Real Estate Glossary P - R

Parking Ratio or Index: A ration expressing the number of parking spaces available in relation to the rentable square footage. X spaces per 1000 square feet, a building that offered 5 spaces for every 1000 square feet would show a parking ration of 5:1000.

Percentage Lease: Lease in which all or part of the rental is a specified percentage of gross income from total sales made upon the premises.

Personal Guaranty: The guarantee of someone to be individually responsible for the obligations of the lease. Generally for Subchapter S closely held companies and small businesses, a Lessor may ask for a personal guaranty as a way to insure that the lease payments will be made.

Plat book: A book of recorded subdivisions of land.

Pre-leased: Space in a proposed building that has been leased prior to the start of construction or in advance of the issuance of a Certificate of Occupancy.

Prime Rate: The lowest rate interest that a financial institution, such as a bank, charges its best customers, usually large corporations, for short term unsecured loans.

Property Taxes: Taxes that are paid yearly on real property.

Pro-Rate: To divide or distribute proportionally. At closing, various expenses such as taxes insurance, interest, rents etc are divided between the seller and the buyer.

Purchase Option: Option to purchase leased property either at the end of the lease term or if some other specific criteria are met by the lessee.

Quiet Enjoyment: The right of a property owner or tenant to enjoy his or her property without interference.

Real Property: Land, and generally whatever is erected or affixed to the land, such as buildings, fences and including light fixtures, plumbing and heating fixtures or other items which would be personal property if not attached.

REALTOR®: A real estate broker or associate who holds active membership in a local real estate board that is affiliated with the National Association of Realtors®.

Receiver: Court-appointed custodian who holds property for the court, pending final disposition of the matter before the court.

Recorded Plat: A subdivision map filed with the county recorder's office that shows the location and boundaries (lot and block number) of individual parcels of land.

Renewal Option: A clause giving a tenant the right to extend the term of a lease, usually for a stated period of time and at a rent amount provided for in the option language.

Rentable Square Feet: Usually the space measurement which incorporates both the "usable square foot" measurement as well as the common area. The difference between usable and rentable is generally between 10% - 15%.

Right of First Refusal: A) A lease clause giving a tenant the first opportunity to buy a property at the same price and on the same terms and conditions as those contained in a third party offer that the owner has expressed a willingness to accept. B) A lease clause giving a tenant the first opportunity to lease additional space that may become available in a property at the same price and under the same terms and conditions as those contained in a third party offer that the owner has expressed willingness to accept.