Real Estate Glossary - Letter S

Safe rate

An interest rate provided by investments such as secured first mortgages or high grade bonds.

Sale and leaseback

An agreement in which a buyer purchases a property and allows the seller to lease the property.

Sales contract

A legal agreement between buyer and seller detailing the terms and conditions of a property purchase.

Sandwich lease

A leasing contract whereby the lessee subleases the same property.

Seasoned loan

A mortgage loan that has been settled in a lender’s book for a minimum of 12 months.

Second mortgage

A mortgage loan which has been used on an earlier mortgage as collateral.

Secondary financing

A mortgage loan that is subordinate to a senior mortgage.

Secret interest

A concealed interest in a property.

Security

An investment instrument to guarantee payment of debt.

Self-liquidating loan

A mortgage loan primarily used to finance current assets.

Seller financing

Situation where property owner holds the buyer’s mortgage.

Senior mortgage

Also known as first mortgage; higher in priority and is the first paid or settled.

Servicing loan

The administering of a mortgage loan to make it current like mortgage payment collection.

Severalty ownership

Where property has only one owner.

Sheriff’s deed

The sale of a property, usually due to foreclosure, by the sheriff.

Sheriff’s sale

A public sale of properties legally seized by a court where proceeds go to the county treasury.

Short-term capital gain

A profit obtained from the sale of a security owned for less than a year.

Simple interest

The amount of interest based on a principal amount and not on earned interest.

Slander of title

An intentional and malicious public statement meant to harm a person’s ownership of a property.

Soft money

Money that was spent in architect’s fees, legal fees and others during an investment or development of a property.

Sole ownership

Possession or ownership of a property by one person or entity.

Special assessment

A property tax imposed only on specific parcels of land that directly benefits there from.

Special power of attorney

A legal authority given to a person to transact on behalf of another person under particular terms and condition.

Special warranty deed

A deed where seller agrees to protect the buyer from any adverse claims made against the property which will result in the buyer’s losing the title.

Specific lien

A lien attached to a particular property.