Real Estate Glossary Terms Beginning With – S

Updated: November 22, 2021

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Terms Beginning With - S

Property Development & Investment Glossary, Terms & Definitions

Sale

The custody and right of use of a particular object of value to both parties is transferred from one entity to another for a fee.

Sale leaseback

A commercial financing approach in which the property owner sells it to an investor, who subsequently leases it back to the original owner.

Sales contract

A contract between a buyer and a seller in which the conditions of a sale are agreed upon.

Salvage value

The sum realised at the end of an asset's useful life when it is sold for the last time.

Sandwich lease

When a lessee sublets his space, he becomes a lessor and has a lease.

Save harmless

To protect someone from loss, harm, or third-party claims by indemnifying them.

Savings and Loan Association (S & L)

A finance company that accepts deposits from members and makes real estate loans.

Scheduled gross income

The entire rental space multiplied by the property's rental rate.

Schematic design

Following a site survey and meetings with the architect's client, a design for the building programme is created. The client's demands and specifications, as well as local zoning rules and the anticipated building budget, are thoroughly examined.

Seasoned loan

A mortgage loan with a large number of instalments received.

Secondary financing

A loan that is backed by a second mortgage on real estate.

Section of land

A square mile is one square mile.

Securities and Exchange Commission (SEC)

The Securities Exchange Statute of 1934 established a federal agency to oversee the act. Misrepresentations in securities offers are prohibited under the statute.

Securities

Instruments that represent a share of a company or a limited partnership's ownership.

Security deposit

Amount due at the start of the lease term by a renter to cover any damage to the property that is not covered by regular wear and tear.

Security interest

A security interest in real estate that is used as collateral.

Seed money

Money required to start a real estate deal.

Self-amortizing mortgage

A mortgage loan that will pay off itself over time by making periodic principle and interest payments.

Selling expenses

Those expenditures incurred by the seller during the money raising or sales phase on a specific piece of property.

Selling group

The syndicate manager appoints a group of dealers to underwrite the offering.

Seller's market

When there are more buyers than sellers in a real estate market, the seller might achieve a higher sales price.

Sensitivity analysis

Multiple evaluations of future cash flow, resale, and rates of return on an investment, each with a different set of assumptions.

Settlement

The procedure of a broker accounting to the principle for the earnest money and deducting his real estate commission using a kind of closing or settlement statement during the closing of a real estate deal.

Shared appreciation mortgage (SAM)

A mortgage in which the lender lowers the interest rate below market and then participates in the property's future appreciation.

Shared equity mortgage (SEM)

An external investor contributes all or part of the required equity and receives a portion of the property's future profits.

Shop drawings

Building drawings are representations of elements on the contract agreements created by various construction trades. Workplace drawings communicate both the language of the trade and the language of the shop where the job will be executed.

Shopping center

A group of retail establishments with a shared parking lot.

Short-term capital gains

A profit on the sale of a capital asset kept for the required amount of time in order to obtain a long-term capital gain.

Sign restriction clause

A clause in a lease limiting the use of certain types of signage.

Single-family housing

A single-family home is a form of residential housing.

Sinking fund

A money placed aside that, when compounded, will equal a certain amount after a certain length of time.

Site

A piece of property.

Slab

Between the beams, supporting columns, and the walls is a reinforced concrete floor.

Slum

A section of a city where the housing stock is degrading.

Social obsolescence

A decrease in value caused by an area's socioeconomic circumstances.

Soft construction costs

Other than the expenses of the actual physical construction, the costs of constructing and leasing a building.

Soft dollars

Prepaid interest or fees paid to the seller are examples of money that does not strengthen the payor's equity position.

Sole proprietorship

A type of ownership in which just one person owns the property.

Sources and applications of funds

The financing study looks at where the money comes from and how it is used.

Space analysis

An examination of a current office scenario in order to identify problem areas and offer a foundation for making decisions about substantial adjustments. It might also take the shape of a planning tool that the customer will utilise to construct a planned situation.

Space planning

The act of planning out and creating space to meet the demands of a tenant.

Special assessment

A charge established by a government entity against real estate to cover the proportionate cost of an improvement, such as a street or sewer.

