Real Estate Glossary - S

Sale-Leaseback - A form of real estate financing in which the owner of industrial or commercial property sells the property and leases it back from the buyer; in addition to certain tax advantages, the seller/lessee obtains more cash trough the sale than would normally be possible by borrowing and mortgaging the property, since lenders will not often lend 100% of the value.

Sales Comparison Approach - One of the three main methods of appraisal, in which the sales prices of comparable properties are, used to estimate the value of the subject property. Also called the market data approach.

Savings and Loan Association - A type of financial institution that emphasizes home mortgage loans.

Savings Bank - A type of financial institution that emphasizes consumer loans and home mortgages.

Scarcity - A limited or inadequate supply of something; one of the four elements of value (along with utility, demand, and transferability).

Secondary Financing - Money borrowed to pay part of the required downpayment or closing costs for a first loan, when the second loan is secured by the same property that secures the first loan.

Secondary Mortgage Market - The market in which investors (including Fannie Mae , Freddie Mac , and Ginnie Mae ) purchase real estate loans from lenders; also called the national market.

Secret Profit - A financial benefit that an agent takes from a transaction without informing the principal.

Section - In the rectangular survey system, a section is one mile square and contains 640 acres. There are 36 section sin a township.

Securities - Investment instruments, such as stocks and bonds.

Security Agreement - Under the Uniform Commercial Code, a document that creates a lien on personal property being used to secure a loan.

Security Deposit - Money a tenant gives a landlord at the beginning of the tenancy to protect the landlord in case the tenant defaults; the landlord may retain all or part of the deposit to cover unpaid rent or repair costs at the end of the tenancy.

Security Instrument - A documents that creates a voluntary lien, to secure repayment of a loan; for debts secured by real property, it is either a mortgage or a deed of trust.

Security Interest - The interest a creditor may acquire in the debtor's property to ensure that the debt will be paid.

Security Property - The property that a borrower gives a lender a voluntary lien against, so that the lender can foreclose if the borrower defaults.

Seisin - Actual possession of a freehold estate; ownership.

Seller Disclosure Statement - A form that state law requires a residential seller to give the buyer, disclosing problems with the property. Formerly called a transfer disclosure statement.

Seller Broker - The broker responsible for procuring a buyer for real estate; may represent either the seller or the buyer.

SEPA - The State Environmental Policy Act; a Washington state law analogous to NEPA that requires environmental impact statements before government actions that would have a significant effect on the environment.

Separate Property - Property owned by a married person that is not community property; includes property acquired before marriage or by gift or inheritance after marriage.

Setback Requirements - Provision s in a zoning ordinance that do not allow structures to be built within a certain distance of the property line.

Settlement - 1.An agreement between the parties to a civil lawsuit, in which the plaintiff agrees to drop the suite in exchange for money or the defendant's promise to do or refrain from doing something. 2. Closing.

Settlement Statement - A document that presents a final, detailed accounting for a real estate transaction, listing each party's debits and credits and the amount each will receive or be required to pay at closing. Also called a closing statement.

Severance - 1.Termination of a joint tenancy. 2. The permanent removal of a natural attachment, fixtures, or appurtenance from real property, which transforms the item into personal property.

Severance, Constructive - When a landowner enters into a contract to sell an appurtenance or natural attachment, the contract constructively severs the item from the land-making it the personal property of the buyer-even before the buyer has actually taken it off the land.

Shareholder - An individual who holds ownership shares (shares of stock) in a corporation, and has limited liability in regard to the corporations' debts. Also called a stockholder.

Sheriff's Sale - A foreclosure sale held after a judicial foreclosure. Sometimes called an execution sale.

Sherman Act - A federal antitrust law prohibiting any agreement that has the effect of a restraint on trade, such as price fixing and tie-in arrangements.

Shoreline Management Act - A Washington state law regulating development within 200 feet of coastal shores.

Shortage, Economic - A situation where there are more potential tenants who are financially able to rent that there are available units in a rental market.

Shortage, Technical - A situation where there are more potential tenants than units available in a rental market.

