Glossary S – Z
Glossary of commonly used real estate industry terms
SALES CONTRACT:
A contract by which buyer and seller agree to the terms of a sale.
SALE-LEASEBACK :
A sale of real property where the seller retains occupancy by leasing the property from the buyer.
SATISFACTION :
Payment of a debt or other obligation.
SEAL :
An impression made to attest the execution of an instrument, e.g., Notary Seal, Corporate Seal.
SECONDARY FINANCING:
A loan secured by Mortgage of Deed of Trust, which is recorded after the first Mortgage or Deed of Trust.
SECONDARY MORTGAGE MARKET:
Financial institutions which purchase promissory notes secured by mortgages or deeds of trust from the original lenders.
SECURED PARTY:
The party holding a security interest. Thus, the mortgagee, the conditional seller, the pledgee, etc… are all now referred to as the secured party.
SECURITY AGREEMENT :
An agreement between a secured party and a debtor, which creates a security interest.
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 sale; inventory lien; etc.
SECTION:
A parcel of land approximately one mile square, containing 640 acres, which id located within a township, as established by U.S. Government Survey.
SEPARATE PROPERTY:
Property which is owned by a husband or wife but which is not community property; property acquired by either spouse prior to marriage or by gift or devise after marriage.
SEPTIC TANK :
An underground tank in which sewage from the house is reduced to liquid by bacterial action and drained off.
SERVICING:
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, foreclosing on defaulting loans, etc……….
SETBACK LINES:
Lines, which identify the required distances for the location of improvements for the perimeter of the property.
SETBACK ORDINANCE:
An ordinance prohibiting the erection of a building or structure between the curb and the setback line.
SEVERALTY OWNERSHIP:
Owned by one person only. Sole ownership.
SHERIFF'S DEED:
Deed given by court order in connection with sale of property to satisfy a judgment.
SPECIAL ASSESSMENT:
Legal charge against real property by a public authority to pay the cost of public improvements such as street lights, sidewalks, streets improvements, etc……….
SPECIAL PROTECTION:
Extended coverage provided to the insured party under a title insurance policy in the form of a written endorsement for which there is an extra charge. An endorsement increases the risk assumed by the company by "insuring over" existing or potential defects in title. Examples: Form 100, mechanics lien protection, mineral protection or deletion of printed exceptions.
SPECIAL WARRANTY DEED:
A deed in which the grantor warrants or guarantees the title only against defects arising during his ownership of the property and not against defects existing before the time of his ownership. A deed wherein the grantor warrants that he is conveying the title to the property "as good as he got it."
SPECIFIC LIENS:
Liens, which attach to only a certain specific parcel of land or piece of property.
SPECIFIC PERFORMANCE :
An action to compel performance of an agreement, e.g., for the sale of land. A remedy which the court will grant, in certain cases, compelling the defendant to perform or carry out the terms of a valid, existing agreement or contract.,/p>
SALE LEASE:
An agreement between the State of Colorado and other parties for the use of lands under the jurisdiction of the State Board of Land Commissioners for grazing, agricultural and other lawful purposes.
STATUTE OF FRAUDS:
State law, which provides that certain contracts must be in writing in order to be enforceable at law. Examples: Real property lease for more that one year; agent's authorization to sell real estate.
STATUTORY WARRANTY DEED:
A short form warranty deed authorized by statute, which warrants by inference that the seller is the undisputed owner and has the right to convey the property and that 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 he fails to do so, the new owner can defend claims and sue the former owner.
SUBJECT TO MORTGAGE:
One who takes title to real property subject to a mortgage is not responsible to the holder of the promissory note for the payment of any portion of the amount due. (See Assumption of Mortgage.) The original maker of the note is not released from his responsibility make the payments thereon.
SUBLEASE:
A secondary lease of property given by the lessee under a prior lease to a sublease.
SUBORDINATE:
To make subject to, or junior to. For example, a prior deed of trust may by written agreement be subordinated in priority to a subsequent junior deed of trust.
SUBORDINATION CLAUSE:
Clause in a junior or a second lien permitting retention of priority for prior liens. A subordination clause may also be used in a first deed of trust permitting it to be subordinated to subsequent liens as, for example, the liens of future construction loans.
