SALE-LEASEBACK
- A sale and subsequent lease from the buyer back to the seller. The
lease actually follows the sale, but both are part of the same
transaction.
SALES-ASSESSMENT RATIO
- The ratio of the assessed value of a property to its selling price,
assumed to be the market value. Assume a house was assessed at $80,000
and sold for $100,000 is would have sold at 125% of its assessed value
($100,000 / $80,000 = 1.25).
SALES COMPARISON APPROACH -
The construction and locations of homes comparable to the subject
property are used to form an estimated value or appraisal.
SALES CONTRACT
- Same as a sales agreement, purchase agreement, etc. Not the same as a
land contract, which is a conditional sales contract. See Purchase and
Sales Agreement.
SALES KIT
- Materials carried by a sales person to aid in listing and sales.
Today these materials may be in printed or on a laptop computer with a
portable printer. The materials include forms, maps, tape measure (or
inferred-measure), amortization schedules, digital camera, pens and
paper.
SALESPERSON - One
who is licensed to work in real estate under a licensed broker.
SATISFACTION
- Discharge of an obligation by paying the amount due, such as paying
off a mortgage, trust deed, contract or judgment. Also known as the
recorded instrument stating payment has been made.
SAVING AND LOAN ASSOCIATION
- An association chartered to hold savings and make real estate loans.
S&Ls are federally insured and active in long term financing.
As
the laws change S&Ls are moving into areas formally reserved
for
banks.
SCOPE OF AUTHORITY
- The authority of an agent to bind a principal. The agent may bind a
principal not only when the agent has actual authority, cut implied or
apparent authority as well.
SECOND MORTGAGE
- A mortgage that ranks after a first mortgage in priority. A single
property may have several mortgages, each ranked by a number to show
which gets paid off in what order.
SECONDARY MORTGAGE MARKET -
Market where investors buy and sell existing mortgages. The purchasers
of first mortgages or trust deeds are banks, government agencies,
insurance companies, investment bankers, or government agencies. This
allows lenders to keep an adequate supply of money available for new
loans.
SECTION
- A division of land on a government survey comprising one square mile
(640 acres). Thirty-six section comprise a township.
SECURITY - Real or
personal property pledged or hypothecated by a borrower, as additional
protection for the lender's interest.
SECURITY INSTRUMENT
- The mortgage or deed of trust verifying the pledge of real property
as security for the repayment of a debt.
SECURITY (INSTALLMENT) LAND
CONTRACT
- A form used in California which combines a land contract with a deed
of trust, creating a land contract in order to defeat a first lender's
"due-on-sale" (alienation) clause but having the foreclosure provisions
of a deed of trust.
SELLING AGENT
- The real estate agent obtaining the buyer rather than listing the
property. The listing and selling agent may be the same person or
company (dual agency).
SEMI - A prefix
meaning partly, one half or twice in a time period. Bi is a prefix
meaning every other.
SEPARATE PROPERTY -
Property owned by a husband or wife in which the other has no legal
interest or ownership.
SEPTIC SYSTEM
- A sewage system, whereby waste is drained through pipes and a tile
field into a septic tank. Located in areas where city or county sewers
have not yet been installed.
SEPTIC TANK
- An underground tank into which a sanitary sewer drains from
a
building. The sewage is held until bacterial action changes the solids
into liquids or gases, which are then released into the ground.
SERVICING - The
operational procedures related to the collection of home loan payments
and other payments related to mortgage loans.
SHARED APPRECIATION MORTGAGE (SAM)
- Loan in which the lender participates in any profits when the
property is sold.
SHERIFF'S DEED
- A deed given at a sheriff's sale in foreclosure of mortgage. The
giving of this deed begins a statutory redemption period.
SHORE LINE - The
lands alongside navigable waterways, between the high and low water
marks.
SIGN - An
advertisement placed
on a property showing that the property is available for "sale". One of
the three best methods of selling a property along with the MLS and the
Internet.
SIGNATURE - The act
of putting one's name on an instrument. It is now legal to fax or email
a signature.
SIGNED, SEALED, AND DELIVERED -
A phrase indication that everything necessary to convey and been done.
SIMPLE INTEREST
- Interest payable on the principal amount of the loan only. Compound
interest is paid on the principal and accumulated interest.
SINGLE FAMILY HOME
- Originally used to distinguish a house designed for use by one
family. Now included houses with no common area from a planned
development or condominium.
SITE - A term
signifying a plot of land suitable or set aside for a specific use.
SITE ANALYSIS - The
study of a specific parcel of land and the surrounding area to
determine its suitability for a specific use.
SOIL - The top layer
of earth in which plants grow and through water drains.
SOLAR HEATING -
Heating by use and control of the energy of the sun.
SPECIAL ASSESSMENT
- Lien assessed against real property by a public authority to pay the
cost of pubic improvements (sidewalks, water pipes, sewers,
streetlights, and etc.) which directly benefit the assessed property.
SPECIFICATIONS -
Written details or drawings showing a contractor how to proceed with
construction.
SPOUSE - One's
husband or wife.
SQUARE FOOT
- A one by one foot section of floor space. In construction the number
of square feet in a building or piece of land is often used to help
determine the sales price.
STATUTORY LIEN - An
involuntary lien created by law. Includes tax liens, judgments,
mechanic's liens, etc.
STRAIGHT-TERM MORTGAGE
- A mortgage calling for principal to be paid in a lump sum at
maturity.
SUBCONTRACTOR - One
who works under a general contractor (builder), such as a roofer,
framer, electrical contractor, etc.
SUBDIVISION
- Commonly know as a division of a single parcel of land into smaller
parcels (lots) by filing a map describing the division and by obtaining
approval by a governmental commission. A condominium is sometimes
called a "one lot subdivision".
SUBJECT TO CLAUSE
- A clause in a deed stating that the grantee takes title "subject to"
an existing mortgage. The original mortgagor is alone responsible for
any deficiency, should there be foreclosure of the mortgage. Different
from an assumption where one replaces another.
SUBROGATION -
Substituting the legal rights and claims from one creditor to another.
SUBORDINATION AGREEMENT
- An agreement by which an encumbrance is made subject (junior) to a
junior encumbrance. A loan on land may be made subordinate to a
construction loan.
SUBROGATION
- The substitution of one person for another in order for the former to
exercise certain rights or claims for the latter. For example, a life
insurance policy on a person to cover a mortgage would be paid to the
holder of the mortgage.
SUBSURFACE RIGHTS
- The rights (by fee or easement) to oil, gas, or minerals below a
certain depth. The right to of surface entry may or may not be
excluded.
SUBURBAN - The area
around a city.
SUMP PUMP - A pump
used to force the collected liquid from a sump in a basement. The sump
being the area that collects the liquid.
SURETY - One who
voluntarily binds himself to be obligated for the debt or obligation of
another.
SURFACE RIGHTS
- The rights (easements) to use the surface of land including the right
to drill or mine through the surface when subsurface rights are
involved.
SURFACE WATER -
Water that spreads over the land and stays on the surface. Swamp or
water that percolates thought the ground.
SURRENDER - The
giving up of an estate, such as a lease.
SURVEY - The
measurement of the boundaries of a parcel of land, its area, and
sometimes its topography.
SUSPENDED - A loan
can be suspended when more information is required. The application is
neither approved or denied.
SYNDICATE
-An association of individuals formed for the purpose of carrying on
some particular business venture n which the members have a mutual
interest.