Property Reference: R

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Ranch bungalow

A ranch bungalow is a bungalow organized so that bedrooms are on one side and “public” areas (kitchen, living/dining/family rooms) are on the other side. If there is an attached garage, the garage is on the public side of the house so that a direct entrance to the house is possible (where allowed by legislation). On narrower lots, public areas are at the front of the house and such an organization is typically not called a “ranch” bungalow. Such houses are often smaller and only have 2 bedrooms in the back.

Raised bungalow

A raised bungalow is where the basement is partially above ground. The benefit is that more light can enter the basement with above ground windows in the basement. A raised bungalow typically has a foyer at ground level that is half-way between the first floor and the basement. This further has the advantage of creating a foyer with a very high ceiling without the expense of raising the roof or creating a skylight. Raised bungalows often have the garage in the basement. Because the basement is not that deep, and the ground must slope downwards away from the house, the slope of the driveway is quite shallow. This avoids the disadvantage of steep driveways found in most other basement garages. Bungalows without basements can still be raised, but the advantages of raising the bungalow are much less.

Real estate

Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. Real estate is often considered synonymous with real property (also sometimes called realty), in contrast with personal property, or personalty. However, for technical purposes, some people prefer to distinguish real estate, referring to the land and fixtures themselves, from real property, referring to ownership rights over real estate. The terms real estate and real property are used primarily in common law, while civil law jurisdictions refer instead to immovable property.

Real estate agent

In the United States and parts of the Commonwealth (including Canada and Australia), a real estate agent is a person who advises and represents others in transactions involving real estate. Practicing this profession usually requires a license. In the United Kingdom, the term estate agent is used.

The terms realtor and real estate broker are sometimes used to mean a real estate agent. However, a Realtor refers to a member of the National Association of Realtors, which claims a trademark on the term and states that realtor should not be used to refer to real estate agents who are not members. As for real estate broker, in some states the term is restricted to more experienced real estate agents who have a special license that allows them to operate a brokerage. In this type of licensing structure, individual real estate agents typically work for a broker.

Real estate broker

A real estate broker operates a brokerage to assist people in transactions involving real estate. The term may refer to a business entity, or to an individual licensed to run such a business. A real estate broker is a type of real estate agent.

Real estate developer

A real estate developer builds on land, thereby increasing its value. The developer may be an individual, but is often a partnership or a corporation.

Developers are extremely concerned with providing useful buildings and structures. Useless buildings have no value, which means they can’t be sold or rented. However, the building can only sell if it’s in the right location, has utilities, construction costs can be managed, and the project completes on time. The standard solution to the construction problems is to retain a registered professional engineer who specializes in supervision of construction, and involve this person before purchasing the land. The standard solution to the salability problems is to retain an architect to design an attractive development. Many developers retain ownership of profitable rental properties.

REIT

REIT is the common acronym for a Real Estate Investment Trust. A REIT is a specialized form of company that effectively allows its (usually public) investors to share the ownership of a group of real estate properties. REITs generally pay no federal income tax but are subject to a number of special requirements set forth in the Internal Revenue Code, one of which is the requirement to annually distribute at least 90% of its taxable income in the form of dividends to its shareholders. In practice, many REITs distribute substantially all of their current earnings and more, often resulting in dividend yields comparable to bond yields. This distribution requirement hampers a REIT’s ability to retain earnings and generate growth from internal resources. This and other restrictions imposed by the Code generally limit a REIT’s suitability for growth-oriented investors, but investors would be well-advised to fully consider a REIT’s upside (or downside) potential for changes in its stock price, which can be very sensitive to environmental factors (e.g. changes in prevailing interest rates).

Refinancing

Refinancing refers to applying for a secured loan intended to replace an existing loan secured by the same assets. The most common consumer refinancing is for a home mortgage.

Refinancing may be undertaken to reduce interest costs (by refinancing at a lower rate), to pay off other debts, to reduce one’s periodic payment obligations (sometimes by taking a longer-term loan), to reduce risk (such as by refinancing from a variable-rate to a fixed-rate loan), and/or to liquidate some or all of the equity that has accumulated in real property during the tenure of ownership.

It is advisable to speak with a financial professional, familiar with your existing home loan, before deciding to refinance. Certain types of loans contain penalty clauses that are triggered by an early payment of the loan, either in its entirety or a specified portion. Also, some refinanced loans, while having lower initial payments, may result in larger total interest costs over the life of the loan, or expose the borrower to greater risks than the existing loan. Calculating the up-front, ongoing, and potentially variable costs of refinancing is an important part of the decision on whether or not to refinance.

Royal Institution of Chartered Surveyors

Formed in 1868 and granted its Royal Charter in 1881, The Royal Institution of Chartered Surveyors (thus named: Institution not Institute). RICS is the principal body regulating and representing United Kingdom real estate professionals.

As at 2004, RICS has 110,000 members.

Despite its name, its members do not solely engage in technical aspect of the property business, such as building surveying, but also valuation, investment advice, estate agency, development appraisal, town planning advice and environmental advice.