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radon
A radioactive gas found in some homes that in sufficient concentrations can cause health problems. rate-improvement mortgage
A fixed-rate mortgage that includes a provision that gives the borrower a one-time option to reduce the interest rate (without refinancing) during the early years of the mortgage term. 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. See also: lock in. real estate
Real estate or immovable property is a legal term (in some jurisdictions) that encompasses land along with anything permanently affixed to the land, such as buildings. Real estate (immovable property) is often considered synonymous with real property (also sometimes called realty), in contrast with personal property (also sometimes called chattel or personalty). However, for technical purposes, some people prefer to distinguish real estate, referring to the land and fixtures themselves, from real property, referring to ownership rights over real estate. (Read more>>) real estate agent
A person licensed to negotiate and transact the sale of real estate on behalf of the property owner. A REALTOR® is a real estate agent who belongs to the National Association of REALTORS and abides by its Code of Ethics. Therefore, not all real estate agents are REALTORs. When a person first becomes licensed to become a real estate agent, he/she obtains a real estate salesperson's license from the state in which he/she will practice. To obtain a real estate license, the candidate must take specific coursework (of between 40 and 90 hours) and then pass a state exam on real estate law and practice. In order to work, salespersons must then be associated with (and act under the authority of) a real estate broker. See aslo:real estate broker
A party who acts as an intermediary between sellers and buyers of real estate and attempts to find sellers who wish to sell, and buyers who wish to buy. In the United States, the relationship was originally established by reference to the English common law of agency with the broker having a fiduciary relationship with his clients. Real estate brokers and their salespersons (commonly called "real estate agents") assist sellers in marketing their property and selling it for the highest possible price under the best terms. When acting as a Buyer's agent with a signed agreement (or, in many cases, verbal agreement), they assist buyers by helping them purchase property for the lowest possible price under the best terms. Without a signed agreement, brokers may assist buyers in the acquisition of property but still represent the seller and the seller's interests. In most jurisdictions in the United States, a person is required to have a license in order to receive remuneration for services rendered as a real estate broker. Unlicensed activity is illegal, but buyers and sellers acting as principals in the sale or purchase of real estate are not required to be licensed. In some states, lawyers are allowed to handle real estate sales for compensation without being licensed as brokers or agents. After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker. Commonly more course work and a broker's state exam on real estate law must be passed. A REALTOR® is a real estate agent/broker who belongs to the National Association of REALTORS and abides by its Code of Ethics. Therefore, not all real estate agents/brokers are REALTORs. Read more>> real estate broker, RE/MAX Valley Real Estate, Boardman, Ohio
 John W. Pearce, Designated Broker
Elizabeth Johnson, Broker real estate contract
A contract for the purchase/sale, exchange, or other conveyance of real estate between parties. Real estate called leasehold estate is actually a rental of real property such as an apartment, and leases (rental contracts) cover such rentals since they typically do not result in recordable deeds. Freehold ("More permanent") conveyances of real estate are covered by real estate contracts, including conveying fee simple title, life estates, remainder estates, and freehold easements. Real estate contracts are typically bilateral contracts (i. e., agreed to by two parties) and should have the legal requirements specified by contract law in general and should also be in writing to be enforceable. Real Estate Settlement Procedures Act (RESPA)
A consumer protection law that requires lenders to give borrowers advance notice of closing costs. See RESPA. real property
Land and appurtenances, including anything of a permanent nature such as structures, trees, minerals, and the interest, benefits, and inherent rights thereof. (Full Discussion) REALTOR®
A real estate broker or an associate who holds active membership in a local real estate board (YCAR) that is affiliated with the National Association of REALTORS®. Read more>> See aslo:release of mortgage
A recordable legal instrument used to transfer title from a lender (mortgagee) to the homeowner (mortgagor) when title is held as collateral security for a debt. Most commonly used upon payment in full of a mortgage. rescission
The cancellation or annulment of a transaction or contract by the operation of a law or by mutual consent. Borrowers usually have the option to cancel a refinance transaction within three business days after it has closed. 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. reference rate
A rate that determines pay-offs in a financial contract and that is outside the control of the parties to the contract. It is often some form of LIBOR rate, but it can take many forms, such as a consumer price index, a house price index or an unemployment rate. Parties to the contract choose a reference rate that neither party has power to manipulate. (See also - Index) refinance transaction
The process of paying off one loan with the proceeds from a new loan using the same property as security. Regulation Z Truth In Lending
