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-S-
Safety
Clause
A safety clause stated in a listing contract.
It provides that a broker is still entitled
to a commission for a set period of time after
the listing has expired if the property is
sold to a prospect, who was introduced to
the property by the broker, during the period
of the listing.
Sale-Leaseback-Buyback
A sale and leaseback transaction in which
the lessee has the option to buy back his
or her original property after a specified
period of time.
Sales
Contract
A real estate sales contract by which a buyer
and a seller agree to the terms to the sale
of real property. Depending on the area, this
agreement may be known as an offer to purchase,
a contract of purchase and sale, or a purchase
agreement.
Sandwich
Lease
Another
term used is "sublease." This is
when a tenant has a current lease with the
owner of a property and then "sublets"
the property to a third party. The tenant
is then sandwiched between the original lessee
and the second sub-lessee.
Satisfaction
of Mortgage
When
all mortgage loan payments have been made
and the note has been paid in full, a satisfaction
of mortgage also known as a release of mortgage
or mortgage discharge.
Savings
and Loan Association (S&L)
A financial institution whose principal function
is to promote home ownership. They specialize
in making residential mortgages.
Second
Mortgage
A mortgage loan made to secure a loan to make
home improvements or other related purpose.
Secret
Profit
Term referring to a broker making an undisclosed
profit at the seller's expense. For example,
when a broker has a "friend" buy
a listed property for a low amount and then
resell it to a buyer whose earlier offer was
never presented to the seller.
Section
1031 Exchange
Same
as Tax-free exchange and Tax-deferred exchange—allows
an owner to trade one like property for another
under very specific guidelines and defer paying
income tax.
Section
202
Government
program that provides capital for the construction,
rehabilitation or acquisition of nonprofit
housing for low income elderly.
Section 8
Federally subsidized housing administered
by HUD where the tenant pays up to thirty
percent of his or her adjusted monthly income
and HUD pays the difference between that amount
and the market rent. Property owners are not
required to participate.
Security
Anything pledged of value to make certain
that an obligation or the payment of a debt
is fulfilled.
Security
Agreement
A
contract between a secured party creditor
and a debtor granting a security interest
to a lender in specified personal property
pledged as collateral to secure a loan.
Security
Deposit
An amount you may be required to pay, usually
at the beginning of the lease, that may be
used by the lessor or assignee in the event
of default or at the end of the lease to offset
any amounts you owe under the lease agreement.
Any remaining amount may be refunded to you.
Seller
Financing
A financing arrangement whereby the owner
acts as the lender for the buyer until he
or she can qualify and obtain financing from
a lender.
Seller's Agent
An
agent who represents the seller of real property.
Seller's
Market
A seller's market exists when the number of
qualified buyers seeking homes exceeds the
number of homes available. Home prices tend
to be higher in this instance.
Selling
Agent
An
agent who actually gets a buyer into contract
for a property. Do not confuse a selling agent
with the seller's agent who is normally the
listing agent.
Separate
Property
The property owned by a husband or wife in
his or her own right outside of the community
interest including property acquired by the
spouse before the marriage, acquired by gift
or inheritance after the marriage or purchased
with separate funds after the marriage.
Septic
System
An
underground receptacle system for collecting,
treating and eliminating waste from a home
waste drainage system.
Setback
The distance local zoning regulations require
between a lot line and a building line.
Severalty
The
sole ownership of real property by one party
or person.
Shingles
Roofing
material characterized by short, rectangular
sections, nailed to the roof decking in an
overlapping pattern. Asphalt shingles are
the most common type of shingles.
Sick Building
Syndrome (SBS)
Term
used to describe situations in which building
occupants experience discomforting health
conditions that appear to be linked to time
spent in a building, but no specific illness
or cause can be identified.
Simple
Interest
Interest computed only on the principal amount
of the loan, disregarding previously accumulated
(unpaid) interest.
Slab
A
flat piece of concrete, typically used as
a walking surface, but may also serve as a
load bearing device as in slab homes.
Slander
of Title
The
false and malicious oral or written statements
disparaging an owner's property title, which
can result in actual financial damage to the
owner.
Sleeping
Porch
A
porch or room having open sides or many windows
arranged to permit sleeping in the open air.
They first gained popularity at the turn of
the 20th century when people believed that
fresh air helped sufferers of tuberculosis,
a respiratory system illness that was the
leading cause of death during that time. Before
air conditioning families created sleeping
areas on outdoor porches where children could
sleep during the warmer months. Porches were
often included in the front and back of a
home, specifically on corners so as to have
access to breezes from different directions.
