Real Estate Glossary

Letter S

Safe Drinking Water Act (SDWA)A government act established by the EPA that sets quality standards for water intended for human consumption.

Safety ClauseA clause in a listing protecting the broker from having buyer and seller wait until the listing expires to make a deal, thereby avoiding the payment of commission. The clause states that if the property is sold during a specified period after the expiration of the listing (or any extension thereof) to a buyer provided during the listing period by the broker, the commission shall be paid.

SalaryA compensation for services, usually paid at specified intervals, and of a set amount.

Sale And LeasebackA transaction in which an owner sells her or his improved property and, as part of the same transaction, signs a long-term lease to remain in possession of the premises.

Sales-Assessment RatioThe ratio of the assessed value of a property to its selling price, which is presumed to be market value. This shows the percentage of assessed value to market value.

Sales AssociateAny licensed real estate salesperson associated with a broker; sales associates never act independently, they act on behalf of the broker. Also called: Salesperson.

Sales-AssociateOne who is licensed to work in real estate under a licensed broker.

Sales Comparison ApproachSee: Market Data Approach.

Sales ContractA contract containing the complete terms of the agreement between buyer and seller for the sale of a particular parcel or parcels of real estate.

Sales KitMaterials carried by a salesperson to aid in listings and sales. This is the "tool kit" of real estate, containing forms, maps, tape measure, amortization schedules, pens, paper, etc.

SalespersonA person who performs real estate activities while employed by or associated with a licensed real estate broker.

Salvage ValueThe value of a building or portion of a building to be moved from one location for use at another site. Most often occurs in condemnation, especially for highway purposes, where large areas must be cleared. See also: Scrap Value.

SAMSee: Shared Appreciation Mortgage.

Sandwich BeamSee Flitch Beam.

Sandwich LeaseA lease between the primary lease and the lease to the user or party in possession.

Sanitary SewerA sewer carrying waste products, as opposed to rainwater. See also: Storm Sewer.

SARASee: Superfund Amendments and Reauthorization Act.

SashWood or metal framing around a door or window opening.

Satellite CitiesA concept designed to stop urban sprawl in the suburbs. The satellite city leaves an undeveloped area between itself and a major city, rather than the gradual expansion of the major city. Satellite cities must be self-contained in order to be effective.

Satellite TenantA tenant in a shopping center that is not a major or anchor tenant. The satellite tenant depends on the major tenant or tenants to attract people to the center.

SatisfactionA document acknowledging the payment of a debt. Once filed, the collateral pledged (mortgage) is returned to the mortgagor for a “mortgage burning party.”

Satisfaction Of MortgageThe document amortgagee gives the mortgagor when the mortgage debt is paid in full acknowledging the debt has been paid and the mortgage is no longer a lien against the property.

Saturation ZoneThe layer of ground which serves as a reservoir, feeding springs, wells and streams, rather than feeding vegetation or evaporating. Below the aeration zone.

Saving ClauseSee: Mortgage Saving Clause; Listing Saving Clause.

Savings And Loan AssociationOriginally an association chartered to hold savings and make real estate loans. Federally insured and regulated. Active in long term financing rather than construction loans. Recent changes in federal controls have enabled these associations to offer checking accounts, consumer loans, and other services traditionally offered by banks.

Savings And Loan Associations (S & L)Institutions that specialize in taking savings deposits and making mortgage loans.

Saw-Tooth RoofA series of shingle pitched roofs resembling the sharp edge of a saw. Usually used in factories and contains windows in each facing to allow maximum lighting. Not used in modern construction.

SBA (Small Business Administration)A federal agency authorized to make loans to small businesses, including loans for land purchase and construction.

ScaleUsed in maps, blueprints, and other diagrams where the drawing represents a large area. Example: One inch on a road map may equal ten miles actual distance. This ratio is the scale.

Scantling LumberBoards used in construction which are from 2" to 6" and 8" or less wide.

ScarcityCharacteristic of real property that says there is a limited supply of real estate.

Scope Of AuthorityThe authority of an agent to bind a principal. An agent may bind a principal not only when the agent has actual authority, but also implied or apparent authority.

Scoring ModelA formula used to determine the "score" (credit worthiness) of a borrower. See also: FICO SCORE.

Scrap ValueThe value of a building or part of a building based on the value of the material alone, and not its function. Example: Plumbing for the melted down value of the metal, walls for the value of the bricks, wood, etc. See also: Salvage Value.

Scratch CoatA term used in wet plastering, meaning the first coat applied to the lath.

ScribingCutting wood precisely to fit an area. The term is used because the carpenter marks (scribes) before he makes his cut.

Sea LevelThe level of the sea, at mean tide.

Seal(s)A physical impression made on a document to attest to a signature. Most common are corporate seal and notary seal.

SearchSee: Title Search.

SeasonedA term referring to a land contract or mortgage, indicating that payments have been made regularly over a period of time, and that the contract or mortgage is not a new one.

SecondSee: Degree (1).

Secondarily LiableWhen a party is not completely released from liability of an obligation; thus if the lender cannot recover the loan from the new party, the party who is secondarily liable may still be pursued.

Secondary FinancingA loan secured by a mortgage or trust deed, which lien is junior (secondary) to another mortgage or trust deed.

Secondary LocationA location not considered the best (prime) for the purpose intended.

Secondary MarketsPrivate investors and government agencies that buy and sell mortgages. Also called: Secondary Mortgage Market. Compare: Primary Markets

Secondary Mortgage MarketA market for the purchase and sale of existing mortgages, designed to provide greater liquidity for mortgages; also called the secondary money market. Mortgages are originated in the primary mortgage market.

