Glossary

All | # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
There are 63 names in this directory beginning with the letter S.
Sale Leaseback
Sale of property by seller and simultaneous leasing of the same property by seller.
Sale-Leaseback
A form of real estate financ_ing in which the owner of industrial or com_mercial property sells the property and leases it back from the buyer; in addition to certain tax advantages, the seller/lessee obtains more cash through the sale than would normally be pos_sible by borrowing and mortgaging the prop_erty, since lenders will not often lend 100% of the property's value.
Sandwich Lease
Lease held by a lessee (tenant) who becomes a lessor (landlord) by subletting to another lessee (subtenant), typically the sandwich leaseholder is neither the owner nor the user of the property.
Savings and Loan Association
A type of fi_nancial institution that has traditionally special_ized in home mortgage loans.
Savings Bank
A type of financial institution that has traditionally emphasized consumer loans and accounts for small depositors.
Scarcity
A limited or inadequate supply of something; this is one of the four elements of value (along with utility, demand, and transferability).
Seasoning
Loan which has been in force for a period of time thus establishing the borrower's payment history, loans are typically deemed to be seasoned after either six months or one year.
Second Mortgage
A mortgage secured by property after the first mortgage. If the first mortgage is paid off and released, the second mortgage becomes the first mortgage.
Secondary Financing
Money borrowed to pay part of the required downpayment or closing costs for a first loan, when the second loan is secured by the same property that secures the first loan.
Secondary Mortgage Market
The market in which investors (including Fannie Mae, Freddie Mac, and Ginnie Mae) purchase real estate loans from lenders; also called the national market.
Secret Profit
A financial benefit that an agent takes from a transaction without informing the principal, in violation of his or her fiduciary duties.
Section
In the rectangular survey system, a sec_tion is one mile square and contains 640 acres. There are 36 sections in a township.
Section 1031
Section of the Internal Revenue Code dealing with tax-free exchanges of like-kind property.
Section 8
Privately owned rental dwelling units participating in the low-income rental assistance program created by 1974 amendments to Section 8 of the 1937 Housing Act.
Security Agreement
Under the Uniform Com_mercial Code, a document that creates a lien on personal property being used to secure a loan. Typically used in conjunction with a financing statement.
Security Deposit
Money a tenant gives a land_lord at the beginning of the tenancy to protect the landlord in case the tenant fails to comply with the terms of the lease; the landlord may retain all or part of the deposit to cover unpaid rent or repair costs at the end of the tenancy. According to the Minnesota Landlord-Tenant Act, a security deposit is any deposit of money the function of which is to secure the perfor_mance of a residential rental agreement (not including an advance payment of rent).
Security Instrument
A document that creates a voluntary lien to secure repayment of a loan; for debts secured by real property, it is either a mortgage or (in other states, but not in Minne_sota) a deed of trust.
Security Interest
The interest a creditor may acquire in the debtor's property to ensure that the debt will be paid; the interest created by a security agreement or a mortgage.
Security Property
The property that a bor_rower gives a lender a voluntary lien against, so that the lender can foreclose if the borrower defaults on the loan.
Seizin
Actual possession of a freehold estate; ownership. Sometimes spelled seisin or seizen.
Seller Financing
Also known as Owner Financing.
Separate Property
In a community property state (but not in Minnesota), property owned by a married person that is not community prop_erty; includes property acquired before marriage or by gift or inheritance after marriage.
Setback Requirements
Provisions in a zon_ing ordinance that do not allow structures to be built within a certain distance of the property line.
Settlement
1. Closing. 2. An agreement be_tween the parties to a civil lawsuit in which the plaintiff agrees to drop the suit in exchange for money or the defendant's promise to do or re_frain from doing something.
Settlement Statement
Also known as Closing Statement or HUD-1.
Severance
1. Termination of a joint tenancy. 2. The permanent removal of a natural attach_ment, fixture, or appurtenance from real prop_erty, which transforms the item into personal property.
Severance, Constructive
When a landowner enters into a contract to sell an appurtenance or natural attachment, the contract constructively severs the item from the landmaking it the personal property of the buyereven before the buyer has actually removed it from the land. For example, when a landowner sells a stand of timber, the trees are constructively severed from the land even before the buyer comes to chop them down.
Sheriff's Sale
A foreclosure sale. Sometimes called an execution sale.
Special Assessment
A tax levied only against the properties that have benefited from a public improvement (such as a sewer or a street light), to cover the cost of the improvement; creates a special assessment lien.
