reasonably competent professional would do in a similar situation, in a given locale and in similar conditions. This is the basis for the reasonably competent professional standard of care.

reassessment event
Sale or other transaction, such as addition of improvements, that triggers a revaluation of property for tax purposes.

Rebate
Sharing of a portion of a compensation under a specified understanding. Unlike a discount (which is deducted in advance of payment), a rebate is given after the compensation has been paid. Unlike a refund, (which is a return of funds to the payor), a rebate given to someone other than the original payor of the funds.

rebate law
Law that prohibits escrow and title insurance companies from giving rebates or favorable treatment as consideration for the referral of business.

recapture clause
A clause in some percentage leases where the lessor has the right to terminate a lease if a tenant does not obtain a desired gross. (See percentage lease)

recapture rate
A periodic allowance for the recovery of investment capitalfrom the property’s income stream.

recapture rate
The percentage of a property’s original cost that is returned to the owner as income during the remaining economic life of the investment.

recapture tax
Recapture taxes are charges to a homeowner under certain situations, for instance, HUD Low Income Housing loans require the buyer occupy a property and retain ownership for a specific period of time. If the buyer sells the property the tax benefits or subsidies received are recaptured or charged to the homeowner. In such a case, a recapture tax serves as a penalty assessed for selling the house too soon.

recasting
The process of rewriting existing loans, especially when there is a default. The term and interest rate may be adjusted to take pressure off the borrower.

receiver
An independent party appointed by a court to impartially receive, preserve and manage property that is involved in litigation, pending final disposition of the matter before the court.

recession
A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country’s gross domestic product (GDP); although the National Bureau of Economic Research (NBER) does not necessarily need to see this occur to call a recession. (See peak, recovery, trough)

recharge basin
A recharge basin is a man-made or natural depression designed to facilitate the infiltration of surface water into the groundwater system. These basins play a critical role in groundwater recharge by capturing and holding water, allowing it to percolate down through the soil and replenish aquifers.

reciprocal easement agreement (REA)
A reciprocal easement agreement (REA) is a legal contract between two or more property owners granting mutual access rights to each other’s properties for specific purposes, such as utilities, maintenance, or shared amenities. These agreements are commonly used in commercial developments, such as shopping centers or office complexes, to ensure that all parties can use shared infrastructure and services efficiently. An REA outlines the rights and responsibilities of each party, helping to prevent disputes and facilitate cooperative use of the shared spaces.

reckless disregard
Grossly negligent without concern for ramifications to or danger to others.

recognition clause
A clause found in some blanket mortgages used to purchase a tract of land for subdivision development providing for protection of the rights of the ultimate buyers of individual lots in case of default by the developer. (See blanket mortgages)

recognized capital gains
The profits that result from the sale or exchange of real estate, or other investments. When real estate is sold or exchanged for more than its original purchase price, the difference between the sale price and the purchase price is considered a capital gain. This gain is “recognized” when the sale or exchange occurs, meaning it becomes taxable in the year the transaction takes place. (See capital gains, deferred capital gain, excluded capital gain, realized capital gain)

reconciliation
1. The final step in an appraisal process, in which the appraiser reconciles the estimates of value received from the direct sales comparison, cost, and income approaches to arrive at a final estimate of market value for the subject property. 2. The balancing of entries in a double-entry accounting system. (See appraisal)

reconstructed cash flow analysis
An estimated cash flow analysis for a rental property, prepared by an agent using accurate property information. Its purpose is to present what the cash flow numbers for the investment property will look like when in the hands of a potential buyer.

reconveyance agreement
A reconveyance agreement is the transfer of title to residential real property by an equity seller who is in default or that allows the equity purchaser to obtain legal or equitable title to all or part of the property, and to transfer or convey that interest back to the equity seller for consideration.

reconveyance deed
A reconveyance deed, executed by the trustee, is the means by which naked title is returned to the trustor when a debt is paid in full.

reconveys
In satisfying a deed of trust, the trustee reconveys full title to the borrower.

recorded
The act of entering into the book of public records the written instruments affecting the title to real property, such as deeds, mortgages, contracts for sale, options and assignments. There is also a body of public records apart from the real estate recording system that has a bearing on the quality of title. A title searcher would also check, for example, public records regarding probate, marriage, taxes and judgments. (See public records)

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 for sale, options and assignments. There is also a body of public records apart from the real estate recording system that has a bearing on the quality of title. A title searcher would also check, for example, public records regarding probate, marriage, taxes and judgments. (See public records)

recovery property
Property that can be depreciated for income tax purposes, with the cost of the property deducted from income over a stated period.

recreant
1. cowardly or craven. 2. unfaithful, disloyal, or traitorous.

recruiters
Screen candidates to find the person most suited to jobs that employers need filled and are paid by the hiring organization.

recruiting
The process of finding and hiring the best-qualified candidate for a job opening. The recruitment process includes analyzing the requirements of a job, attracting employees to that job, screening and selecting applicants, hiring, and integrating the new employee to the organization.

