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R-Value A
construction term that refers to the resistance of to heat loss. The
higher the R-value, the slower the rate of heat loss.
Radon A ground-generated radioactive gas that seeps into some
homes through sump pumps, cracks in the foundation and other inlets. A
leading cause of lung cancer , radon is found in mostly the northern
half of the country.
Rafter Rafters form the slope of a pitched roof and are analogous
to floor joists.
Rammed-earth construction Alternative building process in which
dirt is compacted into large structural frames to create walls.
Ranch style Modern ranch-style homes, popularized in the 1950s,
were championed by such architectural giants as Frank Lloyd Wright.
Rate-improvement mortgage A loan with a clause that entitles a
borrower to a one-time cut in the interest rate without going through
refinancing.
Rate lock When interest rates are volatile, many borrowers want
to "lock in" an interest rate and many lenders will oblige, setting a
limit on the amount of time the guaranteed interest rate is in effect.
Real estate Land and anything permanently affixed to it,
including buildings, fences and other items attached to the structure.
Real estate agent A real estate agent has a state license to
represent a buyer or a seller in a real estate transaction in exchange
for a commission. Most agents work for real estate brokers.
Real estate attorney A lawyers who specializes in real estate
transactions.
Real estate broker A real estate agent who is licensed by the
state to represent a buyer or seller in a real estate transaction in
exchange for a commission. Most brokers also have agents working for
them, and are entitled to a portion of their commissions.
Real estate investment trusts (REIT) The trusts are publicly
traded companies that own, develop and operate commercial properties.
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Real Estate
Settlement Procedures Act (RESPA) A federal law designed to make
sellers and buyers aware of settlement fees and other
transaction-related costs. RESPA also outlaws kickbacks in the real
estate business.
Real property Land and any permanent fixtures on it, including
buildings, trees and minerals.
Realtist A designation for an agent or broker who is a
member of the National Association of Real Estate Brokers.
Realtor A designation for an agent or broker who is a member of
the National Association of Realtors.
Recession The cancellation of a contract by law or consent by the
parties involved.
Reconveyance When a borrower completely pays off the mortgage,
the property is reconveyed to them from the lender.
Recorder A public official responsible for keeping the records of
all real estate transactions.
Recording A public official responsible for keeping the records
of all real estate transactions.
Recording fee A fee charged by real estate agents for conveying
the sale of a piece of property into the public record.
Redlining The practice by a bank or insurance company to deny
credit or insurance to people based on ethnic background or
neighborhood.
Refinancing The process of replacing an older loan with a new
mortgage that has better terms.
Regulation Z The federal code issued under the Truth-in-Lending
Act which requires that a borrower be advised in writing of all costs
associated with the credit portion of a financial transaction.
Rehabilitation mortgage A mortgage that provides for the costs of
repairing and improving a resale home or building.
Relocation benefits Benefits provided by employers for new
workers and can include moving costs, reimbursement for temporary
housing and transportation, real estate agent assistance and discounted
loans.
Relocation company A firm that administers all aspects of moving
in new employees to the community.
Remaining balance The amount of unpaid principal on a home loan.
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Remaining term
The original loan term minus the number of payments made.
Renter's insurance A policy that covers the replacement value of
possessions.
Rent loss insurance A policy that covers any loss of rent or
rental value in the event of fire or other damage that renders the
property uninhabitable.
Repayment plan When a borrower falls behind in mortgage payments,
many lenders will negotiate a repayment plan rather than go to court.
Replacement reserve fund Money that is set aside from homeowners'
assessments to replace common property, such as furniture in a planned
development's community room.
Repossession When a house is repossessed, it is taken back by the
lender holding the mortgage.
Resale value The future value of a piece of property that can be
affected by many factors, including the surrounding neighborhood, school
scores, and economic and housing market conditions.
Reserve fund All homeowners associations set aside a certain
amount of money for major repairs or improvements.
Restructured loan A mortgage in which new terms are negotiated.
Return on investment (ROI) The amount of profit a property
generates.
Reverse mortgage A special type of loan available to equity-rich,
older owners. Repayment is not necessary until the borrower sells the
property or moves into a retirement community.
Ridge board A horizontal board that serves as the apex of the
roof structure.
Ridge vent A vent located along the ridge board of the roof that
allows moisture to escape
Right of first refusal An agreement by a property owner to give
another person the right to buy or rent the property before it goes on
the open market.
Right of recession A provision in the federal Truth-in-Lending
Act that allows borrowers to cancel certain kinds of loans within three
days of signing.
Rough-in The installation of plumbing, electrical and other
mechanical systems.
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Rural Housing
Service A U.S. Department of Agriculture program that provides
financing to farmers and certain borrowers to purchase rural property
when other funds are not available.
Sale-leaseback A transaction in which the buyer leases back the
property to the seller for a specified period of time.
Sales contract A contract signed by the buyer and sellerthat
details the terms of a home purchase.
