RE Glossary: R-Z

3 pages: A - I, I - R, R - Z

Rent: Fixed periodic payment made by a tenant or occupant of property to the owner or they're representative for the possession advise thereof.

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. Lenders' formal repayment plans are called "relief provisions".

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.

Secured loan: A loan that is backed by collateral.

Security: The property that will be pledged as collateral for a loan.

Security deposit: Money deposited by or for the tenant with the landlord in conjunction with a lease or month-to-month tenancy.

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.

Statute of frauds: State law that requires certain contracts to be in writing and signed by the party to be charged (or held) to the agreement in order to be legally enforceable.

Subdivision: A housing development that is created by dividing a tract of land into individual lots for sale or lease.

Summary possession: A legal process, also called actual eviction used by a landlord to regain possession of the leased premises if the tenant has breached the lease or is holding over after the termination of the lease.

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 at sufferance: A tenancy that exists when a tenant wrongfully holds over after the expiration of a lease without the landlord's consent, as where the tenant fails to surrender possession after termination of the lease.

Tenancy at will: A tenancy in which a person holds or occupies real estate with permission of the owner, for a term of unspecified or uncertain durations, i.e. there is no fixed term to the tenancy.

Tenancy by the entirety: A type of joint tenancy of property that provides right of survivorship and is available only to a husband and wife. Contrast with tenancy in common.

Tenancy in common: A type of joint tenancy in a property without right of survivorship. Contrast with tenancy by the entirety and with joint tenancy.

Tenant: In general, one who exclusively holds or possesses property; commonly used to refer to a lessee under a lease. A tenant's occupancy, although exclusive, is always subordinate to the rights of the owner.

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 the there are no liens or other claims outstanding.

Total expense ratio: Total obligations as a percentage of gross monthly income. The total expense ratio includes monthly housing expenses plus other monthly debts.

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 is the borrower, lenders also consider any transfer of a beneficial interest in the trust to be a transfer of ownership.

Transfer tax: State or local tax payable when title passes from one owner to another.

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-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.

Underwriting: The process of evaluating a loan application to determine the risk involved for the lender. Underwriting involves an analysis of the borrower's creditworthiness and the quality of the property itself.

Unethical: Lacking in moral principal; failing to conform to an accepted code of behavior.

Unsecured loan: A loan that is not backed by collateral.

VA mortgage: A mortgage that is guaranteed by the Department of Veterans Affairs (VA). Also known as a government mortgage.

Vacate: To give occupancy or surrender possession.

Variance: Permission obtained from governmental zoning authorities to build/alter a structure or conduct a use which is expressly prohibited by current zoning laws; an exception from the zoning laws.

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.

Department of Veterans Affairs (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.

Violation: An act, deed, or condition contrary to the law or permissible use of real property.

Wear and tear: The gradual physical deterioration of property, resulting from use, passage of time, and weather.

What-if analysis: An affordability analysis that is based on a what-if scenario. A what-if analysis is useful if you do not have complete data or if you want to explore the effect of various changes to your income, liabilities, or available funds or to the qualifying ratios or down payment expenses that are used in the analysis.

What-if scenario: A change in the amounts that is used as the basis of an affordability analysis. A what-if scenario can include changes to monthly income, debts, or down payment funds or to the qualifying ratios or down payment expenses that are used in the analysis. You can use a what-if scenario to explore different ways to improve your ability to afford a house.

Wraparound mortgage: A mortgage that includes the remaining balance on an existing first mortgage plus an additional amount requested by the mortgagor. Full payments on both mortgages are made to the wraparound mortgage, who then forwards the payments on the first mortgage to the first mortgagee.
Zoning: The regulation of structures and uses of property within designated districts or zones. Zoning laws are enacted in the exercise of police power and are upheld as long as they may reasonably protect the public health, safety, morals, and general welfare of an area.