Your Online Legal Resource Center for Property Management

SAFETY CLAUSE - A listing clause which states that should a buyer who was made aware of property for sale though the efforts of a broker purchase said property after expiration of the listing, the seller will remain liable for a commission on the sale.

SALE - leaseback A transaction in which the buyer leases back the property to the seller for a specified period of time.

SALES-ASSESSMENT RATION - The ratio of sales price to assessed value.

SALES CONTRACT - A contract signed by the buyer and seller that details the terms of a home purchase.

SALESPERSON - A licensed real estate associate operating under the auspices of a broker.

SALTBOX STYLE - A design that dates to colonial times and takes its name from the shape of saltboxes.

SALVAGE VALUE - The worth of a building which is to be moved to another site.

SANDWICH LEASE - A leasehold interest that has been sub-leased to a third party; the lessee's lease between the first and third party.

SANITARY SEWER - A public sewer for wastes, as opposed to a storm sewer which carries rain water.

SATISFACTION OF MORTGAGE - See Release.

SANITARY SEWER - The drain line in a house that carries away food and human wastewater to a municipal sewer system or a septic system.

SASH - One of two windows in a double-hung window.

SAVINGS AND LOAN ASSOCIATION - A federally or state chartered and regulated association which pays interest on deposits and makes long term first mortgages.

SCARCITY - The amount of a product available in relation to the demand for it.

SCENIC EASEMENT - An easement purchased or condemned in order to preserve a natural beauty, such as a view.

SCHEMATIC DESIGNS - Renderings of floor plans and the exterior of a house.

SCOPE OF AUTHORITY - The range of authority which an agent has over a principal; it may be implied or apparent.

SCRIBING - Marking wood for cutting to attain an accurate fit.

SEASONED LOAN - A loan that has been in existence long enough to establish the borrower's credit worthiness.

SECONDARY LOAN- A second loan on a property which has priority under the first mortgage; not established by first recording, but by agreement.

SECONDARY LENDER - A wholesale mortgage buyer who purchases first mortgages from bonds, savings, and loan associations, enabling them to restock their money supply and loan more money.

SECONDARY MORTGAGE MARKET - A market of packaged home loans that are resold as securities to investors. Major players are Fannie Mae and Freddie Mac.

SECOND MORTGAGE - Another loan placed upon a piece of property.

SECURED LOAN - Any loan backed by collateral.

SECURED PARTY - The lender under a mortgage or deed of trust.

SECURITY - A piece of property designated as collateral.

SELLER BROKER - A seller broker represents the interest of the seller.

SELLER CARRY-BACK - An agreement in which the seller provides financing for a home purchase.

SELLER TAKE-BACK - An agreement in which the seller provides financing for a home purchase.

SELLER'S MARKET - A hot real estate market in which sellers have the advantage and multiple offers are common.

SELLING AGENT - The agent who secures a buyer for a seller, not necessarily the same as the listing agent and may not be associated with the listing broker.

SEMI-CUSTOM HOME - The buyer of a semi-custom home is free to make some design changes but not to the home's structural plan.

SEPARATE PROPERTY - Individual property belonging solely to a husband or wife in which the other has no legal interest.

SEPTIC TANK - A cement tank buried in the ground into which household sewage drains and is broken into liquids and gases.

SEPTIC SYSTEM - A self-contained sewage treatment system that distributes wastewater to an underground storage area and relies on bacterial action to decompose solid waste matter.

SEQUESTRATION, WRIT OF - A court order which empowers someone to take custody of another's personal or real property.

SERVICE PROPERTY - A property used for public service, such as a school or museum.

SERVICER - A firm that collects mortgage payments and manages borrowers' escrow accounts.

SERVICE ROAD - A road parallel to a limited access highway which serves adjacent property.

SET-BACK - The minimum distance a house or buildings must be from the lot line.

SETTLEMENT STATEMENT - A document that details who has paid what to whom.

SEVERALTY - A property owned by one individual separately.

SEVERANCE DAMAGE - Loss in value to the remaining property, after a portion has been taken in condemnation.

SHARED-APPRECIATION MORTGAGE - A loan that allows a lender or other party to share in the borrower's profits when the home is sold

SHARED-EQUITY TRANSACTION - A transaction in which two buyers purchase a property, one as a resident co-owner and the other as an investor co-owner

SHAREHOLDER - An individual or entity owning shares in a corporation.

SHED CEILING - A shed ceiling pitches upward at one end.

SHED ROOF - A shed roof pitches up longer on one side than the other.

SHEET EROSION - Washing away of earth by water action.

SHERIFF'S DEED - A deed granted to a buyer by the sheriff after a foreclosure sale.

SHINGLE STYLE - An alternative style of Victorian homes that evolved in the late 19th century to simplify the complexity of the traditional Victorian house.

SHINGLES THIN - A wedge-shaped pieces of wood or flat rectangular pieces of slate, mineral fiber, glass fiber or composition asphalt installed on a roof to prevent water seepage.

