Real Estate Glossary of Terms (R - V)
- 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
- A person licensed to negotiate and transact the sale of real estate.
- Real Estate Settlement Procedures Act (RESPA)
- A consumer protection law that requires lenders to give borrowers advance notice of closing
costs.
- real property
- Land and appurtenances, including anything of a permanent nature such as structures, trees,
minerals, and the interest, benefits, and inherent rights thereof.
- Realtor®
- A real estate agent, broker or an associate who holds active membership in a brevard real estate
board that is affiliated with the National Association of Realtors.
- 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.
- refinance transaction
- The process of paying off one loan with the proceeds from a new loan using the same property as
security.
- 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 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.
- 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.
- sale-leaseback
- A technique in which a seller deeds property to a buyer for a consideration, and the buyer
simultaneously leases the property back to the seller.
- second mortgage
- A mortgage that has a lien position subordinate to the first mortgage.
- secondary market
- The buying and selling of existing mortgages, usually as part of a "pool" of mortgages.
- secured loan
- A loan that is backed by collateral.
- security
- The property that will be pledged as collateral for a loan.
- seller carry-back
- An agreement in which the owner of a property provides financing, often in combination with an
assumable mortgage.
- servicer
- An organization that collects principal and interest payments from borrowers and manages
borrowers' escrow accounts. The servicer often services mortgages that have been purchased by an
investor in the secondary mortgage market.
- servicing
- The collection of mortgage payments from borrowers and related responsibilities of a loan
servicer.
- settlement statement (closing statement, HUD-1 settlement statement)
- A document that provides an itemized listing of the funds that were paid at closing. Items that
appear on the statement include real estate commissions, loan fees, points, and initial escrow
(impound) amounts. Each type of expense goes on a specific numbered line on the sheet. The totals at
the bottom of the HUD-1 statement define the seller's net proceeds and the buyer's net payment at
closing. It is called a HUD1 because the form is printed by the Department of Housing and Urban
Development (HUD). The HUD1 statement is
also known as the "closing statement" or "settlement sheet."
- subdivision
- A housing development that is created by dividing a tract of land into individual lots for sale
or lease.
- subordinate financing
- Any mortgage or other lien that has a priority that is lower than that of the first mortgage.
- survey
- A drawing or map showing the precise legal boundaries of a property, the location of improvements,
easements, rights of way, encroachments, and other physical features.
- sweat equity
- Contribution to the construction or rehabilitation of a property in the form of labor or
services rather than cash.
- tenancy in common
- As opposed to joint tenancy, when there are two or more individuals on title to a piece of
property, this type of ownership does not pass ownership to the others in the event of death.
- third-party origination
- A process by which a lender uses another party to completely or partially originate, process,
underwrite, close, fund, or package the mortgages it plans to deliver to the secondary mortgage
market.
- title
- A legal document evidencing a person's right to or ownership of a property.
- title company
- A company that specializes in examining and insuring titles to real estate.
- title insurance
- Insurance that protects the lender (lender's policy) or the buyer (owner's policy) against
loss arising from disputes over ownership of a property.
- title search
- A check of the title records to ensure that the seller is the legal owner of the property and
that there are no liens or other claims outstanding.
- transfer of ownership
- Any means by which the ownership of a property changes hands. Lenders consider all of the
following situations to be a transfer of ownership: the purchase of a property "subject to" the
mortgage, the assumption of the mortgage debt by the property purchaser, and any exchange of
possession of the property under a land sales contract or any other land trust device.
- transfer tax
- State or local tax payable when title passes from one owner to another.
- Treasury index
- An index that is used to determine interest rate changes for certain adjustable-rate mortgage
(ARM) plans. It is based on the results of
auctions that the U.S. Treasury holds for its Treasury bills and securities or is derived from the
U.S. Treasury's daily yield curve, which is based on the closing market bid yields on actively traded
Treasury securities in the over-the-counter market.
- Truth-in-Lending
- A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a
mortgage, including the annual percentage rate (APR) and other charges.
- two-step mortgage
- An adjustable-rate mortgage (ARM) that has one interest rate for the first five or seven years
of its mortgage term and a different interest rate for the remainder of the amortization term.
- two- to four-family property
- A property that consists of a structure that provides living space (dwelling units) for two to
four families, although ownership of the structure is evidenced by a single deed.
- trustee
- A fiduciary who holds or controls property for the benefit of another.
- VA mortgage
- A mortgage that is guaranteed by the Department of Veterans Affairs (VA).
- vested
- Having the right to use a portion of a fund such as an individual retirement fund. For example,
individuals who are 100 percent vested can withdraw all of the funds that are set aside for them
in a retirement fund. However, taxes may be due on any funds that are actually withdrawn.
- Veterans Administration (VA)
- An agency of the federal government that guarantees residential mortgages made to eligible
veterans of the military services. The guarantee protects the lender against loss and thus
encourages lenders to make mortgages to veterans.
"I am committed to help you
find real estate in Brevard"
