Glossary of Real Estate Terms: R - Z

A - C    D - I    J - Q    R - Z    References

 

RATES - Periodic property taxes levied by Local and State Governments (e.g. water rates).

REAL ESTATE AGENT - See Agent.

REAL PROPERTY - All the rights, interests, and benefits related to the ownership of real estate. Real property is a legal concept distinct from real estate, which is a physical asset. There may also be potential limitations upon ownership rights to real property.⁵

REALTY - See Real Estate.

RENT - A payment made periodically by a lessee to a lessor for the use of premises.

RENT REVIEW - A periodic review of rental under a lease using a predetermined method. For example, an increase in line with Consumer Price Index (CPI) or in accordance with a market valuation.⁴

RENT ROLL - A group of rental properties managed by a real estate agent and includes names of tenants and the amount they pay.

RENTAL DETERMINATION - A valuation report by an independent valuer fixing a rent, in circumstances where a lessor and lessee have been unable to negotiate an agreement.

RESCIND - To terminate a contract of sale.

RESERVE PRICE - The lowest acceptable price fixed by the vendor.⁵

RESIDENTIAL TENANCIES TRIBUNAL - Specialist bodies exist in most Australian States and Territories to resolve disputes between landlords and residential tenants in low-cost manner, usually without the involvement of lawyers. Specifically, these bodies include the: Residential Tenancies Tribunal (ACT, SA); Residential Tenancies Authority (QLD); Residential Tenancies List (VIC); Residential Tribunal (NSW); Commissioner of Tenancies (NT); and Residential Tenancy Commissioner (TAS). Tenancy disputes may be heard by the Small Disputes Division of Local Courts in WA.

RESIDENTIAL TENANCY DATABASE - A risk management tool used by agents to identify tenants with a history of breaching tenancy rules.

REVERSE MORTGAGE - A mortgage over a residential property owned by a person (usually over 55 years of age), where repayments are not required until the property is sold or the last homeowner dies.

RIGHT OF ACCESS - Where an ongoing right of access has been granted, usually for inspection of services, agistment, etc.

RIGHT OF ENTRY - Where a landlord may inspect the premises, provided reasonable notice is given to the tenant.

SELLER'S MARKET - The condition which exists when, under competitive conditions, the pressures of supply and demand are such that market prices are at a relatively high level, giving the seller an advantage. An under-supply causing prices to increase.

SETTLEMENT - This is the final stage of the sale when the purchaser completes the payment of the contract price to the vendor and takes legal possession of the property.

SETTLEMENT DATE - The date on which a contract of sale is finalised and the balance of money is paid for an asset.

SIMPLE INTEREST - Interest that is calculated on a sum that does not include previous interest charges.

SIMPLE LISTING - See Open Listing.

SOLE AGENCY - See Exclusive Listing.

SPECULATOR - One who speculates; that is, one who buys any commodity, including real estate, in the expectancy of selling in a higher market.

STAMP DUTY - The tax imposed by state governments on certain contracts (e.g. Contracts of Sale and Registered Leases). The amount of tax payable is calculated as a percentage of the contract value. See also individual state legislation.

STANDARD LEASE - A lease in commonly used form into which specific clauses or provisions may be written.

STOCK AND STATION AGENT - Stock and station agents are certified to broker transactions that involve livestock, rural property and agricultural products on behalf of their clients.

STRATA PLAN - The registered plan of a strata title property showing the boundaries of lots and unit entitlements. Pursuant to legislation on strata or unit titles.

STRATA TITLE - (a) The formal ownership of property held within a strata plan where property is defined within horizontal and vertical boundaries; (b) A scheme of property ownership where each proprietor owns parts of a building and has joint rights with other proprietors over the land and other common areas.

SUB-AGENT - A person employed by an agent as their sales representative to provide assistance in transacting the affairs of the principal. In some States a sub-agent is referred to as a sales representative.

SUBDIVISION - Divisions by a land owner, of all or part of a parcel of land, into separate allotments (or sections), each with a separate title, in accordance with a 'plan of subdivision' approved by the planning authority.

