The date on which the borrower's note rate may change in an adjustable rate mortgage.

1. The limit on the amount the interest rate can he increased at each adjustment period in an adjustable-rate loan.

2. The maximum interest rate that can he charged during the life of the loan.

(ROR) A rate expressed as a percentage that is based on the annual net operating income generated by a property compared to by dividing it by the capital invested.

A party who is fully prepared to enter into a contract and really wants to buy and clearly meets the financial requirements to do so.

A term that generally narrowly refers to land with or without buildings or improvements. See more broadly Real property.

A generic term pointing to a person licensed by a state who holds either a real estate broker or real estate salesperson license who assists people to buy, sell, rent or lease, manage, finance or value real estate for some type of anticipated compensation.

A person or other legally-licensed entity by a state holding a real estate broker license who assists people to buy, sell, rent or lease, manage, finance or value real estate for some type of anticipated compensation.

A state agency or department that enforces its real estate license laws.

The head of a state's Real Estate Department or Commisssion.

The channeling of monies into the production and use of real estate facilitating the production and use of real estate through borrowed or equity funds.

The body of laws relating to real estate which generally evolved from the English common law but now include governmental regulations such as zoning, building codes, etc.

The state law that regulates the practice of real estate brokers and salespersons.

All of the potential buyers and sellers for various real properties such as the housing market, office market, condominium market or land market who are all currently active and seeking the same type of real property.

(REO) A term used for property acquired through foreclosure by a lender and currently held in inventory.

A person who holds a valid real estate salesperson's license and who for compensation or anticipated compensation has contracted to work under a real estate broker to assist people to buy, sell, rent or lease, manage, finance or value real property on a full or part time basis.

Real Estate Securities and Syndication Institute - (RESSI) Provides educational opportunities in the field of marketing securities and syndication of real estate.

(RESPA) A federal law passed in 1975 requiring the disclosure to borrowers by means of a pamphlet and forms prescribed by the United States Department of Housing and Urban Development, HUD of the settlement (closing) procedures and costs.

A money charge levied upon real property to fund local government and to provide public services.

A special arrangement under federal and state laws whereby investors may pool funds for investments in real estate and mortgages and be able to avoid corporate taxation by having the profits passed to individual investors who pay taxes.

The land and everything growing on it, attached to it or erected on it but not including anything that may be severed from the land without injuring it.

A term used in some states for an agreement to convey title to real property upon satisfaction of specified conditions which does not require conveyance within one year of formation of the contract. See Land contract.

The process of revising or updating the value estimate of property for ad valorem taxation purposes.

A process by which an owner can recover money invested by engaging and using an interest rate that provides for the full return of an investment over the investment period. This should not be confused with the interest rate which the earnings on an investment.

The need to pay income taxes on depreciation taken that is excess of the straight line depreciation permitted by the IRS.

The rate of depreciation that needs to be taken to provide for a full recapture. See Recapture.

The transfer of the title of land from one person to the immediately-preceding owner.

A commonly used instrument executed by a trustee reconveying or returning the legal title to real estate secured by a trust deed back to the trustor (borrower) upon full payment of the debt.

A system by which documents concerning title and other legal matters are collected in one convenient, public place, commonly the county recorder's office and when properly recorded, constitute constructive notice as to their contents.

The county government officer in charge of the office of land records who is also know as a registrar of deeds.

The laws providing for the recording of instruments affecting title as a matter of public record to preserve such evidence and give notice of their existence and content; laws providing that the recording of an instrument in-forms all who deal in real property of the transaction and that, unless the instrument is recorded, a prospective purchaser without actual notice of its existence is protected against it.

Recording
The process of placing a document on file with a designated county public official for public notice who is usually known as the county recorder of deeds and who designates the fact that a document has been presented for recording by placing a recording stamp upon it indicating the time of day and the date when it was officially placed on file. Documents filed with the Recorder are considered to be placed on open notice which is also called “constructive notice" or "legal notice” to the general public of that county. Claims against property usually are given a priority on the basis of the time and the date they are recorded with the most preferred claim going to the earliest one recorded and the next claim going to the next earliest one recorded and so on.

An illegal lending policy of denying real estate loans on properties in specific older, changing urban geographical areas usually with large minority populations because of assumed higher lending risks without due consideration being given by the lender to the credit worthiness of the loan applicant.

The paying off of an existing mortgage loan obligation by extending or renewing existing financing or taking on a new loan obligation in its place.

An action taken to correct a mistake or error in a deed or other legal document.

A stipulation by a holder of a blanket mortgage that upon the payment of a specific sum of money that the lien to the specifically-described lot or area shall be removed from the blanket lien on the whole area involved.

An instrument executed by the mortgagee or the trustee reconveying or returning the title to the real estate secured by the loan back to the mortgagor or trustor upon full payment of the debt. Also known as a Reconveyance deed.

The form prescribed by the Uniform Commercial Code for indicating the release of all or part of a security interest.

To make physical alterations that are greater than simply keeping the property in good state of repair.

(RRM) A loan secured by a long term mortgage which provides for renegotiation at predetermined intervals of the interest rate to a maximum variation of a set percentage over the life of the mortgage.

The price one party pays for the use of land or real property to its owner as a return on his or her investment.

The legal regulation as to the maximum rental charge that can be made for the use of certain real property.

A plan to establish the rental amounts to be paid and also, the records of the rents actually paid during a specific period.

The amount of rent a prospective tenant is justified in paying for a set period of time such as a month, a year, etc., for the right to occupy and use real property under certain prescribed or assumed conditions.

The cost to build something that is substantially similar to the original but is constructed with modern materials and according to current standards, design and layout and having equal utility.

See Real Estate Settlement Procedures Act.

(RAM) A loan under which the homeowner receives monthly payments based on his or her accumulated equity rather than in a lump sum and which must be repaid at a prearranged date, or upon the death of the owner or upon the sale of the property.

A right to take back or recall a previously-conferred power or authority such as to revoke a license or withdraw an offer prior to its acceptance.

A right to occupy and use property for a specified period of time under the terms of a contract such as a lease or other formal agreement.

A right a party has to buy back or repurchase and recover property lost through a judicial sale. The right of a mortgagor to retain title to a property during a foreclosure period as well as the right to regain the title within a permitted set period after foreclosure sale by paying the full amount owned. See Equity of redemption.

The lessor (landlord) grants the right of possession to the lessee (tenant) but retains the right to retake possession at the expiration of the lease term.

The right, which is the distinguishing feature of joint tenancy, of a surviving tenant or tenants to become owner of the entire interest of a deceased tenant.

A privilege operating as an easement upon land which an owner does by grant or by agreement give to another the right to pass over a specific part of the owner's land, to construct a roadway or use as a roadway, to construct through and over the land, to install telephone or electric power lines or to place underground water mains, gas mains or sewer mains.

A right to terminate a contract unilaterally or by one side only.

Those simple guidelines or averages such as gross rent multipliers, prices per square foot, prices per front foot, costs per room and costs per apartment that are sometimes used to assist in determining the value of a property which are accurate because of the user's experience with the same unit of measurement.

In real estate licensing, the orders of the regulatory authority that govern licensees' activities and which usually have the same force and effect as statutory law.

An area outside larger and moderate-sized cities and surrounding population concentrations that typically has farms, ranches, small towns and unpopulated regions. See Suburb.