United Country Guardian Real Estate - Dillon, Beaverhead Madison County Southwest Montana Real Estate for sale

Dictionary / Glossary / Directory
of Real Estate Terminology
Definitions & Commonly Used
Real Estate Terms

Confused & overwhelmed by the overwhelming number of real estate terms and words? Every person working in real estate or planning to buy or sell real estate can benefit by using this dictionary directory glossary of real estate terminology, definitions and commonly used terms.

Real Estate Terminology Definitions & Commonly Used Terms
In Alphabetical Order

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

    Ready Willing and Able Buyer:

  • A prospective buyer of real estate who is financially capable of and willing to purchase a parcel of real estate on the terms set forth in the listing agreement or on terms acceptable to the seller. Once an agent has produced a ready, willing, and able buyer at the listing price, his commission is earned, even though the seller may elect not to sell.
    • Real Estate Agent:

    • A person licensed by the state to negotiate the selling of real property while being contractually bound to and under the supervision of a licensed real estate broker.
      • Real Estate Broker:

      • A person licensed by the state to act as an agent for real estate sellers and buyers in the negotiation, solicitation, and sale of real property. In some states, Corporations may also be licensed to serve as real estate brokers. Licensed sales agents are employed by real estate brokers.
        • Real Estate Owned ( REO ):

        • Institutional lenders, such as banks and savings and loan associations, sometimes receive title to properties that secure loans that are in default, following foreclosure sales. These lenders typically offer these reclaimed properties, called REOs, for sale.
          • Real Property:

          • The legal rights involved in the ownership, use, and possession of real estate. Land and real property are not technically synonymous, though many persons use them interchangeably. Real property technically includes legal rights to subsurface, surface, airspace, and improvements, as well as the land. Real property is divided into estates: fee-simple estates, leasehold estates, and life estates.
            • Recordation ( Document Recording ):

            • The filing of a document that pertains to real property with the recorder of the county in which the real estate is located. The filing process involves scrutiny of the document tendered for recordation to ensure that it is recordable. Then, it is time and date stamped, which will permanently fix its priority. In some jurisdictions, transfer tax stamps are affixed on recordation. The document then will be filed, through a microfiche or other system. The original document then will be returned to the proper party. There are two major types of index systems in use, the tract system and the grantor/grantee index system. The tract system utilizes maps while the grantor/grantee index utilizes alphabetical listings of grantors and grantees.
              • Reinstatement:

              • The curing of a default by a borrower. A mortgage loan may be restored to current status by paying all past-due amounts. Reinstatement is a right that cannot be defeated by an acceleration clause that purports to require payment in full on default. But the right of reinstatement is cut off by the non-judicial foreclosure sale.
                • Reinstatement Period:

                • A period of time during which a defaulting debtor may cure his default and thereby reinstate the original terms of the loan. In non-judicial foreclosure, the reinstatement period is cut off shortly before the publicized foreclosure sale. In judicial foreclosure proceedings, the reinstatement period ends with the entry of judgment by the court, but is followed by a redemption period.
                  • Release Clause:

                  • A contractual provision (clause) usually contained in or incorporated by a deed of trust or mortgage that permits portions of the collateral to be released free and clear of the lien. A release clause is typically used when a purchaser of unimproved land intends to develop and resell it in increments. The release clause permits the "escape" of an increment, or parcel, of undeveloped property from the lien of a blanket deed of trust in exchange for the payment of an agreed-on portion of the unpaid principal.
                    • Remainderman:

                    • The owner of a future interest in real property. Most typically, a life estate will be created (by Will or Deed, for example) with remainder earmarked for a specific person, called a remainderman. The remainderman’s future interest blossoms into full fee ownership upon death of the life tenant.
                      • Real Estate Sales Procedures Act ( RESPA ):

                      • Federal law requiring parties to real estate transactions be provided with an accounting of all settlement charges and credits. The purpose is to avoid misunderstandings by buyers of real estate about closing costs they may incur.
                        • Reverse Annuity Mortgage:

                        • A mortgage designed to produce an annuity, or stream of monthly payments, to a homeowner with a large equity in his home. The lender makes monthly payments, each of which is added to the unpaid balance of an ever-increasing loan, to the homeowner who uses the money for normal living expenses. Such payments allow an elder homeowner to effectively live off his equity. The loan is not due until the homeowner dies or sells. A "shared appreciation loan for seniors" is a variation of a reverse annuity mortgage in which the lender, in addition to interest, ultimately receives a share of any appreciation in the property.
                          • Right of First Refusal:

                          • The right to purchase an interest in real property if its owner decides to sell. Unlike an option, the holder of a right of first refusal does not have the unqualified choice to buy or not to buy. A right of first refusal gives the holder the right to match any offer received by the seller from some other prospective buyer. The price and terms offered by the holder of the right of first refusal must equal or better the price and terms contained in a bona fide third party offer. A right of first refusal, often found in leases or limited partnership agreements, serves to preempt a possible sale to a third party, and hence may be called a preemption agreement.
                            • Right of Reinstatement:

                            • The right of a defaulting debtor to redeem the loan by bringing current all past monthly payments and late charges, even though the note and mortgage declare that the entire unpaid balance is immediately due in full upon any default.
                              • Right of Way:

                              • The right of the public or a private party to travel across a landowner’s property. Roads are public rights-of-way. Easements are private rights-of-way.
                                • Royalty:

                                • Money paid to a landowner in exchange for the extraction of minerals from his land pursuant to an oil and gas or other mineral lease.
                                  • Runs with the Land:

                                  • Benefits to parcels such as the benefit of CC&Rs, that “runs” with the land following its sale. New owners can enforce CC&Rs that run with the land.

                                  • Real Estate Terminology Definitions & Commonly Used Terms
                                    In Alphabetical Order

                                    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

                                    While great care has been undertaken to provide accurate explanations and definitions for real estate terms and words in our real estate terms dictionary glossary dirctory, no real estate vocabulary dictionary cannot be completely accurate in all jurisdictions. Any / all definitions are for general purposes only and should not be used for any legal purpose. By use of this dictionary glossary directory of real estate terms, you agree to hold United Country - Guardian Real Estate harmless for any responsibility for any liability, loss or risk that may be claimed or incurred as a consequence of using this information.