Terms Beginning With - R
Property Development & Investment Glossary, Terms & Definitions
Rate of return
The return on an investment expressed as a percentage.
Land that has not been renovated.
Ready, willing, and able
A person who is capable of purchasing or selling real estate.
Land and improvements, as well as any minerals and resources found on the property.
Real estate broker
Any individual or business that has been granted a state licence to sell or lease property on behalf of others.
Real estate commission
When a transaction is completed, a fee is paid to a real estate broker or agent.
Real estate cycle
Predevelopment, maturity, decline, and eventually rehabilitation or demolition are all stages of real estate development.
Real estate investment strategy
A comprehensive investment strategy in which a real estate investor takes a series of decisions to assist them reach their objectives.
Real estate investment trust (REIT)
A real estate investment trust. 95 percent of earnings must be allocated to investors by law.
Real estate security
A type of personal property that is secured by real estate and serves as proof of ownership or indebtedness.
A gain that has happened monetarily but is not necessarily taxed in a transaction.
Active members of local boards of REALTORS connected with the National Association of REALTORS use this registered trademark phrase exclusively.
It's all about real estate.
Excess depreciation over straight line depreciation is the amount of gain assessed by the IRS on the sale of depreciable property.
A contract clause that allows the party who transfers a right or interest to reclaim it under specified conditions.
The taxable share of a gain in an exchange.
Filing a legal agreement in a county's public records.
In the case of a default on a loan, the borrower is personally accountable for the debt.
Homesites having recreational amenities, such as campsites and RV parks, or properties with fishing, boating, skiing, hunting, or other outdoor activities.
The process of recovering a historic structure for adaptive reuse.
A time during which a previous owner of a foreclosed property can regain it.
The Securities and Exchange Regulator (SEC) or a state securities commission have not authorised a proposed prospectus.
The process of refinancing an existing debt with a new one.
Regional shopping center
The most common style of shopping complex, with two to five anchor department stores and 100 to 150 smaller retail establishments. The enclosed centres are usually referred to as "malls." The size of these facilities varies from 400,000 to over 1,000,000 square feet.
The Securities and Exchange Commission's (SEC) regulation that lays out the requirements for a private placement exemption.
Renovating a home for personal use or sales.
Rehabilitation tax credit
A tax credit for non-residential buildings that were in service before to 1939 and were rehabilitated. To qualify for this tax credit, the repaired property must be depreciated using the straight-line method.
A mortgage clause that allows the pledged property to be released when the obligation is paid in full.
A provision in a contract that allows the landlord to evict a tenant.
To change the terms of a contract legally.
Renegotiated rate mortgage (RRM)
A mortgage with a variable interest rate that changes over the life of the loan.
Renewal of a lease for a specific duration and rent.
The payment received from a lessee in exchange for the use of an occupied area.
Surface area that may be rented out. The three approaches listed below can be employed.
- The International Association of Building Owners and Managers is a non-profit organisation that brings together building owners and managers from (BOMA). On the partition walls, from the inside of the outside wall (or, in newer structures, the glass line) to the outside of the inner wall (or hall wall), and from centre to centre. There are columns included.
- Administration of General Services (GSA). The only difference is that all columns, dividing walls, service closets, and other features are incorporated. Only the net useable space is available. This procedure must be utilised when leasing to the federal government.
- The New York Method is a technique that was developed in New York City Only the elevator shafts and stairwells are taken into account when measuring space across the floor from the glass line. In the event of multiple occupancy on one level, the usable and non-use common space is divided among the tenants based on the size of their individual areas.
Lessor concessions to the lessee in order to get the lessee to sign a lease.
The amount of rent a lessee can charge tenants is regulated by a local governing board.
A balance statement for each tenant's account, including the tenant's name, unit number, lease period, and rent.
The rent levels for the various sorts of units in a property are listed below.
The amount of time it takes for a property to become completely rented once it has been completed.
Work done to restore property to its previous state without extending its useful life.
Replacement cost approach
The expected cost to replace the improvements, less any depreciation, plus the evaluated worth of the land, is used in this assessment approach.
A monetary reserve for the replacement of fixed assets in the future.
The cost of recreating a property as of a specific date.
After subtracting all sales charges, the profit received by an individual after selling a property.
To cancel a contract.
A contract that has been cancelled.
An account set up to cover anticipated capital expenses or cash flow shortfalls.
Real estate that is designed to be used as the owner's primary residence.
While dwelling in one of the apartment units, an individual who monitors the upkeep of an apartment property.
A restriction imposed on the usage of a property.
A resale partnership.
Amount of money kept back in a building contract until the contractor has met all of the contract's requirements.
Retire a mortgage
To be able to pay off a loan.
Return of capital
The original investor's capital contribution is returned, however it is not immediately taxed.
Return on equity
The amount, stated as a percentage, that is returned to the investor on his initial investment.
Profit and tax advantages are distributed between general and limited partners.
Reverse annuity mortgage
A mortgage designed for the elderly with significant equity, in which the lender gives the borrower a sum on a regular basis, resulting in negative amortisation.
When the financial benefits of ownership accumulate at a faster rate than the interest rate on the mortgage.
When a lease expires, a landlord has the right to take possession of the leased property.
Work changes that necessitate the architect providing alternative drawings or revising the original working drawings.
An addendum to a contract.
Right of redemption
The ability to reclaim property that has been conveyed through a mortgage or lien by repaying the obligation before or after a foreclosure.
Right of survivorship
When one owner of a jointly owned property dies, the other owner has the right to acquire title to the property.
An easement is the right or privilege to travel through another's land.
Water rights are governed by a legal doctrine. It asserts that the water belongs to the natural users, particularly those who live near it.
The potential that an investment's financial return may not be as expected.
Risk return relationship
The financial philosophy that acknowledges that if an investor wants a high rate of return, he or she must incur a high risk.
16 1/2 feet is a linear unit of measurement.
A long-term mortgage loan with an interest rate that is modified on a regular basis.
A contract in which the potential buyer has the ability to renew the option one or more times for a fee.
Rules of thumb
Benchmarks are shorthand terms that are used to make investing judgments. Gross rent multipliers and the overall capitalization rate are two common examples.