Real Estate Glossary: R

Rate
The percentage paid by a borrower for the use of money which is generally expressed as an annual percentage.

Rate Hold
The length of time, typically between 60 and 120 days, that a lender will guarantee a loan’s interest rate once you are locked in.

Rate Lock-in
A written agreement or contract in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set time period.

Real Estate Agent
An individual who is licensed to represent a buyer or a seller of real estate in a sales transaction. Real estate agents typically work on commission.

Real Estate Attorney
An attorney or lawyer who specializes in real estate transactions. This includes dealing with property tax issues and the transfer of land and buildings.

Real Estate Broker
An individual who is licensed to represent a buyer or a seller of real estate and collects commissions for the work. Most brokers have agents working for them and they collect a portion of those commissions in exchange for providing office space, marketing, and other overhead.

Real estate brokerage
The professional activity of real estate brokers and agents. Brokerage transactions and professional acts carried out by real estate brokers and agents concerning the purchase, sale, rental or exchange of immovable properties. Profession which can only be practiced by holders of a certificate issued by the Association des courtiers et agents immobiliers du Québec.

Real Property
Permanent, non-movable property, such as land and buildings.

Realtor
A real estate broker or an associate that holds an active membership in a real estate board.

Recognized Gain or Loss
The amount of gain or loss reported for income tax purposes. You may be able to defer recognizing gain or loss on certain property exchanges, such as like-kind exchanges.

Refinance
To arrange a new loan for an increased amount whereby the old loan is paid off from the proceeds of the new loan.

Refinancing
The act of paying off one mortgage with another mortgage to take advantage of lower interest rates. Refinancing is also used to transform equity into cash for vacations, home improvements, or for consolidating debt.

Refund
1. To give back, return, or repay (typically money).
2. The excess of your withholding and estimated tax payments for the year that you paid over your tax liability. The Federal Government then issues a tax refund if you paid more taxes over the year for your tax bracket.

Registered Education Savings Plan
Education savings plans that grow tax free until a child is ready to pursue a post-secondary education, at which time the money is withdrawn to help finance the costs.

Registered Retirement Savings Plan (RRSP)
A savings plan introduced by the Federal Government to encourage Canadians to save money for retirement. The investment and the interest earned on the RRSP is sheltered meaning it will not be taxed as long as the funds remain in the plan.

Reliction
An increase in the amount of land that occurs when a body of water (such as a river or sea) permanently withdraws.

Relocation Benefits
Monetary assistance and other considerations given to employees who must relocate at their company’s request. This can include reimbursement for packing and moving, house-hunting trips, and temporary housing/storage expenses.

Relocation Company
A company or business that specializes in providing assistance to individuals who are being relocated by their employers.

Remaining Balance
The unpaid or remaining principal left on a loan.

Remaining Term
The length of time remaining for a borrower to pay off the rest of an installment loan as scheduled.

Renewal
Extending an unpaid loan with the original lender when the terms of the loan expire.

Repayment Period
With a home equity line of credit, that portion of the life of the loan that follows the draw period. During the repayment period, the borrower cannot take out any more money, but must pay down the loan.

Repayment Plan
Modifications made to the repayment terms of an existing loan after the borrower is delinquent. Often used when the borrower misses payments, but the lender does not foreclose.

Replacement Cost
The amount or cost to rebuild and refurnish with materials and items of similar value. For example, replacement costs are used for insurance purposes in the event of theft or fire when replacing lost items.

Replacement Reserve Fund
Funds that are set aside by a homeowner’s association or condominium board to replace common property, such as playground equipment.

Repossession
If a borrower stops making payments on a property, the lender has the legal right to take back the property.

Resale Value
The price or dollar amount that a property owner is able to negotiate when selling an existing home or property.

Rescission
The cancellation of a contract as agreed by all of the parties involved.

Reserve Fund
Funds that are set aside or reserved by a home owner’s association or condo board for major repairs and improvements to common areas.

Reserves
Formerly required to be maintained by the bank in accordance with Bank Act regulations, but are now phased out.

Resident Alien
A person who is living as a legal permanent resident, but is not a citizen of that country.

Residual Value
The value of the vehicle at the end of a lease agreement which is agreed upon at the time of signing.

Restructured Loan
A mortgage in which basic terms — such as interest rate, term and monthly payment — are altered or restructured to prevent foreclosure on the property. This is not a regular practice in Canada.

Resets
The periodical balancing of an account for the purpose of converting interest into principal, and charging the party liable thereon with compound interest.

Retail Banking
Banking services offered to individual customers such as savings accounts, personal loans, cheque cashing, and RRSPs.

Retained Earnings
All of the profits or losses accumulated from prior years and from the present year’s income statement, minus dividends paid to you.

Return
Any increase in value, profit, or income that is earned from an investment.

Return on Investment
The gains or profit from an investment that is typically expressed as equity divided by cash flow.

Right of First Refusal
An agreement made by a property owner which gives a specific buyer the opportunity to purchase the property before it is offered to anyone else.

Right of ownership
Recognition which gives the owner of a property the right to use, enjoy and freely and fully dispose of the property, to the extent of the limits and conditions imposed by law.

Right of withdrawal

Privilege which a natural person has to withdraw a real estate brokerage contract for the sell of his immovable within three days following receipt of the contract duplicate signed by both parties, unless there is a written waiver. After this period, if the contract is marked “irrevocable”, it cannot be cancelled under any circumstance nor can the term be changed unless the broker or agent agrees.
Note: The right of cancellation applies when the contract involves a chiefly residential building containing less than five dwellings.

Royalty Income
Payments or money received for the use and exploitation of certain kinds of property, such as artistic or literary works, patents, and mineral rights.