A radioactive gas found in some homes that in sufficient concentrations
can cause health problems.
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.
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 agent
A person licensed to negotiate and transact the sale of real estate
on behalf of the property owner.
Settlement Procedures Act (RESPA)
A consumer protection law that requires lenders to give borrowers
advance notice of closing costs.
Land and appurtenances, including anything of a permanent nature
such as structures, trees, minerals, and the interest, benefits,
and inherent rights thereof.
A real estate broker or an associate who holds active membership
in a local real estate board that is affiliated with the National
Association of Realtors.
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.
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."
The noting in the registrars 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.
The process of paying off one loan with the proceeds from a new
loan using the same property as security.
A mortgage created to cover the costs of repairing, improving, and
sometimes acquiring an existing property.
The amount of principal that has not yet been repaid. See principal
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
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.
A credit arrangement, such as a credit card, that allows a customer
to borrow against a preapproved 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
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.
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.
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.