Second FootA measure of water; a flow of one cubic foot per second (almost seven and one half gallons).

Second GrowthIn lumbering, the trees of a forest which grow after the original stand has been cut or otherwise destroyed.

Second HomeA home that is not the primary residence of the owner but is not a rental property.

Secret ProfitA financial benefit an agent takesfrom a transaction without authorization fromthe principal, nor informing the principal of thebenefit retained. See: Self-dealing.

SEC (Securities And Exchange Commission)The federal agency which regulates the stock market. It gets involved in real estate when the real estate development is one which sells shares.

SectionA portion of a township under the rectangular survey system (government survey method). A township is divided into 36 sections numbered 1 to 36. A section is a square with mile-long sides and an area of one square mile, or 640 acres.

Section 1031See: Tax Free Exchange.

Section 8 HousingA government subsidized program under which low income tenants pay a portion of their rent and the government pays the balance. Landlords must place their property in the program and agree to certain restrictions on rent amounts and increases as well as eviction procedures.

Sectional IndexAn index that lists recorded documents under the tax parcel number of the property they apply to, grouping together all recorded documents affecting a particular property. Also called: Tract Index.

Secured CreditorA creditor with a lien on specific property that enables him to foreclose and collect the debt from the sale proceeds if it is not otherwise paid.

Secured PartyMortgagee, beneficiary (under a deed of trust), pledgee, or any other party having a security interest.

SecuritizationAct of pooling mortgages and then selling them as mortgage-backed securities.

Security AgreementA "catch all" term used to describe many different types of debtor- creditor relationships, such as a chattel mortgage, trust receipt, inventory liens, etc.

Security DepositCommonly a deposit of money by a tenant to a landlord to secure performance of a written or oral rental agreement.

Security (Installment) Land ContractA form once used in California which combines a land contract with a deed of trust, creating a land contract in order to defeat a first lender's "due-on sale" (alienation) clause but having the foreclosure provisions of a deed of trust.

Security InstrumentThe mortgage or trust deed that secures the promise to repay under the note. The instrument hypothecates real property as collateral security for repayment.

Security InstrumentsInstruments (i.e., mortgages and trust deeds) that give a creditor the right to have the collateral sold to satisfy the debt if the debtor fails to pay according to the terms of the agreement.

Security InterestThe interest of the creditor (secured party) created by a security agreement.

SedimentAny matter which settles to the bottom in a liquid. See also: Sedimentary Rock.

Sedimentary RockOne of the three major classifications of rocks. Rocks formed from sediment, such as suspension in water. Sandstones, limestones, and shales, are some examples.

Seed MoneyA general term describing any initial funds used to begin a project. Usually not the major source or amount of the funds necessary to complete the project.

Seisen (Seizin)Originally the completion of feudal investiture, it has come to mean possession under a legal right (usually a fee interest).

Seisin (Seizin)An optional speling of existing definition, which is spelled seisen (seizen).

SeizenThe possession of a freehold estate; ownership. Also spelled: Seisin or Seizin.

Self-DealingWhen a real estate agent buys the principal's property (or sells it to a relative, friend,etc., or to a business the agent has an interest),without disclosing that fact to the principal, then sells it for a profit.

Self HelpRemedy allowing one party to act against another without use of court marshalls or police. Example: A landlord who evicts a tenant by simply moving the tenant's belongings out and changing the locks. Self help remedies have greatly decreased in recent years.

Self-Help EvictionWhen a landlord uses physical force, a lockout, or a utility shutoff to remove a tenant, instead of the legal process.

Self-Proving WillA will in which the witnesses give their testimony at the time of signing. This testimony is preserved in a notarized affidavit to eliminate the problem of finding the witnesses at the maker's death and to assist in the probating procedure.

Self-Supporting WallsWalls which support only their own weight. Not load-bearing.

Seller FinancingSee: Purchase Money Mortgage.

Seller’s AgentThe agent who is representing onlythe seller in a transaction and owes, all loyalty tothat seller/client.

Seller's MarketA situation in the housing market when there are more buyers than there are properties for sale.

Seller’s MarketA situation in the housing marketwhen there are more buyers than there areproperties for sale.

Seller Take Back MortgageSee: Purchase Money Mortgage (1).

Selling AgentThe real estate agent obtaining the buyer rather than listing the property. The listing and selling agent may be the same person or company.

SemiA prefix meaning partly; one half, or twice in a time period. For example: A semicircle is one half of a circle; semiannual is twice in one year. See also: Bi.

Semicircular RoofA roof resembling an extended arch. Usually found on barns or barracks type buildings.

Senior MortgageThe mortgage with higher priority than the mortgage to which it is compared. Example: A first (in time) mortgage would be senior to a second (in time) mortgage. A second mortgage senior to a third. The priority can change by subordination, making a second mortgage senior to a first, a third senior to a first or second, etc.

Separate PropertyThe real property owned by a husband and wife prior to their marriage.

SepiaA master of a construction plan, from which prints are made. Called a sepia because of its brown color.

Septic SystemA sewage system, whereby waste is drained through pipes and a tile field into a septic tank. Found in areas where city or county sewers have not yet been installed.

Septic TankAn underground tank into which a sanitary sewer drains from a building. The sewage is held until bacterial action changes the solids into liquids or gases, which are then released into the ground.

Sequestration, Writ OfThe taking custody of one's property (real or personal) to force compliance with a court order.

ServiceNotice given to one by delivery of a writ, subpoena, injunction, etc., by one duly authorized, giving notice to the person served of some court action or other proceeding with which he or she is involved as defendant, witness, etc.

