This combination Real Estate Glossary and Personal Finance Glossary provides definitions of commonly used real estate and personal finance terms. All definitions are listed below, arranged in alphabetical order.
1 | 4 | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Real Estate - Real Estate is land and anything permanently attached to it, such as buildings and improvements.
Real Estate Agent - A Real Estate Agent is an individual licensed by the state, who acts on behalf of the seller or buyer. For his or her services, the agent receives a commission, which is usually expressed as a percentage of the sales price of a home and is split with his or her real estate firm. A real estate agent must either be a real estate broker or work for one.
Real Estate Attorney - A Real Estate Attorney is an attorney who specializes in the purchase and sale of real estate.
Real Estate Broker - A Real Estate Broker is an individual who is licensed by the state to act as an agent on behalf of the seller or buyer. For his or her services, the broker receives a commission, which is usually expressed as a percentage of the sales price of a home.
Real Estate Settlement Procedures Act (RESPA) - Real Estate Settlement Procedures Act (RESPA) is a federal statute, originally passed in 1974, that contains provisions that govern the way companies involved with a real estate closing must treat each other and the consumer. For example, one section of RESPA requires lenders to give consumers a written Good Faith Estimate within three days of making an application for a loan. Another section of RESPA prohibits title companies from giving referral fees to brokers for steering business to them.
Real Rate of Return - The Real Rate of Return for a bond consists of two pieces: the interest you've earned on the bond and the actual market value of the bond (it could be above or below face value when you sell it). If the market value of the bond has appreciated, you may have to pay capital gains on the rise in value. The interest you earn is taxed like income.
Realtist - A Realtist is a designation given to an agent or broker who is a member of the National Association of Real Estate Brokers.
Realtor - A Realtor is a designation given to a real estate agent or broker who is a member of the National Association of Realtors.
Recording - Recording is the process of filing documents at a specific government office. Upon such recording, the document becomes part of the public record.
Redemption Fee - A Redemption Fee is typically a charge that's imposed on people who redeem their shares within a short period of time. It might be 90 days or 3 years. Some funds impose a .25 percent redemption fee no matter when you cash out. Why? This is another way for funds to be profitable. But there may be some additional costs if too many people take their money out at exactly the same moment. Funds have to keep some money in cash reserves in case people want to redeem their shares. If too many people want to redeem their shares all at once, the fund would have to sell some stock, perhaps at not the most fortuitous time.
Redlining - Redlining is the slang term used to describe an illegal practice of discrimination against a particular racial group by real estate lenders or insurance companies. Redlining occurs when lenders or insurance company decide certain areas of a community are too high risk. Real estate companies who redline simply refuse to give a mortgage to buyers who want to purchase property in those areas, regardless of their qualifications or creditworthiness. Insurance companies who redline refuse to insure consumers who live in certain neighborhoods.
Regulation M - Regulation M is the revised federal rules that went into effect at the end of 1997. Regulation M standardized and simplified car leasing forms and language. While it requires dealers to disclose all sorts of information, it does not require them to disclose the money factor (also known as the lease rate).
Regulation Z - Regulation Z is also known as the Truth in Lending Act. Congress determined that lenders must provide a written Good Faith Estimate of closing costs to all borrowers and provide them with other written information about the loan.
Replacement Insurance - Replacement Insurance guarantees that the insurer will pay for the cost of replacing the home in its current condition up to the policy's limits. This is a less expensive form of homeowner's insurance than Guaranteed Cost Replacement Insurance (which will pay to put your home in its current condition and meet all current codes as well) and it typically won't pay to bring your home up to current standards.
Reserve - The Reserve is the amount of money set aside by a condo, co-op, or homeowners' association for future capital improvements.
Residual Value - The Residual Value is how much the car dealer says the car will be worth at the end of the lease term. Typically, this is not negotiable.
Roth IRA - A Roth IRA allows non-deductible, after-tax contributions of up to $2,000 per year. As long as you hold the IRA for at least 5 years, the distributions are tax free. In addition, you are not required to make a minimum contribution each year, and there is no age limit for additional contributions. The Tax Relief Act of 1997 created the Roth IRA.
