SALE AND LEASEBACK
A transaction in which an owner sells his or her asset, equipment or real estate, and agreement to lease it back from the purchaser on a long-term basis. This type of financing arrangement fortifies the sellers balance sheet, because a capital asset is sold and converted into cash or a receivable.
SALES COMPARISON APPROACH The procedure of estimating the value of a property by examining and comparing the property being appraised to similar properties that have been sold recently. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant and making adjustments to the sales prices of the comparables based on the elements of comparison.
SALESPERSON A person who performs real estate activities while employed by or associated with a licensed real estate broker.
SATISFACTION OF MORTGAGE A document from the lender acknowledging, that the borrower completely paid off the mortgage debt. Sometimes called a release deed.
SECONDARY MORTGAGE MARKET A market for the purchase and sale of existing mortgages or mortgage-backed securities designed to provide greater availability of funds for additional mortgage lending by banks, mortgage bankers, and savings and loan associations. Also called the secondary money market.
SECTION A portion of township under the rectangular (government) survey system. A township is divided into 36 sections, numbered one through 36. A section is a square with mile-long sides and an area of one square mile, or 640 acres.
SECURITY DEPOSIT A payment by a tenant, held by the landlord as security against the terms of the lease and any damage to the property.
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. At divorce, separate property is not divided under the state's property division laws, but is kept by the spouse who owns it. Also called nonmarital property.
SERVIENT TENEMENT Land on which an easement exists in favor of dominant tenement. For example, a beachfront house that has a public walkway to the beach is a servient tenement.
SETBACK The amount of space local zoning regulations require between a lot line and a building line.
SEVERALTY Ownership of real property by one person only, also called sole ownership.
SEVERANCE In regard to real property, changing an item of real estate to personal property by detaching it from the land such as standing timber or crops.
SHARECROPPING In an agricultural lease, the agreement between the landowner and the tenant farmer in which the tenant pays for use of the land with a predetermined share of his crop rather than with a cash rent.
SHARED-APPRECIATION MORTGAGE (SAM) A mortgage loan in which the lender or other party, in exchange for a loan with a favorable interest rate, participates in the profits (if any) generated from the sale of the home.
SITUS The personal preference of people for one area over another because of the physical location of the property, not necessarily based on objective facts and knowledge. This may be important when determining which laws apply to the property, since the situs of an object determines the law applicable in the jurisdiction where the object is located, which may differ from the the law applicable in the jurisdiction where a legal action is brought.
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 special tax customarily imposed against real property for public improvements that benefit the assessed property such as: street lights, sidewalks, street improvements, etc.
SPECIAL WARRANTY DEED An instrument of conveyance in which the seller warrants, or guarantees the property title is clear for all of his tenure (not before then) and that he has done nothing during this time that might in the future affect the title.
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 classes of contracts, engagements and/or transfers of interest in real estate to be made in writing, such as deeds, real estate sales contracts and certain leases, to be enforceable in a court of law.
STATUTE OF LIMITATIONS That law pertaining to the period of time within which a lawsuit must be filed. The deadline can vary, depending on the type of lawsuit. In criminal cases, prosecution is barred if not brought within the statute of limitations.
STATUTORY LIEN An involuntary lien imposed on property by statute, a tax lien, judgement liens, mechanic liens, etc. for example - A real estate tax lien.
STATUTORY REDEMPTION State laws that permit a mortgagor to reclaim the mortgaged property after its foreclosure by paying off the debt.
STEERING The illegal practice of channeling home seekers to areas according to their race, 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.
STRAIGHT-LINE METHOD A method of calculating depreciation for tax purposes, taking an equal amount of the asset's cost as an expense for each year of the asset's useful life. This method is most appropriate when usage of the asset is fairly uniform year to year.
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.
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 RANGE One who buys undeveloped land, divides it into a subdivision and sells the lots to potential users.
SUBDIVISION A tract of land divided into smaller pieces by the the subdivider, into blocks, building lots and streets via a plat, which must comply with local ordinances and regulations. In the United States, the creation of a subdivision was often the first step toward the creation of a new incorporated township or city.
SUBDIVISION AND DEVELOPMENT ORDINANCES Municipal ordinances that establish requirements for sub- divisions and development.
SUBORDINATION Relegation to a lesser position, usually in respect to a right or security. For example, a second mortgagee's rights are subordinate to those of the first mortgagee.
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, giving the substitute the same legal rights as the original party. Subrogation is used by title insurers to acquire from the injured party rights to sue in order to re- cover 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 replacement will not encounter any costly delay.
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. Subsurface rights do not automatically transfer with the property at sale. Usually, this is because some owners believe their subsurface rights are worth a large sum of money, which may not be consistent with true market values.
SUIT FOR POSSESSION A court suit initiated by a landlord for possession of a rented property because of unpaid rent or breaching of one of the terms of the lease after the lease's expiration. Before the action may be filed by a landlord, notice in writing must be given or sent to the Tenant by the landlord. This notice must state that the tenant as at least five days to pay the rent or at least seven days to correct the abuse or misuse (ten days, if a mobile home) and that if the tenant does not do so as instructed, a suit for possession may be filed with the Court.
SUIT TO QUIET TITLE A lawsuit intended to establish or settle the title to a particular property and thus "quiet" any challenges or claims to the title. Such a suit usually arises when there is some question about clear title, there exists an old lease or failure to clear title after payment of a mortgage, an error in description which clouds the amount of property owned, or an easement used for years without a recorded description.
SURETY BOND A legal document issued to assure the completion of an act by another person. It provides monetary compensation in the event of a failure to perform specified acts within a stated period.
