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| [A][B][C][D][E][F][G][H][I][J][K][L][M][N][O][P][Q][R][S][T][U][V][W][X][Y][Z] |
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| [A] |
Abstract
of Title: a historical summary of all of the recorded
instruments and proceedings that effect the title of property.
A/C: Air Conditioning
Acceleration Clause:
a loan provision giving the lender the right to declare
the entire amount of the loan balance immediately due
and payable upon the violation of a specific loan provision,
as in failure to make payments on time.
Adjustable-Rate
Mortgage / (ARM): this is a mortgage loan that
allows the interest rate to be changed at specific intervals
over the maturity of the loan.
Ad
Valorem Tax: this is a tax that is based on the
value of the property being taxed. Most cities, schools,
and counties raise most of their tax revenue from this
kind of tax.
A-Frame
House: This is a post-World War style home with
a frame in shape of one or more A's.
Agency:
this is the legal relationship between a principle ( buyer
or seller) and his Agent arising from a contract in which
the principle engages the agents to perform certain acts
on the principal's behalf.
Agency
Disclosure: In the State of Florida a written document
explains to the client the role that the broker, realtor
plays in the transaction. The purpose of these disclosures
is to explain which party the broker owes loyalty to.
FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES PROVIDE
A BROKERAGE RELATION DISCLOSURE FORM TO ALL POTENTIAL
SELLERS AND BUYERS OF REAL ESTATE. This form indicates
that you should not assume that any real estate broker
or salesperson represents you unless you agree to engage
a real estate licensee in an authorized brokerage relationship,
either as a single agent or as a transaction broker. You
are advised not to disclose any information you want to
be held in confidence until you make a decision on representation.
Dual Agents are not allowed in the State of Florida.
The typical forms of Agency are:
Single Agent:
FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING
AS SINGLE AGENTS DISCLOSE TO BUYERS AND SELLERS THEIR
DUTIES.
As a single agent, the brokerage firm and its associates
owe to you the following duties: 1. Dealing honestly and
fairly 2. Loyalty 3. Confidentiality 4. Obedience 5. Full
disclosure 6. Accounting for all funds 7. Skill, care,
and diligence in the transaction; and 8. Presenting all
offers and counteroffers in a timely manner, unless a
party has previously directed the licensee otherwise in
writing and 9. Disclosing all known facts that materially
affect the value of residential real property and are
not readily observable.
Transaction
Broker:
FLORIDA LAW REQUIRES THAT REAL ESTATE LICENSEES OPERATING
AS TRANSACTION BROKERS DISCLOSE TO BUYERS AND SELLERS
THEIR ROLE AND DUTIES IN PROVIDING A LIMITED FORM OF REPRESENTATION.
As a transaction broker, the brokerage firm and its associates,
provide to you a limited form of representation that include
the following duties:
1. Dealing honestly and fairly 2. Accounting for all funds
3. Using skill, care, and diligence in the transaction
4. Disclosing all known facts that materially affect the
value of real property and are not readily observable
to the buyer 5. Presenting all offers and counteroffers
in a timely manner, unless a party has previously directed
the licensee otherwise in writing 6. Limited confidentiality,
unless waived in writing by a party. This limited confidentiality
will prevent disclosure that the seller will accept a
price less than the asking or listed price, that the buyer
will pay a price greater than the price submitted in a
written offer, of the motivation of any party for selling
or buying property, that a seller or buyer will agree
to financing terms other than those offered, or any other
information requested by a party to remain confidential:
and 7. Any additional duties that are entered into by
this or by separate written agreement. Limited representation
mean that a buyer or seller is not responsible for the
acts of the licensee. Additionally, parties are giving
up their rights to the undivided loyalty of the licensee.
This aspect of limited representation allows a licensee
to facilitate a real estate transaction by assisting both
the buyer and the seller, but a licensee will not work
to represent one party to the detriment of the other party
when acting as a transaction broker to both parties.
