Spectrus – Glossary – R
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- Replacement property
- In a 1031 exchange, new property being acquired or the target property being brought by exchanger.
- Replacement property identification
- 3-property rule: You may identify any three properties for possible replacements for your relinquished property. More than 95% of exchanges use the 3-property rule.
200% rule: You may identify any number of properties as possible replacements for your relinquished property as long as the aggregate value of those properties does not exceed 200% of the value of your relinquished property.
95% exemption: You may identify any number of properties as possible replacements for your relinquished property as long as you end up purchasing at least 95% of the aggregate value of all properties identified. - Return
- The profit made on an investment, expressed annually as a percentage of the total amount invested.
- Right of first refusal
- A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before he or she offers it for sale or lease to others.
- Right of survivorship
- In joint tenancy, the right of survivors to acquire the interest of a deceased joint tenant.
- Risk
- The possibility of losing or not gaining value.
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