Service IndustryAn industry which sells the knowledge or work of its people, rather than a tangible product. Example: A real estate broker is paid for his service. The product (property) does not belong to the broker.

Service LineThe gas or water line which runs from the main line (usually at the street) to each property to be served.

Service RoadA road running alongside a limited access highway, for use by abutting owners, and as a transition road from the highway to local streets. Also called a frontage road.

Service StationA place where gasoline and other automobile products and services are sold. A gas station.

Servicing AgentThe person or entity that collects payments and performs other functions for the holder of a loan.

Servient TenantThe owner of a servient tenement; that is, someone whose property is burdened by an easement.

Servient TenementThe land on which an easement exists in favor of an adjacent property; also called a servient estate.

ServitudeIn relation to easements, "easements" refer to the advantage of the dominant tenement, while "servitude" describes the burden of the servient tenement.

SetbackThe amount of space local zoning regulations require between a lot line and building line.

Set Back OrdinancePart of a zoning ordinance. Regulates the distance from the lot line to the point where improvements may be constructed.

SetbacksProvisions that require residences be located a specified distance between the front property line to the building line, as well as from the interior property lines.

Set-Off(1) A construction term relating to the reduction of the thickness of a wall, or any recess or sunken panel of the wall. (2) A legal term meaning a counter demand to a claim. In condemnation, the benefits to the remaining property in a partial taking may in some jurisdictions be "set-off" against the value of the land taken. Example: part of land taken for a freeway; residue now more valuable because of freeway. Increased value is "set-off" against value of land taken.

Settlement1. An agreement between the parties to a civil lawsuit, in which the plaintiff agrees to drop the suit in exchange for a sum of money or the defendant's promise to do or refrain from doing something. 2. Closing.

SettlingThe compaction of the soil by the weight of a newly built structure. If severe, cracks in the structure may result.

SettlorOne who creates a trust.

SeverableWhen one part or provision in a contract can be held unenforceable without making the entire contract unenforceable.

SeveraltyThe ownership of real property by one person only; also called sole ownership.

SeverancePartition or separation.

Severance DamageDamage to the remaining property in condemnation, caused by the partial taking and subsequent construction of the road, building, or other use for which the taking took place.

SewageLiquid or solid waste material from humans, animals, or industry.

SewerA pipe or other conduit, generally underground, which carries either waste materials or water from rainfall or melting snow to a point of disposal.

ShakeTo split or crack wood.

Shake ShingleShingle composed of split wood. Used as a roofing or siding material.

Share CropCrop raised by a tenant farmer who gives a portion of the crop to the landlord as rent.

Share CropperOne who farms as a tenant, sharing his crop with the owner as payment of rent.

Shared AppreciationThe gaining or retaining of equity in a property by someone other than the buyer. For example: the seller retains a 25% interest in the property. This makes the buyer responsible for only 75% of the purchase price and therefore, lowers the necessary financing by 25%. This obviously makes the property more affordable. By agreement, expenses are shared as well as any increase in value when the property is sold.

Shared Appreciation Mortgage (SAM)A financing arrangement under which the lender offers a lower interest rate in return for a percentage of the appreciation (profit) when the property is sold.

Shared Equity MortgageLoan for which the buyer and another investor (or seller, lender, etc.) enter into a partnership, with the buyer paying an equity share in lieu of interest.

ShareholderCommonly, one who owns stock (shares) in a corporation.

ShareholdersStockholders in a corporation.

Share LoanA type of co-op loan signifying a buyer is purchasing shares in a corporation, rather than a mortgage for ownership of property.

SheathingThe covering over the outside studs (or rafters) of a roof. May be wallboard, plywood, etc.

Sheet ErosionThe loss of soil in even amounts over a given area, through the action of water.

Shelter BeltA row of trees planted so as to shelter a building from severe weather conditions. Usually found in open areas which receive heavy snowfall.

Sheriff's DeedA deed issued by the court to aproperty purchaser from a foreclosure sale.

Sheriff’s DeedA deed issued by the court to aproperty purchaser from a foreclosure sale.

Sheriff's SaleA procedure in foreclosure that deeds the property to the sheriff and begins the redemption period.

Sheriff’s SaleA foreclosure sale held after a judicialforeclosure. Also called: Execution or ExecutionSale.

ShinglesRoof or wall surfacing of overlapping small sheets of wood, slate, tile, asphalt, or other waterproof material.

ShoeA trim molding, covering the juncture of baseboard and floor.

Shopping CenterA general term, covering a number of types of clustered retail stores with common parking and ownership or management. (See specific shopping centers: Strip; Neighborhood; Community; Regional).

Shore LineThe lands alongside navigable waterways, between the high and low water marks.

Shoring(1) The use of timbers to prevent cave-in during excavation by placing them against the walls of the excavation. (2) Any temporary bracing to support loads during construction.

Short Form DocumentA document which refers either to another document not of record containing the total agreement, or incorporates by reference a document of record.

Short Fuse MortgageA slang term describing a short term note and mortgage calling for a balloon payment. (See: Balloon Note).

Short SaleA sale of secured property that produces less money than is owed to the lender, but in order to expedite the sale and avoid foreclosure expense, the lender releases its interest so the property can be sold.

Short Term Capital GainProfit from the sale of a capital asset not held long enough to qualify as a long term capital gain. Taxed as ordinary income.

Short Term LeaseA general term, indicating a lease under five years in some states, under ten years in others.

ShoulderThe land adjacent to the travel lanes of a road, used for vehicles having difficulty. May be paved or unpaved.