rectangle

rectangular (government) survey system
A system established in 1785 by the federal government, providing for surveying and describing land by reference to principal meridians and baselines. Also known as the government survey system. (See baselines, meridians)

red flag
A visual sign or indication of a defect. Something that warns a reasonably observant person of a potential problem, thus requiring further investigation. A broker who spots uneven floors or water-stained ceilings is on notice to inquire about soil settlement and roof leakage problems.

redeemed

redemption
The right of a defaulted property owner to recover his or her property by curing the default. (See equitable redemption, statutory redemption)

redemption period
A period of time established by state law during which a property owner has a right to redeem real estate after a foreclosure or tax sale by paying the sales price, interest and costs. Note that many states do not have such statutory redemption periods.

redisclosure
In an adjustable percentage rate loan, “redisclosure” is required if the APR changes by 0.125 percent.

redlining
A practice by some lending institutions that restricts the number of loans or the loan-to-value ratio in certain areas of a community. A redlining policy may be so severe that in effect the lending institution prohibits lending any money in certain areas of the city. The usual justification for redlining is that the lender wants to limit the risks in an area that is deteriorating. The lender discriminates against a whole class of risks rather than distinguishing among individual risks.

reduced documentation
A loan feature that is commonly referred to as “low doc/no doc,” “no income/no asset,” “stated income” or “stated assets.” For mortgage loans with this feature, an institution sets reduced or minimal documentation standards to substantiate the borrower’s income and assets.

reduction certificate (payoff statement)
The document signed by a lender indicating the amount required to pay a loan balance in full and satisfy the debt; used in the settlement process to protect both the seller’s and the buyer’s interests.

reference
To put in a form (as a table) adapted to easy reference; used or usable for reference especially constituting a standard for measuring or constructing.

refinance
To obtain a new loan to pay off an existing loan, or to pay off one loan with the proceeds from another. Properties are frequently refinanced when interest rates drop and/or the property has appreciated in value. Sometimes, a buyer will purchase a property by way of a contract for deed with the expectation of either selling the property before the balance under the contract for deed becomes due or refinancing at better terms and interest rates than exist at the time the agreement of sale is entered into. (See realized capital gains)

reflection
Thoughtful introspection that significantly affects and directs professional choices and directions. The portfolio process can prompt employees to reflect on themselves and their contributions to their workplace on a regular and continuing basis.

reflective coatings
A black tinted window coating. Reflective coatings greatly reduce the transmission of daylight through clear glass. Commonly used in hot climates in which solar control is critical.

reformation
An action by a court to revise a contract to read as it was intended by the parties to read rather than as stated.

regional market analysis
A regional market analysis is a comprehensive evaluation of the economic and market conditions within a specific geographical area. This analysis typically includes examining various factors such as demographic characteristics, economic indicators, consumer behavior, industry trends, and competitive dynamics within the region. It helps in identifying opportunities and challenges specific to the area, guiding strategic planning and decision-making to align with regional market demands and economic conditions.

regional multipliers
Adjustment factors by which standard cost figures can be multiplied to allow for regional price differences.

regional planning
Regional planning deals with the design and efficient placement of activities and infrastrucutre across a large geographic area. (See comprehensive zoning, general plan, master plan, urban planning)

registered domestic partner
One of two persons sharing a residence who have filed a Declaration of Domestic Partnership with the secretary of state.

registered mortgage loan originator
A registered mortgage loan originator is any individual who meets the definition of an MLO, is registered with and maintains a unique identifier through the NMLS&R, and is an employee of depository institution regulated by a federal banking agency or the Farm Credit Administration.

registry
The Registry is the Nationwide Mortgage Licensing System and Registry, which is the mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of loan originators.

regressive tax
A tax such as a sales tax that applies equally to every purchaser but which results in taking a larger percentage of income from a low-income person than from a high-income person.

regression
An appraisal principle that states that between dissimilar properties the value of the better-quality property is affected adversely by the presence of the lesser-quality property. (See appraisal)

Regulation B
Regulation B generally provides that once the creditor has all information for the loan file and it has been submitted to underwriting, the creditor has 30 days to make a decision and notify the borrower. Regulation B requires that adverse actions are by written notification and must contain a description of the action, the complete name and address of the creditor, the complete name and address of the federal agency that administers compliance for the creditor, and specifically why the adverse action was taken. adverse action

Regulation X
Regulation X regulates and standardizes real estate settlement practices. Also known as the Real Estate Settlement Procedures Act. (See RESPA)

Regulation Z
Implements the Truth-in-Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit. (See Truth-in-Lending Act)

Regulations of the Real Estate Commissioner
The Regulations of the Real Estate Commissioner are the rules that clarify and interpret the Real Estate Law and that are binding on real estate licensees. (See Real Estate Commissioner)

regulatory law
The rules, regulations, orders and decisions enacted by government agencies.

rehabilitation
1. The restoration of a property to satisfactory condition without drastically changing the plan, form or style of architecture. 2. The manipulation of the physical, chemical, or biological characteristics of a site with the goal of repairing natural/historic functions of a degraded habitat in order to improve ecological function.

