Dictionary
R
- rating grid
A matrix which is used to make adjustments to comparable properties in order to derive the value of the subject property when using the market comparison method of appraisal.
- ratio
A ratio expresses one value in terms of another value; e.g., one out of every four houses is painted white. It can be stated as a fraction, one-quarter (1/4) of the houses are white; as a percentage, twenty-five percent (25%) of the houses are white; or as a ratio, one out of four (1:4) houses is white.
- real estate security
Any security whose principal or major assets consist of real property and/or buildings attached to land.
- real estate syndicate
Any form of organization in which two or more investors share in the ownership of an interest in real estate.
- recent
In appraisal, that time period just prior to the date of valuation over which demand and supply conditions have remained relatively stable.
- register
As a noun, the term refers to the books in which certificates of indefeasible title are entered or kept and, as a verb, the term refers to registering documentation pursuant to the provisions of the Land Title Act.
- reinvestment
The act of investing the funds generated by one investment into another investment.
- replacement cost
The expense that has to be incurred to build a modern equivalent of the subject property. Contrast to Reproduction Cost.
- replacement reserve
The amount of funds set aside for periodic replacement of building components that wear out more rapidly than the building itself and must be replaced during the buildingas economic life (also referred to as replacement allowance).
- representative
A licensee providing real estate services under the supervision of a managing broker.
- reproduction cost
The expense that has to be incurred to build an exact replica of the subject property. Contrast to Replacement Cost.
- rescission
In the law of contracts, a rescission amounts to the unmaking, or an undoing of it from the beginning, as opposed to a termination.
- residual method
This appraisal method is used for properties with redevelopment potential. To employ this method, another appraisal method is used to derive the property's value assuming it were employed in its highest and best use. Then, depending on whether the residual value of the land or the building is to be found, the cost of the building or the market value of the land is subtracted.
- restrictive covenant
A covenant restricting the use of the land of the covenantor (the Servient Tenement) for the benefit of land belonging to the covenantee (the Dominant Tenement). An example would be a restriction on the height of a building on one piece of land so that adjacent or adjoining lands are not put in shadow.
- retained earnings
The net income of current and prior periods less dividends paid, belonging to the shareholders of a corporation.
- return
See Yield.
- revenue principle
A generally accepted accounting principle which states that revenue is the value received from the sale of goods and services, interest, rent, and the gain or loss on the sale of assets. According to this principle, revenue is recognized on an accrual basis.
- reverse annuity mortgage
An innovative loan arrangement in which the lender makes periodic payments to the borrower during the loan term. At the end of the term, the borrower will have to repay the balance owing by refinancing or selling the property.
- revocation
The term for the cancellation of an offer communicated by the offeror to the offeree prior to acceptance.
- right to purchase
A right conferred by an Agreement for Sale of land.
- risk
See Capital Risk.