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Lease Definitions & Terms

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Realtor

A coined word which may only be used by an active member of a local real estate board, affiliated with the National Association of Real Estate Boards.


Real Estate Board

An organization whose members consist primarily of real estate professionals such as brokers.


Real Estate Broker

Any person, copartnership, association or corporation who, for a compensation or valuable consideration, sells or offers for sale, buys or offers to buy, or negotiates the purchase, sale, or exchange of real estate, or who leases or offers to lease or rents or offers for rent any real estate or the improvements thereon for others. Such a broker must secure a state license. For a license to be issued to a firm, it is usually required that all active partners and officers must be licensed real estate brokers.


Real Estate Salesperson

Any person who, for a compensation or valuable consideration, is employed either directly or indirectly by a real estate broker to sell or offer to sell, or buy or offer to buy or negotiate the purchase, sale or exchange of real estate or to lease, rent or offer for rent any real estate or to negotiate leases thereof or the improvements thereon.


Real Estate Syndicate

When partners (either with or without unlimited liability) form a partnership to participate in a real estate venture.


Real Property

Land and any capital improvements (e.g., buildings) erected on the property.


Recapture

A clause in a lease agreement providing for lessor's retaking or recovering possession of the premises, usually by cancellation of the lease under certain conditions.


Rent

Compensation from tenant to landlord for the use of real estate.


Restriction

A restriction, often specified in the deed, on the use of property.


Revocation

An act of rescinding power previously authorized.


Recording

The act of entering a record of documents affecting or conveying interest in real estate in a county recorder's office. Until recorded, a deed or mortgage generally is not effective against subsequent purchasers or mortgages or other third parties (see Constructive notice).


Redemption period

A period established by state laws during which the property owner has the right to redeem his or her real estate from a foreclosure or tax sale by paying the sale price, interest and costs. (Many states do not have mortgage-redemption laws.)


Rentable area

The generally accepted means of measuring space within an office building is the Building Owners and Managers association (BOMA) standard. From the inside of the outside wall (or in new buildings from the glass line) to the outside of the inside wall (or hall wall) and center to center on the division walls. Columns are included.


Replacement cost

The current cost of replacing the subject property with property having exactly the same utility and amenities.


Rules and Regulations

Building standards that are binding on the tenants are usually set forth in a part of the lease covering such things as use of common areas, door lettering, signs, noise, odors, moving or installation of equipment, special locks, etc.