Sick Building SyndromeWhen poor air quality in a building causes symptoms of headache, fatigue,nausea, sore throat, nose and eye irritation, etc.among its occupants.

Side DitchA ditch running alongside a highway to carry off excess rainfall. May be paved, contain portions of large metal or clay pipe, or simply be of dirt or grass.

Side YardThe area between a building and the one-side boundary of the lot on which it is located.

Siding(1) A surfacing for exterior walls, such as wood siding, aluminum, asphalt, etc. (2) A railroad track connected to a main track, and used for storage of cars, passing of trains, or other reasons to clear the main track.

SignAn advertisement placed on a property showing that the property is available for "sale", "lease", "exchange", etc. Signs have been shown by studies to be the second best advertising in terms of attracting buyers, only slightly behind classified newspaper advertising. Many local governments restrict signs as to size and location on the property.

SignatureThe Uniform Commercial Code defines a signature as any mark made with present intention to authenticate a writing. Company policy of banks, for example, or local governmental offices, such as the county recorder, may have stricter requirements.

Signed, Sealed, And DeliveredA phase indicating that everything necessary to convey has been done by the grantor. Modernly, signed and delivered are still necessary, but the only seals commonly used are by governments, corporations, and notaries.

SillThe lowest member of a frame (usually wood or metal), which supports the uprights of a frame. Most commonly used to describe the lowest horizontal member of an opening, such as a door sill or window sill.

Sill PlateBottom piece of a frame horizontally anchored to the foundation providing a nailing surface for the floor or wall system.

SiloGenerally, a tall, cylindrical structure, used for storage of corn, etc.

Simple InterestInterest computed on principal alone, as opposed to compound interest.

Simultaneous ClosingA seller financing technique used when an investor or seller creates a private mortgage note and then simultaneously closes with the buyer on the same day.

Simultaneous IssueA simultaneous issuance by a title insurance company of policies insuring both an owner and a lender. The lender's policy is issued at a reduced rate.

Single(1) One who has never been married. (2) Commonly, one who is not married, but may have been married.

Single Family HouseA general term originally used to distinguish a house designed for use by one family from an apartment house. More recently, used to distinguish a house with no common area from a planned development or condominium.

Single Pitch RoofA roof pitched entirely at the same angle, usually over 20 degrees.

Single Purpose PropertySee: Special Purpose Property.

Sinking FundA fund (often invested) which will be used to replace improvements as needed. Most commonly set aside from the income of income producing property.

Sinking Fund Method Of DepreciationA process of recovering the value of an asset by setting up a sinking fund.

Sit Down ContractWhen all negotiating is conducted in one place at one time, with all parties to the contract and their attorneys present.

Site(1) A general term signifying a plot of land suitable or set aside for any specific use. (2) Land which has undergone site development and is no longer raw land. See: Site Development; Raw Land.

Site AnalysisThe study of a specific parcel of land (and the surrounding area) to determine its suitability for a specific use.

Site DevelopmentAll improvements made to a site before a building may be constructed, such as grading, utility installation, etc.

SitusThe personal preference of people for one area of land over another, not necessarily based on objective facts and knowledge.

SkeletonThe frame, especially the supporting parts.

SkinA construction term, meaning the outer covering of a building.

Sky LeaseA lease of air space above a parcel of land. A structure which is cantilevered or a bridge can be used in such a lease.

SkylightA window in a roof or ceiling.

Slab(1) A concrete floor used as a foundation in homes without a basement. (2) Any concrete floor, even if an upper story.

Slab-On-Grade ConstructionA concrete foundation built directly on the ground level. A slabon-grade house or building does not have abasement.

Slander Of TitleThe making of malicious, untrue statements, regarding one's title or interest in property. The statements must be made to a third party and must cause injury to the party against whom the statements are made.

Slant DrillingA method of drilling for oil or gas from adjoining property when surface rights have not been granted. See also: Subsurface Rights; Surface Rights.

Sliding WindowSee: Traverse Window.

SlipA place between two piers or docks, where a boat is kept.

SlopeThe angle of a grade as measured from a level surface.

Small Claims CourtA court having limited jurisdiction to hear cases up to a statutory limit. Cases are heard quickly, attorneys are usually not allowed unless a party to the action, and most cases are decided on fairness rather than fine legal points.

Snow FenceA portable barrier placed along the side of a road to prevent snow from drifting onto the road.

Society Of Industrial And Office Realtors (SIOR)An international organization which is an affiliate of the NATIONAL ASSOCIATION OF REALTORS. Its members specialize in the field of industrial and office real estate.

SoffitThe undersurface of an arch, overhang, stairway, or other such part of a building.

Soft CostsSee: Indirect Construction Costs.

Soft MarketSee: Buyer's Market.

SoftwoodWood such as pine or fir, as distinguished from hardwood such as maple or oak. In construction, especially in flooring, softwoods and plywoods have become more popular because they cost less than the traditional hardwood flooring.

SoilThe top layer of earth in which plants grow and through which water drains.

Soil BankA federal program of conservation, under which farmers are paid for not growing crops, or growing non-commercial vegetation, in order to preserve the quality of the soil, as well as to avoid surpluses.

Soil ErosionSee: Erosion.

Soil MapA map showing the different types of soil in a given area.

Soil PipeA sanitary sewer pipe, from a building to the sewer main.

Soil ProfileA vertical cross-section showing the different horizons (layers) of the Earth's surface.

Solar HeatingHeating by use and control of the energy of the sun.

Sole PlateThe plate on which the studs rest. Usually a two by four, laid horizontally at floor level.

