R – Compendium of Real Estate Terms & Concepts

Replacement cost new is the current cost new, of a similar new property having the nearest equivalent utility as the property being appraised.

Replacement cost is the cost of replacing an existing asset with a substantially identical new modern equivalent asset. When calculating depreciated replacement cost, it is expected requires that physical deterioration be taken into account and that optimisation for obsolescence and relevant surplus capacity occur.

Renovation is the process by which old structures or historic buildings are remodelled, modernised and restored. Renovation will include such activities such as painting, changing of windows and doors and re-roofing.

A remainder is presently existing estate in land where the actual use and possession of the land is postponed until the occurrence of an event which may or may not occur. Remainders are classified as either being vested or contingent.

The sub classification of a property within its particular highest and best use based upon physical characteristics affecting its value such as street access or buildable topography.

Contractual arrangements may commit an organisation to its contractors, consultants or service providers for some time and to varying degrees of dependency. It is therefore important to make the relationship work in an effective manner by developing mutual trust and understanding, creating an open and constructive environment and contributing to…

Rehabilitation is defined as the carrying out of works on any facility beyond the normal routine maintenance with a view to extending its normal life-span by ensuring its economic viability or social desirability. Rehabilitation refers to the repair of a re-useable structure which overcomes deterioration and provides a satisfactory improved…

Illegal occupation generally arises as a result of limited or fixed supply of land. This fixed supply of land leads to the high price of the available ones. It is generally accepted that land is an important and indispensable factor in the production of goods and services, the demand for…

This is the process of converting old redundant buildings into re-use or useable state. The ultimate of property management is probably refurbishment. There has been a growing pressure since the early 1980s to protect and manage property rather than always demolish and redevelop anew.

Redevelopment is the removal and replacement on site of existing new buildings, whether for similar or dissimilar purposes. From the Urban and Regional Planning point of view, ‘redevelopment’ refers to the total physical clearance of land through public acquisition with federal subsidy and the subsequence sale of the open sites…