REMAINING BALANCE
The amount of money owing on a loan. It usually refers to the principal balance but may include delinquent interest.
REMAINING ECONOMIC LIFE
number of years between the time of an appraisal and the point in time when an improvement becomes economically valueless.
REMAINING TERM
The time left to amortizing a loan. It is usually expressed in months.
REMIC
See: Real Estate Mortgage Investment Conduit.
REMISE
To give up or remit. Used in a deed, especially a quitclaim deed.
REMNANT
An appraisal term. A parcel of land, after a partial taking by eminent domain, so small or poorly shaped as to have practically no value.
REMODELING
Improving a structure by changing its plan, characteristics, or function, as opposed to reconditioning.
RENDERING
See: Artist’s Conception.
RENEGOTIABLE RATE MORTGAGE
A real property loan calling for an adjustment in the interest rate at a given time. Example: A loan with a 15 year amortization is adjusted to current interest rates after 2 years. The lender agrees to make the adjusted loan at the new rate as long as the old loan is not in default. The Federal Reserve Board allows the original loan to be treated either as a balloon payment loan or a variable rate loan. However, points must be figured into the A.P.R. based on the time or renegotiation (2 years rather than 15).
RENEGOTIATION
An attempt to agree on new terms to an existing contract (in real estate, usually a lease). A lease, for example, may call for renegotiation of rent after 5 years. Since renegotiation needs agreement of the parties, a set formula to determine the rent, such as an escalation clause, would not be renegotiation. Arbitration may be provided for in the event renegotiation fails.
RENEWAL
(1) To cause a lease to begin again for another term. (2) To rebuild, as in urban development (urban renewal).
RENEWAL OPTION
The right of a tenant to renew (extend the term of) a lease for a stated period of time and rent which can be determined.
RENOVATION
See: Reconditioning.
RENT
Consideration paid for the occupancy and use of real property. A general term covering any consideration (not only money).
RENT CONTROLS
A legal maximum on rental price. Used extensively during World War II. Modernly, a control on subsidized housing, where the rent is paid partly by the government agency, and a maximum rent is established, not by the landlord, but by the agency.
RENT LOSS INSURANCE
A policy that covers loss of rent in the event of damage to the property that makes it uninhabitable.
RENT SUBSIDY
See: Subsidy.
RENT-FREE PERIOD
See: Free Rent.
RENT-UP PERIOD
The length of time to rent a property newly constructed or renovated.
RENTABLE AREA
The area (square footage) for which rent can be charged. For example: An office building would not rent the space used for stairways, elevators, public washrooms, hallways, etc.
RENTAL AGENT
One who (for a fee) aids a landlord to find a tenant or a tenant to find property. Generally concerned with residential property and may not require a real estate license (or may require a special license) in some states.
