Real Estate Glossary "S"

sale and leaseback - An arrangement whereby an owner sells property and then leases it back from the purchaser. Often used with commercial and industrial property.

sales comparison approach - An approach to estimating the value of property by comparing the subject property with various similar (comparable) properties. The value of the subject property is found by (1) locating at least three comparable properties, (2) making adjustments for differences between the comparables and the subject property and (3) reconciling the adjusted sales price of the comparables.

salesperson license - An entry level real estate license category. A person holding a salesperson license must be employed by a broker to perform selling activities.

satisfaction of mortgage - A document issued by a lender verifying that a loan has been repaid.

savings banks - Also called thrifts. Lenders that have traditionally been an important source of loans for residential property. Their role has greatly dimin­ished in recent years.

scarcity - An economic characteristic of real estate that refers to the finite amount of land.

S corporation - A special form of corporation that is taxed like a partnership but has limited liability.

secondary mortgage market - A market where existing mortgages are bought and sold. Mortgages are originated in the primary mortgage market.

Section 1031 - The section of the IRS code that autho­rizes the deferment of tax on a gain through an exchange of like-kind property.

sections - A land measure of one square mile or 640 acres used in the rectangular survey method of describing real estate. See also townships.

seisin - A guarantee in a deed that the grantor has the power and authority to convey title.

seller disclosure statement - A listing by a seller of any property defects.

Senior Residential Appraiser (SRA) - A designation awarded by the Appraisal Institute to residential appraisers.

servient tenement - A tract of land over which an appurtenant easement right runs.

severally - The same as sole owner.

severance - The process of changing real property to personal property.

situs - The economic characteristic of real estate that refers to people's preference for some areas over others.

special agent - A representative of the principal in a specific transaction.

special assessment - A special real estate tax for improvements that benefit the property.

special warranty deed - A deed that limits the guarantee given by the grantor to encumbrances acquired while title was held by the grantor. Used by some­one acting on behalf of the owner, such as an executor or administrator.

specific lien - A lien that applies to a specific property.

specific performance - A suit to force another party to complete the contract terms. spot survey Shows the location and size of buildings on a property.

Starker exchange - A delayed exchange of properties that qualifies as a tax-deferred exchange.

statute of limitations - The law pertaining to the period of time within which certain actions must be brought to court.

statutes of frauds - State laws that require that certain contracts must be in writing to be enforceable.

statutory month method - A method of proration that treats every month as if it had 30 days.

statutory redemption - The borrower's right to redeem property after the foreclosure sale.

steering - Channeling home seekers to areas on the basis of their race, color, religion, etc.

stigmatized property - Property that has been involved with some undesirable event, such as a crime or suicide.

straight-line method - A method of depreciating an asset in which equal amounts of depreciation are taken annually over the asset's useful life.

subagents - Parties who assist the agent.

subject property - The property that is being appraised. Used in appraisal.

subject-to mortgage - An arrangement in which the buyer assumes the seller's mortgage and makes payments but is not personally liable for the debt.

sublease - In a sublease the original tenant becomes the lessor and takes on a new tenant (a sublessee). The sublessee makes payments to the original tenant.

subordination agreement - A written agreement between lienholders to change priority of their respective liens.

subrogation - Obtaining the legal rights of another party. Used by title insurance companies to defend the insured title against lawsuits from other parties. This clause in the policy prevents the insured from collecting both from the insurance company and from the party causing the loss.

substantially equivalent laws - State or local government fair housing laws that are similar to the federal fair housing laws.

subsurface rights - Rights a property owner has in any material below the surface of the land.

suit for possession - A lawsuit that initiates an action for eviction against the tenant.

suit to quiet title - A court action to settle a cloud on the property's title.

supply and demand - In the real estate market property values change as these two forces adjust them­selves. As supply increases or demand decreases, values decrease. As supply decreases or demand increases, values increase.

survey - A measurement and description of land. Surveys usually are required when property is sold or improvements are being made.

syndication - Usually a limited partnership formed by two or more parties to operate a real estate investment.

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