This is the last post in our A-Z series.For parts I-VII, refer to links towards the end of the post.
Ss
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.
Sales Floor
The sales floor is the location of a retail store where goods are
displayed and sale transactions take place. E.g. the receiving of merchandise takes place in the stock room, but all direct sales and customer interactions are done on the sales floor. Also called Retail Space or Selling Space.
Salvage Value
The realizable value of goods or construction material that can be recovered and sold from a building that is being demolished. E.g.
doors, windows, marble slabs, steel rods, etc.
Satellite Cities
Urban settlements that come up around a big city and 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.
Scissor Lifts
Work platforms that are raised on linked, folding supports that draw together to lift. Scissor lifts are
used where there is less reach and height and more workspace and lifting capacity are required.They are designed to provide larger platform work areas and to allow for heavier loads than boom lifts.
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.
Second Mortgage
A mortgage granted when there is already a mortgage registered
against the same property.lf the borrower defaults, the property is sold and the second mortgage is paid after the first.
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 a loan that was 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.
Secured Party
A lender or a mortgagee whose interest is secured by a charge against a property.
Securitisation
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 collateralised mortgage obligations (CMOs), which are sold to investors.
Security Agreement
Any loan agreement that includes a charge on a fixed asset
Security Deposit
A payment required by a landlord to ensure that a tenant pays rent on time and keeps the rental unit in good condition. If the tenant damages the property or leaves owing rent, the landlord can use
the security deposit to cover what the tenant owes.
Security Interest
The interest of a secured creditor.
Seller’s Market
A market in which the dynamics 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.
Settlement Statement
A complete and comprehensive statement on the total cost of a real estate deal.
Shareholder
The owner of the shares in a company.
Shopping Mall
A large retail complex containing a variety of stores and often
restaurants, multiplexes and other business establishments, housed in a series of connected or adjacent buildings or in a single large
building that is usually accessible by common passageways.
Side Letter
A document which refers to commercial terms agreed between the parties, but cannot form part of the Leave & LicenseAgreernenti Lease Agreement as there would be implication of additional stamp duty or requirements by the licensors and his banks. Side letter is executed either on the landlords or tenants letter head or on a stamp paper.
Signage
Refers to anything that functions as a sign. The tenant and thelandlord, 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.
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.
Sinking Fund
1)A sum of money set aside at regular intervals to earn interest on a compound basis either I) to be set off against the diminution in value of a wasting asset, e.g. 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.
Small Office Home Office (SOHO)
SOHOs are generally home offices where the occupants work and reside within the same place. SOHOs are also smart homes which provide occupants with the relevant communication and technological facilities to effectively run a business.
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) A four-sided shape marked by equal side measurements, all perpendicular to each other.
Square foot
A unit of area that is I foot long on all sides. The calculation is I foot x 1 foot = I square foot.
Square Yard
A unit of area that is I yard long on all sides.The calculation is I yard x I yard = I square yard. Three feet make a yard.
Stability Certificate
A Certificate issued by a government recognised consultant which states that the structural
work of a building has been carried out in accordance with the structural consultant’s designs and drawings and that the said structure is safe and stable for the purpose for which it is intended.
Stamp Duty
A fixed tax chargeable on the execution of documents pertaining to certain transactions (e.g. leases).
Stamp Paper
A legal paper on which stamp duty has been paid.The applicable amount of stamp duty paid on the documents in franked onto the
legal paper, which shows the amount of stamp duty paid.
Stand-alone Store
A store that is not part of a shopping centre or a mall.
Stock
The total amount of space available within a given precinct. New constructed space not yet available for occupation is excluded. The term generally includes ready buildings for owner-occupation in addition to those for leasing.Its the total universe of buildings that are completed in the market (cumulative of the fresh supply added each year to the existing universe of ready buildings).
Storefront
The total physical exterior of a store. It includes the marquee. entrances, windows, lighting and construction materials.
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.
Strip Centre
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.
Suburban Office Market
A commercial centre offering decentralised office accommodation.
Super Built-up Area (Super BUA)
Super built-up area is what builders often quote. It is an all-inclusive term and takes into account carpet area, built-up area and the proportionate area under the common spaces of a building like lobby, staircase and elevator.
Supermarket
A supermarket is a self-service store offering a wide variety of
food and household merchandise. organised into departments. It is larger in size and has a wider
selection than a traditional grocery store, but is smaller than a hypermarket or superstore.
Supply
New space entering the market. New projects that would be ready for occupation in a specified time frame (quarter/year).This would consist of buildings that arelwill be complete within the evaluation period and ready for fit-outs. C&W Definition: Newly constructed space that is ready for fit outs/ occupation. (within the specified time frame – quarter/year).E.g. If a building is ready to be occupied yet has no tenants, the space is considered as supply Exception – If a tenant has started operations in a building that is close to completion.the building is considered as supply.
