Glossary / Abbreviations

To help you understand the some of the terminology and 'jargon' that may be used when purchasing a property, we have complied this listing.

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s'out - sleep out

sale/leaseback - A financing arrangement in which real property is sold by its owner/user, who simultaneously leases the property from the buyer for continued use.

sandwich lease - A lease in which an intermediate, or sandwich, leaseholder is the lessee of one party and the lessor of another. The owner of the sandwich lease is neither the fee owner nor the user of the property; he or she may be a leaseholder in a chain of leases, excluding the ultimate sublessee

Saving - is defined, by the Shape of Money, as the task of regularly setting aside a sum of money.

Savings and Investment Horizon - is the length of time you have to save for your particular goal, or the date when you'll need to use your savings. For example, you may be planning to retire in twenty-five years' time; twenty five years is your savings and investment horizon. If, however, you're planning to buy a house in three years, you'ld need to use your deposit in three years time and this time-frame is your savings and investment horizon. Understanding your savings and investment horizon is very important, as it's a major determinant of your investment behaviour. In the examples above, the person with twenty-five years to invest should invest primarily in shares. This is because, over the longer term, shares tend to be the best performing asset class, with reduced volatility. If that person invested mainly in fixed interest investments, they'd risk having their savings eroded by inflation.

sb - solid brick

sc - self-contained

sec - security

Security - Is property that is pledged as collateral to a mortgagee.

Seller's Market - When the demand for property is outstrips the supply of properties on the market. Opposite to the Buyer's Market.

semi - semi-detached

Semi-detached - Also known as a Duplex. This is a style of construction where two buildings are attached via a common wall.

sep - separate

Settlement - The sale of a property is finalised by the legal proceedings of both the vendor and the purchaser at which date the property is then handed over to the new owner.

sf, sgle fr - single fronted

Shares - represent a part ownership, or share, in a company, and are bought and sold on the NZSX Market.

shr - shower

spac - spacious

spbds - cupboards

Special Conditions - Formal written conditions that must be met before the contract is legally binding, usually with set time frames.

Speculation - describes buying into an arrangement, whether personalised plates or art, for which there is little intrinsic value and the only way to make money is by selling at a higher price. This differs from an investment, which earns income such as interest, rent and dividends; even if the value of the initial investment falls, the investor can still earn income.

sss - stainless steel sink

Stamp Duty - A state tax on the transfer of a property calculated on the purchase price of the property. The amount of Stamp Duty varies from State to State due to this tax being a State based tax.

stca - subject to council approval

Strata Title - The title to a unit or lot within a plan of subdivisions associated with townhouses. Owners have a certificate of title, are absolute owners of a freehold unit and have an undivided share of the common property..

stry - storey

Subdivision - A section of land divided into individual segments (lots) for a housing development, subject to coucil approval.

sublease - An agreement in which the lessee in a prior lease conveys the right of use and occupancy of a property to another, the sublessee.

substitution - The appraisal principle that states that when several similar or commensurate commodities, goods, or services are available, the one with the lowest price will attract the greatest demand and widest distribution.

supply and demand - In real estate appraisal context, the principle of supply and demand states that the price of real property varies directly, but not necessarily proportionately, with demand and inversely, but not necessarily proportionately, with supply.

Survey - A drawing or map which shows the exact legal boundaries of a property, as well as the location of other issues such as improvements, easements, rights of way, encroachments, and other physical features.