reinstatement
Revival of defaulted mortgage by payment of all delinquencies, including court costs and fees, before foreclosure sale.

rejection
Proposing any deviation from the terms of the offer constitutes a rejection of the original offer and becomes a new offer. (See counteroffer)

relative
A relative is any of the following, whether by the full or half blood or by adoption: A person’s spouse, father, mother, children, brothers, and sisters; the father, mother, brothers, and sisters of the person’s spouse; the spouses of the person’s children, brothers, or sisters.

release
Any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing into the environment of a hazardous or toxic chemical or extremely hazardous substance.

release clause
A provision found in many blanket mortgages enabling the mortgagor, upon payment of a specific sum of money, to obtain a partial release of particular portions or parcels of the collateral.

release deed
A document, also known as a deed of reconveyance, that transfers all rights given a trustee under a deed of trust loan back to the grantor after the loan has been fully repaid.

release of liability
The release of an old borrower from further responsibility for repayment of an assumed loan.

reliction
An increase of the land by the permanent withdrawal of the ocean or a river.

relinquished property
The property given up in the exchange.

remainder
The right of future possession and use that goes to someone other than the grantor upon termination of a life estate.

remainder estate
A future interest in real estate created at the time and by the same instrument of the original estate, but limited its immediate authority upon the termination of the prior estate. For example, Hoe Phigg owns a property in fee simple and conveys the property “to Barry Clink and upon Clink’s death, to Cora Quibb and her heirs.” Cora Quibb has a remainder estate, which is vested because the estate automatically passes to Cora Quibb and her heirs upon the death of Barry Clink.

remainder interest
The remnant of an estate that has been conveyed to take effect and be enjoyed after the termination of a prior estate, such as when an owner conveys a life estate to one party and the remainder to another.

remaining economic life
The number of years of useful life left to a building from the date of appraisal.

remedies and penalties
Remedies and penalties strike an appropriate balance between retaining consumer protection and limiting a negative effect on the availability and cost of mortgage financing.

renegotiable-rate mortgage (RRM)
A financing instrument in which the interest rate is adjusted after an agreed-to period of time following origination, such as three or five years.

renewal
Renewal means a renewal policy by another policy contract or a renewal certificate.

renewal checklist
Will be available through the NMLS Resource Center in September of 2010.

renewal option
A lease provision that allows the lessee to renew the lease for the same term or some other stated period, usually with a rent increase at a stated percentage or based on an index or other formula.

rent
A fixed, periodic payment made by a tenant of a property to the owner for possession and use, usually by prior agreement of the parties.

rent = 1.0% of price rule
Take the monthly rental income and divide it by the price. If it is close to 1%, that might be a pretty good real estate deal. If there is an HOA, calculate it as the monthly rent, less the HOA fee, and then divide it by the purchase price.

rent control
Found mostly in urban areas, rent control laws limit the amount of rent a landlord may charge, subject to certain restrictions. Most rent control laws allow annual rent increases of a certain percentage.

rent factor
A multiplier used to establish the rental rate for industrial properties based on the owner’s desired rate of return.

rent increases
A rent increase refers to the adjustment of the amount a tenant pays for leasing a property, typically enforced by the landlord or property management. This adjustment can occur at the end of a lease term or during its renewal, and is often subject to local regulations that may dictate the timing, notice requirements, and percentage limits of the increase. Rent increases are usually implemented due to various factors such as rising property values, inflation, or the need to cover increased costs of property maintenance and improvements.

rent or rentals
Rent or rentals are the charges paid by low- and moderate-income persons for occupancy in a project under the Housing Finance Agency Law, whether the project is operated on a landlord-tenant basis or as a condominium or cooperative.

rent roll
A list indicating the names of all tenants in a rental property, along with the amount of their individual rents and security deposits. A rent roll is customarily among the documents the escrow holder will obtain from a seller of income property to deliver to the buyer. (See Equal Credit Opportunity Act)

rent schedule
A statement of proposed rental rates, determined by the owner or the property manager or both, and based on a building’s estimated expenses, market supply and demand and the owner’s long-range goals for the property.

rent skimming
Rent skimming is a fraudulent real estate practice where an investor or a property owner collects rents from tenants of a property without having a legitimate ownership interest in the property. This often occurs when someone, typically a buyer or a speculator, purchases a property with the intent to turn a quick profit without making mortgage payments to the lender. The individual might rent out the property and collect rent from tenants, but fail to pay the mortgage to the lender. As a result, the property may go into foreclosure, leaving the tenants without a home and the mortgage lender without its expected income.

rent up
A requirement of a lender that a developer lease a stated amount of space in a building as a prerequisite to a permanent lender “taking out” the interim lender.

rental and credit application
The form a prospective renter fills out with information about him or herself, including name, current employment, current address, social security number, number and type of cars, pets, bank accounts, any legal or criminal issues, etc.

rental application deposit
A rental application deposit is a fee that potential tenants may be required to pay when they submit a rental application to a landlord or property management company. This deposit is intended to cover the costs of processing the application, such as running credit checks, background checks, and verifying rental history.

