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Safe Rate - See Interest Rate.

Safety Clause - A listing provision that grants the broker a commission for a sale made within a specified period of time after a listing expires, if the broker submits the name of the buyer to the owner within a stated period of time as a party with whom the broker had negotiated prior to expiration of the listing.  

Sale Leaseback - See Leaseback.

Sales Comparison Approach - See Market Comparison Approach.

Sales Concessions and Financing -  1) Owner-financed transactions.  2) Chattel included in the sale.  3) Points or fees paid to the lender by the developer, not by the borrower.

Sales Contract -  A written agreement between competent parties stating all terms and conditions of a sale.  

Sales Price - The actual selling price of a property.

SAM - See Shared Appreciation Mortgage. 

Sandwich Lease - See Sublease.

Satisfaction of Mortgage -  The legal document, usually recorded, that proves that the borrower completely paid off the mortgage.  It is given to the borrower by the lender.  

Scheduled Gross Income - Gross income based on 100% occupancy and scheduled rents.

Scheduled Items -  A Federal Savings and Loan Insurance Corporation (FSLIC) regulatory category in which every insured lending institution is required to include the total amount of its slow loans, real estate owned as a result of foreclosure, real estate sold on contract and all non-conforming loans.

Seasoned Loan -  A loan that has been closed and on a lender’s books for at least 12 months.

Secondary Financing -  Loans secured by the property, but subordinated to the first mortgage.

Secondary (Mortgage) Market -  An informal market where existing mortgages are bought and sold.  It is the traditional aftermarket for mortgage loans that brings together lenders that sell mortgages with lenders, investors and agencies that buy mortgages.  Also called “secondary mortgage market,” it should not be confused with a second mortgage.  

Secret Profit - An undisclosed profit of the agent, regardless of the amount. 

Section - A parcel of land one mile square containing 640 acres, formed by government survey.

Section and Township Method - See Rectangular Survey System.

Secured Property -  Usually the lender who holds the security interest in, or lien on, a property.  Also known as “mortgagee.”  (See Security Interest, Lien).  

Securitization - The process of converting mortgages in to mortgage-backed securities.

Security -  The collateral or property given, deposited or pledged to ensure the fulfillment of an obligation or payment of a debt.  

Security Deposit - A deposit made to assure future performance of an obligation.

Security Instrument -  A recorded legal document given by the borrower to the lender.  It pledges the title of the property as insurance to the lender for the full payment of the mortgage.  Mortgages, deeds of trust and deeds to secure debt are considered security instruments.  (See Mortgage, Deed of Trust).  The security instrument contains the description of the property.

Security Interest -  The legal right or share that the mortgage lender holds to the property.  

Seller Carryback - See Carryback.

Seller's Market - Market condition characterized by more buyers than sellers, so sellers have a more commanding position. 

Selling Agent - The agent who brings the buyer for a property.

Send-Out Slip - An agreement that if a broker discloses a property to a prospective buyer, then the buyer will negotiate for that property only through that broker. 

Separate Property - Property owned individually by a spouse in which the other spouse has no interest.

Servicing -  All the management and operational procedures that the mortgage company handles for the life of the mortgage, up through foreclosure if necessary, including:  collecting the mortgage payments, ensuring that the taxes and insurance charges are paid promptly, and sending an annual report on the mortgage and the escrow accounts.  (See Escrow Account).

Servient Tenement - An estate that is used by another under an easement.  

Servicing Costs -  The expenses incurred by the seller/servicer in servicing loans, including money spent on staff, computer facilities, foreclosure costs, etc.

Servicing Fee -  A monthly fee retained by the loan servicer according to the terms of a servicing agreement.

Servicing Released -  A loan sale in which the original lender relinquishes loan servicing responsibilities to the institution or investor purchasing the loan.

Servicing Retained -  A loan sale in which the original lender’s servicing department continues to service the loan after the sale to a secondary institution or investor.  

Setback Lines - Imaginary lines established by local ordinances where the construction of a building or structure cannot cross.  Also known as building lines.

Settlement Statement -  The complete breakdown of costs involved in the real estate transaction for both the seller and buyer.

Severalty Ownership - Ownership by one person or entity alone.

Shared Appreciation Mortgage - Mortgage under which the mortgagee shares in the appreciated value of the property. 

Sheathing - A covering over studs and rafters.  May be plywood, boards or composition board over which the siding or roofing is placed. 

Sheriff's Deed - A deed given by the sheriff when a property is sold for execution of a judgment or sheriff's foreclosure sale.

Sheriff’s Sale -  A legally instituted sale of property in foreclosure that is presided over by a sheriff appointed by the court.  

Short Rate Refund - A less-than-prorated refund received by an insured who cancels an insurance policy.  

Site - Land suitable for building purposes, usually by the addition of utilities or other services.

Soil Pipe - The sewage pipe carrying waste from a building to the sewer or septic system.  

Soldiers and Sailors Civil Relief Act - A law that restricts foreclosure on a person in military service.

Sold Loan -  A mortgage loan that has been sold to another institution or investor.  Sold loans may continue to be serviced by the seller.  

Solvent - Able to pay all of one's debts and financial obligations. 

Special Agent - An agency in which the agent is authorized to perform only designated acts (specific agency).

Special Assessment -  A claim against a property which arises when a major improvement is made by the local/state government.  For example, a sewer line, street paving or street lighting.  The total cost is distributed among the benefited properties.  Failure to pay any installment of a special assessment may result in foreclosure by the political entity which is responsible for the assessment.  

Special Purpose Property - Property that has unique usage requirements, such as a church or a museum, making it difficult to convert to another use.

Special Warranty Deed - A deed in which the seller warrants title only as to those claiming an interest through or under the grantor. 

