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Real Estate Dictionary Q-R
"quadraplex" - "rural"
We try to provide as much information as possible to buyers of Ocala Real Estate. These terms and definitions apply pretty much nation wide, and we try to update with terms specifically relating to Florida Real Estate as soon as we come across something we've missed. We welcome your comments and suggestions!
QUADRAPLEX
(FOURPLEX):
A building containing four dwelling units.
QUALIFICATION RATE:
The rate of interest used to calculate whether or not a borrower
qualifies for a mortgage.
QUALIFICATION
REQUIREMENTS:
Those guidelines set by lenders to be used when deciding whether or not
an applicant will be given a loan.
QUALIFIED
ACCEPTANCE:
Also known as "conditional acceptance". Agreeing to enter a contract
provided certain conditions are met.
QUALIFIED BUYER:
A purchaser who has been pre-approved for financing.
QUALIFIED FEE
ESTATE:
A legal interest in land which is limited.
QUANTITY SURVEY:
A highly technical process in arriving at cost estimate of new
construction. It is usually used by contractors and experienced estimators.
QUANTUM:
Literally, the amount.
QUARTER SECTION:
A measurement from the Government Survey Method, measuring 2,640 feet on
each side and containing 160 acres.
QUIET ENJOYMENT:
Right of an owner to the use of property without interference of
possession.
QUIET TITLE:
A court action brought to establish title; to remove a cloud on the
title.
QUIT CLAIM DEED:
A deed to relinquish any interest in property which the grantor may have.
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R VALUE:
A method of measuring the insulation capabilities of materials.
RADON:
A radioactive gas which may cause health problems for occupants of some
buildings.
RANCH HOUSE:
A description of a one-storey house, developed from the old,
western-style homes.
RANGE:
A strip of land six miles wide determined by a government survey, running
in a north-south direction.
RANGE LINES:
From Government Surveying Method, lines which run parallel to the
principal meridian six mile apart to create "ranges" of land.
RATE CAP:
A limit of how much an interest rate can change in a variable of
adjustable rate mortgage either in a given period or over the life of the loan.
RATE COMMITMENT:
A written promise by a lender to lend money to a borrower at a stated
rate of interest -- usually time limited.
RATE LOCK-IN:
See "rate commitment". A written agreement in which the lender guarantees
the borrower a specified interest rate, provided the loan closes within a set
period of time.
RATIFIED SALES
CONTRACT:
A firm and binding agreement for the purchase and sale of land.
RATIFICATION:
The adoption or approval of an act performed on behalf of a person
without previous authorization.
RAW LAND:
Property that has not been developed or improved.
READY, WILLING, AND
ABLE:
A term of art meaning in a position to complete a contract. In order to
enforce a contract against another party, you must be ready, willing and able to
complete the contract yourself.
REAL ESTATE:
Real property.
REAL ESTATE AGENT:
A trained professional involved in the purchase, sale and marketing of
real property. The "listing agent" acts for the vendor, the "selling agent" for
the successful purchaser.
REAL ESTATE BROKER:
A real estate professional who is licensed to run a real estate firm, to
hold trust funds, etc.
REAL ESTATE
COMMISSION:
1. The fee paid to the real estate agents after a transaction.
2. An agency that enforces real estate license laws.
REAL ESTATE
EDUCATORS ASSOCIATION:
An organization of post-secondary teachers of real estate courses.
REAL ESTATE MARKET:
A term for the pool of potential buyers and sellers of property at a
given time.
REAL ESTATE SALES
PROFESSIONAL:
See Real Estate Agent or
Real Estate Broker.
REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA):
Statute requiring lenders to provide advance notice to borrowers of fees
and charges to be paid at closing.
REAL ESTATE TRUST:
A special arrangement under federal and state law whereby investors may
pool funds for investments in real estate and mortgages and yet escape
corporation taxes.
REAL PROPERTY:
Property that consists of land, that which is affixed, and that which is
appurtenant to it. Generally considered immovable.
REAL PROPERTY SALES CONTRACT:
A land contract.
