S Terms Flashcards
supplemental tax bill
An additional tax bill given when property is reassessed on sale to cover the increased tax for the increased assessment.
supply and demand
The greater the supply, the lower the value; the less the supply, the higher the value. The greater the demand, the greater the value; the less the demand, the less the value. surface water Water not in a defined channel.
surrender
The mutual agreement of the parties to end a lease. All further obligations of the parties are terminated.
syndicate
Two or more persons who have joined together for investment purposes. A descriptive term for multiple ownership. Syndicates may be general partnerships, limited partnerships, corporations, or REITs, although most syndicates are limited partnerships..
sweat equity
Equity earned through an owner’s construction or improvements.
survivorship
On the death of a joint tenant, the tenant’s interest ceases to exist, and all interests remain undivided with the survivors.
survey
A location or verification of property lines by a surveyor.
Summary Appraisal Report
Report that summarizes the market conditions and analysis performed.
stock cooperative project
A cooperative in which each owner owns stock in the project and has the right to occupy a unit.
straight note
A note on which interest only is paid, with the entire principal payable on the due date (a term loan).
straight-line depreciation
A method of depreciation whereby an equal amount is deducted each year over the life of the asset.
substantial performance
An unintentional contract breach that is not substantial. Contract remains enforceable, but price is reduced based on reduction in value.
subrogation
The substitution of one party for another as to her interests.
subprime lender
Lender that will make loans deemed too risky by most conventional lenders. They charge
higher interest and/or origination fees.
subordinate
An agreement that a loan will be secondary to another encumbrance.
straw man
A substitute used to conceal the identity of an actual purchaser. strict foreclosure Foreclosure by peaceful entry of the mortgagor without a sale (allowable in several states).
sublease
A lease given by the original lessee, who becomes a sublessor. The sublessee is the tenant of the sublessor, not of the original lessor. Also called a sandwich lease.
subjective value
The use value to the owner.
“subject to” loan
An agreement that allows the buying of real estate without agreeing to pay an encumbrance. Buyer is not personally liable on the loan, so a deficiency judgment is not possible. Buyer must make payments, however, or lienholder will foreclose.
subjacent support
Support of the surface by the underlying ground.
subdivision
Land division in accordance with state subdivision laws.
studs
Vertical 2-by-4-inch boards in a wall; usually 16 inches on center (from the center of one to the center of the next stud).
subagent
A person whose agency status was conferred by an agent, not the principal.
special warranty deed
A deed in which the seller warrants title only as to defects arising during the grantor’s ownership.
specific lien
A lien against a particular property only, as opposed to a general lien, which applies to all property of the debtor.
specific performance
The legal remedy of requiring a party to perform as agreed; ordinarily granted when money damages are inadequate.
specific performance
The legal remedy of requiring a party to perform as agreed; ordinarily granted when money damages are inadequate.
step lease
A lease with graduated increases.
stigmatized property Non-physical factors that affect desirability of a property.
steering
The illegal practice of directing buyers to certain areas, based on race or national origin.
statutory dedication
Dedication that results from the recording of a subdivision map that indicates land dedicated to public use.
statute of limitations
Sets forth the time limit within which legal action must be taken or rights will lapse.
statute of frauds
Legislation requiring that certain contracts, including those dealing with real estate, be in writing to be enforceable.
Starker exchange
A delayed exchange where the exchange property must be designated within 45 days of closing on the first property, and the exchange must be completed within 180 days of the closing on the first property.
spite fence
A fence that exceeds statutory height; considered a nuisance.
spot survey
A survey that shows the location and outline of improvements, easements, and encroachments.
stare decisis
The legal principle stating that previous decisions (precedent) should be considered by the courts.
standard parallels
East-west survey lines that run north and south of the base line. They are 24 miles apart.
square footage
The measurement arrived at by taking exterior dimensions, excluding the garage.
spot zoning
Small areas of zoning use that do not fit with the general use of the area (frequently resulting from political influence).
Service Members Civil Relief Act (SCRA)
Provides protection against evic- tion and foreclosure as well as excessive rates of interest.
special assessment
A charge against a property for a specific improvement, such as a street or sewer; usually assessed based on benefits received.
servicing a loan
The business of
loan collection, maintaining impound accounts and recordkeeping.
sheet flooding
Flooding down an incline but not in a watercourse.
sheriff’s deed
A deed given by the sheriff when property is sold for execution of a judgment or sheriff’s foreclosure sale.
Sherman Antitrust Act
Federal law that makes price-fixing, market allocation agreements, and other actions to reduce competition illegal.
short rate refund
A less-than-prorated refund received by an insured who cancels an insurance policy.
short sale
A sale where the lender agrees to accept sales proceeds for the debt because sale price is less than the amount owed. When mortgage exceeds value, it is called an upside-down-sale.
situs
The preference of buyers for particular areas.
soil pipe
The sewage pipe carrying waste from a building to the sewer or septic system.
solar easement
Easement of light.
special agent
An agency in which the agent is authorized to perform only designated acts (specific agency).
servient tenement
An estate that is used by another under an easement.
setback
The building line distance from the lot line.
severalty ownership
Ownership by one person or entity alone.
severance
Removing something from the land such as cutting down a tree or demolishing a structure. The real property becomes personal property.
shared appreciation mortgage (SAM)
A mortgage under which the mortgagee shares in the appreciated value of the property.
sheathing
A covering over studs and rafters, which may be plywood, board, or composition board, over which the siding or roofing is placed.
S corporation
A small, closely held corporation that has elected to be taxed as a partnership.
safety clause
A listing provision that grants the broker a commission for a sale made within a specified period of time after a listing expires, if the broker submits the name of the buyer to the owner within a stated period of time as a party with whom the broker had negotiated before expiration of the listing.
sale-leaseback
A sale in which the grantor becomes the tenant of the grantee.
sans
French for without. Used to
exclude property from a grant.
separate property
Property owned individually by a spouse in which the other spouse has no interest.
send-out slip
An agreement that if a broker discloses a property to a prospective buyer, the buyer will negotiate for that property only through that broker
sellers’ market
A market condition characterized by more buyers than sellers, so sellers have a more commanding position.
security
An investment where the investor invests money but has no control or management over the investment. seisin Possession by one who claims rightful ownership.
security agreement
A security interest that a creditor retains in personal property of a debtor (under the Uniform Commercial Code).
Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act)
Sets requirements for state licensing of mortgage loan originators.
satisfaction of mortgage
Given by the mortgagee to the mortgagor when the mortgage has been satisfied. Recording the satisfaction removes the lien
section
A parcel of land one mile square containing 640 acres, formed by government survey.
Section 8
A federal rent subsidy program for low-income families.
secret profit
An undisclosed profit of the agent, regardless of the amount.
secondary mortgage market
Describes the buying and selling of existing mortgages.
secondary financing
Second mortgages or trust deeds.
seasoned loan
A loan with a payment history. Such a loan is desirable on the secondary mortgage market.
seal
An impression or a stamp to authenticate the signature on a document, which is required in some states on formal documents. Generally, “(seal)” or the letters “L.S.” (locus sigilli, Latin for place of the seal) are sufficient.
scheduled gross income
Gross income based on 100% occupancy and scheduled rents.
