# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A Purchase Agreement is a legally binding contract between a buyer and a seller outlining the terms and conditions for the sale and purchase of a property. This document details essential aspects such as price, closing date, and contingencies.
A Purchase and Sale Agreement (PSA) is a legally binding contract that outlines the terms and conditions related to the purchase of real estate assets. It is used primarily to detail the obligations and rights of both the buyer and the seller before the actual transfer of property ownership.
Purchase capital is the total amount of money used to acquire real estate, irrespective of its source, encompassing both equity and debt components.
A Purchase Contract, also known as an Agreement of Sale, is a binding legal document outlining the terms and conditions under which a buyer agrees to purchase and a seller agrees to sell a property.
A mortgage provided by the seller to the buyer in part payment of the purchase price of real estate. It serves as an alternative or additional financing option for buyers who may not qualify for traditional loans.
A Purchase Offer is a formal document that indicates a buyer's intention to buy a property at a specified price and terms. It serves as the basis for the subsequent negotiation and contract phase in real estate transactions.
A purchase option is a contractual right granted to a party (typically a tenant) that gives them the opportunity, but not the obligation, to buy an asset or property at a specified price within a set period.
The term 'Purchase Price' refers to the dollar amount agreed upon by the buyer and the seller for the sale of a property. This figure is specifically outlined in the sales contract and does not take into account any adjustments for financing, concessions, or seller-paid closing costs.
The purpose of an appraisal assignment is to clearly define the goal of the appraisal process, whether it is to estimate market value, insurance value, value in use, or some other specific value.
A pylon sign is a freestanding sign commonly mounted on a pole or pylon structure, designed to be visible from a distance. These signs are often used to list tenants in a shopping center or to display business names and logos prominently along roadways.
Pyramiding is an investment strategy that seeks to build a portfolio by reinvesting the proceeds from sales, or by refinancing existing properties into higher-valued properties using leverage.
A quadrangle is a square-shaped land area 24 miles on each side, utilized in the Government Rectangular Survey method of land description. Each quadrangle contains 16 townships.
A quadraplex, also known as a four-plex, is a type of real estate property that consists of four separate units within one building. Each unit can be rented out individually, offering multiple income streams for property investors.
A qualified buyer is an individual or entity that has been assessed and deemed financially capable of purchasing a property within a specific price range. This term is crucial in real estate transactions as it helps differentiate between prospective buyers who have the financial means to complete a purchase and those who do not.
A Qualified Intermediary (QI) is a person or entity authorized to hold funds to facilitate a Section 1031 Exchange, enabling property owners to defer capital gains taxes, particularly in delayed exchanges.
Qualified Leasehold Improvement Property (QLIP) refers to improvements made to an interior portion of nonresidential real property by a lessor or lessee under a lease, which may be eligible for certain depreciation benefits.
A Qualified Mortgage (QM) is a home loan that adheres to the guidelines set forth in the Dodd-Frank Wall Street Reform and Consumer Protection Act, designed to mitigate the risks associated with mortgage lending and prevent practices that led to the financial crises like the 2008 credit crunch.
A Qualified Real Estate Professional is a taxpayer who qualifies for an exception to passive activity income rules through significant material participation in real property trades or businesses.
A Qualified Thrift Lender (QTL) is a financial institution that specializes in home mortgage finance and is required to hold a significant portion of its portfolio in residential mortgage loans or mortgage-backed securities, as per the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA).
A measure used by lenders to determine the maximum percentage of a borrower's income that can be allocated to debt payments and still qualify for a loan. This ratio helps assess the lender's risk exposure.
A Quantity Survey is a meticulous method used by appraisers to estimate the reproduction cost (new) of an improvement. It involves a detailed cost estimate of all materials, labor, and overhead required to replicate a structure.
A nineteenth-century-style house that is unique-looking, multi-story, and irregular in shape with a variety of surface textures, materials, and colors. The term Queen Anne has come to be applied to any Victorian house that cannot be otherwise classified.
In real estate, quiet enjoyment is the right of an owner or any person legally entitled to possession to use property without interference. It is fundamental for tenants and property owners, ensuring that they can possess and enjoy their property in peace.
A quiet title suit is a legal action taken to settle ownership disputes and remove any clouds on the title of real property, ensuring the owner has clear and undisputed rights to the property.
A quitclaim deed is a legal instrument that transfers the grantor's interest in a property to another party without warranties or guarantees regarding the property's title. It is often used to clear clouds on the title or transfer property between family members.