REALTOR:
A real estate broker holding active membership in a real estate board
affiliated with the National Association of Realtors.
REALTOR'S ASSOCIATE:
Professional designation of a licensed real estate agent or salesperson
who is a member of the National Association of Realtors but who has not been
licensed as a broker.
REALTY:
See REAL ESTATE.
REAPPRAISAL LEASE:
A rental agreement in which the periodic payment is adjustable according
to scheduled re-appraisals of the rental value of the premises.
REASSESSMENT:
A change in the estimated value of a property for realty, municipal or ad
valorem tax purposes.
REBATE:
Any refund of all or a portion of money paid.
REBUTTAL PRESUMPTION:
That which a court will hold to be true until contradicted by evidence.
RECAPTURE:
The rate of interest necessary to provide for the return of an
investment. Not to be confused with interest rate which is a rate of interest on
an investment.
RECAST PAYMENT:
Adjustment of the periodic payment on an adjustable or variable rate
mortgage to ensure that the mortgage will be paid out by maturity date.
RECASTING:
Adjusting the terms of a loan agreement in light of new developments
(i.e. lower rates, possible default).
RESCISSION OF
CONTRACT:
The act of declaring a contract null and void and taking the necessary
actions to return the parties to the position they were in prior to entering the
contract.
RECITAL:
An unsworn statement of fact included in a document. In many
jurisdictions, recitals in registered documents are deemed true and unassailable
if unchallenged after a certain period of time.
RECONVEYANCE:
The transfer of the title of land from one person to the immediate
preceding owner. This particular instrument or transfer is commonly used when
the performance or debt is satisfied under the terms of a deed of trust, when
the trustee conveys the title he has held on condition back to the owner.
RECORDING:
Filing for record in the office of the county recorder or other proper
government official.
RECORDING FEES:
The fees paid to have an instrument recorded in the public record.
RECOURSE:
The right of a lender to pursue a borrower personally for moneys owed.
RECOVERY FUND:
A pool of money made up of contributions from licensed brokers used to
compensate members of the public with claims against brokers.
RECTANGULAR SURVEY:
See GOVERNMENT RECTANGULAR SURVEY METHOD.
REDEEM:
To bring mortgage payments up-to-date after the lender has begun default
proceedings. Once a borrower (or other lien holder) redeems, the mortgage is
back in good standing and the relationship continues as before the default.
REDEMPTION:
Buying back one's property after a judicial sale.
REDEMPTION PERIOD:
The length of time during which the borrower may redeem a mortgage.
REDEVELOP:
To remove existing improvements and buildings on a parcel of property and
replace them with new, more useful and profitable improvements.
REDLINING:
An illegal practice, refusing to lend money to owners of property in
certain neighborhoods or to owners on the basis of their race, color, religion,
creed, age, gender, etc.
REDUCTION
CERTIFICATE:
A mortgage statement setting out the amount owing on the loan as of a
given date. May be used for discharges or assumptions.
REEVALUATION LEASE:
See REAPPRAISAL LEASE.
REFERRAL:
A recommendation, a suggestion to a client of the value of the services
of a person or firm. (i.e. a real estate agent may refer a purchaser to a
particular banker or lawyer.)
REFINANCE:
To replace an existing and perhaps mature mortgage with a new mortgage on
the same property. New mortgage may have different terms than the old one.
REGENCY HOUSE:
A two-storey or three-storey house in a traditional English style of the
Regency Period, symmetrical in construction with a hip roof. May have a small,
eight-sided window above the front door.
REGISTRAR:
The person who has the task of collecting, recording, and maintaining
instruments related to title of land. May also have responsibility of ruling on
the acceptability of documents submitted for registration and for making
decisions as to how to correct title defects.
REGISTRATION:
The submission for recording in the public records of instruments
relating to title in land. Each jurisdiction may have specific requirements as
to documents which will be accepted for registration; once registered, documents
will be given a registration number and recorded on the title abstract index for
the property to which the apply.
REGULATION Z:
A federal rule which requires lenders to provide borrowers with full
disclosure of the terms of a loan.
