Glossary of Real Estate terms - S

Second Mortgage

A mortgage that has a lien position subordinate to the first mortgage.

Sales Contract

In British Columbia, this is properly called a "Contract of Purchase and Sale".

Seller Take-back Mortgage

When sellers use their equity in a property to provide some or all of the mortgage financing in order to sell the property.

Statement of Adjustments

A Statement prepared to include the purchase price, deposit, real estate commissions, legal fees, property transfer tax, GST (if brand new), property taxes and all adjustments that should be made between the parties. The net result of the transaction is clearly set out for the seller or buyer to see.

Statutory Building Scheme

A Special form of Restrictive Covenant that is filed by the developer to establish special building and design guidelines and land use controls for the subdivision which are over and above those of the municipality.

Strata Hotel

A condominium project that has rental or registration desks, short-term occupancy, food and telephone services, and daily cleaning services and that is operated as a commercial hotel even though the units are individually owned.

"Subject-to" Clause

A statement of a condition to be fulfilled before the contract will become firm and binding; must include a specific deadline for removal.

Sublease

A rental agreement or lease between a tenant and a new tenant (called a sublessee) who will either share the rental or take over from the first tenant. The sublessee pays rent directly to the tenant.  The tenant is still completely responsible to the landlord for the rent and for any damage, including that caused by the sublessee. Most landlords prohibit subleases unless they have given prior written consent.

Survey

A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.

Surveyor's Certificate of Location

A survey to determine that the buildings or improvements located on a property are properly situated within the boundaries of the property and that the distance from the buildings to the property lines complies with local regulations. Note that a Surveyor's Certificate of Location does not establish property boundaries.