Real Estate Dictionary

What is a Safety Clause in a Real Estate Listing?

A safety clause, also known as a protection clause or broker protection clause, in a real estate listing agreement is a provision that protects the listing broker's commission if the property is sold to a buyer who was introduced to the property during the listing period, even after the listing agreement expires.

What is a Safety Clause in Real Estate?

A safety clause ensures an agent earns their commission if a property sells to a buyer they introduced, even after the listing agreement expires.

What is a secondary market in real estate?

Secondary real estate markets are areas with moderate economic and population growth, offering a balance between the high competition of primary markets and the risks of tertiary markets, appealing for more affordable investment opportunities.

What is a Security Integrator?

A security integrator in real estate designs, installs, and maintains integrated security solutions—incorporating elements like surveillance, access control, alarms, and fire safety—to protect properties and ensure regulatory compliance.

What is a Self Help Eviction?

A self-help eviction is an illegal attempt by a landlord to remove a tenant without following formal legal eviction procedures, often by actions like changing locks, shutting off utilities, or removing belongings.

What is a Self-guided Tour Apartment?

A self-guided tour apartment allows prospective renters to explore a unit on their own using smart access technology, providing flexibility and convenience without the need for a leasing agent to be present.

What is a seller concession in real estate?

A seller concession is an arrangement where the seller of a property agrees to pay a portion of the buyer's closing costs.

What is a Seller Credit in Real Estate?

A seller credit in real estate is when the seller agrees to pay a portion of the buyer's closing costs, either as a specific dollar amount or a percentage of the sale price.

What is a Short Sale in Real Estate?

A short sale in real estate is a transaction where a property is sold for less than the amount owed on the mortgage, often pursued by homeowners unable to meet mortgage payments and with property values below the owed amount, requiring lender approval.

What is a Simultaneous 1031 Exchange?

A simultaneous 1031 exchange is a tax-deferral strategy for investors, swapping investment properties in a tightly coordinated, same-time transaction to avoid immediate capital gains taxes.

What is a single net lease?

A single net lease is a type of lease agreement in commercial real estate where the tenant agrees to pay one of the building's operating expenses, typically property taxes, in addition to the base rent.

What is a single purpose entity in real estate?

A Single Purpose Entity (SPE) in real estate is a corporation, limited liability company, or other type of entity created solely to own, manage, and finance a specific real estate project.

What is a Soft Prepayment Penalty?

A Soft Prepayment Penalty is a fee charged for early loan payoff due to refinancing but does not apply if the property is sold.

What is a Source of Record in Real Estate?

A “Source of Record” in real estate is the officially recognized, authoritative repository holding the most accurate and legally verifiable information about a property or transaction.

What is a special servicer in real estate finance?

A special servicer in real estate is a firm that manages distressed or non-performing loans, focusing on maximizing recoveries through workouts, restructuring, or property disposal.

What is a specific use permit (SUP) in real estate?

A SUP offers a flexible approach to zoning, allowing for exceptions to standard zoning regulations when deemed appropriate by local authorities, thereby accommodating unique or beneficial uses that might not be otherwise permitted.

What is a stabilized property?

A stabilized property is a real estate asset that has reached a sustainable occupancy and income level, indicating consistent tenant demand and operational efficiency, making it a lower-risk investment.

What is a stacking plan?

In commercial real estate, a stacking plan is a diagrammatic representation showing how spaces within a building, such as an office tower or a multi-tenant industrial complex, are occupied or allocated.

What is a Stalking Horse Bid?

A stalking horse bid in real estate is a pre-negotiated initial bid in a bankruptcy auction to set a minimum price for distressed properties, ensuring fair valuation while providing the bidder protections like breakup fees if outbid.

What is a Standby Letter of Credit (SBLC)?

A Standby Letter of Credit (SBLC) is a bank guarantee ensuring payment in real estate transactions, providing financial security for loans, leases, and construction projects.

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