Saltbox style A design that dates to colonial times and takes its
name from the shape of saltboxes.
Sanitary sewer The drain line in a house that carries away food
and human wastewater to a municipal sewer system or a septic system.
Sash One of two windows in a double-hung window.
Schematic designs Renderings of floor plans and the exterior of a
house.
Second mortgage Another loan placed upon a piece of property.
Secondary mortgage market A market of packaged home loans that
are resold as securities to investors. Major players are Fannie Mae and
Freddie Mac.
Secured loan Any loan backed by collateral.
Security Apiece of property designated as collateral.
Seller broker A seller broker represents the interest of the
seller
Seller carry-back An agreement in which the seller provides
financing for a home purchase.
Seller take-back An agreement in which the seller provides
financing for a home purchase.
Seller's market A hot real estate market in which sellers have
the advantage and multiple offers are common.
Semi-custom home The buyer of a semi-custom home is free to make
some design changes but not to the home's structural plan.
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Septic system: A
self-contained sewage treatment system that distributes wastewater to an
underground storage area and relies on bacterial action to decompose
solid waste matter.
Servicer A firm that collects mortgage payments and manages
borrowers' escrow accounts.
Setback The minimum distance a house or buildings must be from
the lot line.
Settlement statement A document that details who has paid what to
whom.
Shared-appreciation mortgage A loan that allows a lender or other
party to share in the borrower's profits when the home is sold
Shared-equity transaction A transaction in which two buyers
purchase a property, one as a resident co-owner and the other as an
investor co-owner.
Shed ceiling A shed ceiling pitches upward at one end.
Shed roof A shed roof pitches up longer on one side than the
other.
Shingle style An alternative style of Victorian homes that
evolved in the late 19th century to simplify the complexity of the
traditional Victorian house.
Shingles Thin, wedge-shaped pieces of wood or flat rectangular
pieces of slate, mineral fiber, glass fiber or composition asphalt
installed on a roof to prevent water seepage.
Shoe molding An unobtrusive finish trim between the floor and the
baseboard designed to hide any irregularities in the seam between the
floor and wall or baseboard.
Sill plate A horizontal piece of wood placed on top of the
foundation.
Sill cock An exterior threaded faucet connection for garden hoses
that provides water outside a home.
Skylight A window in a roof that allows natural light to
illuminate a room.
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Slab foundation
A foundation built directly on soil with no basement or crawl space.
Slider window A window that is composed of two windows, or
sashes, that glide open and closed on a metal track
Soffit An external area under the overhang of a roof
Soil test A test of the subsoil to ensure that foundations can be
safely constructed.
Spanish Mission style A design that is derived from the original
missions established by the Spanish in the Southwest.
Special assessment When a homeowners' association needs or wants
extra funds, it levies a special assessment upon the owners.
Special deposit account Rehabilitation mortgages require a
special deposit account from which restoration and remodeling funds
included in the loan are disbursed to the appropriate contractors as
work is completed.
Specifications The written requirements for materials, equipment,
construction systems and standards.
Speculation (spec) home A home that has been built without a
buyer.
Splash block A slanted block used to divert runoff water from a
downspout away from the foundation.
Split-level style A home that is a ranch-style house stacked to
fit on a smaller lot and perhaps to accommodate a garage
Square footage The number of square feet of livable space in a
home or building.
Standard Metropolitan Statistical Area Areas designated by the
U.S. Office of Management and Budget that contain a city of 50,000 or
more.
Standard payment calculation A calculation that is used to
determine the monthly payment necessary to repay the balance of a home
loan in equal installments.
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Starter home
Homes that fall within the lower price range of a typical first-time
buyer.
Steel framing A construction method used by commercial and
residential builders.
Step-rate mortgage A loan that allows a gradual increase in the
interest rate during the first few years of the loan.
Storm sewer A drain line, which is not connected to the sewer
line, removes all other wastewater from a home.
Storm windows Sets of windows and screens that are installed on
older double-hung windows.
Strike plate The metal part of a lock that is anchored to the
doorframe and holds the door closed.
Straight purchase A transaction in which the buyer gives a
new-home builder a deposit to begin building and the balance when the
sale of the house closes.
Stucco A mixture of sand and cement used to cover the exterior
surface or interior walls of a home or building.
Studs The upright pieces of lumber or steel in a wall to which
panels, siding, drywall or other coverings are attached.
Subagent When an agent brings a buyer to a property, they in
effect act as a subagent to the listing agent.
Subcontractor Specialty construction companies hired by the
general contractor to perform certain tasks
Subdivision The process in which the owner of a large piece of
property divides it into smaller parcels.
Sub-flooring The sheathing, usually made of plywood, placed on
top of floor joists and covered by flooring.
Subordinate loan A second or third mortgage.
Sump pump A pump that moves water from a basement sump pit.
Survey A precise measurement of a piece of property by a licensed
surveyor.
Sweat equity The non-cash value put into a piece of property by
the owner, such as do-it-yourself home improvements.
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