rental center
A special leasing office located in an apartment complex. Usually includes a furnished model and a closing area.

rental centers
A rental center in this context acts as a showcase for potential tenants or buyers, providing them with a tangible example of what they can expect in a residential or commercial complex. By presenting a fully furnished and well-appointed space, the rental center not only enhances the appeal of the property but also serves as a crucial marketing tool. It effectively communicates the lifestyle or professional environment that the complex promises, making it easier for prospects to make informed decisions.

rental history verification
When an owner/landlord verifies that the rental history a prospective renter/tenant provides is correct and that they were a good tenant and performed all the terms of their lease. The owner/landlord should call the past several landlords to discuss the renter’s payment history and history as a resident.

rental income
The result when vacancies (uncollected rent) is subtracted from gross scheduled income.

rental statement
A summary of rental amounts paid and security deposits collected on a property used for rental purposes.

renunciation
An act or instance of relinquishing, abandoning, repudiating or sacrificing something, as a right, title, person, etc.

REO property
Real Estate Owned. Property which is in the possession and ownership of a lender as a result of foreclosure or forfeiture.

reorganization
Organizational re-structuring that allows companies to move existing employees into newly formed positions, saves on recruitment and replacement costs, and supports the development of a strong commitment to the company and its goals.

repair or corrective maintenance
Involves the actual repairs that keep the building’s equipment, utilities and amenities functioning. Repairing a boiler, finding a leaky faucet and mending a broken air-conditioning unit are acts of corrective maintenance.

replacement cost
Replacement cost is the construction cost at current prices of a property that is not necessarily an exact duplicate of the subject property but serves the same purpose or function as the original. (See appraisal)

replacement property
The property acquired in the exchange.

representative
A representative is a person who, in any manner, solicits, induces, arranges, or causes any equity seller to transfer title or solicits any member of the equity seller’s family or household to induce or cause any equity seller to transfer title to the residence in foreclosure or, where applicable, default to the equity purchaser.

reproduction cost
Reproduction cost is the cost of a new building of exactly the same design and materials as the subject property.

Request for Proposal (RFP)
An RFP is a document used in sealed-bid procurement procedures through which a City advises potential consulting firms of (1) statement and scope of work, (2) specifications, (3) schedules or timelines, (4) contract type, (5) data requirements, (6) terms and conditions, (7) description of goods and/or services to be procured, (8) general criteria used in evaluation procedure, (9) special contractual requirements, (10) technical goals, (11) instructions for preparation of technical, management, and/or cost proposals. RFPs are publicly advertised and suppliers respond with a detailed proposal, not with only a price quotation.

request for reconveyance
A beneficiary’s notice to a trustee on payment of an underlying debt that title to property is to be returned to the trustor.

rescind
To annul, cancel.

rescission
1) An option in the discharge of a contract. If both parites agree, they may rescind a contract in a process called recission. 2) The legal remedy of canceling, terminating or annulling a contract and restoring the parties to their original positions; a return to the status quo. Contracts may be rescinded due to mistake, fraud or misrepresentation and, there is no need to show any money damage.

rescission
The legal remedy of terminating or annulling a contract and restoring the parties to their original positions; a return to the status quo. Contracts may be rescinded due to mistake, fraud or misrepresentation and, there is no need to show any money damage.

rescue scam
Rescue scams may be operated by those who seek to take advantage of homeowners in default.

reserve analyst
An expert hired to do a reserve study. Unfortunately there are few legal, construction, or experience requirements to be a reserve analysis and their skills can be all over the map. Determining if a reserve study analyst is competent to work for the community is an important item for the homeowners association (HOA) board of directors to decide.

reserve deficit per unit
Also known as “unfunded capital repairs per unit. For this calculation one would take the reserve deficit, for example $800,000, and divide it by the number of units in the complex, for example 100 units, which would give $8,000 reserve deficit per unit ($800,000 divided by 100 units = $8,000 per unit).

reserve fund
Monies a lender will often require a borrower to set aside as a cushion of capital for future payment of items such as taxes, insurance, furniture replacement and deferred maintenance. Sometimes a reserve fund is referred to as an impound account or customer’s trust fund. Replacement reserves should be maintained especially when the owner is installing items having a short life expectancy-for example, appliances, furniture or carpeting in a furnished apartment.

reserve funds
An expense category in the operating budget. Monies that are set aside for replacement expenditures not covered by insurance such as roof or furnace repairs. (See operating budget)

reserve requirements
A flat percentage of deposits, required by the Federal Reserve, to be set aside by member banks as a precaution. (See Federal Reserve)

reserve requirements
All depository institutions (banks, savings and loans) in the United States are required to keep a percentage deposits as reserves. The percentages are established by law and regulated by the Federal Reserve Bank. These reserves are kept at regional Federal Reserve Banks. If the Fed believes inflation is increasing, it can raise the reserve requirements, forcing banks to restrict lending because funds are diverted to reserves. This action is designed to decrease the amount of money in circulation, drive up interest rates, and lessen inflation. (See easy monetary policy, open market operations, reserve requirements, tight monetary policy, The Federal Reserve System)
Federal Reserve Website

reserve requirements
Requirements regarding the amount of funds that banks must hold in reserve against customer deposits. This money must be in the bank’s vaults or at the closest Federal Reserve bank.

