Real Estate Glossary S [Part 8]


Continued from…

:point_right: Real Estate Glossary S [Part 7]

Saleable property

Property that is easy to sell because of its location, demand, price, or some other factor that makes it desirable.


“Having to do with a plan, scheme, or diagram.
A detailed drawing made by an architect in three dimensions.”

Scope of works

Drawings and specifications made before a contract is signed that show what and how an owner wants to build.


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Security of tenure

One of the things that makes owning a home better than renting a house or apartment. When the word is used to talk about renting, it means how long a person can stay in the rented place.


A little bit apart. A pair of homes that are joined together to make a block.

Simple listing

Giving an agency that more than one agent can use. Multiple agents can be given simple listings at the same time. Open listing is another name for it. An exclusive listing is the opposite of this. Only one agent at a time can get a listing that is not shared with anyone else.

Site improvements

These are:

  • The process of putting land back into use by draining, filling, building retaining walls, and doing other work that goes along with the reclamation.
  • Land excavation, levelling, or grading that is not for irrigation or conservation.


Site planning is the process of figuring out where and how to put a house or other building on a lot.

Sole agent

An agent who is hired on their own to sell or deal with a property. Also called an exclusive listing.


When an agent hires a salesperson to help with the business of the principal, that person is called a sub-agent. A sales representative is what some states call a sub-agent.


Literally, a break into pieces. Most of the time, the word means to divide land into building lots. Before the land can be sold, it must be approved by the council, other statutory authorities, and the Titles Office, as needed.


A lease given by a lessee of all or part of the property that is leased. The length of the sub-lease must be shorter than the amount of time left on the tenant’s own lease.


One who has the rights and responsibilities of a sub-lease.


When a lessee lets someone else live in the rented property, either through a sub-lease or a verbal or written agreement for tenancy, that person is said to have sub-let the property.


A part of a building that is above the ground or the top of the foundation walls.

Self-managed super fund (SMSF)

A specific kind of trust whose main objective is to support the beneficiaries’ retirement.

Service agreement

Service providers and customers reach an agreement that establishes agreed-upon service scope volumes and standards.


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Settlement date

The day a contract of sale is completed and the remaining amount due for an asset is paid.


Only one lockable garage.

Standard lease

A standard lease with the option to add additional conditions or stipulations.

Stock and station agent

For the benefit of their clients, stock and station agents are licenced to broker deals involving livestock, rural property, and agricultural goods.

Strata plan

The registered plan of a strata title property displaying the lot and entitlement borders. in accordance with strata or unit title laws.


A tenant who lets someone else rent the property they are renting.

Sublease vacancy

Empty office space that is being rented out by a tenant with a head lease instead of by the owner.

Surplus asset

An asset that a person or group, like a corporation, owns but doesn’t need to run its business. A surplus asset is one that is not needed to make the good or service that the entity makes. It is kept for investment, development, sale, as security for a loan, or for some other business purpose that has nothing to do with how the entity works. The highest and best use of an asset will tell you what its Market Value is.

S&P 500

The 500 largest publicly traded corporations in the United States are represented by this index. It is a market value weighted and float adjusted index.

S&P 500 index

A stock market index that includes the equities of 500 large-cap firms, the majority of which are American. The index is float weighted, which means that price movements in companies with higher float-based market values (share price multiplied by the number of shares determined by Standard & Poors to be available for public trading) have a greater impact on the index than companies with lower market values. Standard & Poors, a part of McGraw-Hill, owns and maintains the index. S&P 500 refers not just to the index but also to the 500 firms whose common stock is included in the index.


The singular form of Sukuk in Islamic finance.


Forward sale is an Islamic finance word. One of the 14 authorised Sukuk categories recognised by the AAOIFI.


A restructuring view is a German phrase.

Scheduled interest

At the end of the current term, the amount of interest owed.

Scheduled principal

The principal amount scheduled to be repaid at the end of the current period.

Schuldschein or schuldscheindarlehen

Loans made in the German domestic market that are backed up by a promissory note.


Creditors made a preventative declaration under German law.

Second-lien mortgage loan

A mortgage or trust deed-secured loan whose security is junior to the security of another mortgage or trust deed.

Secondary market

A market where already-traded securities are bought and sold again (as opposed to a primary market in which assets are originally sold by the entity that made those assets).