Suspensive Conditions
These are conditions set by the buyer before a purchase is completed. Suspensive conditions include demands such as “I have to sell my house first’ or want the seller to repaint the property first.” Unless these conditions are fulfilled.the sale stands suspended.
Sweat Equity
The appreciation in the value of property as a result of work done personally by the owner. Also means the issue of equity shares by an employer to an employee in recognition of good work done by the latter.
Tt
Tacking
1)Adding a period of time onto another. E.g. Adding periods of possession to add up to enough time for successful adverse
possession.
2) Attaching a lien to a superior lien in order to gain the priority over an intermediate lien.
Take Out Commitment
Agreement by a lender to provide permanent financing following
construction of a planned project.
Take Out Loan
The long term financing of real estate after completion of the project.
Tax Shelter
An investment motivated primarily to obtain an income tax deductions to apply against taxable income earned from other sources.
Tenancy
I) The right and the period of possession of a real estate by ownership or rental.
2) A rental agreement for a period not exceeding three years and not required to be registered on the title.
Tenant
Anyone, including a corporation, who rents real estate property from an owner (called the landlord). The tenant may also be called the “lessee.”
Tenant Representative (TR)
Agent who acts on behalf of a tenant mainly in securing new rental accommodation and negotiating rental terms and reviews with the landlord.
Term
1)A period of time during which something is in effect. A stated number of years.
2) A condition specified in an agreement.
Turin Mortgage
A mortgage where the interest is paid during the term and the total principal amount is to be paid at maturity.
Third Party
One who is not a party to a contract and who is able to hold a neutral position as to the object of the contract.
Time-Sharing
Ownership of a property for a specific period of time by more than one owner. Applicable to condominiums and resorts, e.g. a
unit or apartment in a resort may be sold to 12 persons or entities where each is given the right to the unit for a period of one month every year. Weekly ownership is the most common period of time share.
Title
The legal right of ownership interest in a property. Legal document which shows ownership of a piece of real estate.
Topographical Survey
A survey of an area by mapping the physical features of the region.
Topography
Topography describes the nature and characteristics of an area, such as its contours. flatness, mountains, etc.
Total Occupancy Cost
A tenant’s total expenditure on its premises.
Tract
A parcel of land generally held for subdividing and development into residential units.
Trade Fixtures
Articles of personal property installed in rented buildings by the tenant to help carry out a trade or business. Trade fixtures are removable by the tenant before the lease expires and are not true fixtures.
Transaction Cost
Taxes, legal fees and other costs incurred in transacting property.
Transfer Tax
An assessment and imposition of tax by state or local government when a property is sold.
Triple Bottom Line Reporting
The term used as a framework for measuring and reporting corporate performance against economic, social and environmental parameters. Thus, it is an expansion of the scope of traditional corporate reporting.
Triple Net Lease
A lease where the lessee has to pay all expenses of the property leased including maintenance, in addition to a fixed rent
Trust
A legal arrangement by which a person or entity (the trustee) has legal control over certain property (the trust property or trust
corpus), but is bound by fiduciary duty to exercise that legal control for the benefit of someone else (the beneficiary), according to the terms of the trust and the law.Thus, in a trust the legal ownership that the trustee has is split from the equitable or beneficial title that the beneficiary has. The trustee holds only the bare legal title to the property.
Trust Account
Special account that is used to safeguard the funds of a buyer or seller.
Trust Deed
An instrument by which a trustor places the legal title to real
property with a trustee to secure performance of certain conditions for the beneficiary.
Trustee
1) An entity such as a bank, that holds legal title to property in order to administer it for a
beneficiary.
2) A member of a board elected or appointed to direct the funds and policy of an institution.
3) A country responsible for supervising a trust territory.
Trustee in Bankruptcy
Person selected by a judge or creditors of a bankrupt individual to handle matters including the sale of the bankrupt’s assets. management of the funds from the sale of those assets, payment of expenses, and distribution of the balance to creditors.The trustee is usually compensated with a specified percentage of the liquidation sale.
Trustee’s Sale
A foreclosure sale conducted by a trustee under the stipulations of a deed of trust
Uu
Under Lease
A lease granted by a tenant or lessee; especially, a lease granted by one who is himself a lessee for years for any fewer or less number of years than he himself holds; a sublease.
Underwriter
One who signs a policy of insurance by which he becomes an insurer. By this act he places himself as to his responsibility, in the place of the insured. He may cause a re-insurance to be made for his benefit and it is his duty to act with good faith and without quibbling, to pay all just demands against him for losses.
Unimproved Land
Raw land in its natural state that has no installed improvements or structures.
