Real Estate Dictionary

S

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

sales comparison approach: the process of estimating the value of a property by examining and comparing actual sales of comparable properties.

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

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

salesperson annual education (SAE): a requirement for education beyond that needed to obtain a real estate salesperson licenses.

satisfaction of mortgage: a document acknowledging the payment of a debt.

section: a square with mile-long sides and an area of one square mile.

Seller's Disclosure Notice: a notice required of most sellers of real property; must state latent structural defects or any other known structural defects.

servient tenement: land on which an easement exists in favor of an adjacent property.

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 or one legal entity only.

severance: changing an item of real estate to personal property by detaching it from the land.

shared-appreciation mortgage: a mortgage loan in which the lender, in exchange for a loan with a favorable interest rate, participates in the profits the mortgagor receives when the property is sold.

situs: the personal preference of people for one area over another area, not necessarily based on objects facts and knowledge.

sole proprietorship: a method of owning a business in which one person owns the whole business and reports all profits and loose on his or her personal income tax return.

special agent: one authorized by a principal to perform a single act or transaction.

special assessment: a tax or levy customarily imposed against only those specific parcels of real estate that will benefit from a proposed public improvement like a street or paved alley.

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

specific performance: a legal action brought to compel a party to carry out the terms of a contract.

spot zoning: a change in a local zoning ordinance to permit a particular use that is inconsistent with the area's zoning classification

statue of frauds: that part of 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 limitations: that law pertaining to the period of time within which certain actins must be brought to court.

statutory lien: a lien imposed on property by.

statutory year: a year composed of 12 months, each with 30 days, for a total of 360 days in a statutory year.

steering: the illegal practice of channeling home seekers to particular areas, either to maintain the homogeneity of an area or to change the character of an area to create a speculative situation.

straight-line method: a method of calculating depreciation for tax purposes.

subagent: a licensee who represents a principal through cooperation with and consent of a broker representing the principal and who is not sponsored by or associated with the principal's broker.

subjective value: the perceived value of an item based on the relative benefits expected to be derived from its use.

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

subordination: relegation to a lesser position, usually in respect to a right or security.

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.

subpoena: a legal process ordering a witness to appear and give testimony or to present documents under penalty of law.

subrogation: the substitution of one creditor for another, with the substituted person succeeding to the legal rights and claims of the original claimant.

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 valued substitute property, assuming that no costly delay is encountered in making the substitution.

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.

suit to quiet title: a court action intended to establish or settle the title to a particular property, especially when a  cloud on the title exists.

supply: the amount of goods available in the market to be sold at a given price.

surety bail bond: a pledge of real estate instead of cash a security for bail.

surety bond: an agreement by an insurance company to be responsible for certain possible defaults, debts, or obligations contracted for by an insured party.

surface rights: ownership rights in a parcel of real estate that are limited to the surface of property and do not include the air above it.

syndicate: a combination of people or firms formed to accomplish a business venture of mutual interest by pooling resources.