# 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
An estimate of a property’s worth based on the opinion of the owner, or for a nonmonetary use, reflecting its personalized significance beyond market value.
A sublease is a lease agreement between a tenant (lessee) and a third party (sublessee) allowing the sublessee to occupy the leased property. The original tenant remains liable to the landlord for the lease obligations.
Subletting refers to the practice of a tenant leasing out a rental property to another person for a portion of the lease term. Subletting agreements typically require the consent of the original landlord.
A subordinate mortgage, also known as a junior lien, is a mortgage that is ranked below a primary mortgage in terms of claim priority. In the event of a foreclosure, the primary mortgage is paid off first, and any remaining funds go towards paying the subordinate mortgage.
A subordinated ground lease is a lease agreement wherein the mortgage on the property holds priority over the ground lease. This structure can affect the leaseholder's rights, particularly in cases of foreclosure.
A financial agreement that changes the priority of claims on a property, such as converting a first mortgage to a second mortgage.
A subordination clause is a legal arrangement that establishes the order of priority for multiple lenders' claims on a property in case of default.
A subprime loan is a type of loan offered to individuals with less-than-perfect credit ratings. These loans typically carry higher interest rates and stricter lending terms as compared to standard mortgage loans.
Subrogation in real estate refers to the substitution of one entity for another concerning a claim or right. The substituting entity acquires the legal rights and claims of the original party.
Subsidized housing refers to apartments, nursing homes, or single-family dwellings that receive a government subsidy to reduce housing costs for low-income individuals and families.
A subsidy is a financial assistance provided by the government, public body, or institution to support an economic sector, enterprise, or activity, considered beneficial to the public welfare.
A subsidy buy-down is a type of mortgage arrangement where the interest rate is reduced either immediately or over the initial few years of the loan, with the reduction subsidized by a third party. This subsidy can come from various sources such as the seller, from government or non-profit programs, with the aim of making homeownership more affordable.
Substandard housing refers to residential properties that do not meet the basic standards of safety, sanitation, and habitability as defined by local building or housing codes. This can include issues related to structural integrity, plumbing, electrical systems, and overall livability.
Subsurface rights refer to the rights to extract minerals, oil, and gas from beneath a property's surface. Owning these rights can be valuable and is often separated from surface rights in real estate transactions.
A suburb is a town or an unincorporated developed area situated in close proximity to a city. Suburbs are primarily residential areas that often rely on the nearby city for employment and support services. They are generally characterized by low-density development compared to the city.
The Sum-of-Years'-Digits (SYD) depreciation method is a technique used in accounting to allocate the cost of an asset over its useful life in an accelerated manner. This method results in higher depreciation expenses in the earlier years and lower expenses in the later years.
Summary possession, often referred to as summary eviction, is a legal process by which a landlord can quickly evict a tenant for reasons such as non-payment of rent, violating lease terms, or other grounds stipulated by rental agreements or local laws. This process is typically expedited to address violations that need immediate resolution.
Utilized in drainage systems, a sump is a pit typically located in a basement that collects excess moisture and liquids to prevent flooding. A sump pump is often installed to remove the accumulated water from the sump pit.
A sunset clause is a provision in a contract that sets a termination date for the agreement unless certain conditions are met, providing a clear timeframe for action or decision-making.
A sunspace, also known as a sunroom or solarium, is a room with extensive glass walls and often a glass roof that is designed to capture solar energy. This additional space can naturally heat a home, provide light, and offer a luxurious area for relaxation.
A Super Regional Center Shopping Center is a large-scale shopping center that exceeds the size and variety of regional malls, often featuring multiple full-line department stores and abundant gross leasable area.
Superadequacy refers to a condition where a component or feature of a property is considered beyond what is needed for its practical use or is excessive relative to standard expectations. Superadequacy can negatively impact the market value of a property as it may lead to over-improvements that are not valued by prospective buyers.
SUPERFUND is the commonly used name for CERCLA, the federal environmental cleanup law. It mandates the cleanup of contaminated sites and holds responsible parties accountable for the costs.
The Superfund Amendments and Reauthorization Act (SARA) of 1986 significantly amended the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA, or Superfund). SARA addresses the cleanup of hazardous waste sites, enhances the enforcement of cleanup responsibly, and increases funding for the Superfund program.
