RAA

See: Residential Accredited Appraiser.

RABBET

A method of joining or fitting together wood by cutting a deep groove in one piece to allow the other to be fitted against it.

RACEWAY

A pipe carrying electrical wiring, having outlets at close intervals.

RADIANT HEATING

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

RADIATOR

An old fashioned, cast iron, ribbed heating fixture using hot water. Most modern systems use air for heating, because water or steam systems are more expensive.

RADON

A 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) A horizontal bar, such as the cross member of a fence. (2) Tracks on which a train runs.

RAKE

Sloping members, such as a cornice, which run parallel to the inclination of a roof.

RELIMINARY TITLE REPORT

RAM

See: Reverse Mortgage.

RAMP

(1) An inclined, concrete or wooden path, used instead of steps. (2) A roadway used as an entrance or exit to a limited access highway.

RANCH

Traditionally, a place for raising horses or cattle, which feed on a grazing range. More modernly, the term has been applied to the raising of other animals under controlled conditions, such as mink, chickens, etc.

RANCH STYLE HOUSE

Modernly, any one story house is called a ranch style. A true ranch style house is rambling, with low pitched gable roofs, and an interior of open design.

RANCH UNIT

The 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) RANGE, RANGE LINES A 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

A wall only a few inches above ground, but to a specified depth (according to local code) below ground, around a house to prevent rats from going under the house. Not used in all parts of the country, and only necessary where there is not a full basement or slab construction.

RATABLE ESTATE

Property capable of being rated (assessed, taxed).

RATE CAP

A limit of how much an interest rate can change in a variable of adjustable rate mortgage either in a given period or over the life of the loan.

RATE COMMITMENT

A written promise by a lender to lend money to a borrower at a stated rate of interest -- usually time limited.

RATE INDEX

An 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-IN

See "rate commitment". A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time.

RATE OF RETURN

The annual percentage of return, both of and on invested capital.

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.

RATIFIED SALES CONTRACT

A firm and binding agreement for the purchase and sale of land.

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

The 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

A trained professional involved in the purchase, sale and marketing of real property. The "listing agent" acts for the vendor, the "selling agent" for the successful purchaser.

REAL ESTATE BOARD

A 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

A real estate professional who is licensed to run a real estate firm, to hold trust funds, etc.

REAL ESTATE BROKERAGE MANAGERS COUNCIL

A 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

See: Department of Real Estate.

REAL ESTATE EDUCATORS ASSOCIATION

An organization of post-secondary teachers of real estate courses.

REAL ESTATE INVESTMENT TRUST

See: R.E.I.T.

REAL ESTATE LICENSE

A state license granted to one as a broker or salesperson, after passing an examination. Some states have educational requirements before the brokers' examination may be taken.

REAL ESTATE MARKET

A term for the pool of potential buyers and sellers of property at a given time.

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 PROPERTY

See: Real Estate.

REAL ESTATE SALES PROFESSIONAL

See "real estate agent" or "real estate broker".

REALIST

A member of the National Association of Real Estate Brokers.

REALTOR ®

A designation given to a real estate broker or sales associate who is a member of a board associated with the National Association of Realtors® or with the National Association of Real Estate Boards.

REALTOR'S ASSOCIATE

Professional designation of a licensed real estate agent or salesperson who is a member of the National Association of Realtors but who has not been licensed as a broker.

REALTORS LAND INSTITUTE (RLI)

An 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

An 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.

REAPPRAISAL LEASE

A rental agreement in which the periodic payment is adjustable according to scheduled re-appraisals of the rental value of the premises.

REASSESSMENT

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

REBAR

A slang term for the steel reinforcement bars inside poured concrete.

REBATE

A discount or reduction in price of a product or interest, not given in advance, but handed back because of prompt payment or other reason. Many states regulate gifts and educational aids given to real estate brokers by supporting companies such as title companies, calling these in effect, a price discount (rebate).

RECAPTURE

The return of monies invested in property, through reduction of the loan amount and appreciation; it is realized when the property is sold.