Sole ProprietorshipIndividual ownership of a business as opposed to a partnership or corporation.

Solvent(1) Financially able to meet one's current debts. (2) A liquid used to dissolve a substance, usually to remove it.

Sound ValueA synonym for depreciated costs. Used in fire insurance evaluation. Depreciation due to use up to the time of a fire.

Sovereignty Of The SoilThe beginning of the record of ownership of land by conveyance from the sovereign or the state. Historically, this is known also as a patent.

Space DesignThe planning of interior space of a building to meet the needs of the user. Involves a layout and construction drawings. There are companies which specialize in space design, from construction to color coordination. Need not be architects.

Space HeaterSee: Heater.

SpanThe spread (distance) between load-bearing members, such as walls or girders.

Spandrel(1) The triangular space between the exterior curve of an arch and the enclosing right angle above it. (2) The triangular space beneath the string of a stair. (3) The space between the top framing of a window to the bottom framing of a window above it.

Spandrel StepA step, such as in a circular staircase, which is triangular in shape.

Spandrel WallA wall which fills the spandrel space of an arch.

Spanish ArchitectureCopying the houses of Spain and Mexico, a home with a courtyard, tiled roof, and usually constructed of adobe or stucco.

Spec HouseSee: Speculative Building.

Special AgentAn agent with limited authority toact on behalf of the principal.

Special AssessmentA tax or levy customarily imposed against only those specific parcels of real estate that will benefit from a proposed public improvement, such as a street or sewer.

Special Assessment DistrictA geographic area designated to pay for infrastructure costs for a specific project. Properties within the district each pay a portion of the total project cost. Creates a special assessment lien (an involuntary lien).

Special BenefitsBenefits to the remaining property after a partial taking by eminent domain.

Special ForbearanceA repayment plan by a lender based on an adverse change in the borrower's financial situation. It may provide for a temporary reduction or suspension of payments. A borrower may qualify if he/she has recently experienced a reduction in income or an increase in living expenses. The borrower must furnish information to the lender to show their ability to meet the requirements of the new payment plan.

Special PartnerA limited partner. See also: Limited Partnership.

Special PowerSee: Power of Attorney (2).

Special Purpose PropertyA building which, by its design, cannot be used for other than the original purpose intended, without extensive remodeling, such as a hospital or church. Also called a single purpose property.

Special Purpose Real EstateProperties considered having a limited use, such as a church or tennis club.

Special Use PermitA permit given by the appropriate government authority for a use not ordinarily permitted by zoning laws.

Special Warranty DeedA 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.”

SpecificationsWritten, detailed, drawings which show a contractor how to proceed with construction, whether in new construction or remodeling.

Specific LienA lien affecting or attaching only to a certain, specific parcel of land or piece of property.

Specific PerformanceAn action to compel the performance of a contract, when money damages for breach would not be satisfactory.

Specific Performance SuitA legal action brought in a court of equity in special cases to compel a party to carry out the terms of a contract. The basis for an equity court's jurisdiction in breach of a real estate contract is that land is unique, and mere legal damages would not adequately compensate the buyer from the seller's breach.

Specific Tax PoliciesTax laws that can encourage or discourage a particular behavior or activity.

Speculative BuildingA building constructed for sale but without having a buyer before construction begins.

Speculative LandLand purchased for resale rather than for use.

SpeculatorOne who buys property, not for his use, but with only the intent to sell at a profit.

Spendable IncomeNet income after taxes.

Spendthrift TrustA trust created to give an income to the beneficiary while protecting the principal from the beneficiary and creditors of the beneficiary. The beneficiary may, therefore, not be able to sell or encumber the trust property.

Sphere Of InfluencePeople you know and whom you can ask for referrals.

Spite FenceA fence built for the purpose of causing a problem for one's neighbor. May ruin the view, make access of a vehicle difficult, etc., or simply be ugly.

Split-Level HouseA house with different levels, none of which is a complete story higher than another.

Split-RateCapitalization rate applied separately to land and improvements, to determine the value of each.

SponsorAlso known as the developer, a sponsor is the person, corporation, or other entity that is part of the sale and development of a condominium or co-op property.

Sponsoring BrokerA duly licensed real estate broker who employs a salesperson. Under law, the broker is responsible for the acts of her or his salespeople.

Spot ZoningA method of zoning which places a parcel or parcels of land under a different zoning than the surrounding area. Also used to describe zoning without a master plan.

SpouseOne's husband or wife.

Spreader DamA dam built in such a way as to divert water to either side, thus causing the water to spread over a given area.

Sprinkler System(1) When used in reference to residential property, a system of pipes under a lawn, used for watering the grass. (2) In commercial or industrial property, a system of pipes and valves in the ceiling, sensitive to ambient temperatures, which automatically sprinkles water or a chemical in case of fire.

Spur TrackA segment of railroad track, connected at only one end to a main track, which services an industrial building or buildings.

SquareA unit of measurement in roofing or siding, 10' X 10' (100 sq. ft.)

Square FootThe area contained by boundaries of 1 foot long and 1 foot wide. There are 9 square feet in 1 square yard.

Square Foot CostThe cost of a square foot of floor space of a building or of land.

Square Foot MethodDetermining the replacement cost of a building by finding the cost per square foot of comparable buildings and multiplying by the number of square feet of the subject property.

Square YardThe area contained by boundaries of 1 yard long and 1 yard wide. There are 9 square feet in 1 square yard.

SquatterOne who lives on another's land without authority or claim of a right to possession. The land may either be private or public.