The Superfund Amendments and Reauthorization Act (SARA) is a law that confirmed the continued existence of the Superfund program and strengthened the enforcement of hazardous waste site remediation under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
The superstructure refers to any portion of a building that is above ground level. It consists of floors, walls, columns, beams, and roofing necessary to support the elevated lifetime and usage of the structure.
The fundamental economic concept of Supply and Demand dictates that market prices are determined at an equilibrium point where the quantity supplied matches the quantity demanded. In real estate, this principle is complicated by the slow adjustment of supply due to lengthy planning and development periods.
In real estate, a surety is an individual or entity that guarantees the performance of obligations or responsibilities, usually relating to contractual agreements. This acts as a safety net ensuring that the party performing the work will fulfill their commitments, or the surety will step in to cover any losses or damages.
Surface rights refer to the legal rights associated with the surface area of a piece of real estate. These rights are often distinct from underground (mineral rights) or above-ground (air rights) entitlements.
Surplus land is a portion of a parcel that exceeds the area required to support the current highest and best use of the property, but holds no separate value apart from the main parcel.
Surrender refers to the cancellation of a lease by mutual consent of the lessor and the lessee, where both parties agree to terminate the lease agreement before its stipulated end date.
A survey in real estate refers to the process by which a parcel of land is measured and its area ascertained. It involves detailed measurements, boundaries, areas, and contours and can also refer to canvassing attitudes or market characteristics in the real estate market.
A surveyor is a professional who specializes in determining the terrestrial or three-dimensional positions of points and the distances and angles between them. They typically work on land surveys to establish property boundaries, create topographic maps, and facilitate construction projects. In real estate, surveyors play a crucial role in validating property lines, legal descriptions, and ensuring compliance with zoning and building codes.
Survivorship is the right of a joint tenant or tenants to maintain ownership rights following the death of another joint tenant, preventing heirs of the deceased from making claims against the property.
Sustainable development refers to a philosophy that views construction within the constraints of long-term environmental health, emphasizing building to meet human needs without compromising the ability of the natural environment to support such development.
A swale is a shallow, often vegetated, depression on a site used to manage water runoff, filter pollutants, and increase rainwater infiltration. Swales are integral to sustainable urban drainage systems and contrast with berms, which are raised mounds of earth.
Sweat Equity represents the value added to a property due to improvements as a result of work personally performed by the owner. A prime example is when property owners pour their own time and energy into repairs and renovations, thereby increasing the property's value.
A sweetener is something included in a transaction to make it more acceptable or attractive to the buyer. This can take the form of various incentives or perks offered by the seller to encourage the buyer to complete the purchase.
A Swing Loan is a short-term loan that helps homeowners purchase a new residence before selling their existing property. Often used when homeowners need to secure a new home promptly, usually a few weeks to a few months. Check out related terms like Bridge Loan and Gap Loan.
A Swiss Chalet is a picturesque, alpine architectural style characterized by 1½- to 2½-story gable-roofed houses with extensive ornamental woodwork, often designed for mountain environments.
Sum-of-Years’-Digits (SYD) is an accelerated depreciation method that segments the depreciation of an asset by applying larger deductions at the beginning of the asset's useful life and smaller deductions towards the end.
In the context of real estate, a syndicate is a group of investors who pool their capital to invest in larger properties or projects than they could individually. Syndicates are typically organized by a syndicator who manages the investment on behalf of the group, aiming for shared profits.
Syndication is a method of selling property whereby a sponsor (or syndicator) sells interests to investors. This process can take various forms such as partnerships, limited partnerships, tenancies in common, corporations, LLCs, LLPs, or Subchapter S corporations.
A syndicator is an individual or entity responsible for organizing and managing a real estate syndication, where investment opportunities are sold to various investors.
A synthetic lease is a financial arrangement where the lessee assumes complete responsibility for the property, including all risks, costs, and obligations, while the lessor receives a fixed rent.
Synthetic Stucco, also known as Exterior Insulation and Finish System (EIFS), is a type of exterior building finish that provides both insulation and a finished surface resembling traditional stucco.
Systemic risk refers to the potential for a major disruption in the function of an entire market or financial system, as opposed to just one or a few individual entities. It cannot be mitigated by diversification and is also known as market risk.
Table funding refers to the practice of originating mortgage loans using a lender's internal capital until these loans are packaged together and sold in the secondary market. This process enables the lender to recoup capital, allowing continued lending activities.