reserve study
A study by an expert reserve analyst that looks at an homeowners association’s (HOA) capital items – roofs, streets, exterior paint, elevators – and estimates how many years out they will need to be repaired or replaced and the cost to do that work. Then the expert estimates how much should be saved in the HOA reserves for these items, compares that to how much is actually saved to determine the percent funded.

reserves allocation
Reserves are funds set aside by the owner or property management company for capital improvements or unexpected maintenance expenses. Generally, with managed properties, the reserves are tracked separately from general property income.

reserves for replacement
Allowances set up for replacement of building and equipment items that have a relatively short life expectancy.

residence
Residence and residential real property is residential real property consisting of one- to four-family dwelling units, one of which the equity seller occupies or occupied at a time immediately prior to the equity sale as the equity seller’s primary residence

residence in foreclosure
A residence in foreclosure is residential real property consisting of not more than four family dwelling units, one of which the homeowner occupies as a principal place of residence, and against which there is recorded an outstanding notice of the pendency of an action for foreclosure or notice of sale pursuant to Section 33-808.

resident alien
A resident alien is a foreign national living on an official basis in a country of which they are not a citizen. Any person who is not a U.S. citizen and doing business in the U.S. is considered a nonresident alien unless that person meets either the green card test or the substantial presence test for the calendar year (January 1-December 31). See taxation status of resident aliens here:

resident apartment manager
Apartment manager who resides in one of the units; required of every California apartment building having at least 16 units.

residential leasing agent
“Residential leasing agents or managers” means natural persons employed by the owner or the owner’s licensed management agent whose normal duties and responsibilities include any one or a combination of the following:

• preparing and presenting to any person a residential lease, application or renewal or any amendment of the lease;
• collecting or receiving a security deposit;a rental payment or any related payment for delivery to and made payable to a property, a property manager, an owner or the location;
• showing a residential rental unit to any prospective tenant;
• executing residential leases or rental agreements;
• acting on behalf of the owner or the owner’s licensed management agent to deliver notice to tenants who are in breach of their rental agreement.

residential mortgage
A residential mortgage is an obligation to pay a sum of money in an original bona fide principal amount of the base figure or less, evidenced by a security document and secured by a lien on real property located within the commonwealth containing two or fewer residential units, or on which two or fewer residential units are to be constructed, and includes such an obligation on a residential condominium unit.

residential mortgage debtor
A residential mortgage debtor is a noncorporate borrower who is obligated to a residential mortgage lender to repay a residential mortgage and a successor record owner of the property, if any, who gives notice to the residential mortgage lender.

residential mortgage intermediary
A residential mortgage intermediary is a real estate broker, mortgage broker, or other person receiving a finder’s fee, commission, placement fee, service charge, or other similar compensation, other than actual settlement costs, from a residential mortgage lender in conjunction with the issuance of a residential mortgage or mortgage commitment. This does not include an employee of a residential mortgage lender.

residential mortgage lender
A residential mortgage lender is any person who lends money or extends or grants credit and obtains a residential mortgage to assure payment of the debt. This also includes the holder of a residential mortgage obligation.

residential mortgage loan
A residential mortgage loan is any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling, or on residential real estate upon which a dwelling is constructed or is intended to be constructed.

residential mortgage loan servicer
A residential mortgage loan servicer is any person who on behalf of the noteholder, collects or receives payments, including payments of principal, interest, escrow monies, and other monies due, on obligations due and owing to the noteholder pursuant to a residential mortgage loan. When the borrower is in default or in foreseeable likelihood of default, works on behalf of the noteholder with the borrower to modify the obligations, either temporarily or permanently, to avoid foreclosure or otherwise to finalize collection through the foreclosure process.

residential property
Residential property is real property located in the commonwealth having a dwelling house with accommodations for four or fewer separate households and occupied, or to be occupied, by the obligor on the mortgage debt.

Residential Purchase Agreement
A model purchase agreement form, initially developed in 1985 by the California Association of Realtors® in cooperation with the State Bar Association, that ensures a real estate purchase agreement will be complete and in compliance with state law.

residential real estate
Residential real estate is any real property located in Massachusetts upon which a dwelling is constructed or intended to be constructed.

residential real estate (Arizona)
Residential real estate is any property that is located in this state and on which a dwelling is constructed or intended to be constructed.

residential real estate (New Mexico)
Residential real estate is any real property located in New Mexico upon which a dwelling is constructed, or is intended to be constructed.

residential real property
Residential real property is real property located within the commonwealth containing up to two residential units, or on which up to two residential units are to be constructed. This includes a residential condominium unit.

residents
Individuals that rent property for their residence, sometimes termed “tenants.”

resize window
Place your cursor at the bottom right of the window. You will see the cursor change appearance. Hold down the left mouse button and drag the window to the size you want. If you want the window to open this size everytime you open it, hold down the Ctrl key then click the x at the upper right to close the window.

resolution
The density/quality of the display on a monitor, usually measured in pixels per inch.