RECAPTURE OF DEPRECIATION

Taxing as ordinary income, upon the sale of property, the amount of depreciation taken above straight line depreciation.

RECAPTURE RATE

The annual rate of recapture. 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.

RECAST PAYMENT

Adjustment of the periodic payment on an adjustable or variable rate mortgage to ensure that the mortgage will be paid out by maturity date.

RECEIPT

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

RECEIVER

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

RECIPROCITY

A mutual exchange of privileges by states, allowing attorneys, real estate brokers, and others to practice in one state while being licensed in another.

RESCISSION OF CONTRACT

The act of declaring a contract null and void and taking the necessary actions to return the parties to the position they were in prior to entering the contract.

RECITAL

An unsworn statement of fact included in a document. In many jurisdictions, recitals in registered documents are deemed true and unassailable if unchallenged after a certain period of time

RECLAMATION

The process of bringing economically unusable land to a higher dollar value by physically changing it. For example: draining a swamp, irrigating a desert, replanting a forest.

RECONCILIATION

The 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

An 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

See: Owner of Record.

RECORDATION

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

RECORDED MAP

A map recorded in a county recorder's office. May be a subdivision map or describe a non-subdivided parcel. Reference to a recorded map is commonly used in legal descriptions.

RECORDED PLAT

A subdivision map filed as a matter of public record.

RECORDER'S OFFICE

The county office where instruments are recorded, giving public notice.

RECORDING

Filing documents affecting real property as a matter of public record, giving notice to future purchasers, creditors, or other interested parties. Recording is controlled by statute and usually requires the witnessing and notarizing of an instrument to be recorded.

RECORDING ACTS

State statutes enacted to cover the public recording of deeds, mortgages, etc., and the effect of these recordings as notice to creditors, purchasers, and other interested parties.

RECORDING FEE

The amount paid to the recorder's office in order to make a document a matter of public record.

RECOURSE

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

RECOVERY FUND

A pool of money made up of contributions from licensed brokers used to compensate members of the public with claims against brokers.

RECTANGULAR SURVEY SYSTEM

A 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

The clarification or correction of boundary lines between properties.

REDDENDUM

Technical name for a clause in a conveyancing instrument or lease, creating a reservation in the grantor or lessor.

REDEEM

To bring mortgage payments up-to-date after the lender has begun default proceedings. Once a borrower (or other lien holder) redeems, the mortgage is back in good standing and the relationship continues as before the default.

REDEEMABLE RENT

Rent which, by agreement, is refunded or set off against the selling price when the tenant exercises a purchase option.

REDEMPTION

The process of canceling a defeasible title to land, such as is created by a mortgage foreclosure or tax sale.

REDEMPTION PERIOD

A time period during which a mortgage, land contract, deed of trust, etc., can be redeemed. Usually set by statute, and after judicial foreclosure.

REDEVELOPMENT

Generally, the improvement of land in accordance with an urban renewal project.

RED LINING

The outlining 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.

REDUCTION CERTIFICATE

A mortgage statement setting out the amount owing on the loan as of a given date. May be used for discharges or assumptions.

REEVALUATION LEASE

See "reappraisal lease".

REFEREE

One appointed by a court to take testimony and report back to the court. May be in bankruptcy or other proceedings.

REFERRAL

In the real estate business, generally the act of a past client recommending a real estate broker or agent to one currently a buyer or seller. Also, any recommendation by one real estate agent of another for a referral fee.

REFINANCE

(1) The renewing of an existing loan with the same borrower and lender. (2) A loan on the same property by either the same lender or borrower. (3) The selling of loans by the original lender.

REFORMATION

An action to correct a deed or other document which, through mistake or fraud, does not express the real agreement or intent of the parties.

REGENCY HOUSE

A two-storey or three-storey house in a traditional English style of the Regency Period, symmetrical in construction with a hip roof. May have a small, eight-sided window above the front door.

REGIONAL SHOPPING CENTER

The largest type of shopping center, having one or more major department stores, a variety of retail stores, usually a bank or savings and loan, and common parking and management.

