| Racial Steering - An illegal practice under the Federal Fair Housing Act of 1968 and the State Fair Housing Act by which patterns of racial segregation are preserved and encouraged by steering members of racial and ethnic groups to buildings occupied primarily by members of their own racial or ethnic group. |
| Rate Cap - A limit on the amount of adjustment that can be made in the interest (note) rate on an adjustable rate mortgage at each rate adjustment date. |
| Ready, Willing, and Able - A self-explanatory phrase referring to a prospective purchaser of real estate who is prepared to purchase a property on terms acceptable to the seller and is in a position, financially and otherwise, to complete the transaction. See also Procuring Cause. |
| Real Estate - See Real Property |
| Real Estate Investment Trusts (REITS) - A legal entity formed by a group of investors who desire to pool their resources for the purpose of real estate investment. |
| Real Estate License Law - The law enacted by the General Assembly that governs the licensing of real estate brokers and salesmen, establishes standards of conduct for such licensees, and provides for disciplinary action against licensees who violate its provisions. The enforcing agency is the North Carolina Real Estate Commission. |
| Real Estate Settlement Procedures Act (RESPA) - Consumer protection legislation enacted by Congress requiring lenders to provide borrowers with specified information in residential real estate loan transactions. RESPA also prohibits certain practices in residential real estate closings. |
| Real Property - Lands, tenements, and hereditaments; the earth's surface, the air above, the ground below and all improvements and appurtenances to the land; the rights, interests, and benefits (sometimes referred to as the "bundle of rights") inherent in the ownership of real property. Synonym with the terms real estate and realty. |
| Realtist - A term used to designate a member of the National Association of Real Estate Brokers. |
| Realtor - A coined word owned by the National Association of Realtors which is used to designate a member, usually a real estate agent, of that professional trade association. Should not be confused with "real estate agent" because many licensed brokers and salespeople are not members of the National Association of Realtors; however, most licensed real estate agents who are active in the brokerage business an a full-time basis are probably members of this association. See National Association of Realtors. |
| Realty - See Real Property |
| Reappraisal Lease - A lease tying rent calculation to the value of the leased premises and calling for periodic recalculation of rent based on percentage of market value. |
| Reconciliation - The final step in the appraisal process; the process by which an appraiser reconciles the estimates of value derived through the market data, cost, and income approaches to select a single conclusion of value. |
| Recording - The placing of a copy of documents affecting title to real estate (and certain other documents) in the proper books in the office of the Register of Deeds so that a public record will be made of it. Also called recordation. |
| Record Title - The ownership of real estate as shown by the instruments recorded in the office of the Register of Deeds along with records in certain other public offices. |
| Rectangular Survey System - See Government Survey System. |
| Redemption - The right that an owner-mortgagor, or one claiming under her/him, has after execution of the mortgage to recover back her/his title to the mortgaged property by paying the mortgage debt, plus interest and any costs accrued, prior to a valid foreclosure. The payment discharges the mortgage and places the title back as it was at the time the mortgage was executed. See Equity of Redemption and Statutory Redemption Period. |
| Redlining - An illegal practice under the Federal Fair Housing Act of 1968 and the State Fair Housing Act by which lending institutions deny or discourage loan applications within a given ("redlined") area based on its racial composition. |
| Reformation - The correction of a deed or other instrument by reason of a mutual mistake of the parties involved or because of mistake of one party caused by the fraud or inequitable conduct of the other party. |
| Relation Back Doctrine - In escrow closings, a doctrine that treats the deed as having been delivered for certain purposes when it was delivered by the seller into escrow; i.e., the delivery to the purchaser by the escrow agent "relates back" to the earlier delivery of the deed into escrow by the seller. |
| Release - The giving up or abandoning of a claim or right to the person against whom the claim exists or against whom the right is to be exercised or enforced. |
| Release of Lien - The discharge of certain property from the lien of a judgment, mortgage, or claim. |
| Remainder - An estate in real property to take effect and be enjoyed after another estate has terminated, such as a life estate. The holder of this estate is someone other than the grantor of the life estate and is called the "remainderman." |