Resolution Trust Corporation
The organization created by FIRREA to liquidate the assets of failed savings and loan associations.

Resource Conservation and Recovery Act
Federal law administered by the EPA which regulates the generation, processing and transportation of hazardous waste.
  Resource Conservation and Recovery Act Overview

resource decisions
Resource decisions involve the allocation of personnel or money.

resource-oriented industries
Resource-oriented industries are sectors that locate their operations close to natural resources to minimize transportation costs and ensure efficient access to raw materials. Examples include mining, logging, and certain types of agriculture, where proximity to resources like minerals, timber, or fertile land is crucial for production. By situating near these resources, these industries can reduce logistical challenges, lower production costs, and enhance their overall efficiency and profitability.

respiration
The physical and chemical processes by which an organism supplies its cells an tissues with the oxygen needed for metabolism and relieves them of the carbon dioxide formed in energy producing reactions.

respondeat superior
A legal doctrine that holds employers responsible for the actions of their employees, as long as the actions occur within the scope of the employment. The term comes from Latin and means “that the master must answer”.

respondent
1. The party who makes an answer to a bill or other proceeding. 2. The party who contends against an appeal.

respondent (Arizona Fair Housing Act)
Either (1) The person accused of a violation of the Arizona Fair Housing Act in a complaint of a discriminatory housing practice. (2)Any person identified as an additional or substitute respondent or agent of an additional or substitute respondent.

response to complaint – What is Required?
According to Arizona Commissioner’s Rule R4-28-1304.A, B and C: A response shall specifically admit, deny, or state that the party does not have, or is unable to obtain, sufficient information to admit or deny each allegation in the complaint. A statement of a lack of information shall have the effect of a denial.

responsibility
The state of being responsible; moral, legal, or mental accountability.

responsible individual
Refers to a resident of Arizona who lives in Arizona during the entire period of designation as the responsible individual on a license, is in active management of a licensee’s affairs, and meets the qualifications listed in A.R.S. sections 6-943, 6-973, and 6-976, and is an officer, director, member, partner, employee, or trustee of a licensed entity.

responsive pleading
A formal document that is filed with the court system and is the means by which a party to a legal proceeding responds to allegations or claims.

Restatement of Agency
The Restatement of the Law of Agency is a set of principles issued by the American Law Institute, intended to clarify the prevailing opinion on how the law of agency should be interpreted by courts. It covers principles of attribution, creation and termination of authority and agency relationships, ratification, and notifications and notice, the duration of fiduciary duty, and much more.

Restatement of Contracts
The Restatement of Contracts seeks to inform judges and lawyers about general principles of contract common law. It covers fundamental principles and provides a complete, coherent overview of contract law. It is relied on and adopted by courts nationwide; and is one of the most frequently cited legal publications.

restraining order
An order that may issue from filing for an injunction. Though the term is sometimes used as a synonym of injunction, it is distinguished from an injunction in that it is intended only as a restraint upon a defendant until the granting of a temporary or perpetual injunction. (See injunction)

restraint on alienation
An illegal condition that would prohibit a property owner from transferring title to real estate.

restricted license
A real estate license with a restricted license is one on which one or more conditions are imposed by the Real Estate Commissioner as the result of a disciplinary action. (See Real Estate Commissioner)

restricted use report
Property appraisal that will be limited in either the method of valuation used or the property interests valued.

restricted use report
A restricted use report is a property appraisal that will be limited in either the method of valuation used or the property interests valued.

restricted use report
A restricted use report is a property appraisal that will be limited in either the method of valuation used or the property interests valued.

restricted use report
A restricted use report is a property appraisal that will be limited in either the method of valuation used or the property interests valued.

restricted use report
A restricted use report is a property appraisal that will be limited in either the method of valuation used or the property interests valued.

restriction
A limitation on the use of real property; public restrictions imposed by government include zoning ordinances; private restrictions imposed by deed may require the grantee to do or refrain from doing some action. (See CC&R)

restrictive covenants
A clause in a deed that limits the way the real estate ownership can be used. (See covenants, conditions & restrictions, deed restrictions)

restrictive clauses
A restrictive clause in a lease includes provisions that limit the tenant’s actions to protect the landlord’s property and investment. These clauses often stipulate the acceptable uses of the premises, ensuring they comply with zoning laws and match the property’s intended purpose. They may also restrict tenants from making alterations or improvements without the landlord’s approval to maintain the property’s condition and aesthetic. Furthermore, such clauses typically control subleasing and assignment by requiring landlord approval before the tenant can transfer the lease to others. Overall, restrictive clauses help ensure the property is used in a way that aligns with the landlord’s strategic and legal objectives, safeguarding their investment.

