Definitions (R)

Real Estate Glossary - Meanings, Terms, & Acronyms

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 at a specific cost.

REAL ESTATE AGENT

An individual who is licensed by the state and who acts on behalf of his or her client, the buyer or seller. The real estate agent who does not have a broker’s license must work for a licensed broker.

REAL ASSETS
Real estate or real property owned by an individual or business.

REAL ESTATE OWNED (REO)
A foreclosed property, also known as a Real Estate Owned (REO) property, is a home that was once customer owned but is now owned by a bank. A foreclosure can occur when mortgage payments are not made over a period of time and measures taken to help are not satisfied.

REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA)

A consumer protection law that requires lenders to give borrowers advance notice of closing costs.

REAL ESTATE TAXES

Taxes and the annual portion of assessments estimated to be due and payable on the property, reduced by any available tax exemption.

REAL PROPERTY
Property that includes land and anything affixed to the land, such as buildings and leasehold improvements. It may also include whatever is beneath the land (e.g., minerals, natural gas) and rights to the use of the property.

REALTOR®
A real estate agent, broker or an associate who holds active membership in a local real estate board that is affiliated with the National Association of Realtors®. Also, a registered trademark of NAR.

RECONVEYANCE
Transfer of title to the previous owner, or a release of the lien created by a Deed of Trust.

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.

REDLINING

The practice by lending institutions of restricting or denying mortgage loans for certain areas.

REFERRAL FEES
A portion of the commission paid to some servicers in return for referring properties to a certain broker.

REFINANCE TRANSACTION

The process of paying off one loan with the proceeds from a new loan using the same property as security.

REISSUE OR REFINANCE RATE (FOR TITLE INSURANCE)
A reissue or refinance rate is a reduced rate for title insurance that a homeowner may be eligible for on a refinance. The reduced rate may be applicable if the property was previously insured within a certain number of years.

RELEASE DEED
A written document stating that a seller or buyer has satisfied his or her obligation on a debt. This document is usually recorded.

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.

REPAYMENT PERIOD
For a standard home equity line of credit, the point at which a borrower must begin to make fully amortizing monthly payments, or principal-and-interest payments that will completely repay the outstanding balance during a certain period of time.

REPAYMENT PLAN

An arrangement made to repay delinquent installments or advances.

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.

RESCISSION PERIOD

Under federal law, certain loan transactions secured by your home are subject to a rescission, or cancellation, period. Following receipt of all required disclosures and consummation of the contract, each owner of the property has up to three full business days to cancel the transaction. The right to cancel does not apply to loans made to purchase, construct, or acquire a primary residence, or to transactions secured by a secondary residence, vacation home, or rental property.

RESERVATION
A reservation created by a Grantor in a deed, which establishes a new right or privilege for the benefit of the Grantor in the property.

RESERVES OR IMPOUNDS
Terms used to mean “escrow” in some parts of the country. See Escrow.

RESOLUTION
A formal declaration of the will of the group, such as the Board of Directors of a corporation.

RESPONSIBLE LENDING PRINCIPLES

The fair lending practices that Wells Fargo follows throughout the home lending process.

REVOLVING LINE OF CREDIT
A line of credit that gives the borrower the ability to access available funds during the specified draw period. As the borrower pays down the principal, more credit becomes available during the draw period, up to the total amount of the approved line of credit.

RESTRICTION

A limitation upon the owner’s use or right to deal with their land.

REVOLVING DEBT
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 joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant.

RURAL AREA

A rural area is any one of the following:
(1) Open country that is not part of or associated with an urban area. (2) Any town, village, city, or place, including the immediately adjacent densely settled area, which is not part of or associated with an urban area and which: (i) Has a population under 10,000 if it is rural in character; or (ii) Has a population above 10,000, but below 20,000, is not contained within of a MSA and has a serious lack of mortgage credit for low‐ and moderate‐income households as determined by the Secretary of Agriculture and the Secretary of HUD. (3) An area classified as a rural area prior to October 1, 1990 (even if within a MSA), with a population exceeding 10,000, but not in excess of 25,000, which is rural in character, and has a serious lack of mortgage credit for low‐ and moderate‐income families. This is effective through receipt of the census data for the year 2010.