A B C D E F G H I J K L M N O P Q R [S] T U V W X Y & Z
Sale-and-leaseback – A transaction in which an owner sells his or her improved property and, as part of the same transaction, signs a long-term lease to remain in possession of the premises.
Sales comparison approach – The process of estimating the value of a property by examining and comparing actual sales of comparable properties.
Salesperson – A person who performs real estate activities while employed by or associated with a licensed real estate broker.
Satisfaction of mortgage – A document acknowledging the payment of a mortgage debt.
Secondary mortgage market – A market for the pur chase and sale of existing mortgages, designed to provide greater liquidity for mortgages; also called the secondary money market. Mortgages are first originated in the primary mortgage market.
Section – A portion of township under the rectangular (government) survey system. A township is divided into 36 sections, numbered 1 through 36. A section is a square with mile-long sides and an area of one square mile, or 640 acres.
Security agreement – An agreement that the UCC requires the borrower to sign that contains a complete description of the items against which a lien applies. See also Uniform Commercial Code.
Security deposit – A payment by a tenant, held by the landlord during the lease term, and kept (wholly or partially) on default, or on destruction of the premises by the tenant.
Separate property – Under community property law, property owned solely by either spouse before the marriage, acquired by gift or inheritance after the marriage, or purchased with separate funds after the marriage.
Servient tenement – Land on which an easement exists in favor of an adjacent property (called a dominant estate); also called a servient estate.
Setback – The amount of space local zoning regulations require between a lot line and a building line.
Severalty – Ownership of real property by one per son only, also called sole ownership.
Severance – Changing an item of real estate to personal property by detaching it from the land; for example, cutting down a tree.
Sharecropping – In an agricultural lease, the agreement between the landowner and the tenant farmer to split the crop or the profit from its sale, actually sharing the crop.
Shared-Appreciation Mortgage (SAM) – A mortgage loan in which the lender, in exchange for a loan with a favorable interest rate, participates in the profits (if any) the borrower receives when the property is eventually sold.
Situs – The personal preference of people for one area over another, not necessarily based on objective facts and knowledge.
Special agent – One who is authorized by a principal to perform a single act or transaction; a real estate broker is usually a special agent authorized to find a ready, willing, and able buyer for a particular property.
Special assessment – A tax or levy customarily imposed against only those specific parcels of real estate that will benefit from a proposed public improvement like a street or sewer.
Special warranty deed – A deed in which the grantor warrants, or guarantees, the title only against defects arising during the period of his or her tenure and ownership of the property and not against defects existing before that time, generally using the language, “by, through, or under the grantor but not otherwise.”
Specific lien – A lien affecting or attaching only to a certain, specific parcel of land or piece of property.
Specific performance – A legal action to compel a party to carry out the terms of a contract.
Square-foot method – The appraisal method of estimating building costs by multiplying the number of square feet in the improvements being appraised by the cost per square foot for recently constructed similar improvements.
Statute of frauds – That part of a state law that requires certain instruments, such as deeds, real estate sales contracts, and certain leases, to be in writing to be legally enforceable.
Statute of limitation – That law pertaining to the period of time within which certain actions must be brought to court.
Statutory lien – A lien imposed on property by statute–a tax lien, for example–in contrast to an equitable lien, which arises out of common law.
Statutory right of redemption – The right of a defaulted property owner to recover the property after its sale by paying the appropriate fees and charges.
Steering – The illegal practice of channeling home seekers to particular areas, either to maintain the homogeneity of an area or to change the character of an area, which limits their choices of where they can live.
Stigmatized property – A property that has acquired an undesirable reputation due to an event that occurred on or near it, such as violent crime, gang-related activity, illness, or personal tragedy. Some states restrict the disclosure of information about stigmatized properties.
Straight-line method – A method of calculating depreciation for tax purposes, computed by dividing the adjusted basis of a property by the estimated number of years of remaining useful life.
Straight loan – Also called straight (term) loan. A loan in which only interest is paid during the term of the loan, with the entire principal amount due with the final interest payment.
Strict liability – The owner is responsible to the injured party without excuse.
Subagent – One who is employed by a person already acting as an agent. Typically a reference to a salesperson licensed under a broker (agent) who is employed under the terms of a listing agreement.
Subdivider – One who buys undeveloped land, divides it into smaller, usable lots, and sells the lots to potential users.
Subdivision – A tract of land divided by the owner, known as the subdivider, into blocks, building lots, and streets according to a recorded subdivision plat, which must comply with local ordinances and regulations.
Subdivision and development ordinances – Municipal ordinances that establish requirements for subdivisions and development.
Subdivision plat – See plat map.
Sublease – The transfer in writing of interest in a bond, mortgage, lease, or other instrument. See also subletting and assignment.
Subletting – The leasing of premises by a lessee to a third party for part of the lessee’s remaining term. See also assignment.
Subordination – Relegation to a lesser position, usually in respect to a right or security.
Subordination agreement – A written agreement between holders of liens on a property that changes the priority of mortgage, judgment, and other liens under certain circumstances.
Subrogation – The substitution of one creditor for another, with the substituted person succeeding to the legal rights and claims of the original claimant. Subrogation is used by title insurers to acquire from the injured party rights to sue in order to recover any claims they have paid.
Substitution – An appraisal principle that states that the maximum value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property, assuming that no costly delay is encountered in making the substitution.
Subsurface rights – Ownership rights in a parcel of real estate to the water, minerals, gas, oil, and so forth that lie beneath the surface of the property.
Suit for possession – A court suit initiated by a landlord to evict a tenant from leased premises after the tenant has breached one of the terms of the lease or has held possession of the property after the lease’s expiration.
Suit for specific performance – If a seller breaches a real estate sales contract and the buyer asks the court to force the seller to go through with the sale and convey the property as previously agreed.
Suit to quiet title – A court action intended to establish or settle the title to a particular property, especially when there is a cloud on the title.
Superfund – Popular name of the hazardous-waste cleanup fund established by the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
Superfund Amendments and Reauthorization Act (SARA) – An amendatory statute that contains stronger cleanup standards for contaminated sites, increased funding for Superfund, and clarifications of lender liability and innocent land owner immunity. See Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
Supply – The amount of goods available in the market to be sold at a given price. The term is often coupled with demand.
Supply and demand – The appraisal principle that follows the interrelationship of the supply of and demand for real estate. As appraising is based on economic concepts, this principle recognizes that real property is subject to the influences of the marketplace just as is any other commodity.
Surety bond – An agreement by an insurance or bonding company to be responsible for certain possible defaults, debts, or obligations contracted for by an insured party; in essence, a policy insuring one’s personal and/or financial integrity. In the real estate business a surety bond is generally used to ensure that a particular project will be completed at a certain date or that a contract will be performed as stated.
Surface rights – Ownership rights in a parcel of real estate that are limited to the surface of the property and do not include the air above it (air rights) or the minerals below the surface (subsurface rights).
Survey – The process by which boundaries are measured and land areas are determined; the on-site measurement of lot lines, dimensions, and position of a house on a lot, including the determination of any existing encroachments or easements.
Syndicate – A combination of people or firms formed to accomplish a business venture of mutual interest by pooling resources. In a real estate investment syndicate, the parties own and/or develop property, with the main profit generally arising from the sale of the property.
