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Mortgage Term Glossary


R.E.I.T.(REAL ESTATE INVESTMENT TRUSTS) - method of investing in real estate in a group, with certain tax advantages. Federal and state statutes dictate procedure.

R.E.O. - Also See: Real Estate Owned.

RAA - Also See: Residential Accredited Appraiser.

RABBET - 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 - pipe carrying electrical wiring, having outlets at close intervals.

RADIANT HEATING - heating system using electrical coils, or pipes in the ceilings, walls, or floors, which heat with steam, hot water, or hot air.

RADIATOR - 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.

RADON - gas in soil that can enter a structure and cause health problems for the occupants. Since radon is odorless, colorless and tasteless, a test must be run to determine its presence.

RAFTERS - Load-bearing timbers of a roof. Flat roof rafters are usually called joists.

RAIL - (1) 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.

RAM - Also See: Reverse Mortgage.

RAMP - (1) 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.

RANCH UNIT - ranch itself plus public lands used as part of the ranch operation, under permits.

RANDOM SHINGLES - Roof or siding shingles of different sizes.

RANGE - (1) division of land in the government survey, being a six mile wide row of townships, running North and South, and used in legal descriptions. (2) Land used for grazing livestock.

RAT WALL - 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.

RATABLE ESTATE - Property capable of being rated (assessed, taxed).

RATE CAP - limit (cap) of the amount of interest increase or decrease of an adjustable rate loan.

RATE INDEX - index used to adjust the interest rate of an adjustable mortgage loan. For example: the change in U.S. Treasury securities (T-Bills) with a 1 year maturity. The weekly average yield on said securities, adjusted to a constant maturity of one year, which is the result of weekly sales, may be obtained weekly from the Federal Reserve Statistical Release H.15 (519). This change in interest rates is the "index" for the change in the specific Adjustable Mortgage Loan.

RATE LOCK - Also See: Lock-in (1).

RATE OF RETURN - annual percentage of return, both of and on invested capital.

RATE-IMPROVEMENT MORTGAGE - fixed rate mortgage under which the interest rate will go down if rates should fall. The loan is offered when rates appear to be falling. The borrower usually can request the rate reduction only once, during the first few years of the term of the loan.

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.

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.

RE-ENTRY - right to resume possession reserved when the possession was given to another. Not automatic and court action may be necessary.

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) Lands 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 if not attached. The term is generally synonymous with real 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 AGENT - Commonly describes one who is licensed to sell real estate but is not a broker. May correctly describe a broker as well as one who works under a broker.

REAL ESTATE BOARD - board composed of regular members (real estate brokers and sales- associates), and affiliate members (lenders, title companies, etc.) for the purpose of furthering the real estate business in a given area.

REAL ESTATE BROKER - Also See: Broker.

REAL ESTATE BROKERAGE MANAGERS COUNCIL - division of the REALTORS National Marketing Institute, an affiliate of the NATIONAL ASSOCIATION OF REALTORS, it confers the designation of Certifies Real Estate Brokerage Manager (CRB) upon those who brokerage owners and managers who have reached a high level of expertise in this area.

REAL ESTATE COMMISSION - Also See: Department of Real Estate.


REAL ESTATE LICENSE - 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 MORTGAGE INVESTMENT CONDUIT (REMIC) - Created by the Tax Reform Act Of 1986, the "Conduit" is a vehicle through which mortgage backed securities can be issued.

REAL ESTATE OWNED (R.E.O.) - Most commonly refers to property owned by a lender from foreclosure of mortgages or trust deeds. This property is usually for sale.


REAL ESTATE SETTLEMENT STATEMENT - Final settlement statement often referred to as the HUD-1 form, used to itemize buyer, seller, broker, and lender charges and credits at closing.

REAL PROPERTY - Also See: Real Estate.

REALIST - member of the National Association of Real Estate Brokers.

REALTOR - real estate broker or sales associate affiliated with the National Association of Realtors.

REALTORS LAND INSTITUTE (RLI) - affiliate of the NATIONAL ASSOCIATION OF REALTORS, it offers programs and education to those who specialize in various aspects of land. The designation of Accredited Land Consultant (ALC) is conferred upon those who meet the required experience and education.

REALTORS NATIONAL MARKETING INSTITUTE - affiliate of the NATIONAL ASSOCIATION OF REALTORS, it is composed of the Real Estate brokerage Managers Council and The Council of Residential Specialists which offer programs and prestigious designations.

REALTY - Real estate.

REAMORTIZATION - modification of a mortgage revising the schedule of payments for the remaining life of the loan.