Transition from Single
Agent to Transaction Broker
FLORIDA LAW ALLOWS REAL ESTATE LICENSEES WHO REPRESENT
A BUYER OR SELLER AS A SINGLE AGENT TO CHANGE FROM A SINGLE
AGENT RELATIONSHIP TO A TRANSACTION BROKERAGE RELATIONSHIP
IN ORDER FOR THE LICENSEE TO ASSIST BOTH PARTIES IN A
REAL ESTATE TRANSACTION BY PROVIDING A LIMITED FORM OF
REPRESENTATION TO BOTH THE BUYER AND THE SELLER, THIS
CHANGE IN RELATIONSHIP CANNOT OCCUR WITH YOUR PRIOR WRITTEN
CONSENT.
Amenities:
this is the non-monetary benefits that are derived from
property ownership. Like a prime location close to the
beach, community pool, park etc. |
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| [B] |
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Backup Contract:
a contract to buy real estate that becomes effective if
a prior contract fails to be consummated.
Balloon Mortgage & Balloon
Payment: a mortgage with a balloon payment. Example
a payment of $500 per month for 5 years, followed by a
final payment of the entire balance.
Bonus Room: a large,
finished room that can be converted into any kind of room
the homeowner desires. Examples are: servant's quarters,
play rooms, mother-in-laws apartment, game rooms etc.
These rooms are typically found above the garage.
Built-Ins: appliances
or other equipment that are constructed as part of the
building rather than left freestanding and movable.
Butler's Pantry: this
is a storage room or service room that is between the
kitchen and dining room.
Buyer's Broker: an agent
hired by a prospective purchaser to find real estate for
purchase. The broker then represents the buyer and negotiates
with the seller for the purchaser's best interest.
Buyer's Market: this
is a marketplace where buyers have a wide choice of inventory
in homes to find a acceptable property of their choice.
This usually will lower prices of homes in the market |
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| [C] |
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Cabana: A
shelter room around the pool or at the beach used as a
bathhouse.
Cabana Bath: this is a bathroom that has two doors accessible
from both inside and outside he house.
CBS: This
is a home built with concrete block and is typically finish
with stucco or other types of siding.
Clear Title: this
is a marketable title free of clouds and disputed interests.
Coach House:
One of two, three or four homes in a two-story building.
Each coach home has its own garage and entrance.
Closing:
the process of transferring ownership of property from
seller to buyer as specified in the sales contract.
Closing Costs:
various expenses and fees payable by the seller and buyer
at the time of closing. Examples are inspection fees,
appraisal fees, deed recording fees, attorney's fees title
insurance premium lender discount points and brokerage
commissions.
Contingent Clause:
provisions in a contract that some or all terms of the
contract will can alter or cease to exist upon certain
events. Example; buyer will buy from seller if loan is
able to be obtained for the property, if not contract
can not be enforced.
Courtyard Home:
A floor plan that presents the courtyard as the main entrance
of the home. To enter the home, you must walk through
the front courtyard which normally includes a pool or
guest home located within the yard. |
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| [D] |
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Deed Restrictions:
A clause in a deed that would limit the use of the land
or residence.
Deposits: money paid
in good faith to assure performance of the contract.
Discount Points: this
is typically money paid to the lender at the time of origination
of a loan. To account for the difference between the market
interest rate and the lower face rate of the note.
Dormer Window: a window
projecting through a sloping roof.
Duplex: a unit consisting
of two attached homes. |
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| [E] |
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Easement:
The right, privilege, or interest of one party has in
the land of another.
Eat-in-Kitchen: combines
the breakfast nook and the kitchen.
Effective rate: the
true rate of return considering all relevant financing
charges.
Efficiency Unit: small
dwelling unit. Usually consisting of a small room within
a multifamily structure.
Escrow: an agreement
between two or more parties providing that certain monies
or property be placed with a third party for safekeeping,
pending the closing of property.
Exclusive Right of Sale Listing
Agreement: an employment agreement contract giving
the Broker the right to collect commission if the property
is sold by anyone, including the owner, during the term
of the agreement.
European-style cabinets:
Frameless cabinets without knobs. |
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| [F] |
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Fannie Mae:
nickname for FEDERAL NATIONAL MORTGAGE ASSOCIATION
FHA: FEDERAL HOUSING
ADMINISTRATION
FHA LOAN: a mortgage
loan insured by the FHA
FSBO: For sale by owner |
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| [G] |
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Gable Roof:
one with a triangle, with the ridge forming an angle at
the top and each eave forming an angle at the bottom.
Garden Tub: Roman tub
Gated Community: a fenced
housing community typically with a security guard.
