Philippine Real Estate Glossary

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

Radon
A radioactive gas found in some homes that in sufficient concentrations can cause health problems.

Rate Caps
Lenders offer caps with their adjustable rate mortgages (ARMs) so you can have more control over your monthly mortgage payment. Usually, there are two types of rate caps: A per-adjustment cap, which specifies the most your interest rate can rise from one adjustment period to the next, and a lifetime adjustment cap, which specifies how much your interest rate can rise over the life of your loan.Ask your lender about both caps when evaluating any ARM product.

Rate-Improvement Mortgage
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.

Rate Lock
A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time.

Ratified Sales Contract
A ratified sales contract means both the buyer and the seller have signed off on the final offer. It also acts as a starting point for the loan application interview. The ratified sales contract specifies the amount of your down payment, the price you will pay for the house, the type of mortgage financing you will seek, your proposed closing and occupancy dates, and other contingencies. You will give all this information to your loan officer when you meet to discuss your financing options.

Real Estate
Real property. Property in land and improvements that which is not personal property.

Real Estate Agent
A person licensed to negotiate and transact the sale of real estate on behalf of the property owner.

Real Estate Attorney
Many homeowners hire a real estate attorney to represent them during the loan application process. If you do so, your attorney will review the sales contract and represent you at closing. There are many questions you can ask a personal attorney before deciding whether to have the attorney represent you at closing. They can include: What is the attorney's fee for representing you at closing? What is the attorney's experience with real estate transactions? Are there fees for reading documents relating to the closing? Are there fees for giving advice? Remember that your personal attorney's fee is not part of your closing costs. You must pay for this expense separately.

Real Estate Board
An organization where members consist of primarily of real estate brokers and salesmen.

Real Estate Settlement Procedures Act
A consumer protection law that requires lenders to give borrowers advance notice of closing costs.

Real Property
Land and appurtenances, including anything of a permanent nature such as structures, trees, minerals, and the interest, benefits, and inherent rights thereof.

Realtor®
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.

Recission
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.

Reconveyance
The transfer of the title of the land from one person to the immediate preceding owner.

Recorder
The public official who keeps records of transactions that affect real property in the area. Sometimes known as a "Registrar of Deeds" or "Provincial Clerk."

Recording
The noting in the registrar's 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.

Redemption
Buying back one's property after a judicial sale.

Refinance Transaction
The process of paying off one loan with the proceeds from a new loan using the same property as security.

Reformation
An action to correct a mistake in deed or other document.

Rehabilitation Escrow Account
A contingency reserve will be set up that contains funds borrowed to finance your home improvements. These will be placed into an escrow account upon the closing of your mortgage. Payments to the contractor will be periodically made from this fund as construction occurs. You will be paid interest on the funds that are in the escrow account that have not been paid to the contractor.

Rate Lock
A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time.

Rehabilitation Mortgage
A mortgage created to cover the costs of repairing, improving, and sometimes acquiring an existing property.

Release Clause
This is a stipulation that, upon the payment of a specific sum of money to the holder of a trust deed or mortgage, the lien of the instrument as to a specific described lot or area shall be removed from the blanker lien on the whole area involved.

Remaining Balance
The amount of principal that has not yet been repaid.

Remaining Term
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
There are two different Rent With Option to Buy options: Lease-Purchase Mortgage Loan: An alternative financing option that allows low- and moderate-income home buyers to lease a home from a nonprofit organization with an option to buy. Each month's rent payment consists of principal, interest, taxes and insurance (PITI) payments on the first mortgage plus an extra amount that is earmarked for deposit to a savings account in which money for a downpayment will accumulate. Lease-Purchase Option: Nonprofit organizations may use the lease-purchase option to purchase a home that they then rent to a consumer, or "leaseholder." The leaseholder has the option to buy the home after a designated period of time (usually three or five years). Part of each rent payment is put aside toward savings for the purpose of accumulating the down payment and closing costs.

Repayment Plan
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.

Reservation
A right retained by a grantor in conveying property.

Revolving Liability
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.

Restriction
The term as used relating to real property, means the owner of real property is restricted in or prohibited from doing certain things relating to the property for certain purposes. For instance, the requirements in a deed that a lot maybe used for the construction of not more than a one-party dwelling, costing not less than ten thousand pesos (P10,000.00), is deemed to be restriction: also a legislative ordinance affecting all properties in a given area, requiring that improvement on property shall not be constructed any closer than twenty feet from the street curb, is a restriction by operation of law.

Reversion
The right to future possession or enjoyment by the person, or his heirs, creating the preceding estate.

Reversionary Interest
The interest which a person has in lands or other property, upon the termination of preceding estate.

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.

Right of Way
A privilege operating as an easement upon land, whereby the owner does by grant, or by agreement, give to another the right to pass over his land; to construct a roadway over, or use as a roadway, a specific part of his land, telephone, telegraph, or electric power lines, or the right to place underground water mains, gas mains or sewer mains.

Riparian Rights
The right of a landowner to water, on, under, or adjacent to his land.