Glossary Of Real Estate Terms
A - E | F - Q | R - Y

- R -

Rate of Return ‑ See Yield Rate.

Realized Gain ‑ Total profit on the sale or exchange of real property. Computed as net sales price less cost basis.

Real Property ‑ Land along with things attached to the land, such as buildings and other appurtenances.

Recognized Gain ‑ The amount of the realized gain on the sale or exchange of real property reportable in a given year on tax returns.

Reconveyance Deed ‑ A deed from a trustee under a trust deed conveying legal title back to the property owner to release the lien of the trust deed. Also called a deed of reconveyance.

Recordation ‑ The recording of an instrument in the County Recorder's office to give constructive notice of it.

Recourse ‑ The right to claim against a prior owner of a property or note.

Redemption ‑ (1) The correcting of a default under a trust deed or mortgage by paying the entire indebtedness plus foreclosure costs. (2) The reacquisition (or buy‑back) of property sold at a judicial foreclosure sale by paying the amount for which it was sold plus certain other items specified by statute. See also Equity of Redemption.

Refinance ‑ To obtain new financing to pay off an existing loan.

Reinstatement ‑ The curing of a default under a trust deed or mortgage by‑paying the amount past due. Reinstatement restores the loan to the status it had before the default.

Release Clause ‑ A provision in a blanket mortgage or trust deed allowing the owner of the property to secure the release of property upon certain terms, usually the payment of a certain sum of money.

Release of Liability ‑ A letter or other form of release that relieves a debtor of any further responsibility on a debt or other obligation.

Release of Mortgage ‑ A written instrument releasing the lien of a mortgage on real property. See also Certificate of Discharge.

Request for Reconveyance ‑ An instrument executed by a trust deed holder that directs the trustee to convey legal title to the property involved back to the owner. Most often, a form for this request is printed on the back of the trust deed so that the creditor may execute it when the debt is satisfied. However, it may also be a separate instrument.

Rescind ‑ To cancel a contract or other transaction and restore to each what originally had been given.

Rescission ‑ (1) The act of rescinding. (2) A legal action to rescind a contract or other transaction.

Restriction ‑ A limitation upon the use of property that is specified in the title deed.

Return ‑ See Yield.

Right of Redemption ‑ See Equity of Redemption.

Right of Survivorship ‑ Right of the surviving joint owner to succeed to the interest of a deceased joint owner.

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- S -

Satisfaction ‑ Performance of the terms of a contract, usually by payment in full of an obligation.

Satisfied ‑ Paid or performed in full.

Second Loan ‑ A loan secured by a second deed of trust.

Secondary Mortgage Money Market ‑ See Mortgage Money Market.

Secured Party ‑ The person to whom security is given.

Set‑Off ‑ A claim a debtor is entitled to make against a creditor that reduces or eliminates the amount the debtor owes the creditor.

Simple Interest ‑ Interest computed on the unpaid principal amount of the loan without provisions for additional interest to be paid on interest.

Soft Money ‑ Credit extended as opposed to cash (hard money). See also Purchase Money Deed of Trust or Mortgage.

Straight Note ‑ A promissory note with the principal payable in one lump sum instead of in installments.

Stipulations ‑ The terms within a written contract.

Subordination ‑ The act of making an existing loan secondary or junior to another lien or loan.

Subordination Agreement ‑ A contract by which the holder of a prior lien makes it junior or inferior to another lien.

Substitution of Mortgagor ‑ An agreement in which the lender on a loan being assumed by a buyer agrees to relieve the original borrower of liability.

Substitution of Trustee ‑ An instrument that the beneficiary under a trust deed executes and records to substitute a new trustee for the pervious one.

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- T -

Tenancy in Common ‑ An ownership of real property by two or more persons, each of whom has an undivided interest, without right of survivorship.

Term ‑ A provision of a loan or contract that specifies the length of time the contract is to run.

Title ‑ Evidence of the ownership of real property.

Title Company ‑ A firm that examines title to real property and/or issues title insurance.

Title Defect ‑ Unresolved claim against the ownership of property that prevents presentation of a marketable title. Such claims may arise from failure of the owner's spouse, or former part owner, to sign a deed, current liens against the property, or an interruption in the title records of a property.

Title Insurance ‑ Insurance that protects against loss due to a faulty title.

Title Report ‑ Document indicating the current state of the title, such as easements, covenants, liens and any other defects. The title report does not describe the chain of title. See also Abstract of Title.

Title Search ‑An examination of the public records to determine ownership and encumbrances that affect real property.

Trust Deed ‑ See Deed of Trust.

Trustee ‑ A person who holds bare legal title to real or personal property for the benefit of another person. A trustee is one of the parties in a trust deed.

Trustee's Deed ‑ A deed issued to the‑successful bidder at a trustee's sale. A trustee's deed conveys title to the purchaser free and clear, but is subject to all senior liens.

Trustee's Sale ‑ A foreclosure sale conducted by a trustee under a trust deed following a default.

Trustor - A person who conveys property to a trustee. In a trust deed, the trustor is the borrower or debtor. 

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- U -

Undivided Interest ‑ Ownership of real estate by joint tenants or tenants in common under the same title.

Unsecured ‑ Without security.

Usury ‑ The charging of more interest than is allowed by law. In California, the maximum rate is 10%, except for certain lenders exempt from usury laws.

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- V -

Valid ‑ Having force or binding force; legally sufficient and authorized by law.

Valuation ‑ Estimated worth or price. The act of assigning value by appraisal.

Vendee ‑ A buyer.

Vendee's Lien ‑ A lien against real property under a land contract to secure a deposit paid by a purchaser.

Vendor ‑ A seller.

Void ‑ (1) Having no legal effect; amounting to nothing. (2) To have an instrument or transaction declared null and void.

Voidable ‑ That which is capable of being adjudged void, but is not void unless action is taken to make it so.

Voluntary Lien ‑ A lien intentionally put on real property by the owner.

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- W -

Waiver ‑ The renunciation, abandonment, or surrender of some claim, right, or privilege.

Warranty Deed ‑ A conveyance of real property in which the grantor guarantees the title to the grantee.

Without Recourse ‑ A phrase used for the endorsement of a note that indicates the future holder is not to look to the endorser in case of non‑payment.

Wrap‑Around Contract of Sale, Mortgage or Trust Deed ‑ A land contract, mortgage, or trust deed that works like this: The debtor owns or buys property with a first deed of trust on it. A seller or second lender takes a second deed of trust or second mortgage or a land contract for an amount that includes not only the amount owed to the second party but also the amount of the first trust deed. The owner makes one monthly payment to the second party; out of that payment, the second party makes payment on the first trust deed and keeps the rest. Also called an all‑inclusive contract of sale, mortgage or trust deed.

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- Y -

Yield ‑ Interest earned by the lender on the money loaned. Also called return.

Yield Rate ‑ Yield expressed as a percentage of the total investment. Also called rate of return.

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