Protecting Pennsylvania Property Since 1984
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| Real estate (also called “real property”) - Land and anything permanently affixed to the land, such as buildings, fences, and those things attached to the buildings, such as plumbing and heating fixtures, or other such items that would be personal property if not attached. |
Real Property - In general, land and everything growing on it, attached to it, or erected on it. Examples of real property:
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Realized Gain - The difference between the total consideration (cash and anything else of value) received for a piece of property and the adjusted basis. |
Recognized Gain - The portion of the realized gain that is subject to income taxation. |
Recording - The noting in a public office of the details of a legal document, such as a deed or mortgage, affecting the title to real estate. |
Redemption - The right of the owner in some states to reclaim title to property if it pays the debt to the mortgagee within a stipulated time after foreclosure. |
Registered land - Land registered in a Torrens system. |
Reinsurance - A contractual relationship between two insurance companies under which one insurer assumes a portion of the risk of the insurance policy written by the other. |
Reissue rate - A reduced rate of title insurance premium where the owner of the land has been previously insured by an owner’s policy by the insurer within a certain time. |
REIT - Real Estate Investment Trust. A business trust which deals principally with interest in land. |
Release - To relieve from debt or security or abandon a right, such as the release of a mortgage lien from a part or all of the land mortgaged. |
Relinquished Property - The property that the taxpayer wishes to dispose of in the exchange. |
Renegotiable rate mortgage - A loan secured by a long-term mortgage of up to 30 years, which provides for renegotiation at equal stated intervals of the interest rate for a maximum variation of 5 percent over the life of the mortgage. |
Replacement Property - The property that the taxpayer wishes to acquire in the exchange. |
RESPA - The Real Estate Settlement Procedures Act (12 U.S.C. 2601) that, together with Regulation X promulgated pursuant to the Act, regulates real estate transfers involving a “federally-related mortgage loan” by requiring, among other things, certain disclosures to borrowers. |
Restrictive covenants - Limitations on the use of property imposed or created by deeds or other documents in the chain of title. |
Reverse annuity mortgage - A mortgage given to a homeowner who desires to convert the equity in his or her house to an income-producing asset. The proceeds of the loan are paid out in periodic installments to the homeowner, thus giving the homeowner income until the proceeds paid out equal the face amount of the mortgage. |
Reverse Build-To-Suit Exchange - This type of exchange allows a taxpayer to acquire and improve or repair the replacement property before he or she sells the relinquished property. This type of exchange can be rather complex, but is a very useful tax planning tool for a sophisticated taxpayer. |
Reverse Exchange - An exchange whereby the taxpayer, or a separate entity set up by the taxpayer, acquires the replacement property 1 to 180 days before disposing of the relinquished property. The relinquished property is then transferred to a buyer. This method was sanctioned by an IRS Revenue Procedure in 2000. (See also FRONT LEG REVERSE AND BACK LEG REVERSE EXCHANGES.) |
Right of way - See easement. |
Riparian rights - The rights of owners of lands bordering watercourses which relate to the water and its use. |