SHOE MOLDING - An unobtrusive finish trim between the floor and the baseboard designed to hide any irregularities in the seam between the floor and wall or baseboard.

SHORT TERM CAPITAL GAIN - Gain from sale of a property or a security not held long enough to qualify as a long term investment; usually property sold in less than one year after purchase. The gain is taxable as ordinary income.

SHORT TERM DOCUMENT - A shortened version of a legal document which makes reference to a master document of file whose terms are included as part of a total agreement.

SHORT TERM LEASE - A lease agreement whose term is less than 10 years; the term varies in different areas.

SILL PLATE - A horizontal piece of wood placed on top of the foundation.

SILL COCK - An exterior threaded faucet connection for garden hoses that provides water outside a home.

SIGNED, SEALED AND DELIVERED - An expression meaning that the document has been signed by interested parties and copies have been signed by interested parties and copies have been delivered to interested parties. The seal refers to application of a notary, corporation or government official seal, if required.

SIMPLE INTEREST - Interest charged on principal and not interest charged on interest, as in compound interest.

SIMULTANEOUS ISSUE - An owner's and a lender's title insurance policies issued at the same time, thereby reducing the charge for the lender's policy.

SINGLE FAMILY DWELLING - A house designed and zoned for use by a single family unit on a lot owned with it, as opposed to a multi-family unit on a lot owned with it, as opposed to a multi-family unit or condominium where the land is owned as one parcel and the units are joined together.

SINKING FUND - Money reserved for the repair and maintenance of investment property.

SKYLIGHT - A window in a roof that allows natural light to illuminate a room.

SLAB FOUNDATION - A foundation built directly on soil with no basement or crawl space.

SLANDER OF TITLE - False statements made by a second party to a third party regarding a first party's ownership; when the first party suffers a loss as a result of slander of title, a legal claim for damages may be sustained.

SLIDER WINDOW - Windows that are composed of two windows, or sashes, that glides open and closed on a metal track.

SOFFIT - An external area under the overhang of a roof.

SOFT MONEY - Money disbursed for expenses or a second mortgage which does not increase in value through appreciation, as would money invested in a down payment.

SOIL PIPE AND STACK - A pipe which carries waste materials from a house and which is ventilated by vertical pipe which allows for release of sewer gases.

SOILS TEST - A test of the subsoil to ensure that foundations can be safely constructed.

SOLAR HEATING - Sun radiated heat.

SOUND VALUE - An insurance term which estimates actual value at the time of loss by fire.

SPANISH MISSION STYLE - A design that is derived from the original missions established by the Spanish in the Southwest.

SPECIAL ASSESSMENT - When a homeowners' association needs or wants extra funds, it levies a special assessment upon the owners.

SPECIAL BENEFITS - Additional benefits to property resulting from the taking of a part of the property by emminent domain.

SPECIAL DEPOSIT ACCOUNT - Rehabilitation mortgages require a special deposit account from which restoration and remodeling funds included in the loan are disbursed to the appropriate contractors as work is completed.

SPECIAL PURPOSE PROPERTY - Property that is not suitable for more than one use without costly changes being made, such as a church.

SPECIFICATIONS - The written requirements for materials, equipment, construction systems and standards.

SPECIFIC PERFORMANCE - A legal action to enforce the terms of an agreement.

SPECIMEN TREE - A tree planted singly rather than as part of a group, because of it distinct beauty.

SPECULATION HOME - A home that has been built without a buyer.

SPECULATOR - An investor in the business of buying and selling real property for profit.

SPENDABLE INCOME - The amount of income left after deduction of expenses, taxes and debt service.

SPENDTHRIFT TRUST - A trust established to pay income to its beneficiary and to avoid claims against a beneficiary by creditors. The beneficiary may not sell or transfer property in the trust.

SPIN-OFF - A method of controlling a real estate developement, by selling assets to a subsidiary corportaion which then disburses stock to share holders according to ther interest.

SPLASH BLOCK - A slanted block used to divert runoff water from a downspout away from the foundation.

SPLIT-LEVEL HOUSE - A house with more than one elevation, such as a tri-level.

SPLIT-LEVEL STYLE - A home that is a ranch-style house stacked to fit on a smaller lot and perhaps to accommodate a garage.

SPLIT-RATE - The value of improvements on land established separately from the land itself, for the purpose of determining a capitalization rate.

SPOT LOAN - A loan granted on one unit of a condominium by a lender not familiar through previous loans with the subdivision; additional expenses may be involved for analyzing the risk.

SPOT ZONING - Erratic zoning of land with no long-range plan in mind.

SQUARE FOOTING - The number of square feet of livable space in a home or building.

SQUARE FOOT - Method - A method of estimating rent or land value according to the square footage cost.

SRA - Society of Real Estate Appraisers. An association of professional appraisers who admit members according to their training, experience and education.

STANDARD COVERAGE POLICY- A title insurance policy which covers defects of record only.

