Glossary - A-B, C-E, F-K, L-O, P-R, S-U, V-Z

Sale-Leaseback
An arrangement by which the owner occupant of a property agrees to sell all or part of the property to an investor and then lease it back and continue to occupy space as a tenant. Although the lease technically follows the sale, both will have been agreed to as part of the same transaction.

Second Generation or Secondary Space
Refers to previously occupied space that becomes available for lease, either directly from the landlord or as sublease space. See also ""First Generation Space.

Second Mortgage
A mortgage on property that ranks below a first mortgage in priority. Properties may have two, three, or more mortgages, deeds of trust, or land contracts as liens at the same time. Legal sequence priority, indicated by the date of recording, determines the designation first, second, third, etc.

Security Deposit
Money collected at initiation of lease to provide additional confidence the Tenant will perform. It is not normally the last months rent, but is typically equal to that amount. Also, most leases require the deposit be replaced if the Landlord has to use it to cure a monetary default. It should be clear as to the space condition needed and timing at end of lease for return of deposit. This deposit can also take the form of a Letter of Credit or other financial instrument.

Seisen (Seizen)
Possession of real property under claim of freehold estate. This term originally referred to the completion of feudal investiture by which a tenant was admitted into the feud and performed the rights of homage and fealty. Presently it has come to mean possession under a legal right (usually a fee interest). As the old doctrine of corporeal investiture is no longer in force, the delivery of a deed gives seisin in law.

Setback Ordinance
Setback requirements are normally provided for by ordinances or building codes. Provisions of a zoning ordinance regulate the distance from the lot line to the point where improvements may be constructed.

Setback
The distance from a curb, property line or other reference point, within which building is prohibited.

Shell Space
Setback requirements are normally provided for by ordinances or building codes. Provisions of a zoning ordinance regulate the distance from the lot line to the point where improvements may be constructed.

Site Analysis
The study of a specific parcel of land which takes into account the surrounding area and is meant to determine its suitability for a specific use or purpose.

Site Development
The installation of all necessary improvements, (i.e. installment of utilities, grading, etc.), made to a site before a building or project can be constructed upon such site.

Site Plan
A detailed plan which depicts the location of improvements on a parcel of land which also contains all the information required by the zoning ordinance.

Situs
The location of a property.

Slab
The exposed wearing surface laid over the structural support beams of a building to form the floor(s) of the building or laid slab-on-grade in the case of a non-structural, ground level concrete slab.

Soft Cost
That portion of an equity investment other than the actual cost of the improvements themselves (i.e. architectural and engineering fees, commissions, etc.) and which may be tax-deductible in the first year. See also “Hard Cost”.

Space Plan
A graphic representation of a tenant’s space requirements, showing wall and door locations, room sizes, and sometimes includes furniture layouts. A preliminary space plan will be prepared for a prospective tenant at any number of different properties and this serves as a “test-fit” to help the tenant determine which property will best meet its requirements. When the tenant has selected a building of choice, a final space plan is prepared which speaks to all of the landlord and tenant objectives and then approved by both parties. It must be sufficiently detailed to allow an accurate estimate of the construction costs. This final space plan will often become an exhibit to any lease negotiated between the parties.

Special Assessment
Any special charge levied against real property for public improvements (e.g., sidewalks, streets, water and sewer, etc.) that benefit the assessed property.

Specific Performance
A requirement compelling one of the parties to perform or carry out the provisions of a contract into which he has entered.

Speculative Space
Any tenant space that has not been leased before the start of construction on a new building. See also ""First Generation Space"".

Square Feet
The usual method by which rental space is defined. It is the area of that space, calculated by taking length times width. For example, a room 30 feet by 60 feet has an area of 1,800 square feet.

Statute of Frauds
State law (founded on ancient English law) which requires that contracts must be reduced to written form if it is to be enforced by law.

Statute of Limitations
A law barring all right of redress after a certain period of time from the moment when a cause of action first arises.

Statute
A law established by an act of a legislature.

Step-Up Lease (Graded Lease)
A lease specifying set increases in rent at set intervals during the term of the lease.

Straight Lease (Flat Lease)
A lease specifying the same, a fixed amount, of rent that is to be paid periodically during the entire term of the lease. This is typically paid out in monthly installments.

Strip Center
Any shopping area, generally with common parking, comprised of a row of stores but smaller than the neighborhood center anchored by a grocery store.

Subagent
An agent of an individual already acting as an agent of a principal.

Subcontractor
A contractor working under and being paid by the general contractor. Often a specialist in nature, such as an electrical contractor, cement contractor, etc.

Subdivision Plat
A detailed drawing which depicts the manner in which a parcel of land has been divided into two or more lots. It contains engineering considerations and other information required by the local authority.

Subletting
The process of leasing space from a Tenant who is already obligated to a Landlord. A tool used to relieve a current tenant from the space. Does not normally release the primary tenant or their guarantors from the original lease. Most leases require Landlords consent. SubTenants need to confirm all aspects of the lease in writing with both the original Tenant and the Landlord. to make them attractive, most subleases are done at a discount from the face rate on the lease and the original primary Tenant absorbs the difference.

Subordination Agreement
As used in a lease, the tenant generally accepts the leased premises subject to any recorded mortgage or deed of trust lien and all existing recorded restrictions, and the landlord is often given the power to subordinate the tenant's interest to any first mortgage or deed of trust lien subsequently placed upon the leased premises.

Subscribing Witness
The witness to the execution of an instrument who has written his name as proof of seeing such execution.