Secondary/Territorial proceedings

In the meaning of the EC Regulation, insolvency procedures launched in any place where the debtor conducts a non-transitory commercial activity using human means and things but which is not the member state where the debtor has its Centre of Main Interests or COMI.

Section 106 agreement

Section 106 agreements (Town and Country Planning Act 1990) are negotiated after a planning consent is issued and impose financial or other obligations on the developer that are conditions antecedent to the implementation of any planning approval.

Secured debt

A loan that is made in part because the borrower gives the lender something as security.

Security documents

The term for all Finance Documents that grant Security in favour of the Secured Party/Finance Parties.

Security package

The entire Security granted by the Obligors and documented in the Security Documents is referred to as the Security.

Security trustee

The company that manages the Security Package on behalf of all Secured Parties.

Self-amortising loans

A loan in which the entire principal amount is paid off at the end.

Senior class or senior notes

A group of Investment Grade Securities that are issued as part of a securitization and have a higher priority than the Subordinated Classes that are also issued in the same transaction.

Senior debt

A debt that, according to the terms of an Intercreditor Agreement, has to be paid before any other debts. Most of the time, the Senior Debt is paid off in full before the Subordinated Debt.

Senior pieces

Classes or tranches rated above BBB (or an investment grade) that are suitable for regulated institutional investors.


A common securitisation structure that improves the creditworthiness of one or more classes of securities by ranking them ahead of (or senior to) other classes of securities (junior classes). The senior courses are typically referred to as the class A notes in a standard two-class senior/junior relationship, while the junior (or subordinated) classes are referred to as the class B notes. The class A notes will receive all cash flow until the scheduled interest and principal payments are made. The class B notes give credit enhancement to the class A notes and bear 100% of the security’s losses until the amount of the class B notes is exceeded, at which point the class A bears all further losses.

Serviced offices

This is a general term for offices that are rented with everything included. They usually have licences for short periods of time. Most of the time, the rent is calculated per desk or room and includes all rates, service charges, power, and communication costs.


The organisation in charge of collecting loan payments from individual borrowers and remitting the total amount collected to the loan’s owner or owners.

Servicer event of default

An incident that allows the issuer to terminate the servicer’s or special servicer’s appointment.

Servicers watch list

A list of Loans maintained and publicised by a Servicer that shows which Loans should be elevated to a higher level of monitoring due to, for example, the Borrower breaching covenants or the Sponsor experiencing financial difficulties.

Servicing advances

Out-of-pocket expenses incurred by the master servicer or special servicer in fulfilling their obligations that are normal, necessary, and reasonable. They are typically paid directly and then repaid with subsequent payments.

Servicing agreement

The contract that says what the Master Servicer and the Special Servicer are supposed to do to manage and collect payments on a Portfolio of Mortgage Loans held in a CMBS.

Servicing override

The servicer may override the controlling class’s rights (including any concert rights they may have) if it deems that following the course of action advised by the operational advisor or the controlling class would breach the servicing standard.

Servicing power of attorney

A power of attorney in favour of the Servicer and Special Servicer (usually in a form set out in the Servicing Agreement) that lets the Special Servicer and Servicer act on behalf of the relevant Finance Parties in accordance with the Finance Documents.

Servicing standard

The rule that both the servicer and the special servicer have to follow when doing their jobs. In the Servicing Agreement, the standard will be written out in its exact words.

Servicing standard override

A right given to the Servicer and Special Servicer to ignore a course of action suggested by the Controlling Class or Operating Advisor in the exercise of their rights if the Servicer or Special Servicer thinks that the proposed course of action would violate the Servicing Standard.

Servicing tape

A record of a loan’s current and past payment history that is kept by the servicer.

Servicing transfer event

An event that causes a mortgage loan to be taken over by a Special Servicer instead of the Servicer. A servicing transfer event happens when a borrower has gone into default or, in the Servicer’s opinion, is likely to go into default and won’t be able to fix the problem in a reasonable amount of time. In this case, the Servicer can give the Special Servicer day-to-day control of the account until the Special Servicer decides that the default has been fixed.

Share capital

Money that was invested but isn’t returned to the investors as part of normal business.


A person, group, or organisation that owns one or more shares in a business and gets a share certificate in their name.

Shareholders agreement

A contract between the shareholders of a company that spells out their rights, privileges, protections, and obligations to each other.

