A GLOSSARY OF REAL ESTATE TERMS

S


An arrangement by which the owner-occupant of a property agrees to sell all or part of the property to an investor, then lease it back and continue to occupy space as a tenant.
Satisfaction of Mortgage
Document issued by mortgagee when the mortgage is paid off.
SBA Financing
Financing provided or guaranteed in part by the Small Business Administration; usually requires that the owner occupy at least 51% of the collateral property.
Secondary Financing
A loan secured by a mortgage or trust deed, which lien is junior to another mortgage or trust deed.
Secondary Market
The buying and selling of mortgage notes between sophisticated investors such as pension funds, commercial banks, savings and loans and wall street firms.
Secondary Market Investor
An entity, such as FNMA or FHLMC, that buys mortgage loans for investment or sells them again to another secondary market investor. Secondary market investors do not service loans and do not collect payments from borrowers.
Secondary Mortgage Market
The buying and selling of first mortgages of trust deeds by banks, insurance companies, government agencies, and other mortgagers.
Security
Real or personal property pledged by a borrower as additional protection for the lender’s interest.
Self Storage
A general property type or building type classification characterized by its usage for self storage purposes (also called Mini-Storage); provides personal storage for lease by consumers.
Seller’s Broker
Agent who takes the seller as a client, is legally obligated to a set of fiduciary duties and is required to put the seller’s interests above all other’s.
Senior Housing
Identifies whether the property is occupied by senior citizens (age 55 or over).
Septic Tank
An Underground tank in which sewage from the house is reduced to liquid by bacterial action and drained off.
Servicer
Institution acting for the benefit of the certificate holders in the administration and servicing of mortgage loans in the CMBS. Functions include reporting to the Trustee, collecting payments from borrowers, advancing funds for delinquent loans, negotiating workouts or restructures (as permitted by the PSA), taking defaulted loans through the foreclosure process, and liquidating defaulted loans and REO.
Set Back Ordinance
Regulates the distance from the lot line to the point where improvements may be constructed.
Settlement Cost, a HUD Guide
This booklet gives an overview of the lending process and is required by HUD. It is provided to consumers after the loan application is completed.
Settlement Statement
A statement prepared by broker, escrow or lender giving a complete breakdown of the cost associated with a real estate transaction.
Sewage Adjacent
Identifies whether the property is located adjacent to a Sewage or Waste Treatment Facility.
A deed given at the sheriff’s sale in foreclosure of a mortgage.
Single Family Detached Home
A residential home that is not attached physically to another home.
Single Tenant Investment Grade
A Retail property subtype in which the property is net leased to one investment grade tenant (BBB- rating or higher) and the property is utilized for retail purposes.
Single Tenant Non-Investment Grade
A Retail property subtype in which the property is net leased to one non-investment grade tenant (BBB- rating or lower) and the property is utilized for retail purposes.
Situs
The location of a property.
Special Lien
A lien that binds a specified piece of property, unlike a general lien, which is levied against all one’s assets. It creates a right to retain something of value belonging to another person as compensation for labor, material, or money expended in that person’s behalf. In some localities it is called "particular" lien or "specific" lien. (See lien).
Special Warranty Deed
A deed in which the grantor conveys title to the grantee and agrees to protect the grantee against title defects or claims asserted by the grantor and those persons whose right to assert a claim against the title arose during the period the grantor held title to the property. In a special warranty deed the grantor guarantees to the grantee that he has done nothing during the time he held title to the property which has, or which might in the future, impair the grantee’s title.
Specialty Center
A Retail property subtype in which the property is occupied by the power center group (e.g. Sports Authority, Levitz Furniture to other "category killer" stores).
Specific Performance
When a court requires a defendant to carry out the terms of an agreement or contract.
Sprinklered
Identifies whether all areas of the building are sprinklered; a sprinkler system is typically an automatic fire-suppression system with an audible alarm and that disperses an area with water or fire retardant from overhead sprinklers when excessive heat and/or smoke is detected. Fire systems are typically wet, dry or chemical systems. Expressed as a percentage.
Square Feet
The usual method by which rental space is defined. It is the area of that space, calculated by taking length times width. For example, a room 30 feet by 60 feet has an area of 1,800 square feet.
Standard Uniform Application
An application developed by FNMA and FHLMC that is widely used in the mortgage industry.
State and Local Housing Programs
Unique housing finance programs to assist first time home buyers and low to moderate housing groups. Each state and local group has different sets of criteria.
Statute
A law established by an act of a legislature.
Statute of Frauds
State law (founded on ancient English law) which requires that contracts must be reduced to written form if it is to be enforced by law.
Statute of Limitations
A law barring all right of redress after a certain period of time from the moment when a cause of action first arises.
Statutory Lien
An involuntary lien, includes tax liens, judgment liens, mechanic liens, etc.
Structure
Refers to the tax and legal structure of a CMBS such as a pass-through structure, a bond structure, a Collateralized Mortgage Obligation (CMO) or a Real Estate Mortgage Investment Conduit (REMIC). The "structure" can determine the tax benefits, or penalties, and the rights of the CMBS holders and the issuer in the event of a failure or default within the terms of the security.
Subagent
An agent of an individual already acting as an agent of a principal.
Subject-To Conditions
Identifies the conditions or stipulations under which a loan may be assumed.
Subletting
The leasing of space from one tenant to another tenant.
Subordinated Ground Lease
A lease in which rights of the lessor of the ground are junior to the rights of the holder of the first mortgage.
Subscribing Witness
The witness to the execution of an instrument who has written his name as proof of seeing such execution.
Substitute of Trustee
A document which is recorded to change the trustee under the deed of trust.
Suburban Garden Office
An Office subtype characterized by a garden-like setting and its location in a town or unincorporated developed area in a close proximity to a city. Suburbs, largely residential, are often dependent on the city for employment and support services; generally characterized by low-density development relative to the city; usually one to three story structures in a suburban or rural-urban fringe development.
Suburban High Rise
An Office subtype characterized typically by a high number of stories that requires an elevator and its locations in a town or unincorporated developed area in a close proximity to a city. Suburbs, largely residential, are often dependent on the city for employment and support services; generally characterized by low-density development relative to the city; usually a four-story or higher structure in a suburban or rural-urban fringe development.
Surrender
The cancellation of a lease by mutual consent of the tenant and the landlord.
Survey
Map or plat made by a licensed surveyor who measures land and charts its boundaries, improvements, and relationship to the property surrounding it. A survey is often required by the lender to assure him that a building is actually sited on the land according to its legal description.
Survivorship
All rights of a joint tenant passes to the surviving joint tenant.
Subordinate Loan
A mortgage whose priority is below that of another mortgage; i.e., a second or third mortgage or a home-equity loan.
Subprime Borrower
A borrower with a less-than-perfect credit report due to late payments or a default on debt payments. Lenders often grade them based on the severity of past credit problems, with categories ranging from "A-" on down to "D" or lower.
Subprime Mortgage
A mortgage granted to a borrower considered subprime, that is, a person with a less-than-perfect credit report. Subprime borrowers have either missed payments on a debt or have been late with payments. Lenders charge a higher interest rate to compensate for potential losses from customers who may run into trouble or default.
Suspicious Activity Report (SAR)
Suspicious Activity Reports (SARs) were developed in 1996 as a way for financial institutions to report "suspected criminal violations of federal law or a suspicious transaction related to money laundering activity or a violation of the Bank Secrecy Act.
Sweat Equity
Equity created by the labor of the purchaser or borrower that increases the value of the property.
Effectively, the asset is owned indirectly by the lessee / operating company, and the company leases the asset to itself..