GLOSSARY OF REAL ESTATE TERMS

REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA)
A federal law enacted in 1974 to standardize real estate settlement procedures in the United States.

REAL PROPERTY
Land, together with the fixtures and improvements located thereon. Ownership of a parcel of real property generally includes rights to use and occupy the space above (air rights) and rights to the earth below the surface. However, air rights and mineral rights may be severed from the property and owned separately. Compare personal property.

RECEIVER
A court-appointed custodian who administers property for the court, pending final disposition of a matter before the court.

RECORDING
With regard to real estate, the filing of certain documents (e.g., deeds, mortgages) with a designated public office (e.g., the county clerk and recorder), which office is authorized to receive the documents for the purpose of establishing a public record. A given county clerk and recorder receives documents related to property located in the county. Documents are “stamped” with the date and time received and a unique recording number (e.g., a book and page). Recorded documents provide notice to the general public as to the matters set forth therein. In addition, the recording stamp provides a method for assigning priority to liens against property.

REFINANCE
To repay existing debt with new debt funds. The owner of a parcel of real property may refinance his or her mortgage debt to take advantage of more favorable interest rates, to change the loan term and/or to increase the loan amount.

RELEASE OF DEED OF TRUST
An instrument executed by the beneficiary and trustee (in Colorado, the public trustee) of a deed of trust indicating that the debt secured thereby has been fully-paid and satisfied and that the lien created thereby is to be released and discharged from the subject property. See deed of trust.

RELEASE OF LIEN
An instrument executed by the owner and holder of a lien that, when duly recorded in the appropriate county records, effectuates the discharge or release of the lien as to all of the property it encumbers or as to some specific (defined) portion. See lien.

REQUIREMENTS
With regard to a title insurance commitment, the conditions that must be satisfied before the title insurance company will issue an owner’s policy insuring marketable title or a loan policy insuring the sufficiency and priority of a mortgage lien.

RIGHT OF FIRST REFUSAL
The right to have the first opportunity to lease or purchase property at terms equivalent to those offered by a third party or at predetermined terms, which right arises upon the owner’s decision to lease or sell.

RIGHT OF WAY
An easement for passage or access upon or across a parcel of real property belonging to another.