Tacking, in the context of real estate, refers to the process of adding successive periods of possession together to establish a continuous period required for a claim of adverse possession.
A tag sale, also known as a yard sale or garage sale, is a casual sale where individuals mark used household items with price tags. These sales are typically held on weekends at the vendor’s home, often featuring merchandise displayed in the front yard or driveway.
Takedown refers to the instance when a borrower actually accepts money from a lender under a line of credit or loan commitment, often structured in stages to align with project milestones.
Takeout financing is a type of long-term loan that replaces short-term interim financing, allowing project developers to refinance debt incurred during the construction phase. This helps bridge the gap between the completion of a project and its permanent financing, ensuring liquidity and financial stability.
Takeout financing refers to the commitment to provide permanent financing following the construction of a planned project. It typically requires specific conditions to be met, such as achieving a certain percentage of unit sales or leases. Most construction lenders mandate takeout financing to ensure the construction loan is 'taken out' by a permanent loan post-construction.
A takeout loan is a type of long-term financing that replaces short-term interim financing, such as a construction loan, to repay the short-term loan and provide capital for further development or investment.
In real estate, 'Taking' refers to the acquisition of a parcel of land through condemnation, or the application of restrictions that preclude any reasonable use of the land.
The TALF (Term Asset-Backed Securities Loan Facility) is a program created by the Federal Reserve that aims to support the issuance and accessibility of asset-backed securities (ABS) collateralized by underlying consumer and business credit. First introduced during the 2008 financial crisis, TALF seeks to encourage the flow of credit to households and small businesses.
Tangible personal property refers to assets that can be seen, touched, and moved without great difficulty. This category excludes real estate and intangible assets.
Tangible property refers to physical assets that can be seen and touched. This includes real estate, personal property, and other valuables.
A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. Failure to pay, along with evasion of or resistance to taxation, is punishable by law.
Tax abatement is a financial incentive offered by a government to reduce or eliminate property taxes on a property for a certain period. This encourages development and investment in specific areas or projects.
A tax and insurance escrow account, often required by mortgage lenders, is used to fund annual property tax assessments and hazard insurance premiums for the mortgaged property. This account is funded through monthly contributions by the mortgagor.
A Tax Appeal or Tax Protest is an effort to reduce ad valorem property taxes, typically based on the argument that the assessed value is greater than the market value or that the assessment does not ensure equal and uniform taxation.
Tax assessment is the valuation of real estate property by a government entity to determine the property's tax liability. The assessed value is used to calculate the property taxes owed by the property owner.
A tax assessor is a local government official responsible for determining the value of properties within a jurisdiction for taxation purposes, playing a key role in how property taxes are assessed and collected.
The tax base refers to the collective value of property, income, or other taxable assets and activities that are subject to taxation. It is crucial in determining tax revenues as it forms the basis upon which tax rates are applied.
Tax Basis, also known as Basis (Tax), refers to the original value of a property or asset for tax purposes, with potential adjustments over time reflecting improvements, depreciation, or other factors.
A tax bracket refers to the range of income subject to a certain marginal tax rate. It defines the percentage of each additional dollar in income required to be paid as income taxes.
A tax consultant is a person or firm who, for a fee, assists individuals, businesses, and property owners in reducing their tax liabilities. They provide expert advice on tax legislation, planning strategies, and potential savings. Some states may require registration or licensing for tax consultants.
A tax credit is a direct reduction in the amount of tax that a taxpayer owes to the government. Unlike tax deductions, which reduce the amount of taxable income, tax credits reduce the actual tax due, providing dollar-for-dollar savings.
A tax-deductible expense is a type of expenditure that can be subtracted from taxable income, thus reducing the amount of income that is taxed. This helps in lowering the overall tax liability for individuals and businesses.
A tax deduction is an expense that can be subtracted from an individual or entity's gross income to reduce the amount subject to tax.
A tax deed is a legal document transferring ownership of a property to a purchaser following a public auction for unpaid property taxes.
Tax equalization ensures that taxpayers within the same jurisdiction pay similar amounts for equivalent properties, contributing to a fairer property tax system.
Tax Exemption is a full or partial retraction of property from the tax base, resulting in a lower AD VALOREM tax for the property owner.
Tax foreclosure is the process of enforcing a lien against property for nonpayment of delinquent property taxes. Taxing authorities hold a superior lien against all taxable property to enforce the payment of their taxes.