R Value is a measure of the heat conductivity of a material. The higher the R value, the better the material serves as insulation from heat transfer, commonly applied to insulating materials, roofs, exterior walls, windows, and doors.
Racial Steering refers to the practice where real estate agents guide prospective homeowners towards or away from certain neighborhoods based on their race. This practice is illegal and contributes to racial segregation in housing.
A radius clause in a shopping center tenant's lease restricts the tenant from opening another store within a specified distance from the shopping center to prevent competition and reduced traffic to both the existing store and the shopping center. This is often crucial for anchor tenants and can also apply to ancillary tenants.
Radon is a naturally occurring, radioactive gas that can accumulate in buildings, posing potential health risks. Particularly in well-insulated homes, radon levels can rise to harmful concentrations.
A rafter is a structural member, often made of timber or a beam, that supports a roof by providing a framework from the ridge or hip of the roof to the wall plate.
A Ranch House is a one-story house design that originated in the western United States, characterized by its long, low, and rambling style.
In real estate, 'Range' can refer to a variety of concepts, including mathematical data range, undefined grazing land, or a division of land in the government rectangular survey system.
Lines parallel to a principal meridian, marking off the land into six-mile strips known as ranges in the government rectangular survey system.
In real estate, 'Rate' refers to the ratio of periodic income or change to the amount invested or initial amount. This metric is used in various contexts such as calculating interest on loans, investment returns, population growth, and occupancy in buildings.
A rate cap refers to predetermined limits placed on adjustments to the interest rate on an adjustable-rate mortgage (ARM), safeguarding borrowers from excessive rate fluctuations over the life of the loan.
A rate guarantee, also known as a locked-in interest rate, ensures that the interest rate on a mortgage loan will not change for a specified period, even if broader market interest rates fluctuate during that time.
A Rate Improvement Mortgage is a type of mortgage loan that includes a provision allowing the borrower to reduce the interest rate when market rates decline. This option can generally be exercised only once during the life of the loan.
A Rate Lock secures a specified interest rate for a mortgage, assuring homebuyers or refinancers that their rate will not increase between the date of the agreement and the closing date of the loan, provided the borrower closes within the specified time frame and there are no changes to their application.
The rate of interest, also known as the interest rate, is the proportion of a loan that is charged as interest to the borrower. It is a crucial factor in real estate financing and investment.
The Rate of Return is the percentage gain or loss on an investment relative to its cost, offering a snapshot of the investment's profitability.
The Rate of Return on Investment (ROI) measures the profitability of an investment, determining the efficiency of various investment choices.
A ratio expresses the quantitative relationship between two numbers, showing the number of times one value contains or is contained within the other.
Raw land refers to undeveloped land that lacks improvements such as buildings, utilities, streets, drainage, and landscaping. Often, raw land is purchased for development purposes, such as constructing residential subdivisions or commercial properties.
In real estate, a 'ready, willing, and able' buyer is someone who has the intent, financial capability, and preparedness to fulfill the terms of a property purchase. This concept is essential for brokers to earn their commission.
Real Capital Analytics (RCA) is a premier data provider for commercial real estate sales and income capitalization rates, offering comprehensive market intelligence and analytics.
Real estate refers to land and anything attached to it, including buildings and other structures. It encompasses ownership, use, and transfer of physical property. Real estate business activities include accounting, appraisal, legal advising, brokerage, counseling, regulation, and financing.
A real estate agent is a licensed professional who assists in buying, selling, or managing properties. They work under the authority of a licensed broker and are pivotal in navigating real estate transactions.
A real estate agent is a licensed professional who represents buyers or sellers in real estate transactions. Real estate agents are generally compensated on a commission basis and operate under the supervision of a real estate broker.
A Real Estate Appraiser is a professional who evaluates and estimates the value of properties. The appraiser considers many factors, including location, condition, and market trends, to provide an unbiased opinion of the property's market value. Their services are crucial for transactions such as buying, selling, refinancing, and property taxation.
An audit in the context of real estate refers to the inspection and evaluation of financial records and procedures, conducted by a Certified Public Accountant (CPA) or other qualified individuals. It ensures that the financial aspects of real estate transactions, ownership, and management are accurately and fairly presented.
A real estate board, also known as a Board of Realtors®, is an organization established for professionals within the real estate industry to provide support, education, and networking opportunities.
A Real Estate Broker is a licensed professional who represents buyers or sellers in real estate transactions. They usually own and operate their own brokerage or work independently, overseeing other real estate agents.
