Property Legal Terms (S)

saleable area

The floor area exclusively allocated to the unit including balconies and verandahs but excluding common areas such as stairs, lift shafts, lobbies, etc. The saletable area is measured from the exterior of the enclosing walls of the units and to the center line of the party wall between two units

sale-leaseback

A technique in which a seller deeds property to a buyer for a consideration, and the buyer simultaneously leases the property back to the seller.

salvage value

The realizable value of goods or construction material that can be recovered and sold from a building that is being demolished. Example: doors, windows, marble slabs, steel rods, etc.

satisfaction

The repayment in full of debt or a payment in full and final settlement of an outstanding amount.

scale

1. model depicting what a structure physically looks like. The dimensions are drawn on a proportionate basis to the real thing such as 1:100 scale, which equals one centimeter to one meter.
2. Peeling or flaking of a surface marked by discoloration

sea level

The level of the surface of the sea; any surface on the same level with the sea.

seal(s)

Identifier used on a document as a mark of genuineness and authenticity

sealed bid

An offer usually in form of a tender, submitted in a sealed package on the understanding that it will be opened simultaneously with other competitive offers at a stated time and place. In some circumstances tenderers are permitted to be present when the bids are opened

search

The reviewing, of all recorded transaction in the public record, to discover any title defects, which could interfere with the transfer of ownership of a property.

second mortgage

A mortgage that has a lien position subordinate to the first mortgage.

secondary

Property which is below that of prime in relation to rentals, location, etc.

secondary location

Location that is less advantageous than desired.

secondary market

The buying and selling of existing mortgages, usually as part of a "pool" of mortgages.

section

A parcel of land whose boundaries are shown on a survey plan

secured loan

A loan that is backed by collateral.

security

The property that will be pledged as collateral for a loan.

security agreement

Any loan agreement that includes a charge on a fixed asset

security deposit

A deposit by a tenant kept with a landlord

seller carry-back

An agreement in which the owner of a property provides financing, often in combination with an assumable mortgage.

seller's market

A market in any property or commodity where the circumstances are such that the seller has an advantage over a potential buyer to the extent that he can command a higher price than otherwise would be obtainable.

service charge

The collective name for the cost of air-conditioning and other services and management charges passed on to the tenant.

service accommodation

Fully furnished apartment where tenants are provided services such as house keeping, security and concierge or reception or front office. Serviced apartments combine the features of a hotel and an apartment

servicer

An organization that collects principal and interest payments from borrowers and manages borrowers' escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.

servicing

The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.

signage

Refers to anything that functions like a sign. The tenant and the landlord, on mutual discussion, will agree on the location for the tenant to erect their signage. Usually signage is provided by the landlord in the building directory and on the common lobby of the demised premises

single family house

A house that is designed for occupation by one family only, as opposed to an apartment block that is designed for occupation by several families.

sinking fund

A sum of money set aside at regular interval to earn interest on a compound basis either: 1) to be set off against the diminution in value of a wasting asset, e.g., a lease; or 2) to meet some future cash liability. In property valuations, it is usually assumed that the money will be invested at a "risk free" which is regarded as appropriate according to market conditions. The total amount calculated to accumulate by the sinking fund may be the same as the original investment or liability but possibly with an adjustment to reflect the view taken on future fluctuations in the value of money

site analysis

An examination of a property to decide if it is suitable for a particular use. Or an examination of a property with the purpose of deciding its most appropriate use.

site development

Improvements made to a plot of land to make it suitable for building, such levelling uneven ground, laying of sewer and underground utility lines, etc.

site plans

Diagrams, sketches or maps showing the outline and location of a particular plot along with all features in it.

sky lease

A lease, securing exclusively use by a lessee and its nominees, of the air space above a plot of land. Example: nowadays, airport operators demand sky leases above the airports they develop or manage.

sole agency

A sole agency precludes all other agents from working on the sale of the property, although another agent may approach the sole agent if it has a suitable party. The sole agent would handle the approach to the principal.

space design

Layout plan for the interior of a building. Involves both construction as well as interior design

span

The distance between two pillars, walls or other load bearing structures.

stamp duty

A fixed tax chargeable on the execution of documents pertaining to certain transactions (e.g., leases)

statue of limitations

Law that stipulates that a legal action to redress a wrongdoing has to be brought before a judicial forum within a set time, after which no legal remedy will be available.

statutory lien

A lien or restriction created on the operation of land. Example: outstanding property taxes may create a lien against the property

storm sewer

Sewer that drains rainwater

sub-agent

A person who receives and acts upon instructions from an agent

subcontractor

A contractor engaged by a general contractor to execute specific job. The overall building contract is given to the general contractors, plumbing contractors, etc., to do specialized jobs.

subdivision

A housing development that is created by dividing a tract of land into individual lots for sale or lease.

subdivision map

Detailed drawing of a real estate or administrative subdivision showing boundaries and other features

subject to

Conditional upon, for example, a buyer may agree to purchase a property subject to the existing title holder paying off all existing liens on it within particular period.

sublease

A lease granted by a person who himself enjoys only a lease interest over that property. Here, the sub-lessor cannot grant rights he does not have. Example: A leases a plot of land to B for 25 years. If allowed in his contract with A, B can sub-lease the land to C for the remaining period of his lease term, but cannot sub-lease it for 26 years.

sub-lease space

Vacant space which is available for lease from the contracted tenant of the premises

subordinate financing

Any mortgage or other lien that has a priority that is lower than that of the first mortgage.

subpoena

A summons issued by court

supply

New or refurbished spaced entering the market

survey

A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.

sweat equity

Contribution to the construction or rehabilitation of a property in the form of labour or services rather than cash.