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R Factor - Resistance factor used to measure insulation.   

Rafter - The diagonal roof booms running from the eaves to the ridge of the roof.

RAM -  See Reverse Annuity Mortgage.  

Range - A vertical row of townships, measured east and west from the meridian.  

Rate and Term Refinance -  The borrower replaces a mortgage loan on the subject property with another mortgage loan for the purpose of getting a better interest rate and loan term.  

Ratification - The approval of an act of the agent by the principal when the agent exceeded his or her authority.  By taking the benefits of the act, the principal also accepts its obligations.  

Real Estate - Land.

Real Estate Investment Trust - Unincorporated group of 100 or more investors who have limited liability.  

Real Estate Mortgage Investment Conduit -  The mortgage offspring of tax legislation that simplifies tax and legal considerations when issuing multi-class , mortgage-backed securities.

Real-Estate Owned -  A term used by lending institutions that refers to ownership of real property acquired for investment or as a result of foreclosure.

Real Estate Settlement Procedures Act -  Federal legislation designed to help home buyers compare settlement costs among lenders and to eliminate kickbacks.

Real Property -  Land and anything permanently affixed to the land, such as fences, buildings and those things attached to the buildings, such as light fixtures or plumbing.  May refer to rights in real property as well as the property itself.

Realtor© -  Anyone who is licensed to both by and sell real estate in an area and who is an active member in the local real estate board affiliated with the National Association of Realtors.  

Recapture Clause - A provision in a percentage lease that gives the landlord the right to terminate the lease if a specified volume of sales is not reached. 

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

Recasting -  An adjustment to the current mortgage--a loan modification--that does not involve the issuance of a new mortgage guaranty insurance certificate.  With a recast loan, a modification may be made in the type of instrument involved.  In whatever form a recast loan takes, the major benefit to the borrower is the potential for substantially reduced mortgage payments.

Receiver -  A court-appointed person who holds property and any income from it pending a court-ordered final resolution of the legal dispute.  

Receiver Clause - A mortgage clause that allows a mortgagee to appoint a receiver to collect rents between the period of commencement of foreclosure and final foreclosure.  

Recession of Contract - To rescind or annul a contract by mutual consent of all parties or for cause by any one party. 

Recognized Gain - The amount of money that is gained from the sale or exchange of real property (may be subject to tax).

Reconciliation - The final step in the appraisal process, in which the appraiser reconciles the estimates of value received from the cost, income capitalization and sales comparison approaches to value, to arrive at a final estimate of market value for the subject property. 

Reconstruction of the Operating Statement - The process of eliminating the inapplicable types of expense items for appraisal purposes and adjusting the remaining valid expenses if necessary. 

Reconveyance Deed - See Deed of Reconveyance. 

Recordation - The act of recording with the county recorder so as to give constructive notice to all of the instruments recorded.

Recorded Lot Block and Tract System - See Lot and Block System.  

Recorder - The public official in a political subdivision (such as a county) who keeps records of transactions affecting real property in the area.

Recourse Loan -  A type of loan in which a lender can hold the borrower personally liable if the borrower fails to meet all the requirements of the mortgage.  

Rectangular Survey System - A method of legal description of real estate established in 1785 by the federal government, by which land is referenced by proximity to principal meridians and base lines.  Also called the U.S. government survey system and the section and township system.

Redemption (Period) -  The time period in a foreclosure in which a borrower in default cannot be divested of legal title or evicted and can exercise the right to redeem the property by paying the debt in full.  

Redemption Rights - The right allowed by law in some states whereby a mortgagor may buy back property by paying the amount owed on a foreclosed mortgage (including interest and fees). 

Redlining - Refusing to make loans within designated areas and considered a violation of the Civil Rights Act of 1968.

Refinance -  1) To change a loan from one financial institution to another, or to rewrite the terms of a loan contract within the existing lending institution.  2) The payment of a debt from the proceeds of a new loan, using the same property as security.  

Reformation - A court action to rectify a mistake in a deed or contract so it reads as it was intended to read.  

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

Registrar of Deeds - See Recorder.

Regression - A loss in value because a home was placed in an area of less expensive homes.

Regular Periodic Payment -  Payments recurring at fixed times.

Regulation X -  Federal regulation prescribed by the Secretary of Housing and Urban Development (HUD) to implement Real Estate Settlement Procedures Act (RESPA).

Regulation Z -  Federal regulation prescribed by the Federal Reserve Board to carry out the purposes of the Truth-in-Lending Act.

Rehabilitation -  The restoration of real property to good use through repair of structures or improvements of public facilities of a declining area or neighborhood with deteriorating influences.

Reinstatement -  Occurs when a borrower cures a mortgage default.  A mortgage is reinstated if it is brought up to date by paying all charges that had become overdue.

Reinsurer -  An insurance company that covers all or part of a loss for primary insurers.   

REIT - See Real Estate Investment Trust. 

