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Sale-leaseback
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An arrangement by which the owner-occupant of a property agrees to sell all or part of the property to an investor, then lease it back and continue to occupy space as a tenant
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Sales comparison value
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A value indication derived by comparing the property being appraised to similar properties that have been sold recently
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Sales contract
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A contract signed by the buyer and seller detailing the terms of a property sale.
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Second mortgage
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A second loan placed upon a piece of property.
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Secondary financing
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A loan on real property secured by a lien junior to an existing first mortgage loan
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Secondary market
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A market where existing mortgage loans are securitized and then bought and sold to other investors
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Secondary, or follow-on, offering
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A stock offering made by an existing public company
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Second-generation or secondary space
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Previously occupied space that becomes available for lease, either directly from the landlord or as sublease space
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Securities and Exchange Commission (SEC)
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The federal agency that supervises and oversees the issuance and exchange of public securities
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Securitization
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The process of converting an illiquid asset, such as a mortgage loan, into a tradable form, such as mortgage-backed securities
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Security Deposit
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A rental tenant will put down a security deposit on an apartment so that the owner of the apartment has security against any potential damages in the apartment during the term of tenancy. This security deposit is not in lieu of a tenant paying his/her last month's rent.
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Security deposit
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A deposit of money by a tenant to a landlord to secure performance of a lease. It also can take the form of a letter of credit or other financial instrument.
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Seisen (seizen)
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Possession of real property under claim of freehold estate
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Self-administered REIT
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When members of the management are employees of the REIT or an entity having essentially the same economic ownership as the REIT
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Self-managed REIT
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A REIT whose employees are responsible for performing property management functions
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Seller carry-back
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An agreement where the seller provides financing for a home purchase.
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Seller financing
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The seller allows the borrower to use a portion of the equity in the property to finance the purchase.
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Senior classes
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With regard to securities, describes the classes with the highest priority to receive the payments from the underlying mortgage loans
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Separate account
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A relationship where an investment manager or adviser is retained by a single pension plan sponsor to source real estate product under a stated investment policy exclusively for that sponsor
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Service Entrance
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This term refers to a second entrance to a kitchen from the common hallway or a rear or private smaller hallway. This entrance is basically used for deliveries and as a means of egress for the servants of the house.
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Service Level
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When one refers to a building's service level, one is referring to the level of the front-door service available in a particular building.
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Servicer
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An organization that acts on behalf of a trustee for the benefit of security holders
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Setback
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The distance from a curb, property line or other reference point, within which building is prohibited
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Settlement
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Another name for closing.
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Settlement or closing fees
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Fees paid to the escrow agent (often a title insurance company) for carrying out the written instructions of the agreement between buyer and seller and/or borrower and lender.
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Settlement statement
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A closing statement or settlement sheet that outlines all closing costs on a real estate transaction or refinancing for the buyer and seller.
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Shared-appreciation mortgage
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A loan that allows a lender or other party to share in the borrower's profits when the home is sold.
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Shared-equity transaction
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A transaction in which two buyers purchase a property, one as a resident co-owner and the other as an investor co-owner.
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Shares
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Each apartment in a co-operative actually owns shares in the co-operative (The same way that an individual might own shares in a publicly traded cooperation). These shares represent the proportion of the building that is owned by that individual shareholder. This is determined by the size of the apartment, the floor on which the apartment is located and if there are any particular special features associated with a particular apartment. Two identical apartments located on different floors will possess a different number of shares.
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Shares outstanding
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The number of shares of common stock currently outstanding, less the shares held in treasury
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Shortfall
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A situation in which a building owner is unable to meet the operating expenses of a building because the building's income is less than the building's expenses. In a co-operatives where there is sponsor maintaining unsold shares, there is a good chance that the tenants occupying unsold share apartments are paying below-market rents while the sponsor is responsible for the maintenance payments to the co-operative for the particular apartment. There is a tremendous likelihood that the difference between the collected rent and the maintenance due the co-operative can create a long-term financial burden for a sponsor. This is referred to as a shortfall. Obviously, the more unsold shares owned by a sponsor the greater the financial strain.
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Short-Term
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Many apartments are available on a short-term basis ranging from 1-6 months. These apartments are typically furnished and offer the tenant a less expensive alternative to weekly hotel bills. These apartments are typically not subject to New York City Hotel taxes and average out to be far less expensive on a per diem basis.
