S words

Question 1

Sale and Leaseback

Answer 1

A financial arrangement where at the time of sale the seller retains occupancy by
concurrently agreeing to lease the property from the purchaser. The seller receives cash while the
buyer is assured a tenant and a fixed return on buyer’s investment.

Question 2

Sales Comparison Approach

Answer 2

One of the three major valuation methods, which compares a subject
property’s characteristics with those of comparable properties which have recently sold in similar
transactions.

Question 3

Scarcity

Answer 3

A lack of supply.

Question 4

Secondary Mortgage Market

Answer 4

The marketplace whereby the loans that were originated in the primary
mortgage market are bought and sold.

Question 5

Section 1031 Exchange

Answer 5

A section of the U.S. Internal Revenue Service Code that allows investors to
defer capital gains taxes on any exchange of like‐kind properties for business or investment purposes.

Question 6

Secured Debt

Answer 6

Debt that is backed or secured by collateral to reduce the risk associated with lending.

Question 7

Security Agreement

Answer 7

An agreement between the secured party and the debtor which creates the
security interest.

Question 8

Security Instrument

Answer 8

A contract whereby a debtor agrees to use property as security or collateral for
the repayment of debt.

Question 9

Self Dealing

Answer 9

The conduct of a trustee, an attorney, a corporate officer, or other fiduciary that consists
of taking advantage of his position in a transaction and acting for his own interests rather than for the
interests of the beneficiaries of the trust, corporate shareholders, or his clients.

Question 10

Seller’s Market

Answer 10

A scarcity of supply and a great demand.

Question 11

Selling Agent

Answer 11

The individual who finds the buyer (or seller) for the property.

Question 12

Servient Tenement

Answer 12

Land encumbered by an easement.

Question 13

Setback

Answer 13

The distance a structure must be placed away from the street.

Question 14

Sherman Anti‐Trust Act

Answer 14

Federal legislation including imposition of civil and punitive damages for anti‐
trust activities.

Question 15

Short Sale

Answer 15

A seller’s attempt to sell the real estate whereby the liens are greater than the value of the
property.

Question 16

Side Yard

Answer 16

A yard that extends along a side lot line from the front yard to the rear yard.

Question 17

Single Agent

Answer 17

An agent who works only for the buyer or the seller.

Question 18

Sociological Jurisprudence

Answer 18

A law is being implemented in an effort to positively reform a society or a
standard of society.

Question 19

Special Agent

Answer 19

An agent with limited authority to act on behalf of the principal, such as created by a
listing contract.

Question 20

Special Assessment

Answer 20

A legal charge against real estate by a public authority to pay for the cost of public
improvements such as street lights, sidewalks, and street improvements.

Question 21

Special Warranty Deed

Answer 21

A deed in which the grantor warrants or guarantees the title only against
defects arising during grantor’s ownership of the property and not against defects existing before the
time of grantor’s ownership.

Question 22

Specialty Contractor

Answer 22

A contractor whose operations involve the performance of construction work
requiring special skill and whose principal contracting business involves the use of specialized building
trades or crafts.

Question 23

Specific Lien

Answer 23

A lien that attaches to one specific property only.

Question 24

Specific Performance

Answer 24

An action to compel performance of an agreement, ex: sale of land as an
alternative to damages or rescission.

Question 25

Spot Zoning

Answer 25

The illegal rezoning of a certain property in a zoned area to permit a different type of use
than that authorized for the rest of the area.

Question 26

Stare Decisis

Answer 26

The legal principle of determining points in litigation according to precedent.

Question 27

Statute of Frauds

Answer 27

A state law requiring certain contracts to be in writing and signed before they will be
enforceable at law. Ex: Contracts for the sale of real property, contracts not be performed within one
year.

Question 28

Statute of Limitations

Answer 28

A statute prescribing a period of limitation for the bringing of certain kinds of
legal action.

Question 29

Statutes

Answer 29

An act of a legislature that declares, proscribes, or commands something.

Question 30

Statutory Will

Answer 30

A simple will that uses a standard legal form, containing provisions required by State
law.

Question 31

Steering

Answer 31

Using racial, ethnic, or religious criteria in suggesting, recommending, and/or influencing
individuals regarding locations for the purchase or rental of a single family residence or rental dwelling.

Question 32

Stock

Answer 32

Represents ownership interest in a corporation.

Question 33

Straight Line Depreciation

Answer 33

A method of depreciation under which improvements are depreciated at a
constant rate throughout the estimated useful life of the improvement.

Question 34

Straight Note

Answer 34

A note in which a borrower repays the principal in a lump sum at maturity while interest
is paid as authorized by the agent’s principal.

Question 35

Sub‐agent

Answer 35

A person upon whom the powers of an agent have been conferred, not by the principal, but
by an agent as authorized by the agent’s principal.

Question 36

Subjacent Support

Answer 36

The right a landowner has to have that land physically supported in its natural state
by both adjoining land and underground structures.

Question 37

“Subject To” a Mortgage

Answer 37

When a grantee takes title to real property subject to a mortgage, grantee is
not responsible to the holder of the promissory note for the payment of any portion of the amount due.

Question 38

Subjective Value

Answer 38

What something is worth to an individual person without regard to market
conditions.

Question 39

Sublease

Answer 39

The transfer of only part of a lease term with reversion to the lessee; a lesser lease estate.

Question 40

Subordinate

Answer 40

To make subject to, junior or inferior to.

Question 41

Sub‐prime Mortgages (lending)

Answer 41

A type of loan granted to individuals with poor credit histories (often
below 600), who, as a result of their deficient credit ratings, would not be able to qualify for
conventional mortgages

Question 42

Substantial Performance

Answer 42

The fulfillment of the obligations agreed to in a contract, with only slight
variances from the exact terms and/or unimportant omissions or minor defects.

Question 43

Substantive Law

Answer 43

The statutory, or written law, that defines rights and duties, such as crimes and
punishments, civil rights and responsibilities in civil law. It is codified in legislative statutes or can be
enacted through the initiative process.

Question 44

Supply

Answer 44

The amount of a certain good or service that is available in the market.

Question 45

Support Rights

Answer 45

Support from adjacent land.

Question 46

Suspension

Answer 46

The right of the DRE to deactivate a broker’s or salesperson’s license for wrongdoing.

Question 47

Syndicate

Answer 47

A partnership organized for participation in a real estate venture. Partners may be limited
or unlimited in their liability.