Squatter's RightsCommonly confused with adverse possession. A squatter has no ownership rights and cannot, under the definition of a squatter, acquire any since he claims no interest adverse to the owner.

Squatter’s RightsThose rights acquired through adverse possession. By “squatting” on land for a certain statutory period under prescribed conditions, one may acquire title by limitations. If an easement only is acquired, instead of the title to the land itself, one has title by prescription, or easement by prescription.

SRAA designation conferred by the Appraisal institute upon member appraisers qualified to appraise one to four residential units, including townhouses. See also: MAI; RM; SREA; SRPA.

SREAA designation conferred by the Appraisal Institute upon members qualified in real estate appraisal and analysis, as well as giving investment advice. See also: MAI; RM; SRA; SRPA.

SRPAA designation conferred by the Appraisal Institute upon member appraisers who are qualified to appraise all types of real estate. See also: MAI; RM; SRA; SREA.

Stabilized BudgetA property's income and expenses averaged over a five year period.

Stable IncomeIncome that can reasonably be expected to continue in the future.

StachybotrysA type of mold known as “black mold” that produces my cotoxins.

StainAn oil paint used to coat wood, which has little thickness or gloss.

Standard Coverage PolicyA title insurance policy used in several states, not having as broad a coverage as the nationally recognized American Land Title Association (A.L.T.A.) policies.

Standard DepthDepth of a lot considered to be the normal depth for appraisal purposes. Traditionally, one hundred feet for a residential lot.

Standard ParallelsEast-West survey lines, establishing township boundaries at twenty- four mile intervals, and correcting inaccuracies in the government survey, due to the curvature of the Earth.

Standby CommitmentA commitment to issue a loan, usually for a term of one to five years, after completion of construction, in the event a permanent loan cannot be obtained. The standby loan is usually at a higher interest rate than a permanent loan, and a standby fee is charged.

Stand CruiseSee: Cruise.

Standing LoanA loan requiring interest payments only, the principal being paid in full at maturity.

Standing TimberTimber still uncut. Trees.

Stare DecisisLegal doctrine requiring judges to follow precedents (from the same jurisdiction) to make laws consistent and predictable.

Start CardA file card used as a record of the opening of an escrow. It lists the date the escrow opened, escrow number, name of escrow officer, names of parties to the escrow, lender, title company, legal description of property, consideration, and type of transaction (sale, loan, etc.).

StarterA copy of the last policy issued by a title insurer, which describes the condition of title to land upon which a new policy is to be written. In some states this is furnished to an attorney for his opinion as to the condition of title, and is called a back title letter or back title certificate.

Starter Home1. The first home purchased by that buyer. 2. A discrete description of a home that is small and not in good condition or without desirable amenities.

Start RateThe beginning interest rate on an adjustable rate loan. It may be much lower than the actual interest rate and only last for a few months. Also called the Teaser Rate.

StartsUnits on which construction has begun.

State ActionIn constitutional law, action by agovernment (federal, state, or local) rather than by a private party.

State Implementation Plan (SIP)Study required by the Environmental Protection Agency to help states meet national air quality standards.

Statement Of IdentitySee: Statement of Information.

Statement Of InformationA confidential form filled out by the buyer and seller to help a title company determine if any liens are recorded against either. Very helpful when people with common names are involved. Also called a statement of identity.

State Of New York Mortgage Agency (SONYMA)Offers programs funded by the sale of tax-exempt bonds and designed to make housing affordable to low- and moderate-income households.

State RoadA highway under the control of the state, which may eliminate it if desired, as opposed to a federal (interstate) highway.

StatuteA law which comes from a legislative body. A written law, rather than law established by court cases

Statute Of FraudsThe 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 LimitationsThat law pertaining to the period of time within which certain actions must be brought to court.

Statutory DedicationThe giving of private land for public use under a procedure dictated by statute.

Statutory EmployeeIndependent contractors specifically classified as employees by statute for Social Security and Medicare taxes.

Statutory LawLaws adopted by a legislative body(Congress, state legislature, or a county or city council), as opposed to constitutional law, caselaw, or administrative regulations.

Statutory LienA lien imposed on property by statute, for example, a tax lien; in contrast to a voluntary lien, which an owner places on his or her own real estate, for example, a mortgage lien.

Statutory Life EstateA life estate held by a person whose dower rights have vested (because a person's spouse sold property without a dower release and subsequently died).

Statutory Non-EmployeeDirect sellers and licensed real estate agents are treated as independent contractors for all tax purposes if certain conditions are met.

Statutory NoticeNotice given by legislative enactment (laws or statutes).

Statutory RedemptionAllows a mortgagor to redeem property for a set period of time after a foreclosure sale, regardless of the timing of other events. Compare: Equitable Right of Redemption.

Statutory Redemption PeriodSee: Redemption Period.

Statutory ReserveReserves of funds which must be kept by banks, savings and loans, insurance companies, and like businesses, to insure their ability to meet demands for funds in their course of business.

Statutory Survivorship TenancyA form of coownership, used in some states, to replace joint tenancy and tenancy by the entireties; each co-tenant has an equal undivided interest in real property and the right of survivorship.

SteeringThe illegal practice of channeling home seekers to particular areas or avoiding specific areas, either to maintain or to change the character of an area, or to create a speculative situation.

Step-Rate MortgageSee: Graduated Payment Mortgage

Step-Up Lease (Graded Lease)A lease calling for set increases in rent at set intervals.

Stick Built ConstructionThe traditional and most expensive method of building. The structure is built on site. See also: Manufactured Home.

Stick Built HomeA structure built entirely on the site, as opposed to one that is built in a factory and assembled at the site (manufactured).