The Real Estate Buyer's Agent Council (REBAC) is a former name of an organization committed to educating real estate agents about working with buyers.
REBAC is an affiliate of the National Association of REALTORS that focuses on ensuring a high level of expertise and representation for buyers in the home-buying process. It offers the Accredited Buyers Representative (ABR) designation.
A Real Estate Commission is a fee charged by a real estate agent or broker for their services in facilitating a real estate transaction, typically a percentage of the property's sale price.
A real estate contract defines the terms agreed upon by a buyer and seller regarding a real estate transaction. This legal document ensures all parties understand their obligations and rights.
A distinguished collective of leading experts specializing in real estate valuation, business valuation, research, advisory, counseling, and market analysis services.
The Real Estate Educators Association (REEA) is a professional organization of individuals who specialize in teaching real estate across various educational platforms, including junior colleges and proprietary license preparation schools.
Real Estate Information Standards (REIS) provide a comprehensive set of guidelines for the collection, processing, and dissemination of real estate information, ensuring consistency, accuracy, and transparency across the industry.
Real Estate Information Systems (REIS) are technological platforms designed to gather, store, analyze, and manage data related to real estate operations. They are essential for streamlining property management, facilitating transactions, and providing sophisticated market analysis.
The Real Estate Investment Advisory Council (REAIC) is a national nonprofit trade association that serves as a platform for commercial real estate principals to share ideas, concerns, and experiences. REAIC is headquartered in Atlanta, with active regional chapters in Los Angeles and Phoenix.
A Real Estate Investment Trust (REIT) is an investment vehicle that allows investors to invest in real estate or mortgages without directly owning the property. REITs avoid double taxation by distributing most of their income to shareholders and complying with specific IRS requirements.
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate.
A Real Estate License is an authorization granted by a state allowing an individual to engage in real estate practices, either as a broker or salesperson, enabling them to legally offer and manage real estate transactions.
A Real Estate License is a certification that allows regulators to ensure that real estate agents and brokers meet minimum requirements for honesty, competency, and securing the legal rights of consumers within real estate transactions.
The real estate market consists of potential buyers and sellers of real property at any given moment, as well as the current transaction activity surrounding such properties. It encompasses various segments including housing, office spaces, condominiums, and land.
A Real Estate Mortgage Investment Conduit (REMIC) is an entity created for the purpose of holding a fixed pool of mortgages and issuing mortgage-backed securities to investors in a tax-efficient manner.
A Real Estate Mutual Fund is a regulated investment vehicle focused on investing in securities offered by real estate-related companies, including REITs, real estate development and management firms, and homebuilders.
A Real Estate Operating Company (REOC) is a publicly traded real estate company that chooses not to adopt the tax status of a Real Estate Investment Trust (REIT), allowing it to reinvest earnings and operate without restrictions on the type of real estate businesses it conducts.
A Real Estate Operating Company (REOC) is a business entity engaged in the direct ownership, operation, management, and development of real estate properties. Unlike Real Estate Investment Trusts (REITs), REOCs do not necessarily have to distribute a significant portion of their earnings as dividends and are not subject to the same regulatory requirements.
Real Estate Owned (REO) refers to properties that a lender, typically a bank, has acquired through foreclosure. These properties are held in the lender's inventory until they are sold.
A real estate property tax deduction allows homeowners to reduce their taxable income by the amount they pay in property taxes. This deduction can be claimed on an individual's federal income tax return under itemized deductions.
The Real Estate Roundtable brings together leaders of the real estate industry to advocate for policies that promote real estate and overall economic growth. It bridges the gap between real estate and public policy.
The Real Estate Roundtable is an organization composed of leading owners, developers, and stakeholders in the real estate industry, focusing on legislative actions, policies, and government interventions affecting real estate finance, taxation, and investment.
A Real Estate Salesperson is a licensed professional who assists buyers and sellers in real estate transactions, providing expert advice, market analysis, and negotiation skills to facilitate property sales.
The Real Estate Settlement Procedures Act (RESPA) is a federal law intended to provide greater transparency and knowledge to consumers about real estate transactions. It stipulates how mortgage lenders must treat applicants for federally-related real estate loans on properties containing 1–4 dwelling units. RESPA aims to eliminate unnecessary fees and ensure borrowers receive pertinent information to facilitate informed comparison shopping.
