SALE AND LEASEBACK
A financial arrangement where at the time of sale the seller retains occupancy by concurrently agreeing to lease the property from the purchaser. The seller receives cash while the buyer is assured a tenant and a fixed return on buyer's investment.

SALE-LEASEBACK-BUY-BACK
A sale and leaseback transaction in which the leaseholder has the option to buy back the original property after a specified period of time.

SALES CONTRACT
A contract by which buyer and seller agree to terms of a sale.

SALVAGE VALUE
In computing depreciation for tax purposes, the reasonably anticipated fair market value of the property at the end of its useful life and must be considered with all but the declining balance methods of depreciation.

SANDWICH LEASE
A leasehold interest which lies between the primary lease and the operating lease.

SASH
Wood or metal frames containing one or more window panes.

SATISFACTION
Discharge of a mortgage or trust deed from the records upon payment of the debt.

SATISFACTION PIECE
An instrument for recording and acknowledging payment of an indebtedness secured by a mortgage.

SCRIBING
Fitting woodwork to an irregular surface.

SEAL
An impression made to attest the execution of an instrument.

SECONDARY FINANCING
A loan secured by a second mortgage or trust deed on real property. These can be third, fourth, fifth, sixth mortgages or trust deeds, on and on ad infinitum.

SECTION
Section of land is established by government survey, contains 640 acres and is one mile square.

SECURED PARTY
This is the party having the security interest. Thus the mortgagee, the conditional seller, the pledgee, etc., are all now referred to as the secured party. (Uniform Commercial Code.)

SECURITY AGREEMENT
An agreement between the secured party and the debtor which creates the security interest. (Uniform Commercial Code.)

SECURITY INTEREST
A term designating the interest of the creditor in the property of the debtor in all types of credit transactions. It thus replaces such terms as the following: chattel mortgage; pledge; trust receipt; chattel trust; equipment trust; conditional sale; inventory lien; etc., according to Uniform Commercial Code usage.

SEISIN (SEIZIN)
Possession of real estate by one entitled thereto.

SELLER'S MARKET
The market condition which exists when a seller is in a more commanding position as to price and terms because demand exceeds supply.

SEPARATE PROPERTY
Property owned by a married person in his or her own right outside of the community interest including property acquired by the spouse (1) before marriage, (2) by gift or inheritance, (3) from rents and profits on separate property, and (4) with the proceeds from other separate property.

SEPTIC TANK
An underground tank in which sewage from the house is reduced to liquid by bacterial action and drained off.

SERVICING LOANS
Supervising and administering a loan after it has been made. This involves such things as: collecting the payments, keeping accounting records, computing the interest and principal, foreclosure of defaulted loans, and so on.

SET BACK ORDINANCE
An ordinance requiring improvements built on property to be a specified distance from the property line, street or curb.

SEVERALTY OWNERSHIP
Owned by one person only. Sole ownership.

SHARED APPRECIATION MORTGAGE
A loan having a fixed rate of interest set below the market rate for the term of the loan which also provides for contingent interest to be paid to the lender on a certain percentage of appreciation in the value of the property against which the loan is secured upon transfer or sale of the property or the repayment of the loan.

SHERIFF'S DEED
Deed given by court order in connection with sale of property to satisfy a judgment.

SIMPLE INTEREST
Interest computed on the principal amount of a loan only as distinguished from compound interest.

SINKING FUND
Fund set aside from the income from property which, with accrued interest, will eventually pay for replacement of the improvements.

SLANDER OF TITLE
False and malicious statements disparaging an owner's title to property and resulting in actual pecuniary damage to the owner.

SPECIAL ASSESSMENT
1) Legal charge against real estate by a public authority to pay cost of public improvements such as street lights, sidewalks, street improvements. 2) In a common interest subdivision, a charge, in addition to the regular assessment, levied by the association against owners in the development, for unanticipated repairs or maintenance on the common area or capital improvement of the common area.

SPECIAL POWER OF ATTORNEY
A written instrument whereby a principal confers limited authority upon an agent to perform certain prescribed acts on behalf of the principal.

