Philippine Real Estate Glossary

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Sale-Leaseback
A technique in which a seller deeds property to a buyer for a consideration, and the buyer simultaneously leases the property back to the seller.

Sales Contract
A contract by which a buyer and a seller agree to terms of sale.

Satisfaction
The discharge of a mortgage or a trust deed lien from the records upon payment of the evidence debt.

Seal
An impression made to attest the execution of an instrument.

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

Secondary Mortgage Market
The buying and selling of existing mortgages.

Secured Loan
A loan that is backed by collateral.

Security
Many homeowners hire a real estate attorney to represent them during the loan application process. If you do so, your attorney will review the sales contract and represent you at closing. There are many questions you can ask a personal attorney before deciding whether to have the attorney represent you at closing. They can include: What is the attorney's fee for representing you at closing? What is the attorney's experience with real estate transactions? Are there fees for reading documents relating to the closing? Are there fees for giving advice? Remember that your personal attorney's fee is not part of your closing costs. You must pay for this expense separately.

Seller Take-Back
An organization where members consist of primarily of real estate brokers and salesmen.

Seller Versus Buyer Closing Costs
Buyers and sellers often negotiate who will pay certain closing costs, and the results vary depending on the negotiated deal. In fact, it's not uncommon for a sales agreement to state that either the buyer or seller pays all closing costs. The agreement that you and the seller reach must be specified in the sales contract. Your negotiations could depend on a variety of factors, including the quality of the home, how long the home has been on the market, whether there are any other interested buyers, and how motivated the seller is to sell the home.

Servicer
An organization that collects principal and interest payments from borrowers and manages borrowers' escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.

Setback
The distance from the curb or other established line, within which no building may be erected.

Settlement
The final step before you get the keys to your home is a formal meeting called the closing. It is at this meeting in which ownership of the home is transferred from the seller to the buyer. Also called a settlement in some parts of the country, the meeting is typically attended by the buyer(s), the seller(s), their attorneys if they have them, both real estate sales professionals, a representative of the lender, and the closing agent. The purpose is to make sure the property is physically and legally ready to be transferred to you.Several closing costs will be paid at this meeting. These expenses are over and above the price of the property and are incurred when ownership of a property is transferred. Closing costs generally include a loan origination fee, an attorney's fee, taxes, an amount placed in escrow, and charges for obtaining title insurance, and a survey. Closing costs vary according to the area of the country. When working with an approved lender who uses Desktop Underwriter®, our advanced automated underwriting system, a number of costs associated with your closing may be reduced, including mortgage insurance, appraisal fees, and credit report fees.

Sheriff's Deed
A deed given by the court order in connection with the sale of property to satisfy a judgment.

Single-Family Properties
One- to four-unit properties including detached homes, townhomes, condominiums, and cooperatives.

Special Assessment
A legal charge against real estate by a public authority to pay the cost of public improvements such as street light, sidewalks, street improvements, etc.

Special Deposit Account
An account that is established for rehabilitation mortgages to hold the funds needed for the rehabilitation work so they can be disbursed from time to time as particular portions of the work are completed.

Standard Payment Calculation
The method used to determine the monthly payment required to repay the remaining balance of a mortgage in substantially equal installments over the remaining term of the mortgage at the current interest rate.

Specific Performance
A remedy in court compelling the defendant to carry-out the terms of the agreement of contract which was executed.

Step-Rate Mortgage
A mortgage that allows for the interest rate to increase according to a specified schedule (i.e., seven years), resulting in increased payments as well. At the end of the specified period, the rate and payments will remain constant for the remainder of the loan.

Statute of Frauds
A state of law which provides that certain contracts must be in writing in order to be enforceable at law. Examples: a real property lease for more than one year; an agent's authorization to sell real estates.

Stewardship Ownership
Obliges owners to utilize their property in a manner that will benefit not only their interest but also the general welfare. When the extent of one's ownership exceeds the requirements of his necessities or when property utilization is not conductive to general welfare, then the state may exercise its power and authority to regulate or control ownership.

Subdivision
A housing development that is created by dividing a tract of land into individual lots for sale or lease.

Subordination Clause
A clause in a junior or second lien permitting retention of priority for prior liens. A subordination clause may also be used in a first deed of trust permitting it to be subordinated to subsequent liens, as, for example: the liens of construction loans.

Subordinate Financing
Any mortgage or other lien that has a priority that is lower than that of the first mortgage.

Subsidized Second Mortgage
An alternative financing option known as the Community Seconds® mortgage for low- and moderate-income households. An investor purchases a first mortgage that has a subsidized second mortgage behind it. The second mortgage may be issued by a provincial, or local housing agency, foundation, or nonprofit corporation. Payment on the second mortgage is often deferred and carries a very low interest rate (or no interest rate). Part of the debt may be forgiven incrementally for each year the buyer remains in the home.

Surety
One who guarantees the performance of another.

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. Your lender may require you to have a survey of the property performed. This process confirms that the property's boundaries are correctly described in the purchase and sale agreement. Also called a plot plan, the survey may show a neighbor's fence is located on the seller's property or more serious violations may be discovered. These violations must be addressed before the lender will proceed. The buyer usually pays to have the survey done, but some cost savings may be found by requesting an "update" from the company that previously surveyed the property.

Sweat Equity
Contribution to the construction or rehabilitation of a property in the form of labor or services rather than cash.