saleable area
The floor area exclusively allocated to the unit including balconies and verandahs but excluding common areas such as stairs, lift shafts, lobbies, etc. The saleable area is measured from the exterior of the enclosing walls of the units and to the center line of the party wall between two units.
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salvage value
The realizable value of goods or construction material that can be recovered and sold from a building that is being demolished. Example: doors, windows, marble slabs, steel rods, etc.
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satellite cities
Urban settlements that come up around a big city, that replicate on a smaller scale most of the amenities and facilities that are available in the big city. The main purpose of satellite cities is to decongest the main city around which they grow.
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satisfaction
The repayment in full of a debt or a payment in full and final settlement of an outstanding amount.
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scale
1) Model depicting what a structure physically looks like. The dimensions are drawn on a proportionate basis to the real thing, such as 1:100 scale, which equals one centimeter to one meter. 2) A series of marks used in measuring or registering or comparing weights. 3) Peeling or flaking of a surface marked by discoloration.
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science park
A development of an industrial nature suited to accommodate high technology, with supporting amenities, which is often associated on site with or is close to a higher educational research establishment to provide cross-fertilization of ideas between entrepreneurs and researchers for the purpose of enabling academic knowledge to be applied to effective commercial use.
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sea level
The level of the surface of the sea; any surface on the same level with the sea.
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seal(s)
Identifier used on a document as a mark of genuineness and authenticity.
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sealed bid
An offer, usually in the form of a tender, submitted in a sealed package on the understanding that it will be opened simultaneously with other competitive offers at a stated time and place. In some circumstances tenderers are permitted to be present when the bids are opened.
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search
The reviewing, of all recorded transactions in the public record, to discover any title defects, which could interfere with the transfer of ownership of a property.
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SEC (Securities and Exchange Commission)
US Federal agency created in 1934 to carry out the provisions of the Securities Exchange Act. Generally, the agency seeks to protect the investing public by preventing misrepresentation, fraud, manipulation and other abuses in the securities market.
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second mortgage
Mortgage that has second charge. This means that holders of a second mortgage will receive payment only after the first mortgage has been paid.
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secondary
Property which is below that of prime in relation to rentals, location, etc.
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secondary location
Location that is less advantageous than desired.
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secondary mortgage market
The sale of a mortgagee’s interest to third parties, usually banks and financial institutions. This provides liquidity to the mortgagee to make further advances to other parties. Such sales may fetch the mortgagee the full value of the loan it has advanced, but the usual practice is to sell such liens at a discount. A secondary mortgage market is distinct and different from a second mortgage and the two should not be confused. It can also refer to the sell down of interests in a property to multiple parties under various structures.
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section
A parcel of land whose boundaries are shown on a survey plan.
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secured party
A lender or a mortgagee whose interest is secured by a charge against a property.
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securitization
A financial technique whereby various types of obligations, typically mortgages but also car loans, credit card debt and others are, in effect, gathered into packages. This turns them into a tradable security, such as bonds, pass-through securities, REITs or collateralized mortgage obligations (CMOs), which are sold to investors.
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security agreement
Any loan agreement that includes a charge on a fixed asset.
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security deposit
A deposit by a tenant kept with a landlord.
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security interest
The interest of a secured creditor.
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self-help
If the landlord fails to perform his/her obligations as agreed and mentioned in the agreement within the stipulated time as mentioned in the agreement and such failure subjects persons or demised premises to an immediate risk of bodily harm or actual damage or causes a material and substantial delay in the business operations of the tenant, then the tenant will have the right to perform such obligation himself/ herself. The landlord will reimburse the tenant with the actual and reasonable costs of performing such obligation.
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seller’s market
A market in any property or commodity where the circumstances are such that the seller has an advantage over a potential buyer to the extent that he can command a higher price than otherwise would be obtainable
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senior debt
Debt that has priority for repayment in a liquidation.
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service charge
The collective name for the cost of air-conditioning and other services and management charges passed on to the tenant.