Unrealised Gain/ Loss
The difference between the cost (or previously reported fair
market value) of an asset held at the balance sheet date and its fair market value at that date.
Urban Renewal
The method of improving or modernising old and obsolete property of a city or town.
Urban Land Ceiling & Regulation Act (ULCRA)
A legislation promulgated in 1976 as a social equity measure with a view to curb profiteering and hoarding in the urban land market as well as prevent urban congestion. Urban centers i.e. cities were classified into categories such as A, B and C and a ceiling on the maximum
permissible usage on land by respective owners was set under provisions of the act.
Vv
Vacant Stock
Those buildings which are ready for occupation but are not
occupied. Vacant stock includes both existing available stock and newffresh supply.
Vacancy Rate
An estimate indicative of the demand/supply scenario in the market. Typically, low vacancy rates would indicate high demand and limited supply of prime commercial property.Although a 5% mark has been taken as a thumb rule across micro-markets, vacancy rates should be based on actual figures.
Vacant Possession
Vacant possession is delivered when the buyer is allowed to use the
property immediately without anyone else still living in it or using it.
Valuable Consideration
Legal term meaning money that has been paid as part of a contract. The term valuable does not imply any particular value.
Valuation
1) The process of making an estimate of the worth of real
estate property or other assets for a particular purpose, e.g. letting,purchase. sale, audit, rating, compulsory purchase or taxation. That purpose and the relevant circumstances will determine assumptions and facts that are appropriate and hence the process used.
2) A statement, usually in writing, setting out the facts, assumptions, calculations and resultant value.
3) Colloquially.the value arrived at as a result of the valuation process.
Value for Sale Under Repossession
The price that might reasonably be expected to be realised within 90 days from the sale of the property in the market under repossession by the lender or receiver, on an “as is basis, taking into account the unique quality of the property and the existence of any specific
demand as well as factors which might adversely affect the marketability of the property due to market perception of increased risk or stigma, justified or otherwise. The term replaced “forced sale value and “estimated restricted realisation price.”
Value-Added Tax (VAT)
Value-added tax is a form of sales tax. A tax levied on the added
value that results from each exchange/sale of goods and services.
Vanilla Shell
A retail industry term referring to a property which may only have textured and painted walls, drop ceiling and lighting fixtures but no flooring. Most landlords will not offer anything in the way of tenant improvements beyond this for retail tenants. Vanilla Shell descriptions differ from landlord to landlord.
Ww
Warm Shell
Is a shell facility with amenities that typically include plumbing, power, power back up and HVAC (Heat Ventilation and Ai r-
Conditioning).Besides the above-mentioned services, additional amenities are provided by
developers that differ on a case-to-case basis.
Warranted Price Contract An agreement between parties to design and construct a facility for a maximum price to an agreed brief where any savings may be shared between the parties.
Wear and Tear
Deterioration or decline in the value of a property due to use, physical damage, old age or
environmental factors.
WithholdingTax
A tax payable to the state on the sale, transfer or other disposition of real estate classified as Ordinary Asset.
Working Capital
1) The readily convertible capital required by any business to
facilitate its day to day functioning and operations.
2) In accounting terms, current assets less current liabilities as of a date.
Workspace Ratio
Average space allocated to each worker in an organisation.
Writ of Ejectment
Court order allowing a landlord to evict a tenant because of non-
payment of rent or damaging property. The writ contains
needed instructions and directs an officer of the court to execute it.
Writ of Execution
Court order allowing the seizure and sale of property due to non-payment of taxes or foreclosure of property.
Yy
Yard
1)A measure of length, equaling three feet or 36 inches.
2) An enclosure usually a small place in front of, or around, a house or barn as a courtyard a front or backyard; a barnyard.
3) An enclosure within which any work or business is carried on as a dockyard; a shipyard.
Yield
The return on an investment compared to the total cost of investment over a given period of time; e.g. if an investment of INK
1,000 gives returns of INR 100 in one year, the yield on the investment is 10%.
Zz
Zoning
Term used in urban planning for land use regulation which involves the practice of designating
permitted uses of land based on mapped zones which separate one set of land uses from another. The primary purpose of zoning is to
segregate uses that are thought to be incompatible. Zoning may include regulation of the kinds of activities which will be acceptable on particular lots (such as open space, residential, agricultural,commercial or industrial), the densities at which those activities can be performed (from low-density to high-density),the amount of space structures may occupy, the location of a building on the lot (setbacks).the proportions of the types of space on a lot (for example, how much landscaped space and how much-paved space), and how much parking must be provided.
Part I-A
Part II-B
Part III-C
Part IV-D
Part V- E-H
Part VI- I-N
Part VII- O-R
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