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Site analysis
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Determines the suitability of a specific parcel of land for a specific use
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Site development
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The installation of all necessary improvements made to a site before a building or project can be constructed on the site
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Site plan
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A detailed plan that depicts the location of improvements on a parcel
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Slab
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The exposed wearing surface laid over the structural support beams of a building to form the floor(s) of the building
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Social investing
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Investments driven in whole or in part by social or political (non-real estate) objectives. Under ERISA, social investing is economically justified only if proper real estate fundamentals are considered first.
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Soft cost
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The portion of an equity investment other than the actual cost of the improvements themselves that may be tax-deductible in the first year
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Space plan
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A graphic representation of a tenant's space requirements, showing wall and door locations, room sizes and sometimes furniture layouts
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Special assessment
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Special charges levied against real property for public improvements that benefit the assessed property
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Special Forbearance
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A loss mitigation option where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments.
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Special servicer
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A firm that is employed to work out mortgages that are either delinquent or in default
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Specified investing
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Investment in individually specified properties or portfolios, or investment in commingled funds whose real estate assets are fully or partially specified prior to the commitment of investor capital
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Speculative space
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Any tenant space that has not been leased before the start of construction on a new building
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Square Footage
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When referencing square footage in the Manhattan residential marketplace, the term can mean almost anything. Measurements are usually approximate and most often done by the subjective eye of the real estate broker or the apartment owner. Brokers should always use the term approximate when describing the square footage of an apartment. In the sale of condominium units, square footage is measurements are fairly accurate because people refer to the condominium offering books where by law these measurements need to accurately reflect the square footage of the units.
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Stabilized net operating income
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Projected income less expenses that are subject to change but have been adjusted to reflect equivalent, stable property operations
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Stabilized occupancy
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The optimum range of long-term occupancy that an income-producing real estate project is expected to achieve after exposure for leasing in the open market for a reasonable period of time at terms and conditions comparable to competitive offerings
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Step-rate mortgage
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A loan that allows a gradual increase in the interest rate during the first few years of the loan.
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Step-up lease (graded lease)
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A lease specifying set increases in rent at set intervals during the term of the lease
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Straight lease (flat lease)
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A lease specifying a fixed amount of rent that is to be paid periodically, typically monthly, during the entire term of the lease
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Strip center
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Any shopping area comprised of a row of stores but smaller than a neighborhood center anchored by a grocery store
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Subcontractor
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A contractor working under and being paid by the general contractor, often a specialist in nature, such as an electrical contractor, cement contractor, etc.
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Sublessee
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A person or identity to whom the rights of use and occupancy under a lease have been conveyed, while the original lessee retains primary responsibility for the obligations of the lease
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Subordinate
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To place in a rank of lesser importance or to make one claim secondary to another.
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Subordinate loan
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A second or third mortgage.
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Subordinated classes
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With regard to CMBS, describes those classes with the lowest priority to receive payments from the underlying mortgage loans
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Subordination
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The process of sharing the risk of credit losses disproportionately among two or more classes of securities
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Subsequent rate adjustments
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The interest rate for adjustable rate loans (ARMs) adjusts at regular intervals. This adjustment period could in some cases differ from the initial interest rate duration period.
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Subsequent rate cap
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A specific limit defined by most adjustable rate loans (ARMs) for the maximum amount the interest rate may increase at each regularly scheduled interest rate adjstment date. This limit may differ from the initial rate cap.
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Super jumbo mortgage
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A mortgage that is over $650,000 or $1,000,000, depending on the lender.
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Surety
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One who voluntarily binds himself to be obligated for the debt or obligation of another
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Surface rights
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A right or easement granted with mineral rights, enabling the possessor of the mineral rights to drill or mine through the surface
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Survey
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A property diagram that indicates legal boundaries, easements, encroachments, rights of way, improvement locations, etc.
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Survey
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The process by which a parcel is measured and its boundaries and contents ascertained
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Survey
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A precise measurement of a piece of property by a licensed surveyor.
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Sweat equity
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Using labor to build or improve a property as part of the down payment.
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Sweat equity
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The non-cash value added to a piece of property by the owner, such as do-it-yourself home improvements.
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Synthetic lease
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A transaction that appears as a lease from an accounting standpoint but as a loan from a tax standpoint
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