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serviced accommodation
Fully furnished apartment where tenants are provided services such as housekeeping, security and concierge or reception or front office. Serviced apartments combine the features of a hotel and an apartment.
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servient estate
Land through which a right of way is given in favor of another land.
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settlement statement
A complete and comprehensive statement on the total cost of a real estate deal.
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shareholder
The owner of shares in a company.
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Shariah-compliant investment
Ijarah: An Islamic lease agreement. Instead of lending money and earning interest, Ijarah allows the bank to earn profits by charging rentals on the asset leased to the customer.
Murabahah: Purchase and resale. Instead of lending money, the capital provider purchases the desired commodity (for which the loan would have been taken out) from a third party and resells it at a predetermined higher price to the capital user. By paying this higher price over installments, the capital user has effectively obtained credit without paying interest.
Sukuk: Similar to a conventional bond, but asset backed, a sukuk represents proportionate beneficial ownership in the underlying asset. The asset will be leased to the client to yield the return on the investment.
Musharakah: Profit and loss sharing. It is a partnership where profits are shared according to an agreed ratio, whereas the losses are shared in proportion to the capital/investment of each partner. In a musharakah, all partners to a business undertaking contribute funds and have the right, but not the obligation, to exercise executive powers in that project, similar to a conventional partnership structure and the holding of voting stock in a limited company. This equity financing arrangement is widely regarded as the purest form of Islamic financing.
Mudarabah: An investment partnership, whereby the investor (the rab-ul-mal) provides capital to another party/ entrepreneur (the mudarib) in order to undertake a business/investment activity. While profits are shared on a pre-agreed ratio, loss of investment is born by the investor only. The mudarib loses its share of the expected income. A mudarabah is essentially similar to a diversified pool of assets held in a discretionary asset management portfolio.
Gharar: Uncertainty. This sophisticated concept covers particular types of uncertainty or contingency in a contract. The prohibition on gharar is often used as the grounds for criticism in Shariah Law of conventional financial practices such as short selling, speculation and derivatives.
Maysir: Gambling. Prohibition is often used as the grounds for criticism of conventional financial practices such as speculation, conventional insurance and derivatives.
Riba: Interest. In simple terms it covers any financial return on money – whether the interest is fixed or floating, simple or compounded, and at whatever the rate.
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shopping center/mall
A large building, comprising several floors, housing several retail stores, food outlets, movie halls, etc., having a common parking area and under the same management.
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short form document
A document which refers to another document that contains all the details of an agreement.
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signage
Refers to anything that functions like a sign. The tenant and the landlord, on mutual discussion, will agree on the location for the tenant to erect their signage. Usually signage is provided by the landlord in the building directory and on the common lobby of the demised premises.
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signed, sealed and delivered
Legal phrase meaning that all requirements and formalities of a deal have been completed. The seal is normally used only by governments, corporate bodies, legal entities and notaries. Individuals only sign and deliver.
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simple interest
Interest that is paid on the principal amount alone.
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single family house
A house that is designed for occupation by one family only, as opposed to an apartment block that is designed for occupation by several families.
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single purpose property
A building whose design precludes its use for any purpose other than the one for which it was originally built.
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sinking fund
A sum of money set aside at regular interval to earn interest on a compound basis either: 1) to be set off against the diminution in value of a wasting asset, eg., a lease; or 2) to meet some future cash liability. In property valuations, it is usually assumed that the money will be invested at a “risk free” rate which is regarded as appropriate according to market conditions. The total amount calculated to accumulate by the sinking fund may be the same as the original investment or liability but possibly with an adjustment to reflect the view taken on future fluctuations in the value of money.
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site analysis
An examination of a property to decide if it is suitable for a particular use. Or an examination of a property with the purpose of deciding its most appropriate use.
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site development
Improvements made to a plot of land to make it suitable for building, such as leveling uneven ground, laying of sewer and underground utility lines, etc.
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site plans
Diagrams, sketches or maps showing the outline and location of a particular plot along with all features in it.