SUBORDINATE AGREEMENT:
An instrument or agreement that makes a loan or mortgage inferior or subordinate to one that was recorded after it.
SUBDIVISION:
Any number of lots or plots broken down out of a large piece that has an organized map plan or plat to define it.
SUBPOENA:
A process to cause a witness to appear and give testimony legal or quasi-legal in a proceeding.
SUBROGATION:
The substitution of another person in place of the creditor, to whose rights he succeeds in relation to the debt. The doctrine is used very often where one person agrees to stand as surety for the performance of a contract by another person.
SUB-SURFACE RIGHT:
The ownership or right of use of some portion of the ground underlying the surface of a parcel of land.
SURETY:
One who guarantees the performance of another; guarantor.
SURRENDER:
In leases, it is the cancellation of a lease by mutual consent of lessor or lessee. In bankruptcy, it is an informal term for relinquishment of property by the debtor to the control of the bankruptcy trustee.
SURVEY:
The process by which a parcel of land is measured and its area ascertained. The process of measuring land to determine its size, location, and physical description. An improvement Survey is the drawing done by a registered land surveyor showing the dimensions of a particular piece or real property, which shows the improvements, located on the property in relationship to the property itself. (See also Improvement Location Certificate)
SYNDICATE:
A partnership organized for participation in a real estate venture. Partners may be limited or unlimited in their liability.
TAKE-OUT LOAN:
The loan arranged by the owner or builder/developer for a buyer. The construction loan made for construction of the improvements is usually paid off from the proceeds of this loan.
TAX CERTIFICATE:
A written statement by the County Treasurer of the taxes due on a particular property.
TAX DEED (TREASURER'S DEED):
A conveyance by the County Treasurer of property for which the taxes were not paid by the owner, and which was sold at tax sale at least three years previously.
TAX-FREE EXCHANGE:
An exchange of one income property for another, thereby avoiding, at time of the exchange, capital gains liability to the extent that the values of the properties exchanged are equivalent.
TAX SALE:
Sale of property by the County Treasurer for the nonpayment of general or special property taxes.
TENANCY IN COMMON:
Ownership by two or more persons who hold undivided interests, without right of survivorship; interests need to not be equal. A type of co-ownership of real property; a holding of an estate in land by two or more persons, each being entitled to possession of the property according to his proportionate share; distinct from a joint tenancy in that there is no right of survivorship in a tenancy in common.
TENANT:
Any person in possession of real property with the owner's permission.
TENANT BY THE ENTIRETIES:
Under certain state laws ownership of property acquired by husband and wife during marriage which is jointly owned. Upon death of one spouse, it becomes the property of the survivor. Not recognized in Colorado.
TENTATIVE MAP:
The Subdivision Map Act requires sub dividers to submit initially a tentative map of their tract to the local planning commission for study. The approval or disapproval of the planning commission is noted on the map. Thereafter, a final map of the tract embodying any changes requested by the planning commission is required to be filed with the planning commission.
TENURE IN LAND:
The mode or manner by which an estate in lands is held.
TESTAMENT:
Another term for a will. Commonly referred to as "last will and testament."
TIME IS OF THE ESSENCE:
One of the essential requirements of a binding contract; contemplates a punctual performance.
TITLE:
The evidence of rights, which a person has to the ownership and possession of land. Commonly considered as a bundle or history of rights. Evidence that owner of land is in lawful possession thereof, and instrument evidencing such ownership.
TITLE DEFECT:
Any legal or asserted right held by others to claim property or to make demands upon the owner.
TITLE INSURANCE:
A policy of insurance, which indemnifies the holder against loss sustained by reason of a defect in the title, provided the loss does not result from a defect excluded by the policy provisions. Insurance against loss or damage resulting from defects or failure of title to a particular parcel of real property.
TITLE REPORT:
A report, which discloses the condition of the title to a parcel of real property, made by a title company preliminary to issuance of title insurance.
TITLE SEARCH:
An examination of public records to disclose the current facts regarding ownership of real estate.
TOPOGRAPHY:
nature of the surface of land; topography may be level, rolling, or mountainous.
TORRENS SYSTEM:
A system by which real property is registered and a Torrens Certificate is issued to the owner of real property. The certificate is the owner's evidence of title. A system by which the registrar of Torrens keeps and maintains title records pertaining to real property located in the County.
