S words Flashcards
Sale and Leaseback
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.
Sales Comparison Approach
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.
Scarcity
A lack of supply.
Secondary Mortgage Market
The marketplace whereby the loans that were originated in the primary
mortgage market are bought and sold.
Section 1031 Exchange
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.
Secured Debt
Debt that is backed or secured by collateral to reduce the risk associated with lending.
Security Agreement
An agreement between the secured party and the debtor which creates the
security interest.
Security Instrument
A contract whereby a debtor agrees to use property as security or collateral for
the repayment of debt.
Self Dealing
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.
Seller’s Market
A scarcity of supply and a great demand.
Selling Agent
The individual who finds the buyer (or seller) for the property.
Servient Tenement
Land encumbered by an easement.
Setback
The distance a structure must be placed away from the street.
Sherman Anti‐Trust Act
Federal legislation including imposition of civil and punitive damages for anti‐
trust activities.
Short Sale
A seller’s attempt to sell the real estate whereby the liens are greater than the value of the
property.
Side Yard
A yard that extends along a side lot line from the front yard to the rear yard.
Single Agent
An agent who works only for the buyer or the seller.
Sociological Jurisprudence
A law is being implemented in an effort to positively reform a society or a
standard of society.
Special Agent
An agent with limited authority to act on behalf of the principal, such as created by a
listing contract.
Special Assessment
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.
Special Warranty Deed
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.
Specialty Contractor
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.
Specific Lien
A lien that attaches to one specific property only.
Specific Performance
An action to compel performance of an agreement, ex: sale of land as an
alternative to damages or rescission.
Spot Zoning
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.
Stare Decisis
The legal principle of determining points in litigation according to precedent.
Statute of Frauds
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.
Statute of Limitations
A statute prescribing a period of limitation for the bringing of certain kinds of
legal action.
Statutes
An act of a legislature that declares, proscribes, or commands something.
Statutory Will
A simple will that uses a standard legal form, containing provisions required by State
law.
Steering
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.
Stock
Represents ownership interest in a corporation.
Straight Line Depreciation
A method of depreciation under which improvements are depreciated at a
constant rate throughout the estimated useful life of the improvement.
Straight Note
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.
Sub‐agent
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.
Subjacent Support
The right a landowner has to have that land physically supported in its natural state
by both adjoining land and underground structures.
“Subject To” a Mortgage
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.
Subjective Value
What something is worth to an individual person without regard to market
conditions.
Sublease
The transfer of only part of a lease term with reversion to the lessee; a lesser lease estate.
Subordinate
To make subject to, junior or inferior to.
Sub‐prime Mortgages (lending)
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
Substantial Performance
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.
Substantive Law
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.
Supply
The amount of a certain good or service that is available in the market.
Support Rights
Support from adjacent land.
Suspension
The right of the DRE to deactivate a broker’s or salesperson’s license for wrongdoing.
Syndicate
A partnership organized for participation in a real estate venture. Partners may be limited
or unlimited in their liability.