REASSESSMENT - Re-estimating the value of all property in a given area for tax assessment purposes.

REBAR - slang term for the steel reinforcement bars inside poured concrete.

REBATE - 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 - 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.

RECAPTURE RATE - annual rate of recapture. Also See: Recapture.

RECASTING - Changing the terms of an existing loan. Usually done when repayment under the current terms appears unlikely. If done for this reason, the payment is lowered by extending the loan period, reducing the interest rate, reducing the principal or any combination of the above.

RECEIPT - written acknowledgement or admission that something has been received. Has no other legal effect, and does not in itself affirm any contractual obligation.

RECEIVER - court appointed person who holds property which is either in dispute or cannot competently be handled by its owner.

RECIPROCITY - 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 - 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.

RECONCILIATION - analysis by an appraiser of the different indications of value to arrive at the final estimate, giving appropriate weight to each.

RECONDITIONING - Restoring a property to good condition without changing its plan or character, as distinguished from remodeling. Also called renovation, rehabilitation.

RECONVEYANCE - instrument used to transfer title from a trustee to the equitable owner of real estate, when 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.

RECORD OWNER - Also See: Owner of Record.

RECORDATION - Filing instruments for public record (and notice) with a recorder (usually a county official).

RECORDED MAP - 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 - subdivision map filed as a matter of public record.

RECORDER - person who is in charge of the recorded documents of a county. Also See: County Records.

RECORDER'S OFFICE - 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 - charges made by the register of deeds to record the legal documents.

RECOURSE - right of the holder of a note secured by a mortgage or deed or trust to look personally to the borrower or endorser for payment, not just to the property.

RECTANGULAR SURVEY SYSTEM - system of describing land by base lines and meridian, townships and sections. Also called U.S. government survey system or sectional property description.

RECTIFICATION OF BOUNDARIES - clarification or correction of boundary lines between properties.

RED LINING - outlining of 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.

REDDENDUM - Technical name for a clause in a conveyancing instrument or lease, creating a reservation in 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 - process of canceling a defeasible title to land, such as is created by a mortgage foreclosure or tax sale.

REDEMPTION PERIOD - 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.

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) 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. Repaying a debt with the proceeds of a new loan, using the same property as collateral or security.

REFORMATION - 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 - 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 - grid-like opening in a wall, ceiling, or floor, through which hot or cold air flows for heating or air conditioning.

REGISTRAR OF DEEDS - term used in some states to describe the person in charge of recorded instruments. More commonly called a recorder.

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.

REHABILITATION MORTGAGE - (1) loan secured by a mortgage that covers the costs of repairing or improving the property. (2) A loan secured by a mortgage used both to purchase property and make repairs and improvements. It may be more than 100% of the appraised value.

REINFORCED CONCRETE - Concrete strengthened by reinforcing (addition of steel bars, mesh, etc.).

REINFORCED CONCRETE CONSTRUCTION - use of reinforced concrete in the load-bearing members, such as the frame, foundation, walls, floors, etc.

REINFORCING - (1) 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 - 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".

REISSUE RATE - charge for a title insurance policy if a previous policy on the same property was issued within a specified period. The reissue rate is less than the original charge.

RELEASE - 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 AND ASSIGNMENT OF SECURITY DEPOSIT - form used to have a tenant give up his/her interest in a security deposit. Frequently used when there is more than one tenant (roommates). A new roommate makes arrangements with the departing one for his/her portion of the security deposit and the landlord doesn't have to be involved.

RELEASE CLAUSE - 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. As the builder sells each house, the lender releases the lien upon that house upon a specified payment by the builder.

RELICTION - increase of land by the permanent withdrawal of the sea, a river, lake, or other body of water.

RELIEF - Also See: Topography.

RELIEF MAP - map showing the topography of an area.

REMAINDER - (1) 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 to C, his heirs or assigns. If A grants 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 - one entitled to the remainder.

REMAINING BALANCE - amount of money owing on a loan. It usually refers to the principal balance but may include delinquent interest.

REMAINING ECONOMIC LIFE - number of years between the time of an appraisal and the point in time when an improvement becomes economically valueless.

REMAINING TERM - time left to amortizing a loan. It is usually expressed in months.

REMIC - Also See: Real Estate Mortgage Investment Conduit.

REMISE - To give up or remit. Used in a deed, especially a quitclaim deed.

REMNANT - 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.

RENDERING - Also See: Artist's Conception.

RENEGOTIABLE RATE MORTGAGE - 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).

