Glossary S

SALE AND PURCHASE AGREEMENT
The legal contract between the vendor and purchaser detailing the complete terms and conditions of the sale and purchase. Any breach at or after this point would suffer serious financial consequences.

SBA
Small Business Administration.

SECOND MORTGAGE
A mortgage recorded after a First mortgage, ranks second in priority.

SECONDARY MARKET
A market for the purpose of purchase and sale of existing mortgages usually at discounted prices to provide greater liquidity to the mortgagee/lender.

SECURITY
Generally, property that is pledged as collateral/security for a loan.

SEMI-DETACHED
One of a pair landed houses joined by a common wall rising from ground to roof level. Each one of the pair is considered a separate property from one another. The minimum land plot size must be at least 200 sq m (2,153 sq ft).

SIBOR
SIBOR stands for Singapore Inter-Bank Offer Rate and it is a daily reference rate based on the interest rates at which financial institutions offer to lend unsecured funds to other financial institutions in the Singapore wholesale money market (or interbank market).

SOR
SOR stands for SWAP Offer Rate and it is one of 2 exchange-traded interest rate futures products in Singapore. The SOR is an FX forward implied rate calculated from a three month USD/SGD forwards with official fixing that is provided for by the Association of Banks in Singapore.

SPECIAL ASSESSMENT
Additional tax imposed by the local government for public improvements such as new streets, etc.

SPECIAL WARRANTY DEED
The seller warrants he has done nothing to impair title but makes no warranty before his ownership.
compare GENERAL WARRANTY DEED and QUITCLAIM DEED

SPECIFIC PERFORMANCE
A legal action to complete the performance of a contract.

STATE LAND
Land leased directly from the Singapore Land Authority (SLA), JTC Corporation, and the Housing and Development Board (HDB).

STATUTE OF LIMITATIONS
The time period to file a law suit to enforce a claim or it is barred by law.

STAMP DUTY
A form of government taxes on certain legal documents and financial contracts which validates the documents or contract legally. For property related transactions, 2 different types of stamp duty is payable, namely purchase stamp duty and mortgage stamp duty.

STRATA TITLE
A document that give you ownership of a particular unit in a larger building complex or property that you can sell, lease or transfer to another party at your own discretion.

STRATA TITLE BOARD
A body constituted under Part VA of the Land Titles (Strata) Act to hear applications (1) for orders for collective sales under Part VA of the Act; and (2) relating to certain types of disputes or matters arising in respect of the strata units or the strata development including the common property.

STRATA TITLE SCHEME
The scheme are composed of lots and common property. Lots are either apartments, garages or storerooms etc and are shown on the title as being owned by the Lot Owners. Common Property is defined as everything else on the parcel of land that is not comprised in any lot, such as common stairwells, driveways, roofs and gardens etc.

STRATUM TITLE
A title that records your ownership of a ‘unit’ of a larger property. Unlike a strata title, the owner becomes a shareholder in the company that manages the common area, not just a member.

SUB-PRIME LENDING
Refers to loans that cater for those who cannot meet the standard income verification and credit history criteria mainstream lenders like banks and mortgage originators use for ordinary borrowers. These loans are usually at higher interest rates to reflect higher risk of these borrowers.

SUBDIVISION
Dividing land into lots and streets. The owner signs a PLAT and Deed of Resubdivision, which is recorded among the land records. The state and county have strict requirements for subdivision of land.

SUBJECT TO
Taking title to property with a lien but not agreeing to be personally responsible for the lien, if the holder who forecloses the lien can take the property but may not collect any money from the owner who took “subject to.”
compare ASSUMPTION

SUBSALE
The sale of a unit by one who has signed an agreement to purchase the unit from a developer or a subsequent purchaser before the issuance of the Certificate of Statutory Completion and the Subsidiary Strata Certificates of Title or the Certificates of Title for all the units in the development.
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