SUB-LEASE / SUB-LET - A contract whereby the whole or part of the property is let to another person, the party letting being themselves a lessee. The obligations of the lessee to the lessor are not diminished. The length of the sub-lease must not be longer than the unexpired part of the headlease.

SURVEY - The measurement and depiction on paper of the boundaries of real estate and the location of the improvements on the land, or measurement of a part of a building, usually undertaken by a registered surveyor.

TENANCY AGREEMENT - A form of lease, generally in an abbreviated form. It may be registered on an owner's certificate of title.

TENANCY IN COMMON - Ownership that is separate and not held directly with another person. There is no survivorship.⁸

TENANT - A person or entity paying rent in exchange for the occupancy of a building or dwelling. See also Lessee.

TENANT'S AGENT - A Tenant's Agent should be a licensed real estate agent, who acts on behalf of a tenant in a commercial property transaction.

TENDER - The sale of an asset through the seeking of written bids.

TITLE - The form of ownership of real estate (i.e. Torrens, strata or company title).

TITLE DEEDS - Documents evidencing the ownership of property.

TORRENS TITLE - The title to land by registration. Originating in South Australia under the stewardship of R.R.Torrens (later Sir Robert Torrens) and enacted in 1858. The Torrens titles has superseded the 'Common Law Title' system throughout Australia. Under the Torrens system dealings and ownership of land are managed by registration with the Titles Office.

TRUST ACCOUNT - A legislatively required bank account where monies are held by an agent for or on behalf of another person e.g. deposits, rental etc.

UNENCUMBERED PROPERTY - Property free and clear of mortgages, restrictive covenants, leases and assessments of any kind.

UNIMPROVED VALUE - A statutory concept of value used mainly for rating and taxing purposes, which envisages the land as being in its virgin state but enjoying the benefits of all external factors which influence the value at a given date. The value of land as if all existing improvements thereupon, including site works, had never been built or made, but regarding all other lands as in their current circumstance, including all improvements, roads, services and amenities.

UNIT (STRATA) - Each dedicated lot / unit area designated within a strata plan.

VACANCY-A rental property or any unit thereof that is unlet.

VACANCY RATE -The proportion of inhabitable rental premises which are vacant.

VACANT POSSESSION - In real estate this refers to a right to possession of land or built-up property in respect of which there is no current occupant.⁶

VACATE - To give up occupancy; to make vacant; move out of property.

VALUATION - (a) The process of estimating value.5; (b) The prediction of the value of an asset at a point in time, depending on the purpose for which the valuation is required.

VALUATION REPORT - A document that records the instructions for the assignment, the purpose and basis of the valuation, and the results of the analysis that led to the opinion of value. A Valuation Report may also explain the analytical processes undertaken in carrying out the valuation, and present meaningful information used in the analysis. Valuation Reports can be either oral or written. The type, content and length of a report vary according to the intended user, legal requirements, the property type, and the nature and complexity of the assignment. The terms, Valuation Certificate and Valuation Report, are sometimes used interchangeably.⁶

VALUER - A person who is: (a) registered / licensed / approved to carry out property or plant and machinery valuations under any State, Territory or Commonwealth legislation; and / or (b) a member of the Australian Property Institute who is accredited as a Certified Practising Valuer.

VARIATION - An addition to, omission from, or alteration to a contract or to the contract conditions.

VENDOR - One who sells anything. In real estate transactions, the person(s) or entity selling the property.

VOIDABLE - An agreement which can be made void at the option of one or both of the parties.

WATER CLOSET - A room equipped with toilet fixtures and facilities.

WITHOUT RESERVE - An auction term signifying that a reserve price has not been set, such that the highest bid will prevail.

YIELD - The derived percentage return of a property assessed from the net income and the market value or price. It is calculated by dividing the net income by the opening market value or price.

ZONING - A local planning tool to control the present and future development of land including residential, business and industrial uses.