Tax Increment Financing (TIF) is a public financing method that municipalities use to subsidize redevelopment, infrastructure, and other community-improvement projects in distressed areas. The aim is to stimulate economic development and increased property tax revenues.
A tax liability refers to the amount of tax debt owed to the Internal Revenue Service (IRS) or a state's tax authority. These liabilities can result from income earned, properties owned, or other taxable activities.
A tax lien is a legal claim by a government entity against a property when the owner fails to pay taxes owed, effectively securing the amount of delinquent tax against the property.
A tax map is a detailed and comprehensive document that shows the location, boundaries, dimensions, and various relevant information about parcels of land subject to property taxes. These maps are typically bound into books and maintained as public records at local tax offices.
Taxes that apply to the sale of a home, governed primarily by Section 121 of the U.S. Internal Revenue Code, which provides an exclusion on capital gains for qualifying homeowners.
Tax preference items are specific types of income or deductions that are added to gross income to calculate the Alternative Minimum Tax (AMT). These items can include types of depreciation on real estate, among other things.
The tax rate is the ratio of a tax assessment to the amount being taxed and is a crucial factor in determining the tax liability of property owners. This rate can vary widely based on location and the type of tax being applied.
A tax representative or tax consultant is a professional who assists individuals and businesses in navigating tax-related matters. These professionals offer guidance on compliance, tax planning, and dispute resolution with tax authorities.
A tax roll is the comprehensive list of real estate properties within a specific jurisdiction that are subject to property taxes. It includes details about the properties' assessed values, which are used to determine the property tax liabilities.
A tax sale is the sale of property after a period of nonpayment of taxes, where the purchaser receives a tax deed. The defaulting owner typically has a redemption period to reclaim the property by paying owed amounts.
A tax shelter is an investment strategy that provides tax advantages by generating more after-tax income compared to before-tax income. These investments can produce before-tax cash flow while creating tax losses that can shield income from other sources from taxation.
A tax stop is a clause in a lease agreement that sets a limit on the amount of property taxes the lessor (landlord) is responsible for paying. Any property taxes exceeding this limit are paid by the lessee (tenant).
A Tax-Deferred Exchange, often referred to as a 1031 exchange, allows investors to defer paying capital gains taxes on real estate investments when one property is sold and a similar one is purchased within specified time frames.
Tax-exempt property, often pivotal in supporting non-profit organizations and government entities, refers to real estate that is not subject, in whole or in part, to ad valorem property taxes.
A Tax-Free Exchange, also known as a Tax-Deferred Exchange, is a real estate transaction that allows investors to defer capital gains taxes on the sale of an investment property by purchasing a similar property under IRS Section 1031.
Tax-sheltered income refers to income received, particularly from rental property, that is not subject to taxation, creating a tax benefit for the property owner. It typically occurs when depreciation expense claimed for income tax purposes exceeds mortgage principal payments.
Taxable income or loss is the amount of income or loss a taxpayer reports on their tax return from various sources, including rental real estate. It involves subtracting various allowable deductions from gross income to determine the net amount subject to taxation.
Taxable Value, also referred to as Assessed Value, is the dollar amount assigned to a property for the purposes of calculating property taxes. It's an estimation of a property's market value determined by the local tax assessor.
A teaser rate is an initial lower interest rate offered on an adjustable-rate mortgage to entice borrowers, which eventually adjusts to the fully indexed rate.
Tenancy refers to the right of possession of real property, which can relate to both ownership and occupancy. It includes various forms such as tenancy in common and joint tenancy.
Tenancy at sufferance occurs when a tenant who legally occupied a property remains in possession after the lease has expired, without the landlord's consent.
Tenancy at will is an arrangement where a tenant occupies a property with the specific permission of the landlord but without a lease, lasting as long as both parties agree.
Tenancy by the Entirety is a form of joint property ownership reserved strictly for married couples, ensuring equal possession and incorporating the right of survivorship. Upon the death of one spouse, full ownership seamlessly transfers to the surviving spouse, offering protection from individual creditors.
Tenancy for life, often referred to as a life estate, is a form of property ownership where one person (the life tenant) has the right to use and benefit from a property for the duration of their lifetime. Upon the death of the life tenant, the property passes to another party known as the remainderman or reversionary interest holder.
A tenancy for years is defined by a lease agreement for a specified period, such as months or years, typically fixed from the outset.