STANDARD DEPTH - The average depth of a subdivided lot.

STANDARD METROPOLITAN STATISTICAL AREA - Areas designated by the U.S. Office of Management and Budget that contain a city of 50,000 or more.

STANDARD PAYMENT CALCULATION - A calculation that is used to determine the monthly payment necessary to repay the balance of a home loan in equal installments.

STANDY COMMITMENT - A lender's commitment for a loan of 1 to 5 years after completion of a building project, in case other long term financing cannot be obtained.

STANDING LOAN - A loan on which installment payments are made on interest only; the principal amount is not repaid until the final due date.

START CARD - An escrow account card which shows the date opened, the names of the parties involved, etc.

STARTER - The latest title policy issued on a particular property; an attorney searches the title from that date forward before issuing a letter of opinion or back title letter convering the condition of title.

STARTER HOME - Homes that fall within the lower price range of a typical first-time buyer.

STATEMENT OF INFORMATION - A form filled out by buyer and seller which enables a title insurance company to determine if there are liens or judgments against either party; usually requested when one of the parties has a common name such as John Smith.

STATUTE OF FRAUDS - A state law that requires contracts for real property to be in writing.

STATUTE OF LIMITATIONS - The law that determines the legal period during which a valid claim may be filed.

STATUTORY LIEN - A lien provided for by law rather than by agreement, such as for taxes, judgments, etc.

STATUTORY RESERVE - Money which banks and saving and loan associations are required to set aside to meet regular business obligations.

STEEL FRAMING - A construction method used by commercial and residential builders.

STEP-RATE MORTGAGE - A loan that allows a gradual increase in the interest rate during the first few years of the loan. constant.

STEP-UP LEASE - A lease which provides for increases in rent periodically.

STOCK COOPERATIVE - See Cooperative.

STORM SEWER - A drain line, which is not connected to the sewerline, removes all other wastewater from a home.

STORM WINDOWS - Sets of windows and screens that are installed on older double-hung windows.

STRIKE PLATE - The metal part of a lock that is anchored to the doorframe and holds the door closed.

STRAIGHT LINE DEPRECIATION - Depreciating property at a fixed rate annually over its economic life.

STRAIGHT NOTE - A note that requires repayment to be made on demand rather than through installment payments.

STRAIGHT PURCHASE - A transaction in which the buyer gives a new-home builder a deposit to begin building and the balance when the sale of the house closes.

STRAIGHT TERM MORTGAGE - A mortgage in which the principal amount is paid at the end of the term.

STRIP CENTER - A string of small retail stores or businesses which share a parking area.

STUCCO - A mixture of sand and cement used to cover the exterior surface or interior walls of a home or building.

STUDS - The upright pieces of lumber or steel in a wall to which panels, siding, drywall or other coverings are attached.

SUB-AGENT - When an agent brings a buyer to a property, they are in effect acting as a subagent to the listing agent.

SUB-CONTRACTOR - Specialty construction companies hired by the general contractor to perform certain tasks.

SUBDIVISION - The process in which the owner of a large piece of property divides it into smaller parcels.

SUB-FLOORING - The sheathing, usually made of plywood, placed on top of floor joists and covered by flooring.

SUBJECT TO CLAUSE - A clause in a deed or contract specifying that the new buyer is purchasing the property subject to an existing mortgage, which may be called due by the lender according to the terms of the mortgage.

SUBLEASE - A lease given by a lessee to a third party.

SUBORDINATE LOAN - A second or third mortgage.

SUBORDINATION- A clause in a deed or contract whereby a seller agrees to grant first priority to another lender's mortgage in order to secure a loan for construction by the buyer.

SUBSURFACE RIGHTS - Oil, gas, and mineral rights.

SUBURBAN - A residential and small business area on the outer extremities of a larger city.

SUCCESSION - The transfer of property as specified in a will.

SUMP PUMP - A pump that moves water from a basement sump pit.

SUNBELT - Southern states exposed to sunshine through the majority of the year.

SUNBELT AND DEMAND - An economic theory upon which prices for products and service are determined; the greater the demand is over the available supply of a product, the greater in price the product becomes.

SURETY - One who insures that a debt or claim for damages will be paid, such as a co-signer on a mortgage or an insurance company.

SURFACE RIGHTS - A rights or easement granted with mineral rights enabling the possessor of the mineral rights to drill or mine through the surface.

SURVEY - A precise measurement of a piece of property by a licensed surveyor.

SURFACE RIGHTS - A right or easement granted with mineral rights enabling the possessor of the mineral rights to drill or mine through the surface.

SWEAT EQUITY - The non-cash value put into a piece of property by the owner, such as do-it-yourself home improvements. The creation of an interest in property by a buyer prior to closing whereby he is allowed to perform labor to improve the property in order to obtain financing.

SURFACE WATER - See Ground Water.

SURVIVORSHIP - See Right of Survivorship.

SYNDICATION - Bringing together a group of people according to state regulations for the purpose of investing in real property or securities as a business.