Boardman,Ohio. Homes for sale and real estate for sale in Poland, Canfield, Youngstown, Austintown, Warren and Salem in the Mahoning Valley -  Mahoning, Trumbull and Columbiana Counties. From REMAX Valley Real Estate.

Real Estate Glossary

- R -

RE/MAX Valley Real Estate, Mahoning County,  1006 Boardman - Canfield Rd., Ohio 44512
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  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 is often considered synonymous with real property (also sometimes called realty), in contrast with personal property (also sometimes called chattel or personalty).

Some people make the distinction that real estate refers to the land and fixtures; while real property refers to ownership rights over real estate. However this is not a hard and fast distinction.

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, s/he obtains a real estate salesperson's license from the state in which s/he will practice. To obtain a real estate license, the candidate must take specific coursework ( in Ohio - 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  RE/MAX Valley Real Estate Agents
real estate broker
A party or institution 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 references the common law of agency in that the broker has 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. (In Ohio, with signed agreement of both buyer and seller,  a broker may assist both the buyer in the acquisition of property but still represent the seller and the seller's interests.)

In Ohio, a Consumer Guide To Agency Relationships must be given to each and every buyer and seller which outlines the various ways a broker may represent them in the transaction; whether as buyer's agent, seller's agent, or dual buyer and seller agent. At the time a contract is initiated, both the buyer and seller in the transaction must be given a written Agency Disclosure, that specifies the role of each agent in the transaction. Go here to find out how you know the real role of the broker in representing you? .

In Ohio, as in most jurisdictions in the United States, a person is required to have a license in order to receive a commission for services rendered as a real estate broker. Unlicensed activity is illegal, but buyers and sellers acting as principals (representing themselves) in the sale or purchase of real estate are not required to be licensed. In Ohio, lawyers are also allowed to handle real estate sales for compensation without being licensed as real estate brokers or agents.

In Ohio, a salesperson must be affiliated with a broker in order to transact business, and all transactions are made in the name of the affiliated broker. After gaining some years of experience in real estate sales, a salesperson may decide to become licensed as a real estate broker and may conduct business in his/her own name. Considerably more course work is involved and a more intensive 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.

Real Estate Broker, RE/MAX Valley Real Estate, Boardman, Ohio

real estate contract
A contract for the purchase, sale, lease (rental), 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 contracts called leases (rental contracts) cover these since they typically do not result in recordable deeds

Conveyances of freehold 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 all the legal requirements specified by contract law in general, and in Ohio, must be in writing to be enforceable.

See also

Real Estate Investment Trust   ( REIT)
A tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. In return, REITs are required to distribute 90% of their income, which may be taxable in the hands of the investors. The REIT structure was designed to provide a similar structure for investment in real estate as mutual funds provide for investment in stocks.

Like other corporations, REITs can be publicly or privately held. Public REITs may be listed on public stock exchanges like shares of common stock in other firms.

REITs can be classified as equity, mortgage or hybrid.

real estate owned (REO)
 “Real Estate Owned” by the lender; the final step in foreclosure process. This document conveys property ownership back to lender.
See  REO.
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 (realty)
Land and appurtenances, including anything of a permanent nature (immovables)such as structures, trees, minerals, and the interest, benefits, and inherent rights thereof.
Some people make the distinction that real estate refers to the land and fixtures; while real property refers to ownership rights over real estate. However this is not a hard and fast distinction.
See  Realty
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®.

See also

realty
In common law, real property (or realty) refers to one of the two main classes of property, the other class being personal property (personalty). Real property generally encompasses land land improvements resulting from human effort including buildings placed on the land.
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  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.
See >> Real Estate Guide: Buyers/Fixer-uppers - Are there programs for fixer-uppers?
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.
See  Real estate Guide: Owners/Foreclosure - When does foreclosure begin? What is the timeline for the process?
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-option mortgage.
REO
an acronym for 'Real estate owned.'  '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.

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 never is provided, the buyer then has the right to rescind the contract within 30 days of the execution of the contract or until closing of escrow, whichever comes first. If the form is delivered after executing a contract the buyer then has 3 days to rescind the contract without penalty. In either case, there is no right of rescission once title has transferred

To fully understand the obligations and limitations of the Ohio Residential Property Disclosure Law, both buyers and sellers should consult with an attorney.

Buyers Beware: a Seller's Disclosure should never be substituted for a certified home inspection.

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.

NOTE: 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)

restructure
Also called 'workout. An alternative to foreclosure. Can include loan modification, short sales or forbearance.
See  Real Estate Guide: Owners/Forclosure - What is the Home Affordable Modification Program?
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

See   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 (sales contingency)
 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.
ROI
Acronym for "return on investment." The net profit expressed as a percentage of the total property investment.
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.