Special lien

A lien that solely affects or is linked to a single plot of land or a single piece of property.

Special purpose building

A facility, such as a restaurant or a bowling alley, that is intended to meet the specific demands of its occupants.

Special warranty deed

The grantor does not assure against any title defects in a deed in which the grantor confines the title warranty offered to the grantee to anybody claiming by, from, through, or under him, the grantor.

Specifications

A set of instructions that includes working drawings that show the materials used and how the property will be built.

Specific performance

An activity that compel the fulfilment of a contract.

Specified fund

A fund where the properties to be bought have already been chosen.

Speculation

The purchase of a property with the intention of reselling it for a large profit within a short period of time.

Speculative building

A structure that is being constructed without the participation of a major tenant or tenants.

Square footage

The size of the area is expressed in square feet.

Staging area

A location where items and equipment can be stored and worked on before being moved into the space where they will be utilised.

Standby fee

A charge that a borrower pays to a lender in exchange for a standby loan.

Standby loan

A loan that is made accessible to a borrower at a certain interest rate for a set length of time in the future.

Standard tenant improvement allowance

A provision for the construction of tenant improvements at no additional expense to the tenant.

Statue of frauds

A state legislation that requires certain types of contracts, engagements, and/or transfers of real estate interest to be in writing in order to be enforceable in court.

Stepped-up basis

A change in the adjusted tax basis of property, which is allowed for certain transactions, is referred to as a change in the adjusted tax basis.

Stick-built

Wood frame building is a method of construction.

Stipulations

A contract's terms and conditions are spelled down in writing.

Stop clause

A lease condition that specifies a maximum amount of running expenditures that the tenant is responsible for.

Straight-line depreciation method

The Internal Revenue Service (IRS) allows for depreciation to be computed by dividing the depreciable base by the useful life as established by the Internal Revenue Code.

Straw man

A person who buys property on behalf of another person who prefers to remain anonymous.

Strip center

A straight line of stores in a retail shopping complex, generally narrow in proportion to its length.

Structure

Any site enhancements that have been built.

Subchapter S corporation

A corporation having a small number of investors that chooses to be taxed differently than a conventional corporation. Individual stockholders can profit from the tax advantages. Limited liability for corporations is still available.

Subdivision

A parcel of property that has been surveyed and subdivided into smaller lots for selling or development.

Subject to

To purchase a home with an existing mortgage while avoiding personal liability for the loan.

Sublease

A lease granted by a tenant to another for a portion of the leased premises or for a specific period of time.

Subordinated ground lease

A ground lease in which the owner subordinates his rights to the structure to those of others, such as the construction or permanent mortgage loan holder.

Subordination

Being secondary means that a mortgagee or lien holder is ready to take payment after another creditor under terms of a mortgage.

Subordination clause

A mortgage clause that prevents a mortgage from being recorded at a later date that would take precedence over an existing mortgage.

Subrogation

In relation to a legal right, interest, or duty, the act of replacing one individual with another. Substituting, for example, an insured ceding claim rights to the insurance provider in exchange for immediate loss payment.

Subscription

The signing of a legally binding contract to buy a syndicated security interest.

Substitution clause

The section of the work letter that states what materials may be substituted for the landlord's standard building materials.

Sum of the years' digits depreciation method

A depreciation technique that allows depreciation based on the inverted scale of the sum of digits for the years of the useful life, resulting in a larger depreciation than straight line depreciation.

Super-regional center

A method of depreciation that uses an inverted scale of the sum of digits for the years of usable life, resulting in a higher depreciation than straight line depreciation.

Supply and demand

The idea that states that when a product's supply is reduced, prices will rise, and when there is an overabundance, prices would fall.

Surety

One who ensures another's performance.

Survey

A surveyor's measurement and description of a piece of land.

Surveyor

A person who compiles a survey.

Survivorship

Following the death of another joint tenant, a joint tenant or renters have the right to continue to own the property.

Sweat equity

The equity created by the investor as a result of his or her effort.

Syndicate

Any general or limited partnership, joint venture, or other type of organisation created solely for the goal of profitably investing in real estate.

Syndication

The syndicate's actions in acquiring a property.

Syndicator

A person who makes a living selling real estate partnership investments.

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