REHABILITATE:
To restore, refurbish, bring back to original condition.
REHABILITATION:
The restoration of a property to satisfactory condition without
drastically changing the plan, form or style of architecture.
REHABILITATION TAX
CREDIT:
A tax provision allowing a tax credit of up to 20% for the refurbishing
of historic properties.
RE-ISSUE RATE:
A reduction in the fee for title insurance on a property which was
previously title insured.
RELEASE CLAUSE:
This is a stipulation that upon the payment of a specific sum of money to
the holder of a trust deed or mortgage, the lien of the instrument as to a
specifically described lot or area shall be removed from the blanket lien on the
whole area involved.
RELEASE OF LIEN:
A document which, once registered, removes certain kinds of claims from
title to property.
RELEASE STATEMENT:
A document filed to release the encumbrance when personal property is
used for security for a loan.
RELICTION:
Gaining title to land by the gradual receding of water.
RELOCATION CLAUSE:
A term in a lease which allows the landlord to move the tenant to a new
unit, within the same building or elsewhere.
RELOCATION NETWORK:
An organization of real estate professionals in a number of different
areas specifically designed to allow information to be shared to allow easier
movement of clients from one area to another.
RELOCATION SERVICE:
A firm that specializes in helping employees who are transferred by their
employer to a new area take care of the move.
REMAINDER:
An estate which takes effect after the termination of the prior estate,
such as a life estate.
REMODEL:
To refurbish, redesign, redecorate.
RENEWAL OPTION:
A right which arises out of a term in a contract and takes effect at or
near the termination date of a contract; the party who enjoys the right may
choose to continue the agreement on terms as set out in the option clause or to
treat the contract as at an end upon the termination date.
RENOVATE:
Similar to remodel, with an emphasis on upgrading the existing property.
RENT:
Consideration paid for the use of property.
RENT CONTROL:
Government initiative to control raises in the amount charged for the
lease by tenants of residential premises.
RENT-FREE PERIOD:
An inducement to enter a lease, a specified number of months at the
beginning of the lease in which the tenant is not required to pay the periodic
rental payments.
RENTABLE AREA:
See NET LEASABLE AREA.
RENTAL RATE:
The amount charged for the occupation of a property.
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REPAYMENT PLAN:
A schedule arranged between a lender and borrower to set out how a debt is to be
paid out.
REPLACEMENT COST:
The cost to replace the structure with one having utility equivalent to
that being appraised, but constructed with modern materials, and according to
current standards, design and layout.
REPORT:
A document sent by a lawyer to a bank certifying that title to the
subject property is clear and marketable.
REPORTING LETTER:
A letter sent by a lawyer to a client after a transaction is completed
(or when sent during the process of the transaction, called "interim reporting
letter") in which the lawyer certifies title to the property and informs the
client of all other matters relating to the transaction.
REPRODUCTION COST:
The cost of replacing the subject improvement with one that is the exact
replica, having the same quality of workmanship, design and layout.
REQUEST FOR NOTICE OF DEFAULT:
Document which is recorded by the holder of a junior loan so he may be
notified if buyer defaults on other loans.
REQUIRED CASH:
Collective term for the total sum of money required to complete a
transaction, including purchase price, taxes, legal fees, mortgage fees, etc.
RESCIND:
To treat a contract as being at an end, to withdraw one's offer or
acceptance of an agreement.
RESCISSION OF
CONTRACT:
The abrogation or annulling of contract; the revocation or repealing of
contract by mutual consent by parties to the contract, or for cause by either
party to the contract.
RESERVATION:
A right retained by a grantor when conveying property.
RESERVE FUND:
A pool of money held for use for future contingencies, usually in the
management of a building, condominium corporation or cooperative unit.
RESERVE PRICE:
The amount set prior to an auction which must be met in the bidding for a
particular item before the item will be sold. Also known as "reserve bid".
RESIDENCE:
The dwelling in which a person lives, may also refer to the country or
state where a person lives.
RESIDENT PROPERTY MANAGER:
A manager of income property who resides on the premises.
