In real estate leasing, a revaluation clause is a provision in a lease that requires the leased property to be periodically reappraised. The purpose of the revaluation is to determine the property’s current value.
Based on the results of the appraisal, the rent is adjusted in accordance with the terms of the lease. Revaluation clauses are commonly used in long term leases to ensure that rental rates remain consistent with changing market conditions.