Gathering Room: Family
room
Ginnie Mae: nickname
for government National Mortgage Association
Good Morning Room: Breakfast
room
Grand Room: a combined
formal living and dining room combination.
Grantee: the party to
whom the title to real property is conveyed
Grantor: anyone who
gives a deed.
Great Room: Combines
the kitchen, breakfast nook and family room into one large
open area.
Guest House: a detached
bedroom with bathroom and some have a kitchen.
Guest Suite: usually
a private bathroom combined with bedroom. The interior
bedroom also may be designed with a sitting room or kitchenette.
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| [H] |
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Half Bath:
a room in a home that contains a toilet and wash basin
but not a shower or tub.
Handyman's Special:
slang in newspaper advertising referring to a house that
needs repair and is usually selling at a below market
price.
Hazard Insurance: a
form of insurance that protects a owner form certain kind
of risks.
High Rise: usually refers
to a building of over 6 stories.
Hip Roof: a roof formed
by four walls sloped in different directions and two larger
sides forming a ridge at the top.
His-and-hers bathrooms:
two separate bathrooms in the master suite.
Historical District:
A designated area that buildings are considered to have
some significant historic character. Certain areas are
eligible for specific federal assistance programs.
Historical House: a
home that is officially recognized for its historical
significance that has special status under the 1976 Tax
Reform Act, that encourages rehabilitation instead of
demolition.
Home Equity Loan: a
loan secured by a second mortgage on a persons principle
residence.
Home Improvement Loan:
a loan secured by a mortgage to be used to improve the
property.
Home Inspection: a professional
who evaluates the structural and general condition of
a home before being sold. Most inspectors are licensed
and insured.
Homeowners Association:
an organization that is comprised of homeowners in a particular
subdivision. They enforce the general deed restrictions
and manage the common property and elements of the community.
HOW or Homeowners Warranty
Program: a private insurance company that insures
against certain defects of homes.
Homestead Exception:
a deduction in assessed value for one's principal residence.
Hud: Housing and Urban
Development Department.
HVAC: Jargon for Heating,
Ventilation, and Air Conditioning |
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| [I] |
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| Ingress
and Egress: the right to enter and exit through
land owned by another. |
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| [J] |
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| Jack and
Jill Bathrooms: a bathroom flanked and shared by
two bedrooms. Usually entrance is from both bedrooms. |
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| [K] |
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| [L] |
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Lanai:
a roofed patio.
Lease with option to Purchase:
a lease that provides the Tenant the right to purchase
the property at an agreed-upon price under certain conditions.
Lis Pendens: Recorded
Notice of a filing of some type of suit which may affect
title of property.
Loan Application Fee:
These are charges required by the loan originator to be
paid by the borrower to cover such charges as: credit
reports, property appraisals, surveys, and other incidental
expenses associated with underwriting the loan.
Loan Commitment: this
is a agreement to lend a specific amount of money for
a specific amount of time to either purchase a home or
to build a home.
Loan Package: is the
collection of documentation as applications, income verification,
of borrowers income and down payment documents, credit
verification, appraisals of property, etc.
Loan-to-Value Ratio:
sometimes referred to as RTV this is the portion of the
amount borrowed compared to the cost or value of the property
that you are purchasing.
Location-Location-Location:
the three most important factors in real estate.
Locked-In-Interest Rate:
this is the rate promised by a lender at the time of a
loan application. This promise is a legal commitment of
the lender, though there may be certain qualifications
or contingencies of the lender to change to a higher rate.
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| [M] |
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Maintenance
Fee: usually refers to an assessment by a homeowners
association, or a condominium owners association, that
pays for the costs of operating the common elements
of the property. Examples: common property taxes, lawn
mowing, pool service, etc.
Management Fees: this
is the cost that owners pay for professional management
of their property. Many condominium associations for
example have professional on-site managers to care for
property. This also applies to fees that investors will
pay for a professional to manage their investment property.
Mansard Roof: this
is a roof having two slopes of all four sides, with
the lower slope steeper than the upper, flatter sections.
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| [N] |
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Neighborhood:
a defined area characterized by similar or compatible
land uses.
Nonconforming Use: a
use of property that violates local zoning regulations. |
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| [O] |
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Offer:
an expression of willingness to purchase a property at
a specific price and under certain conditions.
