A Subchapter S Corporation (S Corp) is a special designation that corporations can elect to avoid double taxation, allowing income, deductions, and credit to be passed through to shareholders.
A subcontractor is a third-party entity or individual hired by a general contractor to perform specific tasks as part of a larger project. Subcontractors typically specialize in particular areas such as plumbing, electrical work, or carpentry.
A subdivider is an individual or company responsible for partitioning a large tract of land into smaller, individual plots for the purpose of selling those plots. If the land is improved, the subdivider also takes on the role of a developer.
Subdividing involves dividing a tract of land into smaller individual lots, which can then be sold separately or developed. The process of subdividing land typically involves planning, land surveying, zoning considerations, and obtaining the necessary permits.
Subdivision refers to the process of dividing a tract of land into smaller lots, typically for the purpose of homebuilding or development. This process often requires recording a subdivision plat in accordance with state and local regulations.
Subdivision regulations are government rules that set standards for the design of residential subdivisions within a jurisdiction, determining aspects such as access roads, open space, and public dedications.
In real estate appraisal, the 'subject property' refers to the property currently being appraised. Understanding its value, attributes, and market comparables is essential for accurate property valuation.
Acquiring property with an existing mortgage, but the buyer does not become personally liable for the debt. Contrasted with assumption of mortgage.
A real estate transaction where a buyer acquires property that has an existing mortgage but does not assume personal liability for the debt. The buyer must keep making payments to avoid losing the property, and if a default occurs, only the buyer’s equity is at risk.
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.