resume
A document that provides potential employers a summary of a job applicant’s job history, experience, skills and education. 2) brief account of one’s professional or work experience and qualifications, often submitted with an employment application; often referred to as a “vita” (plural “vitae”) (see chronological resume, combination resume, curriculum vita)

resume writers
Help job seekers direct their message to appropriate employers through networking, targeted mailings, the Internet, and associations from their own trade.

retail property
Income-producing property from which various types of retail products are sold.

retainer
Retainer is a professional relationship between an advisor and a client in which a client engages the services of a professional through payment of a fee. The professional’s obligation is to provide advice or services as needed by the client.

retaining wall
A wall built to hold back or support a bank of earth.

retaliatory eviction
Retaliatory eviction refers to an eviction or attempted eviction by a landlord in response to a tenant’s lawful actions, such as reporting housing code violations, seeking repairs for issues affecting habitability, joining a tenant’s union, or exercising other tenant rights. Retaliatory evictions are illegal because they undermine tenants’ rights and discourage tenants from reporting issues or asserting their legal protections. It is illegal for a landlord to decrease services, increase rent or evict the tenant within 180 days of such a report or complaint.

retention
1) Keeping the job once you have it. 2) The practice or policy of an organization to retain employees especially through identification and reward of valued employees, or the adaptive blend of technical and human relations skills necessary to keep a job within an organization.

retirement communities
Many of them in temperate climates, are often structured as PUDs. They may provide shopping, recreational opportunities and health care facilities in addition to residential units.

retirement skills
Education in financial planning and in managing the lifestyle changes coming in retirement.

retroactive liability
A liability is not limited to the current owner of a property, but includes people who have previously owned the property. (See liability)

retrofitting
Retrofitting, in relation to HVAC (Heating, Ventilation, and Air Conditioning), involves upgrading or modifying existing HVAC systems to improve energy efficiency, performance, and compliance with current standards. This process can include replacing outdated components, integrating advanced technologies, and enhancing system controls to optimize energy use and reduce operational costs. Retrofitting HVAC systems helps extend their lifespan and can result in significant energy savings and improved indoor air quality.

return on investment
The net annual income divided by the original cash investment equals a percentage return on investment.

reverse mentoring
Reverse mentoring is where an older manager meets with a younger subordinate to learn about technologies such as the Internet and e-commerce.

reverse mortgage
A reverse mortgage is a loan under which the homeowner receives payments based on his or her accumulated equity. The loan must be repaid at a prearranged date, upon the death of the owner, or upon the sale of the property. A reverse mortgage enables one to convert part of the equity in a home into tax-free income without having to sell the home, relinquish title, or assume a new monthly mortgage payment. (See home equity conversion mortgage)

reverse redlining
A practice in which lenders specifically market high cost or predatory loans to potential customers based on factors such as race or ethnicity. Reverse redlining is a form of discrimination not because it excludes minorities and other vulnerable populations, but because it targets and exploits them by offering loans with abusive terms and conditions.

reverse-annuity mortgage (RAM)
A loan under which the homeowner receives monthly payments based on his or her accumulated equity rather than a lump sum. The loan must be repaid at a prearranged date or upon the death of the owner or the sale of the property.

reversion
The right of future possession and use by the grantor of a life estate. (See life estate)

reversion (for non compliance with condition)
The estate that the grantor holds after conveying title to real property to a grantee subject to conditions. If the grantee does not fulfill the specified conditions (such as deed restrictions or CC&Rs), the title to the property is reverted to the grantor (either through court action or automatic reversion, depending on the nature of the deed).

reversion table
The amount that an investor should pay for the future value of land is computed by applying a reversion factor to the land’s present estimated value. A reversion table lists the computed factors at specified interest rates for a specified investment term.

reversionary interest
The remnant of an estate that the grantor holds after granting a life estate to another person. (See life estate)

reversionary right
The return of the rights of possession and quiet enjoyment to the lessor at the expiration of a lease.

Review Committee (AZ)
A committee consisting of representatives from Licensing, Licensing Investigation, Enforcement and Compliance and, where appropriate, Education, that meets to consider applications in which the applicant is not clearly eligible for licensure. The review committee recommends that applications be approved, denied, or approved with a provisional license. The committee may also refer the application to the Licensing Investigation Division to obtain further information.

revitalization
Revitalization is a period of property renovation and rebuilding in which a neighborhood begins a new life cycle.

revocable transfer on death (TOD) deed
Deed that transfers real property on the death of its owner without a probate proceeding, provided it is lawfully created.

revocation
An offeree may fail to accept the offer before it expires. The offeror may revoke the offer at any time before receiving the acceptance. This revocation must be communicated to the offeree by the offeror, either directly or through the parties’ agents.

rezoning
Change in the land use designation of an area.

ridge board
Ridge boards are beams that run along top of roof.

right of appropriation
Right of appropriation is the right of the government to take, impound, or divert water flowing on the public domain from its natural course for some benefit to the public.

right of appropriation
Right of government to take, impound, or divert water flowing on the public domain from its natural course for some beneficial purpose.

right of correlative user
The right of a landowner to the reasonable use of underground percolating water. (See water rights)

right of entry
The legal right to take possession of real estate in a peaceable manner.