Modern day sleeping porches are often found
on the upper levels of a home to ensure privacy
and security.
Sole Proprietorship
A
method of owning a business in which one person
owns the entire business and reports all profits
and losses directly on his or her personal
income tax return, as contrasted with corporate,
joint or partnership ownership.
Solid
Core Door
A
door where the inner material is made of solid
wood. This type door is usually used for exteriors
doors to the outside or garage.
Special Agent
An agent authorized by a principal to perform
a particular act or transaction without contemplation
of continuity of service as with a general
agent. The real estate broker is a special
agent appointed by the seller to find a ready,
willing and able buyer for a particular property.
An attorney-in-fact under a limited power
of attorney is also a special agent.
Special Assessment
A
tax or levy customarily imposed against only
those specific parcels of realty that will
benefit from a proposed public improvement,
as opposed to a general tax on the entire
community. Because the proposed improvement
will enhance the value of the affected homes,
only those affected owners must pay this special
lien. Common examples of special assessments
are water, sidewalk and sewer assessments,
or other special improvements such as parks
and recreational facilities.
Special-purpose
Property
Resorts, hotels, nursing homes, theaters,
schools, churches and other organizations
whose specialized needs dictate the design
and operation of a property.
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.
Splash
Block
Usually a small, specially designed portable
concrete pad. Splash blocks may be angled
to direct water from a rain gutter down drains
or placed under outside hose faucets to redirect
water away from the house.
Statute
of Limitations
A law pertaining to the period of time within
which certain actions must be brought to court.
The law is intended to protect the vigilant
against stale claims by requiring the prompt
assertion of claims; thus a complaint or action
must be brought within a specified time of
the occurrence of the cause of action. After
the time period expires, the claim may not
be enforced in court. The theory behind the
statute of limitations is that there must
be some end to the possibility of litigation.
Statutory Law
The
laws, rules and regulations enacted by legislatures
and other governing bodies.
Steering
The illegal practice of channeling homebuyers
interested in equivalent properties to particular
areas, either to maintain the homogeneity
of an area or to change the character of an
area, which limits their home choices.
Stigmatized
Property
A
classification of specific 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. Most states have very
strict rules regarding what can and cannot
be disclosed about stigmatized property.
Strict Foreclosure
The action taken by a court upon determining
that the proper papers have been filed, the
mortgagor has not paid that which is past
due and sufficient time has elapsed. If the
payment is not made, the borrower's equitable
and statutory redemption rights are waived
and the court awards full legal title to the
lender. There is no deficiency judgment in
strict foreclosure cases.
Subdivision
Any land regulated by state law that is divided
or is proposed to be divided for the purpose
of disposition into two or more lots, parcels,
units or interests.
Sublease
A
rental agreement or lease between a tenant
and a new tenant (called a sub-lessee) who
will either share the rental or take over
from the first tenant. The sub-lessee pays
rent directly to the tenant. The tenant is
still completely responsible to the landlord
for the rent and for any damage, including
that caused by the sub-lessee. Most landlords
prohibit subleases unless they have given
prior written consent.
Sublet
An agreement between a new tenant and a current
tenant who is moving out, either permanently
or for a period and expecting to return to
their apartment. The current tenant whose
name is on the rental agreement or lease would
be vacating the property and the sublettor
would be moving in and assuming responsibility
for rental costs, utility costs and all other
costs associated with the sublet agreement.
Subprime
Lenders
Lenders who specialize in B, C, or D category
paper. The loan is offered at a rate above
prime to individuals who do not qualify for
prime rate loans. The additional interest
may seem small but adds up to thousands over
several years.
Surrender
The process of voluntary cancellation of a
lease by the mutual consent of lessor and
lessee, and release from future obligations
under the lease.
Survey
1. The method by which boundaries are measured
and land areas are determined and 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.
2. The map prepared by an engineer or surveyor
charting a particular piece of real estate.
Survivorship
The
right of surviving joint tenants to the ownership
interest of another joint tenant upon the
latter's death.
The
definitions of Real Estate Definitions found
on 10Realty.com are for general information
only. All information is subject to change
and should be independently verified. 10Realty.com
makes no representations or warranties of
any nature with regard to the information
found on the pages therein. 10Realty.com assumes
no responsibility for any liabilities or losses
claimed or incurred as a result of using this
information. (Real Estate Terms, Investment
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