SURFACE RIGHTS A legal interest in the use or occupation of the surface of a parcel of land as opposed to subsurface or mineral rights
SURVEY A pictorial depiction of land and the improvements on it and shows boundary lines with measurements and bearings, buildings, easements, etc
SALES COMPARISON APPROACH The procedure of estimating the value of a property by examining and comparing the property being appraised to similar properties that have been sold recently. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant and making adjustments to the sales prices of the comparables based on the elements of comparison.
SALESPERSON A person who performs real estate activities while employed by or associated with a licensed real estate broker.
SATISFACTION OF MORTGAGE A document from the lender acknowledging, that the borrower completely paid off the mortgage debt. Sometimes called a release deed.
SECONDARY MORTGAGE MARKET A market for the purchase and sale of existing mortgages or mortgage-backed securities designed to provide greater availability of funds for additional mortgage lending by banks, mortgage bankers, and savings and loan associations. Also called the secondary money market.
SECTION A portion of township under the rectangular (government) survey system. A township is divided into 36 sections, numbered one through 36. A section is a square with mile-long sides and an area of one square mile, or 640 acres.
SECURITY DEPOSIT A payment by a tenant, held by the landlord as security against the terms of the lease and any damage to the property.
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. At divorce, separate property is not divided under the state's property division laws, but is kept by the spouse who owns it. Also called nonmarital property.
SERVIENT TENEMENT Land on which an easement exists in favor of dominant tenement. For example, a beachfront house that has a public walkway to the beach is a servient tenement.
SETBACK The amount of space local zoning regulations require between a lot line and a building line.
SEVERALTY Ownership of real property by one person only, also called sole ownership.
SEVERANCE In regard to real property, changing an item of real estate to personal property by detaching it from the land such as standing timber or crops.
SHARECROPPING In an agricultural lease, the agreement between the landowner and the tenant farmer in which the tenant pays for use of the land with a predetermined share of his crop rather than with a cash rent.
SHARED-APPRECIATION MORTGAGE (SAM) A mortgage loan in which the lender or other party, in exchange for a loan with a favorable interest rate, participates in the profits (if any) generated from the sale of the home.
SITUS The personal preference of people for one area over another because of the physical location of the property, not necessarily based on objective facts and knowledge. This may be important when determining which laws apply to the property, since the situs of an object determines the law applicable in the jurisdiction where the object is located, which may differ from the the law applicable in the jurisdiction where a legal action is brought.
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 special tax customarily imposed against real property for public improvements that benefit the assessed property such as: street lights, sidewalks, street improvements, etc.
SPECIAL WARRANTY DEED An instrument of conveyance in which the seller warrants, or guarantees the property title is clear for all of his tenure (not before then) and that he has done nothing during this time that might in the future affect the title.
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 classes of contracts, engagements and/or transfers of interest in real estate to be made in writing, such as deeds, real estate sales contracts and certain leases, to be enforceable in a court of law.
STATUTE OF LIMITATIONS That law pertaining to the period of time within which a lawsuit must be filed. The deadline can vary, depending on the type of lawsuit. In criminal cases, prosecution is barred if not brought within the statute of limitations.
STATUTORY LIEN An involuntary lien imposed on property by statute, a tax lien, judgement liens, mechanic liens, etc. for example - A real estate tax lien.
STATUTORY REDEMPTION State laws that permit a mortgagor to reclaim the mortgaged property after its foreclosure by paying off the debt.
STEERING The illegal practice of channeling home seekers to areas according to their race, 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.
STRAIGHT-LINE METHOD A method of calculating depreciation for tax purposes, taking an equal amount of the asset's cost as an expense for each year of the asset's useful life. This method is most appropriate when usage of the asset is fairly uniform year to year.
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.
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 RANGE One who buys undeveloped land, divides it into a subdivision and sells the lots to potential users.
SUBDIVISION A tract of land divided into smaller pieces by the the subdivider, into blocks, building lots and streets via a plat, which must comply with local ordinances and regulations. In the United States, the creation of a subdivision was often the first step toward the creation of a new incorporated township or city.
SUBDIVISION AND DEVELOPMENT ORDINANCES Municipal ordinances that establish requirements for sub- divisions and development.
SUBORDINATION Relegation to a lesser position, usually in respect to a right or security. For example, a second mortgagee's rights are subordinate to those of the first mortgagee.
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, giving the substitute the same legal rights as the original party. Subrogation is used by title insurers to acquire from the injured party rights to sue in order to re- cover 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 replacement will not encounter any costly delay.
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. Subsurface rights do not automatically transfer with the property at sale. Usually, this is because some owners believe their subsurface rights are worth a large sum of money, which may not be consistent with true market values.
SUIT FOR POSSESSION A court suit initiated by a landlord for possession of a rented property because of unpaid rent or breaching of one of the terms of the lease after the lease's expiration. Before the action may be filed by a landlord, notice in writing must be given or sent to the Tenant by the landlord. This notice must state that the tenant as at least five days to pay the rent or at least seven days to correct the abuse or misuse (ten days, if a mobile home) and that if the tenant does not do so as instructed, a suit for possession may be filed with the Court.
SUIT TO QUIET TITLE A lawsuit intended to establish or settle the title to a particular property and thus "quiet" any challenges or claims to the title. Such a suit usually arises when there is some question about clear title, there exists an old lease or failure to clear title after payment of a mortgage, an error in description which clouds the amount of property owned, or an easement used for years without a recorded description.
SURETY BOND A legal document issued to assure the completion of an act by another person. It provides monetary compensation in the event of a failure to perform specified acts within a stated period.
SURFACE RIGHTS A legal interest in the use or occupation of the surface of a parcel of land as opposed to subsurface or mineral rights
SURVEY A pictorial depiction of land and the improvements on it and shows boundary lines with measurements and bearings, buildings, easements, etc