QUITCLAIM DEED: A deed operating as a release and, as such, intended to pass to the grantee any title, interest, or claim that the grantor may have in the property but not containing any warranty of valid interest or title in the grantor.
RAW LAND: Land in its natural state. Land that has not been subdivided into lots, does not have water, sewers, streets, utilities, or other improvements necessary before a structure can be constructed.
REO (REAL ESTATE OWNED): All real estate directly owned by a lender, including real estate taken to satisfy a debt. Includes real estate acquired by lenders through foreclosure; or in settlement of any other obligation to the lender.
REAL PROPERTY / REAL ESTATE / Realty: Land or immovable property and anything permanently affixed to the land, that has been legally defined and the improvements to it made by human efforts: such as buildings, machinery, wells, dams, ponds, mines, canals, roads, fences, and those things attached to the buildings, such as light fixtures, plumbing and heating fixtures, or other items which would be personal property if not attached. It may also refer to rights in real property as well as the property itself.
RECAPTURE: That portion of the gain from the sale of real estate that is taxed at ordinary income tax rates. Calculated as the difference between the accelerated depreciation taken and the straight-line depreciation that would have been allowed.
RECOURSE: The right of a lender or holder of a note secured by a mortgage or deed to look to the personal assets of the borrower or endorser for payment, not just to the property.
REHAB / REHABILITATION: A building undergoing extensive renovation in order to cure obsolescence. Some rehab projects are so extensive that tenants may not be in the building during the work period. Synonymous with reconditioning, except when used in connection with urban renewal, at which time it encompasses all types of changes, including structural and even street changes.
RENEWAL OPTION: The right of a tenant to renew (extend the term of) a lease for a stated period of time and rent at an amount that can be determined.
RENT: Consideration paid for the occupancy and use of real property. A general term covering any consideration (not only money).
RENT COMMENCEMENT DATE: The date on which a tenant begins paying rent. Depending upon the nature of the marketplace, it may coincide with the lease commencement date or it may be several months after. It will never begin before the lease commencement date.
RENTABLE SQUARE FEET / RENTABLE AREA: Usable square feet plus a percentage (the core factor) of the common areas on the floor, including hallways, bathrooms, and telephone closets (and sometimes main lobbies). Rentable square footage is the number of square feet on which a tenant’s rent is based.
RENTABLE/USABLE RATIO: The number resulting from dividing the Total Rentable Area in a building by the Usable Area. The inverse of this ratio describes the proportion of space that an occupant can expect to utilize.
RENTAL CONCESSION: Rental Concessions are benefits that are offered by the landlord to his tenants. Concessions are usually offered to draw tenants to properties or if a tenant decides to renew their lease. Offering concessions depends largely on the market condition. The most common form of rental concession is to reduce the rent, but there are several other forms of concessions. Landlords may offer build-out allowances or signage for some commercial properties. (See also Abatement.)
RENT-UP PERIOD: The period of time following construction of a new building when tenants are actively sought and the project is approaching stabilized occupancy.
RIGHT OF FIRST REFUSAL: (See First Refusal Right.)
RUNNING WITH THE LAND: This term is generally synonymous with and usually used in reference to easements and covenants. It also means passing with the transfer of the land.