Surety
One who at the request of another, and for the purpose of securing to him a benefit, voluntarily binds himself to be obligated for the debt or obligation of another. Although the term includes guarantor and the terms are commonly, though mistakenly, used interchangeably, surety differs from guarantor in a variety of respects.

Surface Rights
A right or easement granted with mineral rights, enabling the possessor of the mineral rights to drill or mine through the surface.

Surrender
The cancellation of a lease by mutual consent of the tenant and the landlord.

Survey
The process by which a parcel of land is measured and its boundaries and contents ascertained.

Taking
A common synonym for condemnation or any actual or material interference with private property rights but it is not essential that there be physical seizure or appropriation.

Tax Base
The assessed valuation of all the real property that lies within the jurisdiction of a taxing authority, which is then multiplied by the tax rate or mill levy to determine the amount of tax due.

Tax Lien
A statutory lien, existing in favor of the state or municipality, for nonpayment of property taxes which attaches only to the property upon which the taxes are unpaid.

Tax roll
A list or record containing the descriptions of all land parcels located within the county, the names of the owners or those receiving the tax bill, assessed values and tax amounts.

Tenancy by the Entirety
An estate which exists only between husband and wife. Each has equal right of enjoyment and possession during their joint lives, and each has the right of survivorship.

Tenancy in Common
Ownership of property by two or more individuals, each of whom has an undivided interest, without the right of survivorship.

Tenant (Lessee)
One who rents real estate from another and holds an estate by virtue of a lease.

Tenant At Will
One who holds possession of premises by permission of the owner or landlord, the characteristics of which are an uncertain duration (i.e. without a fixed term) and the right of either party to terminate on proper notice.

Tenant Improvements (TI) Allowance
Refers to physical work done to a space to accomodate a specific tenants needs, or the fixed amount of money contributed by the landlord toward tenant improvements. The tenant pays any of the costs that exceed this amount. Can include many things, such as carpet, paint, new wall partitions, new sinks. Depending on negotiations, most Landlords allocate money to pay for certain standard items. Unusual items may have to be paid by the Tenant, or amortized over the lease term as additional rent.

Tenant Improvements
Work done on the interior of a space, can be paid for by landlord, tenant, or some combination of both, depending on the terms of the lease.

Tenant Representative
A Licensed Real Estate Agent working for the best interests of the Tenant, not the Landlord. They usually don't have a listing agreement or agency relationship with the Owner or his Agent. This allows the Tenant Rep. to commit fully to achieving the objectives of the Tenant.

Tenants at Sufferance
An individual who comes to possess land via lawful title and keeps it in perpetuity without any title.

Tie-in Arrangement
A contract where one transaction depends upon another transaction.

"Time Is Of The Essence"
Means that performance by one party within the period specified in the contract is essential to require performance by the other party.

Title Insurance
A policy issued by a title company after searching the title and which insures against loss resulting from defects of title to a specifically described parcel of real property, or from the enforcement of liens existing against it at the time the title policy is issued.

Title Search
A review of all recorded documents affecting a specific piece of property to determine the present condition of title.

Title
The means whereby the owner of lands has the just and full possession of real property.

Tort
A wrongful act or violation of a legal right for which a civil action will lie.

Total Inventory
The total amount of square footage of a type of property (i.e. office, industrial, retail, etc.) within a geographical area, whether vacant or occupied. This normally includes owner-occupied space.

Trade Fixtures
Personal property that is attached to a structure (i.e. the walls of the leased premises) that are used in the business. Since this property is part of the business and not deemed to be part of the real estate, it is typically removable upon lease termination.

Triple Net (NNN) Rent
A lease in which the tenant pays, in addition to rent, certain costs associated with a leased property, which may include property taxes, insurance premiums, repairs, utilities, and maintenances. There are also “Net Leases"" and “NN” (double net) leases, depending upon the degree to which the tenant is responsible for operating costs. See also “Gross Lease”.

Triple Net Lease (NNN)
A lease arrangement whereby the Tenant is obligated to pay for all the operating expenses associated with their space. They would have to contract individually for janitorial, electricity, insurance, and repairs. Not often seen in office buildings because many services overlap (i.e. there is a central air system, central restrooms). NNN leases can become expensive if surprise maintenance issues arise, or the property does not have an established expense pattern (it's new).

Turn Key Project
The construction of a project in which a third party, usually a developer or general contractor, is responsible for the total completion of a building (including construction and interior design) or, the construction of tenant improvements to the customized requirements and specifications of a future owner or tenant.

Under Construction
When construction has started but the Certificate of Occupancy has not yet been issued.

Under Contract
A property for which the seller has accepted the buyer’s offer to purchase is referred to as being “under contract”. Generally, the prospective buyer is given a certain period of time in which to perform its due diligence and finalize financing arrangements. During the period of time the property is under contract, the seller is precluded from entertaining offers from other buyers.

Unencumbered
Describes title to property that is free of liens and any other encumbrances. Free and clear. See also ""Encumbrances.

Unimproved Land
Most commonly refers to land without improvements or buildings but can also mean land in its natural state. See also, “Raw Land”.

Urban Property
Property in a city or a high-density area.

Usable Square Footage
Usable Square Footage is the area contained within the demising walls of the tenant space that the individual tenant can actually use to sit or work in. Total Usable Square Footage equals the Net Square Footage x the Circulation Factor. Also see
Circulation Factor and Net Square Footage.

Use
The specific purpose for which a parcel of land or a building is intended to be used or for which it has been designed or arranged.