Open End Mortgage: a
type of mortgage which the mortgagor, which is the borrower
may secure additional funds from the lender, mortgagee.
There is usually a limit that has been established in
such mortgages.
Open House: this is
a showing of a home for sale whereby the home is open
for inspection by interested persons. Many real estate
agents use this to increase traffic and is a popular way
to expose the property to many people in a short time
frame.
Ordinances: these are
municipal rules governing the use of land.
Origination Fees: charges
to a borrower to cover the costs of issuing the loan.
Examples are credit checks, appraisal and title expenses.
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| [P] |
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Patio Home:
a small, single family home with a rear entrance.
Plus Den: One of the
bedrooms can be converted into a den.
Powder Room: a half
bath, which features a sink and toilet but not a tub or
shower.
Prepaid Expenses: amounts
that are paid prior to the period they cover.
Prepaid Interest: interest
that is paid in advance of the time it is earned.
Prepayment Clause: a
clause in a mortgage that gives the borrower the right
of paying the mortgage balance off before it comes due.
Sometimes there is a penalty for prepayment with the wavier
of the interest not yet due.
Prepayments: advance
payments of expenses like insurance and taxes that are
kept in a escrow fund.
Presale: a sale of proposed
properties prior to closing of the property that a person
is purchasing.
Prime Rate: is the lowest
short term commercial interest rate charged by banks to
their best customers. Mortgage rates are normally higher
than the prime rate.
Principle, Interest Payments:
(PI) a monthly payment that includes the interest charges
for that time and plus the amount applied to the amortization
of the principle balance.
Principle, Interest, Taxes
and Insurance Payment: (PITI) a monthly payment
that includes the interest charges for that time and plus
the amount applied to the amortization of the principle
balance in addition to property taxes and property insurance.
Principle Residence:
the primary place were one lives. To defer capital gains
taxes on the profit from a home, the home must be used
as the taxpayer's principle residence.
Private Mortgage Insurance:
this is a kind of default insurance on conventional loans
usually a condition on low down payments home loans.
Purchase Money Mortgage:
a mortgage given by a buyer to a seller in part payment
of the purchase price of real estate. |
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| [Q] |
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Quaduplex:
a unit consisting of four attached homes.
Quickclaim Deed: a deed
that conveys only the grantor's rights or interest in
real estate. This is usually used to remove possible clouds
on the title. |
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| [R] |
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Real Estate
Investment Trust: (REIT) this is a real estate
mutual fund, that is allowed by income tax laws to avoid
the corporate income tax. The fund sells shares of ownership
and must invest the money in real estate or mortgages.
Real Property: the rights
to use real estates. This is also used in place of real
estate in some contracts.
Realtor®: these
are professionals in the real estate business who subscribe
to a strict code of ethics as a member of the local and
state boards along with the national Association of Realtors.
Not all licensed real estate agents are Realtors®.
Recording: the process
of recording instruments into the books of public record.
Examples are: deeds, leases and liens.
Resident Manager: a
person who supervises the care of a apartment complex
and lives in the complex.
Restriction: a limitation
usually placed upon the use of property that is contained
in the deed or other written documents.
Reverse Annuity Mortgage:
this is a type of mortgage that is designed for mostly
the elderly homeowners that have substantial equity in
their homes. The lender periodically usually monthly pays
an amount to the borrower in which the loan balance increases
with interest and periodic payments causing this type
of loan to have negative amortization.
Right of Survivorship:
this is the right of a surviving joint tenant to acquire
the interest of a deceased joint owner. This is the distinguishing
features in Tendency by the Entirety and Joint Tenancy.
Riparian Rights: these
are rights that apply to the use of water adjacent to
an owners land.
Roman Shower: this is
a walk-in shower stall that is large enough for two and
usually has an entrance from two sides. |
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| [S] |
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Santurina
marble: marble from the Saturnia region in Italy.
Secondary Mortgage Market:
this is a mechanism available to buy or sell mortgages,
that is used mainly with residential mortgages.
Security Deposit: this
is a cash payment required by a landlord that is help
during the term of the lease to offset any damages by
the tenant. Different states have different laws on how
the deposit is kept by the landlord.
