
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.
SALE-LEASEBACK-BUY-BACK A sale and leaseback
transaction in which the leaseholder has the option to buy back
the original property after a specified period of time.
SALES CONTRACT A contract by which buyer
and seller agree to terms of a sale.
SALVAGE VALUE In computing depreciation
for tax purposes, the reasonably anticipated fair market value
of the property at the end of its useful life and must be considered
with all but the declining balance methods of depreciation.
SANDWICH LEASE A leasehold interest which
lies between the primary lease and the operating lease.
SASH Wood or metal frames containing one
or more window panes.
SATISFACTION Discharge of a mortgage or
trust deed from the records upon payment of the debt.
SATISFACTION PIECE An instrument for recording
and acknowledging payment of an indebtedness secured by a mortgage.
SCRIBING Fitting woodwork to an irregular
surface.
SEAL An impression made to attest the execution
of an instrument.
SECONDARY FINANCING A loan secured by a
second mortgage or trust deed on real property. These can be
third, fourth, fifth, sixth mortgages or trust deeds, on and
on ad infinitum.
SECTION Section of land is established by
government survey, contains 640 acres and is one mile square.
SECURED PARTY This is the party having the
security interest. Thus the mortgagee, the conditional seller,
the pledgee, etc., are all now referred to as the secured party.
(Uniform Commercial Code.)
SECURITY AGREEMENT An agreement between
the secured party and the debtor which creates the security interest.
(Uniform Commercial Code.)
SECURITY INTEREST
A term designating the
interest of the creditor in the property of the debtor in all
types of credit transactions. It thus replaces such terms as
the following: chattel mortgage; pledge; trust receipt; chattel
trust; equipment trust; conditional sale; inventory lien; etc.,
according to Uniform Commercial Code usage.
SEISIN (SEIZIN) Possession of real estate
by one entitled thereto.
SELLER'S MARKET
The market condition which
exists when a seller is in a more commanding position as to price
and terms because demand exceeds supply.
SEPARATE PROPERTY Property owned by a married
person in his or her own right outside of the community interest
including property acquired by the spouse (1) before marriage,
(2) by gift or inheritance, (3) from rents and profits on separate
property, and (4) with the proceeds from other separate property.
SEPTIC TANK An underground tank in which
sewage from the house is reduced to liquid by bacterial action
and drained off.
SERVICING LOANS
Supervising and administering
a loan after it has been made. This involves such things as:
collecting the payments, keeping accounting records, computing
the interest and principal, foreclosure of defaulted loans, and
so on.
SET BACK ORDINANCE An ordinance requiring
improvements built on property to be a specified distance from
the property line, street or curb.
SEVERALTY OWNERSHIP Owned by one person only.
Sole ownership.
SHARED APPRECIATION MORTGAGE A loan having
a fixed rate of interest set below the market rate for the term
of the loan which also provides for contingent interest to be
paid to the lender on a certain percentage of appreciation in
the value of the property against which the loan is secured upon
transfer or sale of the property or the repayment of the loan.
SHERIFF'S DEED
Deed given by court order
in connection with sale of property to satisfy a judgment.
SIMPLE INTEREST Interest computed on the
principal amount of a loan only as distinguished from compound
interest.
SINKING FUND Fund set aside from the income
from property which, with accrued interest, will eventually pay
for replacement of the improvements.
SLANDER OF TITLE
False and malicious statements
disparaging an owner's title to property and resulting in actual
pecuniary damage to the owner.
SPECIAL ASSESSMENT 1) Legal charge against
real estate by a public authority to pay cost of public improvements
such as street lights, sidewalks, street improvements. 2) In
a common interest subdivision, a charge, in addition to the regular
assessment, levied by the association against owners in the development,
for unanticipated repairs or maintenance on the common area or
capital improvement of the common area.
SPECIAL POWER OF ATTORNEY A written instrument
whereby a principal confers limited authority upon an agent to
perform certain prescribed acts on behalf of the principal.
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.
SPECIFIC PERFORMANCE An action to compel
performance of an agreement, e.g., sale of land as an alternative
to damages or rescission.
SREA Society of Real Estate Appraisers.
STANDARD DEPTH Generally the most typical
lot depth in the neighborhood.
STANDBY COMMITMENT
The mortgage banker frequently
protects a builder by a "standby" agreement, under which banker
agrees to make mortgage loans at an agreed price for many months
into the future. The builder deposits a "standby fee" with the
mortgage banker for this service. Frequently, the mortgage broker
protects self by securing a "standby" from a long-term investor
for the same period of time, paying a fee for this privilege.
STATUTE OF FRAUDS A state law, based on
an old English statute, requiring certain contracts to be in
writing and signed before they will be enforceable at law, e.g..
contracts for the sale of real property, contracts not be performed
within one year.
STATUTORY WARRANTY DEED A short term warranty
deed which warrants by inference that the seller is the undisputed
owner, has the right to convey the property, and will defend
the title if necessary. This type of deed protects the purchaser
in that the conveyor covenants to defend all claims against the
property. If conveyor fails to do so, the new owner can defend
said claims and sue the former owner.
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 in installments or at maturity. (See Interest Only Note.)
SUBAGENT
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.
SUBDIVISION
A legal definition of those
divisions of real property for the purpose of sale, lease or
financing which are regulated by law. For examples see: California
Business and Professions Code Sections 11000, 11000.1, 11004.5;
California Government Code Section 66424; United States Code,
Title 15, Section 1402(3).
"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. The most that grantee can lose
in the event of a foreclosure is grantee's equity in the property.
(See also "assumption of mortgage".) In neither case is the original
maker of the note released from primary responsibility. If liability
is to be assumed, the agreement must so state.
SUBLEASE A lease given by a lessee.
SUBORDINATE To make subject to, or junior
or inferior to.
SUBORDINATION AGREEMENT An agreement by
the holder of an encumbrance against real property to permit
that claim to take an inferior position to other encumbrances
against the property.
SUBPOENA A legal order to cause a witness
to appear and give testimony.
SUBROGATION Replacing one person with another
in regard to a legal right or obligation. The substitution of
another person in place of the creditor, to whose rights he or
she succeeds in relation to the debt. The doctrine is used very
often where one person agrees to stand surety for the performance
of a contract by another person.
SUBSIDY BUYDOWN
Funds provided usually by
the builder or seller to temporarily reduce the borrower's monthly
principal and interest payment.
SUBSTITUTION, PRINCIPLE OF Affirms that
the maximum value of a property tends to be set by the cost of
acquiring an equally desirable and valuable substitute property,
assuming no costly delay is encountered in making the substitution.
SUM OF THE YEARS DIGITS An accelerated depreciation
method.
SUPPLY AND DEMAND, PRINCIPLE OF
In appraising,
a valuation principle stating that market value is affected
by intersection of supply and demand forces in the market as
of the appraisal date.
SURETY
One who guarantees the performance
of another. Guarantor.
SURPLUS PRODUCTIVITY, PRINCIPLE OF The net
income that remains after the proper costs of labor, organization
and capital have been paid, which surplus is imputable to the
land and tends to fix the value thereof.
SURVEY The process by which a parcel of
land is measured and its area is ascertained.
SYNDICATE A partnership organized for participation
in a real estate venture. Partners may be limited or unlimited
in their liability. (See real estate syndicate.)
|