Enacted by Congress in 1968, the Truth in Lending Act was originally part of the Consumer Protection Act and was meant to protect borrowers from falling prey to dishonest lenders. Regulation Z is an important part of the act. Regulation Z defines what businesses may or may not do when they extend credit. It applies to both mortgage lenders and credit card companies. One part of it protects consumers by giving them the right to cancel certain credit card transactions that are in connection with a lien on the consumer's principal dwelling. Regulation Z also attempts to protect those who use credit cards. While Regulation Z does not regulate charges for consumer credit, it does regulate certain credit card practices and it ensures a fair and timely resolution of credit billing disputes. rehabilitation mortgage
A mortgage created to cover the costs of repairing, improving, and sometimes acquiring an existing property. reinstatement period
The time period in the foreclosure process beginning when the Notice of Default is recorded, and usually ending five business days before the trustee’s auction sale. The default may be cured, or paid-back, at any time during this period by paying all delinquent amounts, including the trustee’s fees and costs. 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. rent with option to buy
See lease-purchase mortgage loan. REO
'Real estate owned' or 'REO' is property owned by a lender, usually a bank or mortgage institution, after an unsuccessful sale at a foreclosure auction or 'sheriff's sale.' Since the minimum bid in most foreclosure auctions equals the outstanding loan amount, the accrued interest plus any costs associated with the foreclosure sale including attorneys' fees, it's very common for ownership to pass back to the bank. The bank will then attempt to sell the property on its own, usually by listing the property with REALTOR. repayment plan
An arrangement made to repay delinquent installments or advances. Lenders' formal repayment plans are called "relief provisions." 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
In contract law, rescission (to rescind or set aside a contract) is the unmaking of a contract between the parties or the unwinding of a transaction. This is done to bring the parties, as far as possible, back to the position in which they were before they entered into a contract. residential property disclosure law
The Residential Disclosure Law in Ohio requires the seller of a home to disclose to possible buyers information pertaining to the visible and non-visible condition of the home. The information to be disclosed is prescribed by Ohio's Department of Commerce on a form called the Residential Property Disclosure Form. The seller must fill out the form to the best of his knowledge, sign and date it. The buyer acknowledges receipt of the Form by also signing and dating it. Caution: a Seller's Disclosure should never be substituted for a certified home inspection. The Form should be provided to the buyer before executing a Purchase Contract. Ohio law provides no penalty to the Seller if the Form is given after the buyer has entered into the contract, or even if the Form is never delivered; however, if the Disclosure is provided after the contract is signed or never is provided, the buyer then has the right to rescind the Contract. If the form is delivered after executing a contract the buyer then has 3 days to rescind the contract without penalty. Should the seller not provide a Disclosure, the buyer has 30 days, or until the escrow closes, whichever comes first, to rescind the contract without penalty. To fully understand the obligations and limitations of the Ohio Residential Property Disclosure Law, both buyers and sellers should consult with an attorney. RESPA (Real Estate Settlement Procedures Act)
The Real Estate Settlement Procedures Act, (known as "RESPA"), was an Act passed by the United States Congress in 1974. It was created because various companies associated with the buying and selling of real estate, such as lenders, real estate agents, and title insurance companies were often engaging in providing undisclosed kickbacks to each other, inflating the costs of real estate transactions and obscuring price competition by facilitating bait and switch tactics The Act: - prohibits kickbacks between lenders and third-party settlement service agents in the real estate settlement process
- (Section 8 of RESPA) requires lenders to provide a good faith estimate for all the approximate costs of a particular loan
- and finally a HUD-1 (for purchase real estate loans) or a HUD-1A (for refinances of real estate loans) at the closing of the real estate loan. The final HUD-1 or HUD-1A allows the borrower to know specifically the costs of the loan, and to whom the fees are being allotted.
To help home buyers better understand their loan terms and reduce consumer settlement costs, HUD has introduced a proposed rule to the Real Estate Settlement Procedures Act . (Brian Sullivan, March 14, 2008, HUD)
See also:reverse mortgage
A loan available to seniors (62 and over in the United States), and is used to release the home equity in the property as one lump sum or multiple payments. The homeowner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves (i.e. into aged care). In a typical mortgage the homeowner makes a monthly amortized payment to the lender; after each payment the equity increases within his or her property, and typically after 30 years the mortgage is paid in full and the property is released from the lender. In a reverse mortgage, the home owner makes no payments and all interest is added to the lien on the property. If the owner receives monthly payments, then the debt on the property increases each month. A reverse mortgage must be the first and only mortgage on the property Read more >> reverse mortgage revolving liability
A credit arrangement, such as a credit card, that allows a customer to borrow against a pre-approved 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. See also: kick out clause. 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 Housing Service (RHS)
An agency within the Department of Agriculture, which operates principally under the Consolidated Farm and Rural Development Act of 1921 and Title V of the Housing Act of 1949. This agency provides financing to farmers and other qualified borrowers buying property in rural areas who are unable to obtain loans elsewhere. Funds are borrowed from the U.S. Treasury. | 
