Real Estate Glossary

This list is provided for reference only. Each state has it's own real estate laws, terms and regulations for Realtors. In Arizona, your Realtor and Title Company handle most real estate transaction activities that involve attorneys in many other states. However, you have the right to seek the advice of an attorney or other professional counsel in any real estate transaction.

Ready, Willing, and Able - A buyer who is prepared to buy on the seller's terms and has the financial capacity to do so.

Real Estate - Land and improvements and the rights to own or use them. "A leasehold, as well as any other interest or estate in land, whether corporeal, incorporeal, freehold, or non-freehold, and whether the real estate is situated in this state or elsewhere." In popular usage, Real Estate is used interchangeably with Real Property - and Realty - .

Real Estate Board - A non profit organization representing local real estate agents/brokers and salespeople, which provides services to its members and maintains and operates the Multiple Listing Service in the community.

Real Estate Inspector - Individual or company who holds themselves out to the public as being trained and qualified to inspect property.

Real Property - Refers to the right to own land and improvements. Commonly used interchangeably with Real Estate and Realty. Also see Personal Property - .

Realty - Refers to land and buildings and other improvements from a physical standpoint. Real Estate and Real Property tend to be used interchangeably with Realty in everyday usage. Also see Personalty - .

Reasonable Care and Diligence - An agent is obligated to use reasonable care and diligence when pursuing the principal's affairs. The standard of care expected of a buyer's or seller's real estate broker is that of a competent real estate professional. By reason of his/her license, a broker is considered to have skill and expertise in real estate matters superior to that of the average person.

As an agent who represents others in their real estate dealings, a broker or salesperson is under a duty to use superior skill and knowledge while pursuing the principal's affairs. However, no broker is expected to perform tasks or know information outside the scope of his/her real estate license. Real estate licensees are not expected to perform services normally provided by engineers, lawyers, accountants, or other professionals. If concerns arise outside the scope of a broker's responsibility, the broker should acknowledge that and suggest that the principal seek assistance from a reliable outside source.

Receiver - Court-appointed custodian who holds property for the court, pending final disposition of the matter before the court.

Recital - Setting forth in a deed or other writing some explanation for the transaction.

Recorded - A written record that has been entered into the public records filed with the County Recorder's office.

Recorded Plat - A subdivision map filed with the county recorder's office that shows the location and boundaries (lot and block number) of individual parcels of land. Also see Government Survey Method - and Metes and Bounds - .

Recording - The act of entering in the public records, the written record of title to real property, thereby giving constructive notice to the public.

Recision of Contract - Annulling a contract and placing the parties to it in a position as if there had not been a contract.

Recourse - The right of the holder of a note secured by a mortgage or Deed_of_Trust to look personally to the borrower or endorser for payment.

Recovery Fund - A fund maintained by a state Real Estate Commission which upon court order is used to reimburse the public for monetary loss due to illegal acts of licensees.

Redlining - The illegal practice of refusing to originate mortgage loans, or limiting their number, in certain neighborhoods on the basis of racial or ethnic composition. See Fair Housing - .

Refinancing - To apply for a new mortgage in order to gain better terms, usually either a lower interest rate or a different principal amount.

Regulation 'Z' - Truth in lending law developed by the Federal Reserve System which requires lenders to provide full disclosure of the terms of the loan, including interest rates expressed as an annual percentage rate ( APR - ).

Reissuerate - A charge for a title insurance policy if a previous policy on the same property was issued within a specified period. Reissue is less than the original charge.

REIT (Real Estate Investment Trusts) - A method in investing in real estate in a group, with certain tax advantages.

RELA - Real Estate License Act.

Release - To relinquish an interest or claim to a piece of property.

Remainder - The future interest in an estate which takes effect after the termination of another estate, such as a life estate; what is left at the termination of a life estate.

Reservation - A right reserved by a grantor in the sale or lease of a property. In a sale, the title of all property passes to the grantee, but the use may be reserved for the grantor. Also see Exception - .

RESPA - Real Estate Settlement Procedures Act is a federal law which deals with the procedures to be followed in a real estate closing, requiring disclosure of certain costs in the sale of residential improved property.

Restrictions - Limitations on the use or occupancy of real estate contained in a deed or in local ordinances pertaining to land use.

Restrictive Covenants - Private restrictions limiting the use of real property. Restrictive covenants - are created by deed - and may "run with the land," binding all subsequent purchasers of the land, or may be "personal" and binding only between the original seller and buyer. The determination whether a covenant runs with the land or is personal is governed by the language of the covenant, the intent of the parties, and the law in the State where the land is situated. Restrictive covenants that run with the land are encumbrances and may affect the value and marketability of title. Restrictive covenants may limit the density of buildings per acre, regulate size, style or price range of buildings to be erected, or prevent particular businesses from operating or minority groups from owning or occupying homes in a given area. (This latter discriminatory covenant is unconstitutional and has been declared unenforceable by the U.S. Supreme Court.)

Revenue Stamps - Formerly federal tax on a sale of real property. Canceled and replaced by state tax stamps.

Riparian Owner - One who owns land bounding upon a river or water course (stream, creek, bayou, etc.).