rack rate
The rate a lodging establishment charges for a room before any discount has been taken into account. It is the published rate for a guest room. A rack rate is often the rate a lodging establishment would offer a guest if he / she approaches the establishment directly.

range
Land used for grazing livestock. In some countries, it also means an administrative sub-division.

ratable estate
Property on which tax is levied.

ratchet clause
A mechanism in a lease agreement which prevents the rental payable from decreasing at a rent review.

rate index
Benchmark or index on which the interest rate of a floating rate loan is based.

rate of occupancy
The percentage of all rental units (i.e., hotel guest rooms) are occupied or rented at a given time expressed as a percentage.

rate of return
The annual percentage return from an investment.

rateable value
An estimate of its annual open market rental value at a designated valuation reference date made on the assumption that the property was then vacant and to let.

raw land
Term for land that does not have facilities or services such as water, traffic, electricity, communication infrastructure or gas. Virgin land.

raze
Knock down.

real estate
Of or relating to land and property.

real estate broker
A person who brings buyers and sellers or lessors and lessees or tenants and landlords together and receives a percentage of the deal value as compensation.

real estate license
A license issued by a competent authority for carrying on the business of a real estate broker or developer.

realty
Same as real estate.

recision of a contract
The abrogation of an agreement.

recital
Explanation of facts in a deed or agreement.

reclamation
The process of increasing the value of land by improving (usually) wasteland or swampland and making it economically useful.

reconditioning
Renovation.

reconveyance
The transfers of title to a mortgaged property from a trustee to the equitable owner after all sums due plus interest have been repaid.

rectification of boundaries
The correction or adjustment of the line(s) separating two properties in order to correctly reflect the title of lands.

reddendum
Legal term for an owner retaining some rights in a sale or lease deed.

redemption
The act of paying off amounts due on mortgaged properties following which the owner’s unencumbered title to a property is restored.

redevelopment
The improvement of land in terms of an urban development plan.

re-entry
The right to retake possession of a property that has been given to another party by way of mortgage, lease, rental, etc. Legal action is often necessary to enforce this right.

refurbishment
The act of renovating or upgrading an existing property, either internally or externally.

regional shopping center
See Metropolitan shopping center.

registered agreement (IND)
A Leave & License Agreement/Lease Agreement which has been adequately stamped with the applicable stamp duty and then registered with the sub-registrar.

registration (IND)
Every Leave & License Agreement/Lease Agreement in India has to be registered with the office of the subregistrar of assurances (local authority) for it to be enforceable by law. This is the obligation of the licensor/lessor/landlord. However, the cost towards registration of the agreement is usually paid by the licensee/lessee.

reinstatement
1) Payments that restore a contract from default and make it live once more. 2) The act of putting a part or the whole of a building or structure back into the condition which existed at some relevant previous date.

REIT (Real Estate Investment Trust)
A REIT is a corporation or trust that uses the pooled capital of many investors to purchase and manage real estate assets and / or mortgage loans. REITs are traded on major stock exchanges like normal stocks. They are often also granted special tax considerations. Key benefits of REITs are their inherent liquidity and their instant pricing. REITs enable investment in all major asset types including shopping centers and other commercial or industrial properties.

relocation
Refers to the process of relocating people living on a future development site to another area.

remise
To give up a claim.

remnant
Non-acquired portion of a larger property that has been taken over by the government in eminent domain proceedings, such that this remaining portion is practically of no value.

remodeling
The improvement of a structure by changing its plans or functions.

rendering
The drawing of a plan or sketch of a building.

renegotiation
The act of trying to impose new terms on an existing agreement. Some agreements specifically allow the renegotiation of certain terms like rents or rate of interest after given intervals.

renewal
An agreement to continue an existing contract on similar or slightly modified terms at the end of the previous term.

renewal option
A clause in an agreement that gives either or both parties the right but not the obligation.

renewal term
Upon the conclusion of the initial term as mentioned in the agreement, the lessee at its option may renew the agreement for an additional period (usually three to five years) which is described in the agreement as the renewal term.

renovation
Same as reconditioning.

rent controls
Laws in some countries that set upper limits on the amount of rents that can be charged by landlords.

rent free period
Period during which the landlord does not charge rents from the lessee. This is usually at the beginning of the contract period when the lessee needs time to furnish the property to make it fit for use.

rent review
A provision in a lease whereby the amount of the rent is to be reconsidered at stated intervals, eg., every three or five years, or on specified dates. The method and procedure for reviewing the rent are outlined in the lease. Failing agreement between the parties, there is normally provision for reference to a third party, i.e., an arbitrator or independent expert.

rent subsidy
Subsidy that some governments pay for renting properties to special or disadvantaged groups. In some countries, this also means a rebate on taxes levied on rental income of landlords to enable them to carry out essential repairs to a property.

rentable area
The area in square feet or square meters that a landlord can charge rent for.

