Real Estate Glossary - R

Range - In the rectangular survey system, a strip of land six miles wide, running north and south.

Range Lines - In the rectangular survey system, the north-south lines (meridians) located six miles apart.

Ratify - To confirm or approve after the fact an act that ws not authorized when it was performed.

Ready, Willing, and Able - A buyer is ready, wiling, and able if he makes an offer that meets the seller's stated terms, and has the contractual capacity and financial resources to complete the transaction.

Real Estate Brokerage - A real estate broker's business; the business of bringing a buyer and seller together and negotiating a sales contract between the two parties.

Real Estate Brokerage Relationships Act - A Washington state law that significantly changes traditional agency law in regards to real estate transactions. It governs when and how real estate agency relationships are created and terminated, the duties owed by real estate licensees to the parties to a real estate transaction, and when and how agency disclosure are to be made.

Real Estate Commission - A commission appointed by the Governor, consisting of the Director of the Department of Licensing and six commissioners; responsible for preparing and conducting the real estate licensing examinations.

Real Estate Contract - 1. A purchase and sale agreement. 2. A land contract. 3. Any contract having to do with real property.

Real Estate Investment Trust (REIT) - A real estate investment business with at least 100 investors, organized as a trust.

Real Estate Salesperson - A person who is licensed to wo9rk for and represent a broker in real estate transactions.

Realization - For income tax purposes, when a gain is separated from an asset, and therefore becomes taxable.

Real Property - Land and everything attached to or appurtenant to it. Also called realty or real estate.

Realtor - A real estate agent who is an active member of a state and local real estate board that is affiliated with the National Association of Realtors.

Reasonable Use Doctrine - A limitation of water rights, holding that there is no right to waste water.

Recapture - An investor's recovery of money invested in real estate.

Recapture Clause - 1. A provision in a percentage lease that allows the landlord to terminate the lease and regain the premises if a certain minimum volume of business is not maintained. 2. A provision in a ground lease that allows the tenant to purchase the property after a specified period of time.

Receiver - A person appointed by a court to manage and look after property or funds involved in litigation.

Reconciliation - The final step in an appraisal, when the appraiser assembles and interprets the data in order to arrive at a final value estimate. Also called correlation.

Reconveyance - Releasing the security property from the lien created by a deed of trust, by recording a deed of reconveyance.

Recording - Filing a document at the county recorder's office, so that it will be placed in the public record.

Recording Numbers - The numbers stamped on documents when they're recorded, used to identify and locate the documents in the public record.

Rectangular Survey System - A system of grids, made up of range and township lines that divide the land into townships, which are further subdivided into sections; a particular property is identified by its location within a particular section, township, and range. Also called the government survey system.

Redemption - 1. When a defaulting borrower prevents foreclosure by paying the full amount of the debt, plus costs. 2. When a mortgagor regains the property after foreclosure by paying whatever the foreclosure sale purchasers paid for it, plus interest and expenses.

Redemption, Equitable Right of - The right of a mortgagor to redeem property prior to the foreclosure sale.

Redlining - When a lender refuses to make loans secured by property in a certain neighborhood because of the racial or ethnic composition of the neighborhood.

Reformation - A legal action to correct a mistake, such as a typographical error, in a deed or other document. The court will order the execution of a correction deed.

Regression, Principle of - An appraisal principle which holds that a valuable property surrounded by properties of lesser value will tend to be worth less than it would be in a different location ; the opposite of the principle of progression.

Regulation Z - Te Federal Reserve Board's regulation that implements the Truth in Lending Act.

Reinstate - To prevent foreclosure by curing the default.

Release - 1. To give up a legal right. 2. A document in which a legal right is given up.

Release, Lien - A document removing a lien, given to the borrower by the lender, once a mortgage or deed of trust has been paid off in full.

Release Clause - 1. A clause in a blanket mortgage or deed of trust which allows the borrower to get part of the security property released from the lien when a certain portion of the debt has been paid or other conditions are fulfilled. Often called a partial release clause. 2. A clause in a land contract providing for a deed to a portion of the land to be delivered when a certain portion of the contract price has been paid. Also known as a deed release provision.

Reliction - When a body of water gradually recedes, exposing land that was previously under water. Also called dereliction.

Remainder - A future interest that becomes possessory when a life estate terminates, and that is held by someone other than the grantor of the life estate; as opposed to a reversion, which is a future interest held by the grantor.

Remainderman - The person who has an estate in remainder.

Remise - To give up; a term used in quitclaim deeds.

Rent - Compensation paid by a tenant to the landlord in exchange for the possession and use of the property.

Rent, Contract - The rent that is actually being paid on property that is currently leased.

Rent, Economic - The rent that a property would be earning if it were available for lease in the current market.

Rent, Ground - The earnings of improved property attributed to the land itself, after allowance is made for the earnings attributable to the improvement.

Rent Roll - A report on rent collections; a list of the total amount of rent earned, both collected and uncollected.

Rental Schedule - A list of rental rates for the units in a given building.

Rescission - When a contract is terminated and each party gives anything acquired under the contract back to the other party. (The verb form is rescind.)

Reservation - A right retained by a grantor when conveying property; for example, mineral rights, an easement, or a life estate can be reserved in the deed.

Reserve Requirements - The percentage of deposits commercial banks must keep on reserve with the Federal Reserve Bank.

Reserves for Replacement - For income-producing property, regular allowances set aside to pay for the replacement of structures and equipment that are expected to wear out.

Resident Manager - A salaried manager of a single apartment building or complex, who resides on the property; unlike a property manager, a resident manager is not required to have a real estate license.

Residual - The property value remaining after the economic life of the improvements has been exhausted.

Residuals - Commissions in the form of delayed payments (when a part of the commission is paid with each installment on an installments sales contract, for example)

RESPA - The Real Estate Settlement Procedures Act; a federal law that requires lenders to disclose certain information about closing costs to loan applicants.

Restitution - Restoring something (especially money) that a person was unjustly deprived of.

Restriction - A limitation on the use of real property.

Restriction, Deed - A restrictive covenant in a deed.

Restriction, Private - A restriction imposed on property by a previous owner, a neighbor, or the subdivision developer; a restrictive covenant or a condition in a deed.

Restriction, Public - A law or regulation limiting or regulating the use of real property.

Retainer - A fee paid up front to a licensee when entering into an real estate agency (usually a buyer agency) relationship.

Return - A profit from an investment.

Reversion - A future interest that becomes possessory when a temporary estate (such as a life estate) terminates, and that is held by the grantor (or his or her successors in interest).

Rezone - An amendment to a zoning ordinance, usually changing the uses allowed in a particular zone. Also called a zoning amendment.

Right of First Refusal - A right that gives the holder the first opportunity to purchase or lease a particular parcel of real property, should the owner decide to sell or lease it.

Right of Way - An easement that gives the holder the right to cross another person's land.

Riparian Land - Land that is adjacent to or crossed by a body of water.

Riparian Rights - The water rights of a landowner whose property is adjacent to or crossed by a body of water.

Running with the Land - Binding or benefiting the successive owners of a piece of property, rather than terminating when a particular owner transfers his or her interest. Usually said in reference to an easement or a restrictive covenant.

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