RENEGOTIATION - attempt to agree on new terms to an existing contract (in real estate, usually a lease). A lease, for example, may call for renegotiation of rent after 5 years. Since renegotiation needs agreement of the parties, a set formula to determine the rent, such as an escalation clause, would not be renegotiation. Arbitration may be provided for in the event renegotiation fails.

RENEWAL - (1) To cause a lease to begin again for another term. (2) To rebuild, as in urban development (urban renewal).

RENEWAL OPTION - right of a tenant to renew (extend the term of) a lease for a stated period of time and rent which can be determined.

RENOVATION - Also See: Reconditioning.

RENT - Consideration paid for the occupancy and use of real property. A general term covering any consideration (not only money).

RENT CONTROLS - legal maximum on rental price. Used extensively during World War II. Modernly, a control on subsidized housing, where the rent is paid partly by the government agency, and a maximum rent is established, not by the landlord, but by the agency.

RENT LOSS INSURANCE - policy that covers loss of rent in the event of damage to the property that makes it uninhabitable.

RENT SUBSIDY - Also See: Subsidy.

RENT-FREE PERIOD - Also See: Free Rent.

RENT-UP PERIOD - length of time to rent a property newly constructed or renovated.

RENTABLE AREA - 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 - lease. The term is mainly used when concerning residential property.

RENTAL VALUE - fair rental value of a property; the market rental value.

REPAIRS - general upkeep of property without major replacement or change of the plan or characteristics of the building.

REPLACEMENT - substitution of a portion of a structure with one of substantially the same nature, such as a new furnace, new roof, etc.

REPLACEMENT COST - current cost to construct a building having the same utility as the subject building but using modern techniques and material.

REPLEVIN - legal action to recover goods wrongfully taken, where damages are not satisfactory.

REPRESENTATION - Also See: Per Stirpes.

REPRODUCTION COST - current cost to construct an exact duplicate of the subject property.

REQUEST FOR RECONVEYANCE - 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.

RERECORDING - recording of a deed for a second time to correct an error contained in the deed when originally recorded. Also called a correction deed, confirmation deed, or reformation deed.

RESALE MARKET - selling of property after the initial sale. Example: A builder sells a house. The homeowner subsequently "resells" the house. The second sale is in the resale market.

RESALE PROCEEDS - Also See: Proceeds.

RESCIND - To void or cancel in such a way as to treat the contract or other object of the recision as if it never existed.

RESCISSION - Also See: Rescission of a Contract.

RESCISSION 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) 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 - 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 - 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 - place where someone lives. See also: Domicile (1).

RESIDENT MANAGER - 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.

RESIDENTIAL ACCREDITED APPRAISER - designation awarded by the NATIONAL ASSOCIATION OF REALTORS to a member who is a state certified Residential Appraiser and has the required additional required experience and tested education.

RESIDENTIAL BROKER - licensed real estate broker specializing in the sale of residential property, such as single family homes, PUDs and condominiums.

RESIDENTIAL BUILDING RATE - 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.

RESIDUAL - Amount remaining. Example: The income remaining after deducting for vacancies and operating expenses of apartment units. The amount can then be divided by the market capitalization rate to estimate the present value of the property.

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) - 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.

RESTORATION - (1) Repair (may be very extensive) to a building to cause it to look like it did at an earlier time. (2) Returning land to a former state. Examples: Replanting trees after cutting them down, leveling strip mines, gravel pits, etc.

RESTRAINT OF ALIENATION - Restrictions placed 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.

RESTRICTIVE COVENANT - Also See: Restriction.

RESUBDIVISION - Subdividing an existing subdivision. (1) Frequently done when the wishes to change the size or shape of the lots. (2) Some states have held that one who buys several properties in the same subdivision (even if already with buildings) must resubdivide 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.

RESULTING TRUST - Also See: Constructive Trust.

RETAINING WALL - wall used to contain or hold back dirt, water, or other materials of a similar nature.

RETALIATORY EVICTION - Forcing a tenant to vacate as revenge for complaints filed by the tenant against the landlord for failure to adequately maintain the property. Laws prevent retaliatory eviction by forbidding eviction without cause for a specified time period after the complaint.

RETURN OF INVESTMENT - recovery of invested capital.

RETURN ON INVESTMENT - profit from invested capital.

REVALUATION - Also See: Reassessment.

REVALUATION CLAUSE - 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. Canceled 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.

REVERSE ANNUITY MORTGAGE - Also See: Reverse Mortgage.

REVERSE LEVERAGE - Also See: Negative Leverage.

