-
Radon: A radioactive gas found in some homes that in sufficient concentrations can cause health problems.
-
Rate-improvement mortgage: A fixed-rate mortgage that includes a provision that gives the borrower a one-time option to reduce the interest rate (without refinancing) during the early years of the mortgage term.
-
Rate lock: A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time. See Lock-in.
-
Real estate agent: A person licensed to negotiate and transact the sale of real estate on behalf of the property owner.
-
Real estate investment trust (REIT): A privately held or publicly traded company that owns income producing commercial real estate or real estate notes. A qualified REIT is exempt from paying corporate income taxes, provided that the REIT receives a large majority of its income from real estate and annually distributes a majority of its earnings to shareholders.
-
Real estate or real property: A group of rights that includes all land, structures, and items firmly attached to the land and structures, and all interests in the property, such as water rights, drilling rights, and easements.
-
Real estate professional: A person who meets the IRS requirements for spending a certain amount of time devoted to real estate and materially participates in managing investment property and is, therefore, able to take income tax deductions for investment property.
-
Real Estate Settlement Procedures Act (RESPA): A consumer protection law that requires lenders to give borrowers advance notice of closing costs.
-
Realized gain: The difference between the sales price received for a property and the Adjusted Basis.
-
Real property: Land and appurtenances, including anything of a permanent nature such as structures, trees, minerals, and the interest, benefits, and inherent rights thereof.
-
REALTOR®: A trademark associated with someone who brokers real estate transactions and has been licensed by the National Association of Realtors.
-
Rescission: The cancellation or annulment of a transaction or contract by the operation of a law or by mutual consent. Borrowers usually have the option to cancel a refinance transaction within three business days after it has closed.
-
Recognized gain: A portion of the Realized Gain that is required to be reported as income on a federal income tax return.
-
Recorder: The public official who keeps records of transactions that affect real property in the area. Sometimes known as a "Registrar of Deeds" or "County Clerk."
-
Recording: The noting in the registrar’s office of the details of a properly executed legal document, such as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgage, thereby making it a part of the public record.
-
Refinance transaction: The process of paying off one loan with the proceeds from a new loan using the same property as security.
-
Rehabilitation mortgage: A mortgage created to cover the costs of repairing, improving, and sometimes acquiring an existing property.
-
Related parties: The parties related to the Exchanger as defined by Code Section 267(b) and Code Section 707(b)(1). The definition includes, but is not limited to, a spouse, ancestors, descendants, and brothers and sisters. It does not include aunts, uncles, cousins, nieces and nephews, in-laws, ex-spouse, employees, business associates, and friends. Corporations and partnerships are Related Parties if the Exchanger owns more than a fifty percent (50%) interest in such entity.
-
Relinquished property: Property an Exchanger transfers in a Like-Kind Exchange.
-
Remaining balance: The amount of principal that has not yet been repaid. See Principal balance.
-
Remaining term: The original amortization term minus the number of payments that have been applied.
-
Rent loss insurance: Insurance that protects a landlord against loss of rent or rental value due to fire or other casualty that renders the leased premises unavailable for use and as a result of which the tenant is excused from paying rent.
-
Rent with option to buy: See Lease-purchase mortgage loan.
-
Repayment plan: An arrangement made to repay delinquent installments or advances. Lenders' formal repayment plans are called "relief provisions."
-
Replacement property: Property an Exchanger identifies and ultimately receives in a Like-Kind Exchange.
-
Replacement reserve fund: A fund set aside for replacement of common property in a condominium, PUD, or cooperative project -- particularly that which has a short life expectancy, such as carpeting, furniture, etc.
-
Revenue ruling: This is an official IRS interpretation of the Internal Revenue Code or Regulations on a specific issue.
-
Reverse exchange: A type of Like-Kind Exchange where the Exchanger receives Replacement Property before surrendering the Relinquished Property.
-
Revocable living trust: See Living Trust.
-
Revolving liability: A credit arrangement, such as a credit card, that allows a customer to borrow against a preapproved line of credit when purchasing goods and services. The borrower is billed for the amount that is actually borrowed plus any interest due.
-
Right of first refusal: A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he or she offers it for sale or lease to others.
-
Right of ingress or egress: The right to enter or leave designated premises.
-
Right of survivorship: In jointly held property, the right of one owner to automatically take title to the property on the death of the other owner.
-
Rural Housing Service (RHS): An agency within the Department of Agriculture, which operates principally under the Consolidated Farm and Rural Development Act of 1921 and Title V of the Housing Act of 1949. This agency provides financing to farmers and other qualified borrowers buying property in rural areas who are unable to obtain loans elsewhere. Funds are borrowed from the U.S. Treasury.