Stigmatized PropertyA property regarded by some as undesirable because of events that have occurred on the property, like murder or suicide, or present paranormal activities. Sometimes, proximity to undesirable property causes a property to become stigmatized, too.

StirpesSee: Per Stirpes.

Stock CooperativeA type of common interest development under which a corporation owns the development, and shares of stock and the exclusive right to occupy are issued as a method of conveying ownership of the units.

Stock Cooperative MortgageA mortgage covering all of a cooperative apartment building or an individual unit of such. See: Cooperative apartment.

Storm Sash (Storm Window)An extra window on the outside of an existing window, as additional protection against cold weather.

Storm SewerA sewer carrying off rainwater. May also carry off industrial waste, such as chemicals, although many areas now forbid this.

Straight Lease (Flat Lease)A lease calling for the same amount of rent to be paid periodically (usually monthly) for the entire term of the lease.

Straight Line DepreciationA method of replacing the capital investment of income property, by reducing the value of the property by a set amount annually from the income, over the economic life of the property.

Straight-Line MethodA method of calculating depreciation for tax purposes computed by dividing the adjusted basis of a property less its estimated salvage value by the estimated number of years of remaining useful life.

Straight MortgageA loan that comes due on a specified date, often before the periodic payments would pay it off. Also called: Term Mortgage

Straight NoteA promise to repay a loan, signed by the debtor and containing the date executed, amount owing and to whom, date due (or on demand), rate of interest and how it is payable. A straight note is not amortized.

Straight-Term MortgageA mortgage calling for principal to be paid in a lump sum at maturity.

Straw ManOne who acts for another, not openly, but as a principal to hide the identity of the party for whom acting.

StreamAny water course, including a river, brook, channel, etc.

StreetA general term which includes any urban road, usually paved.

Street AddressThe number and name of the street (road, drive, avenue, etc.), the town or city, the state and zip code. Not acceptable on a deed, for example, for purposes of recording. The more technical description by lot and tract, sectional property description or metes and bounds is required.

Street Improvement BondsInterest bearing bonds, issued by a local government, to secure assessments for street improvements. The owners of the property assessed may pay in a lump sum or pay installments on the bonds, including interest.

Street ImprovementsImprovements connected with a street, such as paving, sidewalks, curbs, etc.

StressThe pressure of weight against a structural member. Materials are tested to determine the amount of stress they may hold before bending or breaking.

Strict ForeclosureSee: Judicial Foreclosure.

Strict LiabilityLiability which does not require a finding of fault (negligence). Classic examples for land use are dynamiting and keeping wild animals. Modernly used in environmental contamination cases.

StringpieceA heavy timber used as a horizontal support for cross members.

StringsThe sides which support stair treads.

Strip CenterAny shopping area, generally with common parking, comprised of a row of stores. Usually does not contain major department stores or grocery chain stores.

Structural LumberLumber used for its strength, 2" X 4" or greater.

StructureAny man-made building or edifice.

StrutA construction member, usually wood, placed between other members to support a load vertically, or pressure horizontally.

StuccoA type of wet plaster finish specifically designed for exterior use; it is particularly popular as an outside wall surface in warm, dry areas.

StudsThe vertical beams that serve to frame the house. Drywall and/or siding are attached to studs.

Studs (studding)Vertical supports (wood or metal) in walls and partitions.

SubagencyAn agent appoints a subagent to help the agent in a specified transaction and to act on the principal's behalf.

SubagentAn agent of an agent; a person that an agent has delegated authority, so the sub agent can assist in carrying out the principal's orders.

SubbaseThe base under a slab or roadway, usually of crushed rock, sand, and gravel.

Subchapter S CorporationAn entity receiving the protection of the corporate form, but being taxed as an individual.

SubcontractorOne who works under a general contractor (builder), such as an electrical contractor, cement contractor, etc.

SubdividerSee: Developer.

Subdivision MapA map submitted by a subdivider to the proper governmental body for approval in order to establish a subdivision. When the map is approved and recorded, it becomes the basis for the legal description of the subdivision.

Subdivision RegulationsState and local laws with which developers must comply before the land can be subdivided.

SubfloorUnderflooring laid on joists, over which finish flooring is laid.

Subjacent SupportThe right of an owner to have the surface of his land supported by the land under it, so that it does not collapse. Work on adjoining land (mining, excavating, etc.) could cause this problem. See also: Lateral Support.

Subjective IntentWhat the offeror in a transactionis actually thinking but necessarily what he does. Compare: Objective Intent.

Subject PropertyProperty for which a value estimate is sought.

Subject ToWhen property is transferred to abuyer along with an existing mortgage or lien, but without the buyer accepting personal responsibility for the debt. The buyer must make the payments to keep the property, but only loses her equity in the event of default. Compare:Assumption; Novation.

Subject To ClauseA clause in a deed, stating that the grantee takes title "subject to" an existing mortgage. The original mortgagor is alone responsible for any deficiency, should there be foreclosure of the mortgage. Differs from an "assumption" clause, whereby the grantee "assumes" and agrees to pay the existing mortgage.

SubleaseA lease, under which the lessor is the lessee of a prior lease of the same property. The sublease may be different in terms from the original lease but cannot contain a greater interest. Example: A leases to B for 5 years. B may sublease to C for 3 years, but not for 6 years. See also: Assignment of Lease.

SublesseeThe lessee under a sublease.

SublessorThe lessor under a sublease.

SubletTo create a lease under which the lessee of a prior lease is the lessor.