rental
A periodic payment for the use of land or property made by a tenant to a landlord under a lease or tenancy agreement. Rent is therefore both a charge on occupation and also a return to owners of property.

rental agent
A real estate broker who helps a landlord to find a tenant, in return for a consideration, usually a percentage of the annual or monthly rent.

rental agreement
An agreement between a landlord and a tenant setting forth the terms of a lease.

rental commencement
Refers to the date when the lessee’s obligation to pay rent commences.

rental review
At the end of the initial term of the agreement, the rental review comes into place based on the then market conditions. Rental review is usually pre-determined and the increase is capped at the time of execution of the initial term of the agreement.

rental value
The market rent of a property.

repairs
The replacement of broken or damaged portions of a property.

replacement
The substitution of a broken or damaged portion of a property with a similar item.

replacement cost
The cost of a similar or identical property.

replacement value
The cost of replacing damaged items with new items. It will often be greater than the value of the original items before damage occurred. In the case of valuable antiques, replacement may be impracticable regardless of cost.

rescind
To cancel a contract.

reservation
A right that has been retained by an original owner of land. Also refers to land that has been set aside by the government for a particular purpose or group of people.

reserve
The setting aside of funds for any purpose. Such purpose may or may not be specified, eg., reserve for renewal of fixtures fittings and equipment (FFE).

reservoir
A designated area where water is stored.

residence
Dwelling place.

residential building
A building in which people live.

residual method (residual valuation)
A method of determining the value of a property which has potential for development, redevelopment or refurbishment. The estimated total cost of the work, including fees and other associated expenditure, plus an allowance for interest, developer’s risk and profit, is deducted from the gross value of the completed project. The resultant figure is then adjusted back to the date of valuation.

residuary estate
The property of a deceased that remains after all taxes and bequests have been met.

resort hotel
A full-service lodging establishment located in a place frequented by people for relaxation or recreation.

resort property
Property that people visit on vacations or weekends for fun and relaxation.

restoration
The carrying out of repairs to a building in order to make it appear as it did originally.

retained earnings
The total profit or loss of the company less the total of all dividends paid, since the company’s startup.

retaining wall
Wall that restrains water or soil from flowing into an inappropriate area.

retention
An agreed sum held from the contractors payments until completion in case of non performance of the contractor.

retrofitting
The extensive renovation to a building often involving major changes to its layout, services and structure, to enhance its functionality and update or improve its appeal and marketability with a view to achieve better investment returns and capital appreciation.

return for risk and profit
A percentage of costs to allow for the developer’s annual risk and profit in a valuation to determine a ground rent by deductions from actual or estimated occupation rent(s).

return on equity (roe)
Net income for the period expressed as percentage of average shareholders’ equity for the period.

revaluation
Same as reassessment.

revenue per available room (RevPAR)
The product of Average Daily Rate (ADR) and average occupancy.

reversion
The right to reclaim title to a property at the end of a temporary estate.

reversionary yield
The percentage return on today’s price or value that will be derived when the current market rents become payable. This yield relates the future growth in net income to the historic cost or value of the property.

right of first refusal
A right given by one party to another whereby the first party is obliged to give the second party a chance to acquire an asset before he offers it to anyone else.

right of last refusal
A right given by one party to another whereby the first party is obliged to give the second party the last chance to bid on a property.

right of survivorship
The right of a survivor to the property of a deceased person. Usually found in lease or rental agreements.

right of way
The right to pass over land not legally or specifically belonging to the user.

rise
The height of a slope.

risk averse
In real estate, generally refers to an investor’s aversion to volatile returns.

risk management
The identification, assessment and management of issues that may cause an adverse effect on the project or the stakeholders.

ROFR (IND)
Right of First Refusal (ROFR) is provided by the lessor to the lessee on an additional area which has not been committed by the lessee. The lessor on finding another interested tenant for the area will provide the lessee with an opportunity to take up the area within a specified number of days, if the lessee does not take up the area within the specified number of days, the lessor will go ahead with the interested tenant.

rolling refurbishment
The staged upgrading of premises which avoids the complete removal of tenants but which does not result in a substantial upgrade of a building’s fabric and services.

room count
The number of rooms in a building or apartment.

Room Nights Available (RNA)
The number of guest rooms/units multiplied by the number of days for which they were available during any given period.

root of title
Document that establishes beyond dispute the title of an unregistered land. It traces the title to the property back in time, sometimes up to a hundred years or more, and from that point to the present, leaving no scope for any dispute over the right and title of the current owner.

row houses
Residential houses within a housing estate having two or three floors, constructed next to each other, having common walls, foundations and facilities. Also referred to as “terraced houses” in Singapore and Malaysia.

royalty
A fee paid to the owner of land for extracting natural resources (oil, coal, etc.) from it.

rural
Of or relating to the countryside, as opposed to cities.