REVERSE MORTGAGE - loan, secured by a first mortgage on the borrower's residence, under which the lender makes periodic payments to the borrower which are repaid in one lump sum. The loan is available to senior citizens (62 and over) with FHA insurance. For specific variations Also See: Combination Advance Reverse Mortgage; Credit Line Reverse Mortgage; Lump Sum Reverse Mortgage; Monthly Advance Reverse Mortgage; Tenure Monthly Advance Reverse Mortgage; Term Monthly Advance Reverse Mortgage.

REVERSION - 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 to B for life, then back to A upon B's death. A has an estate in reversion.

REVERSIONARY INTEREST - interest held in a reversion (future right to property in possession of another).

REVOCABLE - Capable of being revoked.

REVOKE - To cancel, annul, reverse, take back, etc.

REVOLVING DEBT - Describes an account that a borrower can use without having to apply for each loan. The most common example is a credit card.

RIBBON - (1) 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.

RIDER - Also See: Addendum.

RIDGE - meeting of the roof rafters of a gable or other roof with two sloping sides.

RIDGEBOARD - highest horizontal member of a roof, running along the ridge, and receiving the rafters at right angles.

RIGHT OF ANTICIPATION - right to prepay without penalty. Also See: Or More Clause.

RIGHT OF FIRST REFUSAL - See First Refusal Right.

RIGHT OF REDEMPTION - Also See: Redemption.

RIGHT OF RESCISSION - Laws that allow a borrower (there must be financing involved) to cancel a transaction within three business days after signing the agreement to purchase. It applies to certain real estate and personal property transactions. The borrower need not state a reason for the cancellation.

RIGHT OF SURVIVORSHIP - 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 - 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 - 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 a stream or river. An abnormal flow (flood) is not riparian water.

RIPRAP - loosely composed wall of rocks and stones used to hinder the flow of water, thereby preventing erosion.

RISE - 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 feet.

RISER - (1) vertical board rising from the back of each step in a stairway. (2) A warm air duct rising from a furnace.

RISK - In lending, the chance of being repaid. High risk may result from poor credit, a high loan to value ratio, poor general economic conditions, etc. Generally, the greater the risk, the greater the required return (higher interest rate and points).

RIVER - large, natural stream of water, which flows in a permanent channel or bed, and may empty into a lake or the sea.

RIVER BED - land between the banks of a river during its normal course.

RLI - Also See: Realtors Land Institute.

RM - designation conferred by the Appraisal Institute upon member appraisers who are qualified to appraise residential properties of one to four units. See also: MAI; SRA; SREA; SRPA.

RNMI - Also See: Realtors National Marketing Institute

ROAD - (1) rural travelway for the use of pedestrians and/or vehicles. (2) Any travelway for the use of pedestrians and/or vehicles.

ROCK WOOL - fibrous insulation material made from molten rock.

ROD - unit of linear measure equal to 16 1/2 feet.

ROLL ROOFING - asphalt paper or fiber material, which is used in rolls, being unrolled and fastened to the roof surface, under the shingles.

ROLL-OVER PAPER - Short term notes which may be extended (rolled over) or converted to installment payments, after the initial due date.

ROLLOVER LOAN - loan which is periodically reviewed, adjusted (usually to reflect current interest rates) and extended. Short term loans can be rolled over into long term loans. The process is by initial agreement or by necessity.

ROMAN BATH - bathroom constructed to resemble the public baths of ancient Rome. Usually there is a large sunken tub and the 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 - general term meaning the top of a building. (See specific types for more detail).

ROOF SHEATHING - Also See: Sheathing.

ROOM - 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 - number of rooms in a residential property. There is no national method of counting but, generally, bathrooms are specified and counted separately.

ROTUNDA - room or building, shaped in a circle, and usually with a domed roof.

ROW HOUSES - method of construction of individual houses with common side walls and a common roof. Modernly called townhouses.

ROYALTY - 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.

RPT (REPORTED) - Abbreviation used on many listing forms.

RRM - Also See: Renegotiable Rate Mortgage.

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).

RULE OF 78'S - Rule of 78's is a commonly used accounting method for allocating interest or insurance charges in a credit transaction. This allocation method assumes that the portion of the total charge contained in each credit installment payment is computed as a direct ratio of the number of the remaining unpaid installments to the sum if the original number of installments.

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).

RURAL HOUSING SERVICE (RHS) - agency of the U.S. Department of Agriculture that helps rural communities and individuals by providing loans and grants for housing and community facilities. It provides fund-ing for single family homes, apartments for low-income persons or the elderly, housing for farm laborers, childcare centers, fire and police stations, hospitals, libraries, nursing homes, schools and other services.
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