| Rent - A compensation, either in money, provisions. chattels or labor, received by the owner of real estate from a tenant for her/his occupancy of the premises. |
| Rental Value - The worth of the right to use and occupy property for a stated period; the amount of rent that a reasonable and prudent tenant would be warranted in paying and that a reasonable and prudent lessor would be justified in accepting, for a stated period of time, provided both parties were fully informed and acted voluntarily and intelligently. See also Market Rent. |
| Replacement Cost - The cost of replacing an improvement with another having the same or equal utility, using current standards of material and design, and based on current prices for labor and materials. |
| Reproduction Cost - The cost of creating an exact replica of an improvement, using the same or very similar materials, based on current prices for labor and materials. |
| Rescission of Contract - The abrogating or annulling of a contract; the revocation or repealing of a contract by mutual consent of the parties to the contract, or for other cause recognized by law. |
| Reservation - A right retained or reserved by an owner when he/she makes a grant of property either by deed or lease. |
| Residential Rental Agreements Act - A sweeping legislative reform affecting residential tenancies in North Carolina. (The Act begins at Section 42-38 of the North Carolina statutes.) It imposes numerous obligations on landlords and provides tenants with rights and remedies nonexistent under prior law. |
| Residuary Estate - That which remains of a testators estate after deducting all devises, bequests, and debts of the decedent. |
| Restrictive Covenant - A clause of limitation in a deed providing that land will be used (or not used) in a certain way. For example, a deed may provide that land may be used "for single family residential purposes only"; the grantee, by accepting the deed, is deemed to "covenant" or "promise" that the land will be used only in a certain way and this covenant "runs with the land," binding not only the person making it, but subsequent owners of the land as well. |
| Retaliatory Eviction - Under common law theory, a landlord can evict a tenant for any legal reason including no reason at all. The doctrine of retaliatory eviction modifies this rule as a matter of public policy by holding that a landlord cannot evict a tenant in retaliation for the tenant's assertion of some legal right (e.g., reporting a building code violation) or engagement in a protected activity. North Carolina Gen. Stat. § 42-37 adopts this doctrine for residential tenancies. |
| Revenue Stamps - See Excise Tax on Real Property Transfers. |
| Reverse Annuity Mortgage - Instead of a payment plan whereby the debtor finances the purchase of real estate, a reverse annuity mortgage involves payments from the financial institution to a mortgagor who uses the substantial equity in his/her property as security. Eventually this type of loan has to be repaid or refinanced. |
| Reversion - The residue of an estate left in a grantor, to commence in possession after the determination of some particular estate granted out by him/her; the return of land to the grantor and his/her heirs after the grant is over. |
| Right of First Refusal - An owner of property does not bind himself/herself to sell under this agreement; rather, he/she promises another that, if she/he decides to sell at some future time, the promisee will receive the first chance to buy or the opportunity to match offers to purchase from third parties. Often included as a provision in leases. |
| Right of Redemption - See Equity of Redemption. |
| Right of Survivorship - The right of a surviving person to acquire the interest of a deceased person where the two were joint or concurrent owners of certain interests in real estate, the most important and distinguishing feature of the tenancy by the entirety in North Carolina. |
| Right-of-Way - A right whereby the owner of land has given to another the right to pass over her/his land, to construct a roadway, or use as a roadway, a specific part of her/his land without actually transferring ownership of the land. A right-of- way may also be a right of one to construct over the land of the owner telephone, telegraph, or electric power lines, or to place underground water mains gas mains, sewer mains and the like in the lands of the owner. See Easement. |
| Riparian Owner - One who owns lands bounding upon a river or water course. A riparian owner has peculiar "riparian rights" to water that is on, under, or adjacent to his/her land. |
| Riparian Rights - Rights to use water enjoyed by riparian owners. |
| Risk of Loss - The allocation of loss between seller and purchaser due to damage or destruction of property during the interim period between the time of signing of a valid real estate sales contract and the closing date. Risk of loss can be specified by contractual agreement. Where the contract is silent, the Uniform Vendor and Purchaser Risk Act or the common law must be referred to. |
| Rod - A measure of length containing 5 1/2 yards or 16 1/2 feet; also the corresponding square measure. |