RESIDENTIAL BROKER:
A real estate professional who deals in dwelling properties.
RESIDENTIAL
PROPERTY:
Real estate that is occupied by the owner.
RESIDENTIAL SERVICE
CONTRACT:
A warranty or insurance contract which covers services such as
electrical, plumbing etc. in a resale home.
REISSUE RATE:
See Re-insurance rate.
RESTORE:
To refurbish a building or other asset to its original condition.
RESTRAINT ON
ALIENATION:
Any limit on the ability of an owner to sell or transfer property.
RESTRICTION:
The term as used relating to real property means the owner of real
property is restricted or prohibited from doing certain things relating to the
property, or using the property for certain purposes.
RESTRICTIVE
COVENANT:
See Restriction.
RETIRE (A DEBT):
To fulfill one's obligations under a loan or mortgage so that the lender
has no further claims against the borrower.
RETURN OF THE INVESTMENT:
Principal paid on a loan. The return demanded on income property for the
depreciation of the improvements.
RETURN ON THE INVESTMENT:
The interest paid on a loan. The profit received on investment on income
property.
REVERSE ANNUITY
MORTGAGE (RAM):
A type of mortgage where the equity in the home serves as security for
periodic payments made by the lender to the borrower. Mortgage is generally paid
out upon the sale of the property.
REVERSE LEVERAGE:
A term for the situation where the income from ownership of property is
lower than the rate of interest paid to finance the ownership.
REVERSION:
The right to future possession or enjoyment by the person, or his heirs,
creating the preceding estate.
REVERSIONARY
INTEREST:
The interest which a person has in lands or other property, upon the
termination of the preceding estate.
REVERSIONARY VALUE:
The value of the property at the time of reversion.
REVOCATION:
Taking back, recalling. One might revoke a power of attorney or a consent
given.
REZONING:
The amendment of the classification of a property under use and building
by-laws or ordinances. A property may rezoned from industrial to residential to
allow a warehouse to be converted into condominiums.
RIDER:
An amendment to a contract.
RIGHT OF FIRST
REFUSAL:
The ability to make an offer for a property before the owner puts it up
for sale on the open market.
RIGHT OF REDEMPTION:
See EQUITY OF REDEMPTION.
RIGHT OF
SURVIVORSHIP:
Right to acquire the interest of a deceased joint owner; distinguishing
feature of a joint tenancy.
RIGHT TO RESCISSION:
Being legally entitled to treat a contract as being at an end.
RIGHT-OF-WAY:
A privilege operating as an easement upon land whereby the owner does by
grant, or by agreement, give to another the right to pass over his land, to
construct a roadway, or use as a roadway, a specific part of his land, or the
right to construct through and over his land, telephone, telegraph, or electric
power lines, or the right to place underground water mains, gas mains, or sewer
mains.
RIPARIAN OWNER:
A person who has title to land bordering on a body of water.
RIPARIAN RIGHTS:
The right of a landowner to water, on, under, or adjacent to his land.
ROD:
160 feet measured in a line, a unit of measurement.
ROLLOVER LOAN:
A loan where the amortization period is much longer than the term and the
borrower is allowed to refinance at the end of the term at the interest rate
then applicable.
ROOT DEED:
The first conveyance in a chain of title. If a jurisdiction has
legislation which cures any title defects that are older than a certain number
of years, the root deed will be the first deed beyond that period.
ROOT OF TITLE:
Any defect in ownership of property which throws into question the very
basic issue of who actually owns the property. An unresolved problem going to
the root of title is grounds for rescission of the Agreement of Purchase and
Sale no matter when it is discovered before closing.
ROW HOUSE:
A dwelling that is attached to its neighbors by way of common walls.
RULE OF 72'S:
To calculate the number of years it will take to double money while
earning compound interest, divide the interest rate into 72. Money invested at
10 percent compound interest will take 7.2 years to double.
RUN WITH THE LAND:
A legal term which suggests that a rule, restriction, right or obligation
forms part of the land itself and is transferred to each new owner along with
the land.
RURAL:
A term to describe something which is not of an urban center (eg. country)