REGISTER

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

REGISTRAR

The person who has the task of collecting, recording, and maintaining instruments related to title of land. May also have responsibility of ruling on the acceptability of documents submitted for registration and for making decisions as to how to correct title defects.

REGISTRAR OF DEEDS

A term used in some states to describe the person in charge of recorded instruments. More commonly called a recorder.

REGISTRATION

The submission for recording in the public records of instruments relating to title in land. Each jurisdiction may have specific requirements as to documents which will be accepted for registration; once registered, documents will be given a registration number and recorded on the title abstract index for the property to which the apply.

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 TAX CREDIT

A tax provision allowing a tax credit of up to 20% for the refurbishing of historic properties.

REINFORCED CONCRETE

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

REINFORCED CONCRETE CONSTRUCTION

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

REINFORCING

(1) The strengthening of concrete by positioning metal rods, mesh, etc. in said concrete when wet. (2) The strengthening of any members by propping or adding additional material.

REINSTATEMENT

(1) Payment of a note, mortgage, deed of trust, etc., to bring it from default to good standing. (2) Restoring the previously used entitlement of a veteran to enable the veteran to purchase property under a VA program. (Also called Restoration of Eligibility).

REINSURANCE

The transferring of a portion of the liability to other insurers. Example: Insurer A insures for $200,000. A insures for $100,000 and reinsures the "second" $100,000 through B insurer. The "first" $100,000 is called "primary liability".

REISSUE RATE

A 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.

R.E.I.T.(REAL ESTATE INVESTMENT TRUSTS)

A method of investing in real estate in a group, with certain tax advantages. Federal and state statutes dictate procedure.

RELEASE

An instrument releasing property from the lien of the mortgage, judgment, etc. When a trust deed is used, the instrument is called a reconveyance. In some areas, a "discharge" is used instead of a release.

RELEASE AND ASSIGNMENT OF SECURITY DEPOSIT

A 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

A clause in a blanket encumbrance allowing for the "release" of certain parcels upon payment of a specified amount. Example: A builder mortgages an entire subdivision under one loan. As the builder sells each house, the lender releases the lien upon that house upon a specified payment by the builder.

RELEASE OF LIEN

A document which, once registered, removes certain kinds of claims from title to property.

RELICTION

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

RELIEF

See: Topography.

RELIEF MAP

A map showing the topography of an area.

RELOCATION CLAUSE

A term in a lease which allows the landlord to move the tenant to a new unit, within the same building or elsewhere.

RELOCATION NETWORK

An organization of real estate professionals in a number of different areas specifically designed to allow information to be shared to allow easier movement of clients from one area to another.

RELOCATION SERVICE

A firm that specializes in helping employees who are transferred by their employer to a new area take care of the move.

REMAINDER

(1) An estate which vests in one other than a grantor, after the termination of an intermediate estate. Example: A grants land to B for life, then 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

The one entitled to the remainder.

REMAINING ECONOMIC LIFE

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

REMIC

See: Real Estate Mortgage Investment Conduit.

REMISE

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

REMNANT

An appraisal term. A parcel of land, after a partial taking by eminent domain, so small or poorly shaped as to have practically no value.

REMODELING

Improving a structure by changing its plan, characteristics, or function, as opposed to reconditioning.

RENDERING

See: Artist's Conception.

RENEGOTIABLE RATE MORTGAGE

A real property loan calling for an adjustment in the interest rate at a given time. Example: A loan with a 15 year amortization is adjusted to current interest rates after 2 years. The lender agrees to make the adjusted loan at the new rate as long as the old loan is not in default. The Federal Reserve Board allows the original loan to be treated either as a balloon payment loan or a variable rate loan. However, points must be figured into the A.P.R. based on the time or renegotiation (2 years rather than 15).

RENEGOTIATION

An 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

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

RENOVATE

Similar to remodel, with an emphasis on upgrading the existing property.

RENOVATION

See: Reconditioning.

RENT

1. Verb -- to lease premises from the owner or a representative of the owner. 2. Noun -- the periodic payments made by a tenant to the landlord for the right to occupy the premises.