Seller Financing: this
is a debt that is taken back by the seller as part of
the purchase prince for real estate. This type of financing
can be in the form of either a first or second mortgage.
Seller's Market: this
is a market in which the condition favor the seller with
low inventories of available homes available for sale.
This condition usually will reflect higher home prices
in the market.
Single-Family Housing:
a detached house.
Spec House: a single
family home that has been built with the anticipation
of finding a buyer.
Special Warranty Deed:
this is a deed that the grantor limits the title of warranty
given to the grantee. This type of deed does not warrant
against title defects arising from situations that existed
before the grantor owned the property.
Statute: this is a law
established by an act of legislature.
Statue of Frauds: a
state law that provides that certain conditions must be
in writing so that they can be enforceable.
Subject Property: a
term used in appraisal that specifies the home being appraised.
Summer Kitchen: an area
on the patio that includes a barbecue grill, refrigerator
and a sink.
Survivorship: the right
of a joint tenant or tenants to maintain ownership rights
that follow the death of another joint tenant. |
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| [T] |
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Tax Deed:
this is a deed that is given to a grantee by a government
that had claimed the property because of unpaid taxes.
Tax Foreclosure: this
is a process of enforcing a lien against property for
nonpayment of delinquent property taxes.
Tax Lien: this is a
debt attached to a property for failing to pay taxes.
Tenancy: is the right
of possession of real property. Other Tenancy include:
Tenancy at Sufferance, which is when a person who has
had a lawful right of possession has stayed past the time
specified. Tenancy at Will, is a license to use or occupy
at the will of an owner. Tenancy by the Entirety, is an
estate that exists only between a husband and a wife that
both have equal right of possession of real property and
have a right of survivorship. Tenancy for Life, is a freehold
interest in real property that expires at death. Tenancy
for Years, a fixed term of years. Tenancy in Severalty,
is ownership of property by one person or a legal entity.
Tenant: one that is
given possession of real estate at a fixed period of time.
Time Sharing: this is
a form of property ownership that is held by a number
of people. Each have a right of possession as specified
in time intervals. This is very common in vacation properties.
Title: a document that
gives evidence that the owner of real property is in lawful
possession.
Title Company: is a
business that examines title to real estate.
Title Insurances: is
a policy that protects the holder from loss that result
from clouds on the title.
Title Search: is a process
of examining the public records to determine ownership
and to detect any encumbrances affection the given property.
Town House: a dwelling
that generally has 2 or more floors and attached to a
similar unit by common side walls. Town Houses can either
be found in Homeowners Associations or Condominium Associations.
Transom: a window set
above a door or another window.
Tray Ceiling: a flat
ceiling with the center portion raised,
Triple Net Lease: is
a lease that the tenant is required to pay all operating
expenses associated with the property. |
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| [U] |
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Underwriter:
a person that either approves or denies a loan based on
their companies requirements and insures the accuracy
and is bound by certain risks.
Unencumbered Property:
real estate that is free and clear of title defects or
liens. |
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| [V] |
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Variable
Rate Mortgage: a long term type of mortgage that
has a adjustable interest rate that can be change under
the conditions of the terms of the loan.
Vaulted Ceiling: a arched
ceiling.
Veranda: a long covered
porch.
Villa: a smaller home,
usually on a zero-lot site, that is detached or can be
connected to another home by a common wall. |
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| [W] |
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Wainscot:
Paneling, usually on the lower part of an interior wall.
Walk through Inspection: an inspection of property by
the buyer of real estate prior to closing or taking possession.
Warranty: a promise
in form of a contract.
Warranty Deed: a deed
that contains a covenant the grantor will protect the
grantee against all claims against the deed.
Water closet: a place
with a toilet and often a sink.
Water Table: the highest
level in which underground water is normally encountered
in a particular area.
Wraparound Mortgage:
this is a mortgage that includes in its balance an underlying
mortgage. Instead of having a distinct and separate first
and second mortgages, a wraparound mortgage includes both.
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| [X] |
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| [Y] |
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| [Z] |
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Zero Lot
Line: a form of cluster housing development in
which individual dwellings units are placed on separately
platted lots. They are sometimes attached to one another
but not always.
Zoning: this is a legal
mechanism for local governments to regulate the use of
privately owned real property by specific application
of the use of police power to prevent conflicting land
use that promotes orderly development. |
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