SublettingThe leasing of premises by a lessee to a third party for part of the lessee's remaining term.

SubordinateTo make subject or junior to.

SubordinationA relegation to a lesser position usually in respect to a right or security.

Subordination AgreementAn agreement that changes the order of priority of liens between two creditors.

Subordination ClauseA contract that gives a mortgage recorded at a later date priority over an earlier recorded mortgage. Also called:Subordination Agreement.

SubpoenaA legal process (writ) used to require the appearance of a person or documents into court.

Subprime LoanA loan with a higher interest rate than a conventional loan.

SubrogationThe 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 the right to sue from the injured party to recover any claims they have paid.

SubscribeTo write under or below. To sign at the end of a document.

Subsequent Good Faith PurchasersLater grantees of a deed who paid consideration for it and they are given some protection from claims not recorded).

SubsidenceSettling of the ground surface from loss of support in the ground beneath. May be caused by mining, lowering of the water table, etc.

Subsidized Second MortgageA subordinate loan issued to a select group such as firefighters, police, teachers or low income borrowers. It may be issued by a state or local government agency or by a nonprofit organization. The mortgage has a low interest rate and may even be forgiven under certain circumstances. Also called a Community Second Mortgage.

SubsidyA grant to aid in any work or enterprise, or to reduce the cost of a product. The federal government, for example, aids certain low income families by subsidizing rental payments.

Substantial PerformanceWhen a promisor does not perform all of his contractual obligations but does enough, the promisee is required to fulfill his obligations. Compare: Material Breach.

Substantive LawA law that establishes a right orduty. Compare: Procedural Law.

SubstitutionAn appraisal principle stating 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.

Substitution Of TrusteeA document which is recorded to change the trustee under a deed of trust. A simple procedure in some states; more regulated in others.

SubstructureThat portion of a building below ground or grade; which is the foundation for the superstructure.

Subsurface EasementSee: Subsurface Rights.

Subsurface RightsThe rights, whether by fee or easement, to oil, gas, or minerals, below a certain depth beneath the surface of land. The right of surface entry may or may not be excluded, and is important to the value of the surface land for improvement purposes. See also: Slant Drilling.

SuburbanThe area around a city. Usually residential with small businesses, although modernly an attraction for large industrial and commercial complexes.

SuccessionThe passing of real property by will or inheritance, rather than by grant deed or any other form of purchase.

Successor In InterestA person (i.e., a buyer or anheir) who has acquired property previously held by someone else.

SuiteA group of rooms in a hotel, rented as one unit. Usually contains a minimum of one bedroom, a sitting room, and a bathroom.

Suit For PossessionA 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 expiration of the lease.

Suit For Specific PerformanceA legal action brought by either a buyer or a seller to enforce performance of the terms of a contract.

Suit To Quiet TitleA legal action intended to establish or settle the title to a particular property, especially when there is cloud on the title.

Summation AppraisalAn approach under which value equals estimated land value plus reproduction costs of any improvements after depreciation has been subtracted.

SumpA pit or similar storage area in a basement for collecting drained liquid waste.

Sump PumpA pump used to force the collected liquids from a sump.

SuperfundThe federal program created by the Comprehensive Environmental Response, Compensation, and Liabilities Act of 1980 (CERCLA) and amended by the Superfund Amendments and Reauthorization Act of 1986. The program carries out the Environmental Protection Agency's purpose to identify and carry out or supervise the cleanup of contaminated sites. See also: Hazard Ranking System; National Priorities List.

Superfund Amendments And Reauthorization Act1986 federal legislation which reauthorized the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA). Additions in the 1986 act include the Innocent Landowners Defense.

Superfund Amendments And Reauthorization Act (SARA)Act that amended the CERCLA,designated more money to the Superfund trust,and established new environmental laws and regulations.

SuperstructureThat portion of a building above ground which is supported by the substructure.

Supplemental AbstractAn abstract covering a search of the public records between given dates.

SupplyThe amount of goods available in the market to be sold at a given price. The term often is coupled with demand.

Supply And DemandThe economic theory that when supply exceeds demand, prices fall, and when demand exceeds supply, prices rise.

SupportSee: Lateral Support; Subjacent Support.

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

SuretyOne who voluntarily binds himself to be obligated for the debt or obligation of another. For example: A co-maker of a note; an insurance carrier. Surety differs from guarantor, although commonly (and mistakenly) used interchangeably.

Surety BondAn 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 generally is used to ensure that a particular project will be completed at a certain date or that a contract will be performed as stated.

Surface RightsThe rights (easements) to use the surface of land, including the right to drill or mine through the surface when subsurface rights are involved.

Surface WaterWater caused by precipitation, which spreads over land and stays on the surface (a swamp) or percolates through the ground.

SurrenderThe giving up of an estate, such as a lease. A contractual agreement, having the consent of both parties, such as the lessor and lessee, as opposed to abandonment.

SurvivorshipGaining an interest in property by outliving (surviving) another who had the interest.

SuspensionA real estate agent's license being temporarily withdrawn. Usually, reactivation is automatic the day after the suspension is lifted.Compare: Revocation.

SwaleA low-lying area in otherwise level ground.

SwampSoft, wet land, usually containing heavy vegetation and under water much of the time.

Swing LoanAn interim loan made so that the borrower may purchase property during a pending sale of borrower's property. The proceeds from the sale are then used to pay off the swing loan.

SynagogueMeaning "to bring together", it is a building where Jews assemble to worship.

SyndicateA combination of two or more persons or firms to accomplish a joint venture of mutual interest. Syndicates dissolve when the specific purpose for which they were created has been accomplished.