TORT:
A negligent or intentional wrong doing for which the law will grant money damages to the damaged party in a civil action.
TOWNSHIP:
A division of territory 6 miles square, containing 36 sections or 36 square miles.
TRACT:
An area of land.
TREASURER'S DEED (TAX DEED):
A deed for property sold at public sale by the County Treasurer for nonpayment of taxes by the owner.
TRUST:
A property right held by one for the benefit of another. The concept of transferring title to a fiduciary or entrusted person to administer property for the benefit of another.
TRUST ACCOUNT:
An account separate and apart and physically segregated from a broker's own funds, into which the broker is required by law to deposit all funds collected for clients.
TRUSTEE:
Public Official or private party who holds a Deed of Trust as security for payment of the note secured, and thereby for redelivery of title to the debtor upon payment in full of the obligation. One who holds property in trust for another to secure the performance of an obligation.
TRUSTOR:
One who conveys title to a trustee to be held as security until the trustor has performed his obligation to a lender under the terms of a deed of trust.
UNDUE INFLUENCE:
Any fraudulent or unfair advantage taken of another's weakness of mind, distress or necessity.
UNIFORM COMMERCIAL CODE:
Effective January 1, 1965, this statutory code establishes a unified and comprehensive scheme for regulation of security transactions in personal property, superceding the existing statutes on chattel mortgages, conditional sales, trust receipts, assignment of accounts receivable and others in this field.
UNTIED STATES GOVERNMENTAL SURVEY SYSTEM:
Often called the Rectangular Survey System. A method of describing or locating real property by reference to the Governmental Survey.
USURY:
Claming a rate of interest on a loan, which is higher that that permitted by law.
UTILITIES:
Refers to services rendered by public utility companies such as water, gas, electricity and telephone.
VALID:
Having force or binding effect; legally sufficient and authorized by law.
VALUATION:
Estimated worth or price. The act of valuing by appraisal.
VENDEE:
A purchaser.
VENDOR:
A seller.
VERIFICATION:
Sworn statement before a duly qualified officer as to the correctness of the contents of an instrument.
VEST:
To own or indicate ownership in lands. "Title may be said to "vest" in John Brown."
VESTED:
Bestowed upon someone; rights to which one is entitled.
VOID:
To have no force of effects; that which is legally unenforceable. Invalid; or no legal effect.
VOIDABLE:
Nor void, but may be set-aside at a later time.
VOLUNTARY LIEN:
Any lien placed on property with the consent of, or as a result of, the voluntary act of the owner. EXAMPLES: Mortgages and Deeds of Trust.
WAIVE:
To relinquish, or abandon; to forego a right to enforce or require performance by another.
WARRANTY:
An agreement and assurance by the grantor of real property which is binding upon himself and his heirs, to the effect that he is the owner and will defend the title granted to another.
WARRANTY DEED:
A deed used to convey real property, which contains warranties of title and quiet possession, by which the grantor agrees to defend the premises against the lawful claims of third persons. Often called a general warranty deed; a deed in which the grantor warrants or guarantees the title to real property against defects existing before the grantor acquired title or arising during the grantor's ownership.
WATER TABLE:
Distance from the surface of land to the depth at which natural groundwater is found.
WILL:
A written document properly witnessed, providing for the distribution of property upon the death of the owner. The written statement of a person's wishes concerning the disposal of his after death.
WRAP AROUND MORTGAGE:
A second mortgage, for an amount larger that the remaining balance on the existing first mortgage, usually payable to the debtor under the first mortgage who is also the seller of the property which secures the mortgage. The buyer makes payments to the seller, who is obligated under the law of the wrap around mortgage to make payments on the first mortgage. A wrap around mortgage may be used where the interest rate on the existing first mortgage is much lower than the current interest rates available on new loans, for which the buyer may be unable or unwilling to qualify. "Also known as All-Inclusive Deed of Trust."
WRIT OF EXECUTION:
A writ or court order, authorizing and directing an office of the court, usually the sheriff, to carry into effect the judgment or decree of the court.
ZONE:
The area set off by the proper authorities for specific use; subject to certain restriction or restraints.
ZONING:
Act of city or county authorities specifying type of use to which property may be put in specific areas.