Sharia’a board or sharia’a supervisory board

The group of Islamic scholars who decide if a financial structure is in line with sharia’a.


A term in Islamic finance that refers to a partnership in which work and capital can be shared among many people and losses can be split proportionally.

Sharkat ul-amwaal.

A word in Islamic finance that stands for a property partnership called a musharaka.

Sharpe ratio

A ratio used to measure the performance of a financial asset in relation to its risk. The Sharpe Ratio shows whether an asset’s return is because it was a good investment or because it was too risky.

Shell rent

Part of the rent that is used to pay off the cost of special tenant improvements.


The rules in BIPRU Regulation 4.5.8 R about how to calculate risk weights for specialised commercial real estate loans.

Small and medium sized enterprises (or SME)

A small or medium-sized business is defined by how many employees it has, how much money it makes, or how much it has in its bank account.

Solvency 2

A look at the rules for how much capital the European insurance industry needs. Its goal is to replace the current solvency requirements with a new set of EU-wide capital requirements and risk management rules.

Sovereign wealth fund (SWF)

A state-owned investment fund made up of financial assets that come from a country’s budget and trade surpluses, often from the sale of natural resources.

Special liquidity scheme

The Bank of England started a programme in April 2008 that let banks and building societies swap their high-quality mortgage-backed and other securities for UK Treasury Bills for up to 3 years. The programme ended in January 2012.

Special servicer

This can be the same party as the master servicer or a different one. Its job is to manage loans that have gone into default and do the work of process.

Special servicing

A term for when a Special Servicing Transfer Event happens and a Mortgage Loan is being serviced by a Special Servicer.

Special servicing fee

The part of the special servicer’s fee that is added to each mortgage loan that is serviced specially.

Special servicing transfer event

An event that causes the master servicer to hand over the job of servicing to the special servicer. The trigger event usually happens when the borrower has defaulted or, in the reasonable opinion of the master servicer, is likely to default and won’t be able to fix the problem in a reasonable amount of time.

Special-purpose entity (SPE)

A corporate vehicle that is not subject to bankruptcy. It can be a limited company, a partnership, a trust, a limited partnership, or something else. It is often used in debt financing and securitization deals. The Bankruptcy Remoteness protects Lenders or Noteholders from having the underlying assets used in bankruptcy proceedings against the Borrower or Issuer.

Specially serviced loan

A mortgage loan that a Special Servicer takes care of.

Spread accounts

A money-making account where any interest on collateral that is more than the interest on the notes but isn’t going to a certain class is put. This gives the credit score a boost because it covers mortgage losses up to a set limit.

Stamp duty land tax

Tax on transactions that involve getting a stake in UK land.

Stand alone securitisation

A securitization that is made up of just one loan. This has a very high risk of being too concentrated.

Standard prepayment assumption

This is a way to figure out how fast loans are paid off based on how much is paid off each month compared to the loan’s principal balance. The Constant Prepayment Rate, on the other hand, assumes that the rate of prepayment stays the same every month.

Standardised approach

Under Basel II, a way to figure out credit risk that involves putting banking book exposures into groups.

Static pool

A group of assets that were all created during a certain amount of time, like a month or a quarter.

Statutory declaration of solvency

A written statement from the directors of a UK company that they have thoroughly looked into the company’s finances and that, after doing so, they believe that the company will be able to pay off all of its debts within 12 months of the start of the winding up. The directors sign the declaration and swear that it is true in front of a lawyer or other person who can take oaths. In the declaration, there will be a list of the company’s assets and debts as of the latest date possible before the declaration is made.

Strategic land

A general term for land that is bought or held with the goal of adding value through development at some point in the future. Usually, this only applies to land that can’t be used for other, more valuable things yet, and it’s mostly used for residential land, like land banks held by house buildings.

Stress testing

The process of figuring out if the assets that will be used as collateral for a securitization are likely to bring in enough cash flows in different economic situations to keep making the principal and interest payments on the securities that are linked to them. Most of the time, the scenarios include a worst-case scenario and show if the proposed structure and level of credit enhancement are enough to get a certain credit rating for some or all of the different tranches that will be issued as part of the transaction.

Stripped interest notes

Note the classes that can get interest payments but not or only a small amount of their principal.

Stripped principal notes

Note classes that can get their principal back but not their interest or only a small amount of it.