Release Clause - A provision in a blanket encumbrance (mortgage) allowing separate releases from the encumbrance by paying a stated sum of money. 

Release of Lien - An instrument discharging secured property from a lien.

Reliction - See Dereliction. 

Relief Provision - A formal arrangement designed to help a borrower resolve a delinquency.

Remainder Depreciation - The depreciation that an owner has left to take. 

Remainder Estate - A future interest in a property created in someone other than the grantor, which is or may become possessory upon the natural expiration of the prior particular estate.

Remainder Interest - An interest that a third person has in a property after the death of a life tenant. 

Remainderman - The person who owns an estate in remainder; therefore, the person who will receive title upon termination of the prior, particular estate.

Remaining Economic Life - The number of years of useful life left to a building from the date of appraisal, that is, the remaining number of years in which it can be used for its intended purpose.

REMIC -  See Real Estate Mortgage Investment Conduit.

Renegotiable-Rate Mortgage -  A type of adjustable rate mortgage (ARM).  The interest rate and terms of the mortgage are completely renegotiated at regular intervals and at the lender’s discretion, unlike other ARMs where fluctuations in interest are controlled by a pre-selected index.   

Renewal of Lease - A new lease.  An extension of a lease only continues the old lease. 

Renovate - Restore to a former condition or to upgrade the condition. 

Rent - Income received for use of the property. 

Rent Control - Regulation by a local government agency of rental charges, usually according to set formulas for increase.

Rent-Loss Method of Depreciation - See Capitalized Value Method.

REO -  See Real-Estate Owned.  

Replacement Cost - Cost to reproduce a structure of the same desirability and utility values using modern methods and materials.

Reproduction Cost -  An estimate of how much it would cost to construct a similar home with equal utility.  

Rescind -  To avoid or cancel in such a way as to treat the contract or other object of the rescission as if it never existed.  

Reservation - The retention of a right such as an easement when property is conveyed. (An exception retains part of the property). 

Reserve for Replacement - A reserve fund established to replace an asset. 

Residence - A place where someone lives. 

Residential Home Mortgage - A mortgage covering a one-to four-family dwelling.  Mortgages for larger residential buildings are classified as multi-family housing loans.

Residual - The value remaining after all deductions have been made.

RESPA -  See Real Estate Settlement Procedures Act.  

Restraining Order -  A prohibitive writ issued by a court of equity that forbids a party or a party’s agents to do some act which is threatened or attempted.  

Restriction - See Restrictive Covenants.

Restrictive Covenants - Private beneficial restrictions whereby owners are limited as to the use of their property.  Examples include include restrictions on parking cars in the street, setback provisions, uniformity in appearance. 

Restrictive Endorsement - Endorsement on a negotiable instrument that restricts any further endorsement (such as writing "For Deposit Only" on the back of a check).

Revenue Stamps - Formerly a federal tax on real property conveyances that, when abandoned by the federal government, was adopted by many states.

Reverse Annuity Mortgage -  A non-traditional mortgage in which someone who owns their home free and clear (that is, has paid off all mortgages on the property) receives monthly payments from a lender for a short period of time, usually less than 10 years.  At the end of the mortgage, the owner agrees to refinance the loan or sell the property to pay off the loan.  Such payments from the lender are often beneficial for retired people, who know they won’t be in a house for more than five or 10 years, because the payments can help them make tax and insurance payments. 

Reversionary Interest - An interest whereby a property goes back to the original grantor upon occurrence of an event, such as the death of a life tenant.

Review Underwriter -  Usually an underwriter from the mortgage insurer or mortgage investor.  The review underwriter takes a less comprehensive look at the loan package and relies more on the findings of the primary underwriter.  

Rezoning - Change of zoning as opposed to a variance, which is an exception to zoning. 

Rider - A supplement or an addition to, and indorsement to a document.

Ridge Board - The highest board in a house, located between the tops of the opposing rafters. 

Right of Correlative User - Right of a landowner to the reasonable use of underground percolating water (water table).

Right of First Refusal - A right sometimes given to a tenant to meet the price and terms at which the owner is willing to sell or lease the property to another party.  The owner first must offer it to the holder of the right before a sale or lease can be made made to another.  Unlike an option, the owner is not required to sell or lease.

Right of Prior Appropriation - A right to water use based on who was first user.  Exercised primarily in western states.

Right of Way - The right to pass over another's land, such as in an easement.  

Riparian Right - Right of the landowner to reasonable use of the flowing water located on, under or adjacent to his/her property.

Risk Rate - See Interest Rate.

Rod - A measure of length equal to 16.5 feet.

Roll-Over Mortgage -  A type of adjustable-rate mortgage (ARM).  With a roll-over mortgage, the interest rate and payment terms can be renegotiated, usually every 5 years.

RRM -  See Renegotiable Rate Mortgage. 

Rule Against Perpetuities - Restricts unlimited private trusts to a statutory life limit. (The deceased is limited as to how long he/she can continue to exercise control over property after death).