Special Warranty Deed
Deed in which the grantor limits the title warranty given to the grantee, does not warrant against title defects arising from conditions that existed before grantor owned the property.
Specific Performance
A legal remedy in which a court orders someone who has breached a contract to actually perform the contract as agreed, rather than simply paying money damages to the other party.
Spot Zoning
A rezone of one property or a small area within a neighborhood.
Square Foot Method
In appraisal, a method of estimating the replacement cost of a struc_ture; it involves multiplying the cost per square foot of a recently built comparable structure by the number of square feet in the subject struc_ture.
Stable Monthly Income
A loan applicant's gross monthly income that meets the lender's tests of quality and durability.
Statute
A law enacted by a state legislature or the U.S. Congress.
Statute of Frauds
A state law that requires cer_tain types of contracts to be in writing and signed in order to be enforceable.
Statute of Limitations
A law requiring a par_ticular type of lawsuit to be filed within a speci_fied time after the event giving rise to the suit occurred.
Statutory New Home Warranty Law
A state law which establishes that certain warranties are implied in every sale of a newly completed dwelling, and in every contract for the sale of a dwelling to be completed.
Steering
Channeling prospective buyers or ten_ants to or away from particular neighborhoods based on their race, religion, national origin, or ancestry, in violation of anti-discrimination laws.
Stockholder
An individual who holds an own_ership share in a corporation (and has limited liability). Also called a shareholder.
Subagent
A person to whom an agent has del_egated authority, so that the subagent can as_sist in carrying out the principal's orders; the agent of an agent.
Subcontractor
A contractor who, at the request of the general contractor, provides a specific service, such as plumbing or drywalling, in con_nection with the overall construction project.
Subdivided Lands Act
A state law applying to subdivisions often or more parcels located outside a municipality, which requires that sub_divisions be registered with the Commissioner of Commerce and that all prospective purchas_ers be given a public offering statement.
Subdivision
1. A piece of land divided into two or more parcels. 2. A residential development.
Subdivision Regulations
State and local laws that must be complied with before land can be subdivided.
Subject to
When a purchaser takes property subject to a mortgage, he or she is not person_ally liable for paying off the loan; in case of default, however, the property can still be fore_closed on.
Sublease
An arrangement in which a tenant grants someone else the right to possession of the leased property for part of the remainder of the lease term; as opposed to an assignment, in which the tenant gives up possession for the entire remainder of the lease term.
Subordination
A clause or document that permits a mortgage recorded at a later date to take priority over an existing lien.
Subordination Clause
A provision in a mort_gage that permits a later mortgage to have higher lien priority than the one containing the clause.
Subrogation
The substitution of one person in the place of another with reference to a lawful claim or right. For instance, a title company that pays a claim on behalf of its insured, the property owner, is subrogated to any claim the owner successfully undertakes against the former owner.
Substitution of Liability
A buyer wishing to assume an existing loan may apply for the lender's approval; once approved, the buyer assumes liability for repayment of the loan, and the original borrower (the seller) is released from liability.
Substitution, Principle of
A principle of ap_praisal holding that the maximum value of a property is set by how much it would cost to obtain another property that is equally desir_able, assuming that there would not be a long delay or significant incidental expenses involved in obtaining the substitute.
Succession
Acquiring property by will or in_heritance.
Sufferance
Acquiescence, implied permission, or passive consent through a failure to act, as opposed to express permission.
Supply and Demand, Principle of
A prin_ciple holding that value varies directly with de_mand and inversely with supply; that is, the greater the demand the greater the value, and the greater the supply the lower the value.
Support Rights
The right to have one's land supported by the land adjacent to it and beneath it.
Support, Lateral
The support that a piece of land receives from the land adjacent to it.
Support, Subjacent
The support that the sur_face of a piece of land receives from the land beneath it.
Surplus Productivity, Principle of
A principle of appraisal which holds that the net income that remains after paying the proper costs of labor, organization, and capital is credited to the land and tends to set its value.
Surrender
Giving up an estate (such as a life estate or leasehold) before it has expired.
Survey
The process of precisely measuring the boundaries and determining the area of a parcel of land.
Survivorship, Right of
A characteristic of joint tenancy; surviving joint tenants automatically acquire a deceased joint tenant's interest in the property.
Syndicate
An association formed to operate an investment business. A syndicate is not a rec_ognized legal entity; it can be organized as a corporation, partnership, limited liability com_pany, or trust.