RENT CONTROL

A 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-FREE PERIOD

See: Free Rent.

RENT SUBSIDY

See: Subsidy.

RENTABLE AREA

The area (square footage) for which rent can be charged. For example: An office building would not rent the space used for stairways, elevators, public washrooms, hallways, etc.

RENTAL AGENT

One who (for a fee) aids a landlord to find a tenant or a tenant to find property. Generally concerned with residential property and may not require a real estate license (or may require a special license) in some states.

RENTAL AGREEMENT

A lease. The term is mainly used when concerning residential property.

RENTAL RATE

The amount charged for the occupation of a property.

RENTAL VALUE

The fair rental value of a property; the market rental value.

RENT-UP PERIOD

The length of time to rent a property newly constructed or renovated.

R.E.O.

See: Real Estate Owned.

REPAIRS

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

REPAYMENT PLAN

A schedule arranged between a lender and borrower to set out how a debt is to be paid out.

REPLACEMENT

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

REPLACEMENT COST

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

REPLEVIN

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

REPORT

A document sent by a lawyer to a bank certifying that title to the subject property is clear and marketable.

REPORTING LETTER

A letter sent by a lawyer to a client after a transaction is completed (or when sent during the process of the transaction, called "interim reporting letter") in which the lawyer certifies title to the property and informs the client of all other matters relating to the transaction.

REPRESENTATION

See: Per Stirpes.

REPRODUCTION COST

The current cost to construct an exact duplicate of the subject property.

REQUEST FOR RECONVEYANCE

A request by a beneficiary under a deed of trust to the trustee, requesting the trustee to reconvey the property (release the lien) to the trustor, usually upon payment in full.

REQUIRED CASH

Collective term for the total sum of money required to complete a transaction, including purchase price, taxes, legal fees, mortgage fees, etc.

RERECORDING

The 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

The 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

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 OF A CONTRACT

Annulling or abrogating a contract and placing the parties to it in a position as if there had not been a contract.

RESERVATION

(1) A right created and retained by a grantor. The reservation may be temporary (such as a life estate) or permanent (such as an easement running with the land). (2) Public land reserved for a special purpose, such as an Indian reservation.

RESERVE

A setting aside of funds, usually for indefinite contingencies, such as future maintenance of a structure, or to pay future claims, such as insurance claims.

RESERVE FUND

A pool of money held for use for future contingencies, usually in the management of a building, condominium corporation or cooperative unit.

RESERVE PRICE

The amount set prior to an auction which must be met in the bidding for a particular item before the item will be sold. Also known as "reserve bid".

RESERVOIR

A body of water used as household water (drinking, washing, etc.), irrigation, or other domestic or commercial uses. The water is usually treated and its purity is monitored.

RESIDENCE

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

RESIDENT MANAGER

A manager of an apartment project who lives on the property. Some states require a resident manager in apartment projects above a certain number of units. The manager is not required to have a real estate license.

RESIDENTIAL ACCREDITED APPRAISER

A 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

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

RESIDENTIAL BUILDING RATE

The rate of residential construction in a given area. Determined by housing starts per 1,000 population.

RESIDENTIAL PROPERTY

Land designated by zoning ordinances as "residential". May be vacant or improved.

RESIDENTIAL SERVICE CONTRACT

A warranty or insurance contract which covers services such as electrical, plumbing etc. in a resale home.

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)

A federal statute effective June 20, 1975, requiring disclosure of certain costs in the sale of residential (one to four family) improved property which is to be financed by a federally insured lender.

RESPONDEAT SUPERIOR

Doctrine of responsibility of a principal for the wrongful acts of an agent arising from the authorized acts of said agent. In real estate, one of the reasons for the status of independent contractor.

RESTORE

To refurbish a building or other asset to its original condition.

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

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

See: Constructive Trust.

RETAINING WALL

A 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.

RESTRICTION

Any limit or control on the owner's ability to use the property. May be contained in a deed and be binding on the land and future owners of it.

RESTRICTIVE COVENANT

See "restriction".