Structured finance

A type of financing in which the creditworthiness of the debt is assumed to be based not on the financial strength of the debtor but on a direct guarantee from a creditworthy entity or on the creditworthiness of the debtor’s assets, with or without credit enhancement.

Structured investment vehicle (SIV)

A type of SPE that buys its assets, which are mostly high-quality securities, with money from the sale of both CPs and MTNs. If a SIV goes bankrupt, its pool of assets may need to be sold. Because of this, the rating of a SIV takes into account the risks of possible credit deterioration in the portfolio as well as the market value risks of selling the assets.


The process of putting together different mortgages and security classes to get the best price for a CMBS based on how the market is right now.

Structuring bank

The investment bank that is in charge of coordinating the execution of a securitization with the originator/client, law firms, rating agencies, and other third parties. Most of the time, the structuring bank does a due diligence check on the assets to be securitized and the servicer’s ability. This includes finding historical information and, often, an audit of the assets. The structuring bank is also in charge of figuring out and writing down the legal structure of the deal, as well as finding and fixing any accounting and tax problems. In the case of a public issue, the structuring bank is in charge of making an information memorandum or an offering circular that will be used to sell and list the securities involved. The structuring bank makes sure that the deal meets all of the local rules and regulations.

Sub-performing loan

A loan that is getting paid back (even the full amount of principal and interest), but the debt coverage ratio isn’t good enough. Some investors also use this term for loans that make all the payments they need to, but the LTV ratio or another indicatory value shows that the loan is unlikely to be paid off in full at maturity.


Residential Mortgage Borrowers who have a bad credit history or not much of one. Loans given to people with bad credit are riskier than loans given to people with good credit.


This is when the servicer or special servicer hires someone else to do some or all of their work. This is usually against the rules if it would cause the rating of the notes to go down. If the sub-servicer broke any of their obligations under the servicing agreement, the servicer and special servicer would still be responsible.

Subordinated class

A type of security whose rights are lower than those of other types of securities that were issued in the same transaction. Subordination usually has to do with the rights of security holders to receive promised debt service payments, especially when there isn’t enough cash flow to pay the promised amounts to all classes of security holders. However, it could also have to do with the voting rights of noteholders.

Subordinated debt

Debt that comes after other debts. Usually, this debt is paid after amounts that are owed (or were owed) to holders of senior debt, but before amounts that are owed (or were owed) to holders of subordinated debt.

Subscription facility

A loan given to a private equity real estate fund that is backed by the unfunded commitments of the fund’s investors. This loan serves as working capital, bridge financing, and a quick way for the fund to pay for its day-to-day needs. It reduces the number of times the fund has to ask its investors for money.


A term used in Islamic finance to talk about both Islamic bonds and Islamic securitizations.


A term for terms of a contract that can still be enforced after the loan has been put into a security. This is often the case with promises and guarantees.


A contract in which two parties agree to exchange one cash flow stream for another. For example, fixed-to-floating interest-rate swaps, currency swaps, or swaps to change the maturities or yields of a bond portfolio.

Swap provider

A swap contract is written by a party.

Syndicated loan

A large loan set up by a group of international banks working together as a syndicate, with a lead manager in charge. The borrower pays a fee to the lead manager, the size of which depends on how complicated the loan is and how risky it is.

Synthetic CDO

A CDO deal in which the risk is transferred by using a Credit Derivative instead of a “True Sale” of the assets.

Synthetic CMBS

A CMBS deal in which the risk is transferred by using a Credit Derivative instead of a “True Sale” of the assets.

Synthetic securities

Securities that are rated mostly based on the creditworthiness of the underlying asset securities and currency or interest rate swaps or other similar agreements. These securities are made to change the cash flows generated by the underlying asset securities.

Synthetic securitisation

A Synthetic Securitization gets the same economic result as a True Sale Securitization of physical assets, but it does so by transferring credit risk through Derivative contracts related to the Portfolio. The Issuer (as the Protection Seller) agrees to pay the legal owner of the assets (the Protection Buyer) an amount equal to the losses it suffers because of certain credit events on the underlying Portfolio (such as an underlying obligor payment default). The money for these payments comes from selling CLNs to investors on the Capital Market. The Issuer invests the money from the sale of the CLNs in risk-free investments like government securities until a credit event happens. When a credit event happens, the market value of the reference Portfolio goes down, which causes the principal amount of each class of CLNs to go down as well.