right of first refusal
The right to the first opportunity to lease or purchase real property. For example, apartment tenants might retain the right of first refusal when their units are being converted to condominiums.

right of prior appropriation
Prior appropriation is a legal doctrine that governs water rights in certain regions, particularly in the western United States. The doctrine operates on the principle of “first in time, first in right,” which means that the first person or entity to take water from a source for a beneficial use (such as irrigation, municipal water supply, or industrial use) has the senior right to that water. Subsequent users have junior rights, which are subordinate to senior rights. (See water rights)

right of redemption
The right of a defaulted property owner to recover his or her property by curing the default. (See equitable redemption, statutory redemption)

right of reentry
Right of reentry is the legal right to resume possession (a right that was reserved when a former possession was parted with)

right of survivorship
The distinctive characteristic of a joint tenancy (also tenancy by entirety) by which the surviving joint tenant(s) succeeds to all rights, title and interest of the deceased joint tenant without the need for probate proceedings.

right to rescind
Consumer’s three-day right to cancel a credit transaction involving a security interest in the consumer’s principal dwelling, as provided by Regulation Z. (See rescission, Regulation Z)

right-of-way
The right given by one landowner to another to pass over the land, construct a roadway or use as a pathway, without actually transferring ownership.

rightsizing
Rightsizing is a term for what companies do to realign their operations. The major part of that involves workforce adjustments. Although there may be fewer personnel positions in the short term, especially if adjustments are dictated by a downturn in the economy, the long-term result is new jobs are created with different or refined skill requirements.

riparian rights
Riparian rights are the rights of a landowner whose land borders on a stream or watercourse to use and enjoy the water which is adjacent to or flows over the owners land, provided such use does not injure other adjacent land owners. The property boundary would be the center line of a non-navigable river or the low waterline of a navigable stream or river.

risk
The probability of getting your money back. High risk means low probability; low risk means high probability.

risk
1. The chance or likelihood of consequences that will have an impact upon objectives. 

2. A measure of the probability that damage to life, health, property, and/or the environment will occur as a result of a given hazard. 

3. The degree of uncertainty regarding the rate of return on and/or the principal value of an investment. The chance that an investment will drop in value can be caused by many factors including, inflation, interest rates, default, politics, liquidity, etc.

risk assessment
Qualitative and quantitative evaluation of the risk posed to human health and/or the environment by the actual or potential presence and/or use of specific pollutants.

risk management
Evaluation and selection of appropriate property and other Insurance. (See risk)

risk return theory
The theory that states the more risk you take, the higher the investment returns you will achieve. In real estate, this theory doesn’t work. The more risk you take, the lower returns you get. You want to target the safer, moderately priced cash flow investment deals. Skip the speculative and braggable prize properties for some nice lower risk, decent return income producing assets.

risk-based financing
When the lender sets loan terms based on potential risk. Borrowers that show little risk of default would be entitled to a better rate and terms than a borrower where a higher probablity of default is indicated.

robo-signing
When servicer staff sign affidavits stating they reviewed loan documents when they had not actually done so.

rolled roofing
An asphalt roofing material that is manufactured in rolls with granules on one side. Asphalt roofing is a relatively inexpensive and short-lived product, and should not be used as a roofing material over living spaces.

rollover loan
A loan that includes a call date earlier than its normal amortization period; also called a renegotiable rate loan or a bullet loan.

Roman Civil Law
Roman private property ownership codes enforced by Spain on early California land owners. (See civil law)

roof decking
The undersupport material which is typically wood for attaching shingles and other materials to the roof. (See shingles)

root directory
An area on a storage disk that lists where files are located on the disk.

root of the title
The original grant (or root) of the title.

rough proportionality test
A test that determines whether the nature and extent of the land dedication requirements fit the nature of the proposed development. Under this test, the exactions (or permit conditions) required of the land owner must be proportional to the harm caused by a development. In other words, the bandage must fit the wound.

router
A device or computer program that determines the next network point to which a packet should be forwarded toward its intended destination. (See packet)

routine maintenance
Includes such day-to-day duties as cleaning common areas, performing minor carpentry and plumbing adjustments and providing regularly scheduled upkeep of heating, air-conditioning and landscaping.

rules and regulations
Real estate licensing authority orders that govern licensees’ activities; they usually have the same force and effect as statutory law.

Rumford Act
California’s fair housing law. (See Fair Employment and Housing Act)

run with the land
A phrase describing rights or covenants that bind or benefit successive owners of a property. An example is a restrictive building covenant in a recorded deed that would affect all future owners of the property. Unlike an easement in gross, an easement appurtenant runs with the land and thus passes to a succeeding owner even if it is not specified in the deed. For example, if the grantee Sylvia Buckner agrees, as part of the consideration to a transaction, to repair a building located on land owned by grantor Leonard Musslewhite, such a covenant will not run with the land. This is because it merely places a duty on the grantee Buckner. The promise does not touch and concern the land granted from Musslewhite to Buckner–it is only a personal covenant for the grantor’s benefit.