RETIRE (A DEBT)

To fulfill one's obligations under a loan or mortgage so that the lender has no further claims against the borrower.

RETURN OF INVESTMENT

The recovery of invested capital.

RETURN ON INVESTMENT

The profit from invested capital.

REVALUATION

See: Reassessment.

REVALUATION CLAUSE

A clause in a lease calling for a periodic revaluation (appraisal) of the leased property, and subsequent adjustment of rent.

REVENUE STAMPS

Formerly federal tax on sale of real property. 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

See: Reverse Mortgage.

REVERSE LEVERAGE

See: Negative Leverage.

REVERSE MORTGAGE

A 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 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

The right to possession of the residue of an estate in a grantor or successors of a grantor or testator, commencing upon the termination of a particular estate, granted or devised. Example: A grants to B for life, then back to A upon B's death. A has an estate in reversion.

REVERSIONARY INTEREST

An interest held in a reversion (future right to property in possession of another).

REVERSIONARY VALUE

The value of the property at the time of reversion.

REVOCATION

Taking back, recalling. One might revoke a power of attorney or a consent given.

REVOCABLE

Capable of being revoked.

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.

REVOKE

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

REZONING

The amendment of the classification of a property under use and building by-laws or ordinances. A property may rezoned from industrial to residential to allow a warehouse to be converted into condominiums.

RIBBON

(1) A narrow strip; a strip of wood to add support to studs and joists. (2) A driveway consisting of two cement strips, the same distance apart as tires on a car.

RIDER

See: Addendum.

RIDGE

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

RIDGEBOARD

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

RIGHT OF ANTICIPATION

The right to prepay without penalty. See: Or More Clause.

RIGHT OF FIRST REFUSAL

See: First Refusal Right.

RIGHT OF REDEMPTION

See: Redemption.

RIGHT OF SURVIVORSHIP

The right of a survivor of a deceased person to the property of said deceased. A distinguishing characteristic of a joint tenancy relationship.

RIGHT OF WAY

A strip of land which is used as a roadbed, either for a street or railway. The land is set aside as an easement or in fee, either by agreement or condemnation. May also be used to describe the right itself to pass over the land of another.

RIGHTS

A general term which encompasses those things a person may do unopposed, even though a burden on another occurs, as in the right of a tenant, holder of an easement, etc.

RIGHT TO RESCISSION

Being legally entitled to treat a contract as being at an end.

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

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

RISE

The vertical measurement of a slope in relation to its horizontal measurement, such as a rise of three feet vertically over a horizontal distance of fifty feet.

RISER

(1) The 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

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

RIVER BED

The land between the banks of a river during its normal course.

RLI

See: Realtors Land Institute.

RM

A 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

See: Realtors National Marketing Institute.

ROAD

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

ROCK WOOL

A fibrous insulation material made from molten rock.

ROD

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

ROLL ROOFING

An 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

A 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

A 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

A general term meaning the top of a building. (See specific types for more detail).

ROOF SHEATHING

See: Sheathing.

ROOM

A fully enclosed section of the interior of a building, having access through a door or doorway. In residential property, rooms are described specifically, such as living room, dining room, etc.

ROOM COUNT

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

ROOT DEED

The first conveyance in a chain of title. If a jurisdiction has legislation which cures any title defects that are older than a certain number of years, the root deed will be the first deed beyond that period.

ROOT OF TITLE

Any defect in ownership of property which throws into question the very basic issue of who actually owns the property. An unresolved problem going to the root of title is grounds for rescission of the Agreement of Purchase and Sale no matter when it is discovered before closing.

ROTUNDA

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

ROW HOUSES

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

ROYALTY

A fraction or percentage of the value of a natural resource (oil, sand, etc.) paid to the owner of the resource by those extracting and selling it.

RPT (REPORTED)

Abbreviation used on many listing forms.

RRM

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 72'S

To calculate the number of years it will take to double money while earning compound interest, divide the interest rate into 72. Money invested at 10 percent compound interest will take 7.2 years to double.

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).

R VALUE

A method of measuring the insulation capabilities of materials.

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