Ratchet
A clause in a lease whereby the rent payable by the tenant can remain static or increase at review, but not fall. There are two general forms of ratchet clauses, full or modified. A full ratchet stops the rental falling below the previously reviewed rental level while a modified ratchet stops the rent falling below the initial contracted rental.

Rateable Valuation
Previously known as Government Valuation (New Zealand), this is the valuation done by an independent agency on every property at least once every three years.

Rateable Values
Values from the Rateable Valuation (New Zealand) are often used by the local councils to enable rates to be struck for each property. RV information provides a general idea of the value of each property and comprise three values – Land Value, Value of Improvements and Capital Value.

Reducing Loan
With a reducing loan you pay a set amount off the loan principal each payment, plus interest. It means your payments are much higher at the beginning of the loan but go down as time goes on (see Table Loan).

Rent Review
The right to review the rental under a lease. Commonly in occupational leases this is a 2 to 3 year period, while in the case of ground leases 5, 7, or 21 years are normal.

Real estate
Real estate refers to land and the buildings attached to it.

Right of Renewal
A clause within a lease giving a lessee the right, or rights, to renew an existing lease for a specified term on specified conditions.

Right of Way
A person may have the right to cross your property to gain access to their own property or there may be a general pathway across the land.