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skin
The exterior surface of a building.
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sky lease
A lease, securing exclusive use by a lessee and its nominees, of the air space above a plot of land. Example: nowadays, airport operators demand sky leases above the airports they develop or manage.
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sole agency
A sole agency precludes all other agents from working on the sale of the property, although another agent may approach the sole agent if they have a suitable party. The sole agent would handle the approval to the principal.
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sole proprietorship
Business that is owned by an individual. Unlike a private limited company which is a separate legal entity from an individual, the owner of a sole proprietorship is fully responsible for all the liabilities incurred by his business.
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sole selling / letting rights
The rights exercisable by an agent where the principal has contracted to convey wholly exclusive rights to sell/let the property, entitling the agent to commission even if the principal acts on his own behalf.
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space design
Layout plan for the interior of a building. Involves both construction as well as interior designs.
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span
The distance between two pillars, walls or other load bearing structures.
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square
1) Expressed in units of measuring area: square feet. 2) An open, usually four-sided area at the intersection of two or more streets, often planted with grass and trees for use as a park. 3) A rectangular space enclosed by streets and occupied by buildings; a block. 4) Something having an equal-sided rectangular form.
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square foot
The area contained by a square that is 1 foot long on all sides. The calculation is 1 foot x 1 foot = 1 square foot.
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square foot cost
The total cost of constructing a building divided by the total area in square feet.
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square yard
The area contained by a square that is 1 yard long on all sides. The calculation is 1 yard x 1 yard = 1 square yard, or, 3 feet x 3 feet = 9 square feet.
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stability certificate
Issued by the government recognized consultant which states that the structural work of the building has been carried out in accordance with the structural consultants designs and drawings and the said structure is safe and stable for the purpose for which it is intended.
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stamp duty
A fixed tax chargeable on the execution of documents pertaining to certain transactions (eg., leases).
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statute of limitations
Law that stipulates that legal action to redress a wrongdoing has to be brought before a judicial forum within a set time, after which no legal remedy will be available.
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statutory lien
A lien or restriction created on the operation of land. Example: outstanding property taxes may create a lien against the property.
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stock
The total amount of space available within a given precinct. Buildings being refurbished and newly constructed space not yet available for occupation are excluded. The term generally includes buildings for owner-occupation in addition to those for leasing.
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storm sewer
Sewer that drains rainwater.
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straight line depreciation
Accounting terminology describing a system of depreciation where the value of the capital asset is written off (from the income generated by that property) by a uniform amount every year.
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straight-term mortgage
Mortgage where the principal amount is repaid only at maturity.
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strata title
Title to a horizontal part of a building with other freehold titles above and/or below. Satisfactory arrangements for management usually involve a statutory obligation for the setting up of a management corporation with responsibility for the maintenance of common facilities and areas.
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strip center
A shopping area, usually not enclosed and located off a major thoroughfare or highway with rows of retail outlets and common parking. It may or may not be under a single management.
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sub-agent
A person who receives and acts upon instructions from an agent, rather than from the principal.
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subcontractor
A contractor engaged by a general contractor to execute specific jobs. The overall building contract is given to the general contractor, who then appoints electrical contractors, plumbing contractors, etc., to do specialized jobs.
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subdivider
A person who breaks up a large parcel of land into smaller plots with individual land titles and then sells them fully or in parts to others to build upon.
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subdivision
The division of a plot of land into smaller plots. Also means an administrative area smaller than a division.
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subdivision map
Detailed drawing of a real estate or administrative subdivision showing boundaries and other features.
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subject to
Conditional upon. For example, a buyer may agree to purchase a property subject to the existing title holder paying off all existing liens on it within a particular period.
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sublease
A lease granted by a person who himself enjoys only a lease interest over that property. Here, the sub-lessor cannot grant rights that he does not have. Example: A leases a plot of land to B for 25 years. If allowed in his contract with A, B can sub-lease the land to C for the remaining period of his lease term, but cannot sub-lease it for 26 years.
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