SPECIAL WARRANTY DEED
A deed in which the grantor warrants or guarantees the title only against defects arising during grantor's ownership of the property and not against defects existing before the time of grantor's ownership.

SPECIFIC PERFORMANCE
An action to compel performance of an agreement, e.g., sale of land as an alternative to damages or rescission.

SREA
Society of Real Estate Appraisers.

STANDARD DEPTH
Generally the most typical lot depth in the neighborhood.

STANDBY COMMITMENT
The mortgage banker frequently protects a builder by a "standby" agreement, under which banker agrees to make mortgage loans at an agreed price for many months into the future. The builder deposits a "standby fee" with the mortgage banker for this service. Frequently, the mortgage broker protects self by securing a "standby" from a long-term investor for the same period of time, paying a fee for this privilege.

STATUTE OF FRAUDS
A state law, based on an old English statute, requiring certain contracts to be in writing and signed before they will be enforceable at law, e.g.. contracts for the sale of real property, contracts not be performed within one year.

STATUTORY WARRANTY DEED
A short term warranty deed which warrants by inference that the seller is the undisputed owner, has the right to convey the property, and will defend the title if necessary. This type of deed protects the purchaser in that the conveyor covenants to defend all claims against the property. If conveyor fails to do so, the new owner can defend said claims and sue the former owner.

STRAIGHT LINE DEPRECIATION
A method of depreciation under which improvements are depreciated at a constant rate throughout the estimated useful life of the improvement.

STRAIGHT NOTE
A note in which a borrower repays the principal in a lump sum at maturity while interest is paid in installments or at maturity. (See Interest Only Note.)

SUBAGENT
A person upon whom the powers of an agent have been conferred, not by the principal, but by an agent as authorized by the agent's principal.

SUBDIVISION
A legal definition of those divisions of real property for the purpose of sale, lease or financing which are regulated by law. For examples see: California Business and Professions Code Sections 11000, 11000.1, 11004.5; California Government Code Section 66424; United States Code, Title 15, Section 1402(3).

"SUBJECT TO" A MORTGAGE
When a grantee takes title to real property subject to a mortgage, grantee is not responsible to the holder of the promissory note for the payment of any portion of the amount due. The most that grantee can lose in the event of a foreclosure is grantee's equity in the property. (See also "assumption of mortgage".) In neither case is the original maker of the note released from primary responsibility. If liability is to be assumed, the agreement must so state.

SUBLEASE
A lease given by a lessee.

SUBORDINATE
To make subject to, or junior or inferior to.

SUBORDINATION AGREEMENT
An agreement by the holder of an encumbrance against real property to permit that claim to take an inferior position to other encumbrances against the property.

SUBPOENA
A legal order to cause a witness to appear and give testimony.

SUBROGATION
Replacing one person with another in regard to a legal right or obligation. The substitution of another person in place of the creditor, to whose rights he or she succeeds in relation to the debt. The doctrine is used very often where one person agrees to stand surety for the performance of a contract by another person.

SUBSIDY BUYDOWN
Funds provided usually by the builder or seller to temporarily reduce the borrower's monthly principal and interest payment.

SUBSTITUTION, PRINCIPLE OF
Affirms that the maximum value of a property tends to be set by the cost of acquiring an equally desirable and valuable substitute property, assuming no costly delay is encountered in making the substitution.

SUM OF THE YEARS DIGITS
An accelerated depreciation method.

SUPPLY AND DEMAND, PRINCIPLE OF
In appraising, a valuation principle stating that market value is affected by intersection of supply and demand forces in the market as of the appraisal date.

SURETY
One who guarantees the performance of another. Guarantor.

SURPLUS PRODUCTIVITY, PRINCIPLE OF
The net income that remains after the proper costs of labor, organization and capital have been paid, which surplus is imputable to the land and tends to fix the value thereof.

SURVEY
The process by which a parcel of land is measured and its area is ascertained.

SYNDICATE
A partnership organized for participation in a real estate venture. Partners may be limited or unlimited in their liability. (See real estate syndicate.)