The Real Estate Settlement Procedures Act (RESPA) ensures that residential mortgage borrowers receive timely and accurate disclosures about the costs involving settlement procedures and protects them from unnecessarily high settlement charges caused by certain abusive practices.
Real estate tax is a levy on property that the owner is required to pay. This tax is usually a major source of revenue for local governments and is often assessed as an ad valorem tax, based on the property's value.
Real Property encompasses a variety of rights associated with the use and ownership of land and structures. It can include a full ownership interest, the use of a property under a lease, or partial interests like easements.
Real Property Trades or Businesses encompass various activities in real estate such as development, construction, rental, and management. For tax purposes, a taxpayer must own an interest greater than 5% in the business for the hours to count toward material participation.
REALIST is a comprehensive public records data source for Multiple Listing Service (MLS) systems, operated by CoreLogic’s division. It provides valuable property and market insights to real estate professionals.
A realized gain refers to the financial gain generated from the sale or exchange of a property, though this gain may not always be subject to immediate taxation. In cases of tax-free exchanges, such as under Section 1031, the gain is realized but not recognized for tax purposes.
RealQuest is a comprehensive real estate data supplier that is a division of CoreLogic. It provides essential data on sales prices, property characteristics, real estate locations, tax data, and MLS data, enabling stakeholders to make informed decisions.
A REALTIST is a member of the National Association of Real Estate Brokers (NAREB), primarily consisting of minority brokers and real estate professionals who uphold a rigorous ethical code. They often represent minority communities and promote fair housing and homeownership opportunities.
Realtor Property Resource (RPR) is an Internet-based data and information service designed exclusively for REALTORS®. It provides a comprehensive database that includes sales data from Multiple Listing Services (MLS), mortgage loans and foreclosure details, demographics, as well as additional government and private data related to real estate. The service is accessible for free to members of the National Association of REALTORS® (NAR).
REALTOR.COM is an official website maintained by the National Association of REALTORS® (NAR) offering a comprehensive resource for home buyers, sellers, and real estate professionals.
A REALTOR® is a professional in real estate who subscribes to a strict code of ethics as a member of local and state boards and the National Association of REALTORS® (NAR).
A REALTOR®-ASSOCIATE is a licensed real estate salesperson who is a member of the NATIONAL ASSOCIATION OF REALTORS® (NAR) and operates under the supervision of a Realtor®-Broker.
The REALTORS® Land Institute (RLI) is a specialized affiliate of the National Association of REALTORS® focused on facilitating land brokerage transactions across various categories including farms and ranches, undeveloped tracts of land, transitional and development land, and more.
Realty, also known as real estate, encompasses properties consisting of land and buildings on it, along with its natural resources like crops, minerals, or water. Realty is a crucial component of the economy and plays a significant role in investment, development, and personal wealth management.
RealtyRates.com is a web platform that offers quarterly updates of survey data on capitalization rates for various types of income properties, including investor and developer surveys.
A reappraisal lease is a type of lease agreement where rental levels are periodically reviewed and adjusted based on appraisals conducted by independent appraisers. This ensures that the rent reflects the current market value of the property.
A reappraisal lease (also known as a revaluation lease) involves periodically reassessing the value of the leased property to adjust the rent accordingly based on prevailing market conditions. This ensures both the lessor and lessee engage under fair market terms over the lease duration.
Reassessment is the process of revising or updating the value estimate of property for ad valorem tax purposes. It forms the basis for determining the property taxes homeowners and businesses owe to local government entities.
A rebate is a partial refund provided to a buyer, often as an incentive or concession. In real estate, rebates can be offered for various reasons, including promotional or marketing strategies.
A recapture clause is a provision in a contract that allows the party granting an interest (such as a lease) to take it back under specific conditions. Common in commercial leases, this clause provides a landlord the option to retake leased premises if the tenant's performance—usually measured by sales or revenue—falls below a defined threshold.
Recapture of depreciation is a tax provision where the IRS recovers depreciation deductions upon the sale of an asset, often leading to significant tax implications for the property owner.
Recapture rate in appraisal describes the rate at which an investment is recovered in a wasting asset. It is added to the discount rate to derive the capitalization rate. This rate can be calculated using methods such as straight-line, sinking fund, or annuity.
Recasting is the process of adjusting a loan arrangement, often to prevent default, by extending maturity or changing the interest rate.
A receiver is an individual or entity appointed by a court to manage, oversee, and maintain a property that is involved in ongoing litigation to ensure that the property is preserved and managed properly.