Short Plat - The subdivision of a parcel of land into four or fewer lots.

Site Analysis - The gathering of date about the physical characteristics of a property and other factors affecting its use or title, as part of the appraisal process.

Special Assessment - A tax levied only against the properties that have benefited from a public improvement (such as sewer or a street light), to cover the cost of the improvement; creates a special assessment lien.

Specific Performance - A legal remedy in which a court orders someone who has breached to actually perform the contract as agreed, rather than simply paying money damages.

Square Food Method - In appraisal, a method of estimating replacement cost by calculating the square foot cost of replacing the subject home.

Stable Monthly Income - A loan applicant's gross monthly income that meets the lender's test of quality and durability.

Statement of Disbursements - A list of all of a property's expenses incurred during a specific operating period.

Statement of Operations - A periodic report showing the total money received and disbursed during, and the overall condition of the property for a give period.

Statute - A law enacted by a state legislature or the U.S. Congress.

Statute of Frauds - A law that requires certain types of contracts to be in writing and signed in order to be enforceable.

Statute of Limitations - A law requiring a particular type of lawsuit to be filed with in a specified time after the event giving rise to the suit occurred.

Statutory Redemption Period - The period required by law (one year in Washington ) following a sheriff's sale in which a foreclosed borrower may redeem a property.

Steering - Channeling prospective buyers or tenants to or away from particular neighborhoods based on their race, religion, national origin, or ancestry.

Subagent - A person that an agent has delegated authority to, so that the subagent can assist in carrying out the principal's orders; that agent of an agent.

Subcontractor - A contractor who, at the request of the general contractor, provides a specific service, such as plumbing or drywalling, in connection with the overall construction project.

Subdivision - 1. A piece of land divided into two or more parcels. 2. A residential development.

Subdivision Regulations - State and local laws that must be complied with before land can be subdivided.

Subject to - When a purchase takes property subject to a trust deed or mortgage, he or she is not personally liable for paying off the loan; in case of default, however, the property can still be foreclosed on.

Sublease - When a tenant grants someone else the right to possession of the leased property for part of the remainder of the lease term; as opposed to an assignment, where the tenant gives up possession for the entire remainder of the lease term. Also called a sandwich lease.

Subordination Clause - A provision in a mortgage or deed of trust that permits a later mortgage or deed of trust to have higher lien priority than the one containing the clause.

Subrogation - The substitution of one person in the place of another with reference to a lawful claim or right. For instance, a title company that pays a claim on behalf of its insured, the property owner, is subrogated to any claim the owner successfully undertakes against the former owner.

Substitution, Principle of - A principle of appraisal holding that the maximum value of a property is set by how much it would cost to obtain another property that is equally desirable, assuming that there would not be along delay or significant incidental expenses involved in obtaining the substitute.

Substitution of Liability - A buyer wishing to assume an existing loan may apply for the lender's approval; once approved, the buyer assumes liability for repayment of the loan, and the original borrower (the seller) is released from liability.

Succession - Acquiring property by will or inheritance.

Sufferance - Acquiescence, implied permission, or passive consent through a failure to act, as opposed to express permission.

Summary of Operations - The key portion of a property manager's statement of operations, which summarizes income and expenses.

Supply and Demand, Principle of - A principle holding that value varies directly with demand and inversely with supply; that is, the greater the demand the greater the value, and the greater the supply the lower the value.

Support, Lateral - The support that piece of land receives from the land adjacent to it.

Support, Subjacent - The support that the surface of a piece of land receives from the land beneath it.

Support Rights - The right to have one's land supported by the land adjacent to it and beneath it.

Surrender - Giving up an estate (such as a life estate or leasehold) before it has expired.

Survey - The process of precisely measuring the boundaries and determining the area of a parcel of land.

Survivorship, Right of - A characteristic of joint tenancy; surviving joint tenants automatically acquire a deceased joint tenant's interest in the property.

Syndicate - An association formed to operate an investment business. A syndicate is not a recognized legal entity; it can be organized as a corporation, partnership, or trust.

--- Back To Top of Page ---