Specific Lien - A lien against a specific property only, as opposed to a general lien, which applies to all property of the debtor. 

Specific Performance - A legal remedy requiring a party to perform as agreed, ordinarily granted when money damages are inadequate.

Specific Power of Attorney - Allows an agent to act on the behalf of a principal in a specified manner or area. 

Spite Fence - A fence that exceeds statutory height; considered a nuisance. 

Split Rate - Use of separate capitalization rates for land and improvements. 

Spot Zoning - Small areas of zoning use that do not fit with the general use of the area (frequently resulting from political influence). 

Square Foot Method - A method for finding the reproduction costs of a building in which the cost per square foot of a recently built comparable structure is multiplied by the number of square feet in the subject property.

Square Footage - Measurement by taking exterior dimensions, excluding the garage. 

Stagflation - Inflation without economic growth.

Standby Commitment -  A commitment to purchase a loan or loans with specified terms, both parties understanding that delivery is not guaranteed.  The commitment is issued for a fee, with willingness to fund in the even that a permanent loan is not obtained.  Such commitments are typically used to enable the borrower to obtain construction financing at a lower cost on the assumption that permanent financing of the project will be available on more favorable terms when the improvements are complete and the project generates income.

Standard Mortgage -  A type of mortgage loan that carries a fixed interest rate and has fixed monthly payments over the life of the loan.  Traditionally, the most common type of conventional mortgage loan.

Standard Renewal -  An insurance renewal option.  The renewal rate is based on the outstanding loan balance at the time of each renewal.  

Stare Decisis - Legal principle stating that previous decisions (precedent) should be considered by the courts. 

Starker Exchange - A delayed exchange where the exchange property must be designated within 45 days of closing on the first property, and the exchange must be completed within 180 days of the closing of the first property. 

Statute of Frauds - Legislation requiring that certain contracts, including those dealing in real estate, be in writing.

Statute of Limitations -  A law which limits the bringing of a court action (civil or criminal) to within a specified period of time or else it is barred.

Statutory Redemption Period -  A time period during which a mortgage, land contract, deed of trust, etc., can be redeemed.  The time period is usually set by statute.

Statutory Reporting -  An accounting method used by insurance companies to report their financial information to regulators.

Statutory Right of Redemption -  In certain states, a defaulted borrower’s right to redeem his property for a specified period of time after a foreclosure sale by paying off the debt(s) in full.  Also called “statutory redemption.”

Stay -  The ceasing of a judicial proceeding.

Steering - Illegal practice of directing buyers to certain areas, based on race. 

Step Lease - Lease with graduated increases.  

Straight-Line Depreciation - A method of depreciation whereby an equal amount is deducted each year over the life of the asset. 

Straight-Line Recapture - A method of capital recapture in which total accrued depreciation is spread over the useful life of a building in equal amounts.

Straight Note - A note on which interest only is paid, with the entire principal payable on the due date. 

Straight Term Mortgage -  A mortgage  loan granted for a fixed term of years, with the entire loan becoming due and payable at the end of that time.  

Straw Man - A substitute used to conceal the identity of an actual purchaser.  

Street Improvement Bonds - Interest-bearing bonds issued by a city or county to secure the payment of assessments levied against land for street improvements.   

Strict Foreclosure -  A legal proceeding I which the lending institution brings court action against the borrower.  The court sets a date by which the borrower must redeem his debt in full or title will pass automatically to the lender without public sale.  

Studs - Vertical 2" x 4" boards in a wall.  Usually 16 inches on center (from center of one to the center of the next stud). 

Subagent - A person whose agency status was conferred by an agent, not the principal.

Subchapter S Corporation - A small, closely held corporation that has elected to be taxed as a partnership. 

Subcontractor - An individual or contracting firm agreeing to perform all or part of a principal or general contract; someone hired by the general contractor on an independent contractor basis.

Subdivision - Land division in accordance with state subdivision laws. 

Subdivision System - See Lot and Block System. 

Subjacent Support - Support of the surface by the underlying ground.

Subject Property -  The property that is the subject of an appraisal.  

Subjective Value - The use value to an owner. 

"Subject-To" Mortgage - An agreement that allows the buying of real estate without agreeing to pay an encumbrance.  Buyer is not personally liable on the loan, so a deficiency judgment is not possible.  Buyer must make payments, however, or the lienholder will foreclose.  

Sublease - A lease given by the original tenant (lessee) who now becomes the the sublessor.  The new sublessee is a tenant of the original lessee, not the landlord.  

Sublet - See Sublease.

Subordinate Lien -  A lien by which an encumbrance is made subject to or junior to the original lien. 

Subrogation -  The substitution of one person for another, so that the former may exercise certain rights or claims of the latter.  

Substitution - The appointment of a person to act in place of, or for, another. 

Succession - The legal act of taking, or right to take, property by will or inheritance.

Summation Method - See Cost Approach.

Summons -  A writ requiring the sheriff or other property officer to notify the person named in an action that he or she is required to appear on a specific day named to answer the allegations of a petition or a complaint.  

Sump Pump - An automatic water pump set into the basement floor to prevent groundwater from seeping into the basement.

Surface Water - Water not in a defined channel. 

Surrender - Mutual agreement of the parties to end a lease; all further obligations of the parties are terminated.

Survey -  A measurement of land, prepared by a registered land surveyor, showing the location of the land with reference to known points, its dimensions and the location and dimensions of any improvements. 

Sweat Equity - Equity earned through the owner's construction or improvements. 

Swing Loan - See Bridge Loan.  

Syndicate - Two or more persons who have joined together for investment purposes.  A descriptive term for multiple ownership, syndicates may be general partnerships, limited partnerships, corporations or REITs.