REAL ESTATE GLOSSARY # -  A -  B -  C -  D -  E -  F -  G -  H -  I -  J -  K -  L -  M -  N -  O -  P -  Q -  R -  S -  T -  U -  V -  W -  X -  Y -  Z Sales Agreement: Contract signed by buyer and seller stating the terms and conditions under which a property will be sold. Second Mortgage: An additional mortgage placed on a property that has rights that are subordinate to the first mortgage. Secondary Mortgage Market: Buying and selling of existing mortgage loans, designed to provide additional liquidity for lenders. Contrast with primary mortgage market.  Also see Fannie Mae, Freddie Mac and Ginnie Mae. Security Deposit: A payment required by a landlord to ensure that a tenant pays rent on time and keeps the rental unit in good condition. If the tenant damages the property or leaves owing rent, the landlord can use the security deposit to cover what the tenant owes. Security Interest: An interest that a lender takes in the borrower's property to assure repayment of a debt. Self Amortized Loan: A loan which will retire the debt by systematic payments of principal and interest, so that at the end of the loan period, the balance will be zero. Servicing a Loan: The ongoing process of collecting your monthly mortgage payment, including accounting for and payment of your yearly tax and/or homeowners insurance bills. Servient Tenement: Property that is subject to use by another for a specific purpose. For example, a beachfront house that has a public walkway to the beach on its premises would be a servient tenement. Setback: The distance a building must be set back from the property lines in accordance with local zoning ordinances or deed restrictions. Settlement: (or Closing) The settlement or closing is the conclusion of your real estate transaction. It includes the delivery of your security instrument, signing of your legal documents and the disbursement of the funds necessary to the sale of your home or loan transaction (refinance). Settlement Costs: Also known as closing costs, these costs are for services that must be performed before your loan can be initiated. Examples include title fees, recording fees, appraisal fee, credit report fee, pest inspection, attorney's fees, taxes, and surveying fees. Shared Equity Mortgage: A home loan in which the lender gets a share of the equity of the home in exchange for providing a portion of the down payment. When the home is later sold, the lender is entitled to a portion of the proceeds. Short Sale: A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage.  Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes. See also deed in lieu (or foreclosure). Simple Interest: Interest computed only on the principal balance. Contrast with compound interest. Single-Family Home: A free-standing, residential structure, designed to accommodate one family.  Single-family homes include traditional houses, as well as patio homes. Special Warranty Deed: A warranty deed which, instead of warranting the title from sovereignty of the soil to the last grantee, merely warrants the title against every person whomsoever lawfully claiming or to claim the same, or any part thereof, by, through or under the grantor. Specific Lien: A claim that only applies to or affects a certain property or group of properties. Contrast with general lien. Specific Performance: Carrying out of the precise terms agreed upon in a contract. Also see suit for specific performance. Spite Fence: An unsightly fence erected for no other purpose than to irritate a neighbor. Such a fence may be illegal under local fence height and appearance regulations or state laws that specifically bar spite fences. Even if it doesn't violate regulation or laws, the fence may still be illegal if it was built with malicious intent. Statute of Frauds: The law which requires among other things, that all contracts transferring real estate, or for the leasing of property for over one year, must be in writing to be enforceable. Statutory year: A year composed of twelve months, each with thirty (30) days, for a total of 360 days in a statutory year. Also known as a banker's year. Contrast with calendar year. Steering: The illegal practice of directing members of minority groups to, or away from, certain areas or neighborhoods; channeling. See Fair Housing. Subject to Mortgage: The buyer of an already mortgaged property makes the payments, but does not take personal responsibility for the loan. Should the mortgage be foreclosed and the property sold for a lesser amount than is owed, the grantee-buyer is not personally liable for the deficiency, but the grantor-seller is. Contrast with assumption of mortgage. Sublease: A rental agreement or lease between a tenant and a new tenant (called a sublessee) who will either share the rental or take over from the first tenant. The sublessee pays rent directly to the tenant.  The tenant is still completely responsible to the landlord for the rent and for any damage, including that caused by the sublessee. Most landlords prohibit subleases unless they have given prior written consent. Compare with assignment. Succession: The passing of property or legal rights after death. The word commonly refers to the distribution of property under a state’s intestate succession laws, which determine who inherits property when someone dies without a valid will. When used in connection with real estate, the word refers to the passing of property by will or inheritance, as opposed to gift, grant, or purchase. Survey: A measurement of land, prepared by a licensed surveyor, showing a property's boundaries, elevations, improvements, and relationship to surrounding tracts. Sweat Equity: Value added to a property in the form of labor or services of the owner rather than cash. # -  A -  B -  C -  D -  E -  F -  G -  H -  I -  J -  K -  L -  M -  N -  O -  P -  Q -  R -  S -  T -  U -  V -  W -  X -  Y -  Z