Florida property – glossary of terms relating to Florida real estate
English may be the language of the United States but that does not mean there are no confusing terms connected to Florida real estate. When buying properties in Florida you are dealing with an entirely different legal system to the one you are used to. Below is a selection of the terms, phrases and names you may encounter when buying Florida property.
AD VALOREM: Charge based on the value of properties in Florida and payable at a given rate per $1000.
BINDER: Preliminary agreement to purchase Florida real estate secured by a goodwill deposit.
BROKER: (This is different to a mortgage broker in the UK). A broker in Florida or the US, is a real estate company or an individual who has broker license. They generally have an office and may employ a number of realtors. There are now a number of big broker companies (equivalent to chains of estate agents in the UK).
CERTIFICATE OF OCCUPANCY: Issued by local building department and testifies that properties in Florida are fit for occupancy.
CLOSING COSTS: Costs associated with securing a mortgage and the sale and purchase of Florida property.
CONDO: An apartment in a block which can range dramatically in size and stature.
DOCUMENTARY STAMP TAX: Tax rate for transferring documents at 70c per $100.
ESCROW: Funds held in third-party account for payment of charges relating to the purchase of Florida property.
ESTATE TAX: Imposed on transfer of Florida property following death.
FANNIE MAE: Nickname for Federal National Mortgage Association.FLORIDA PLANNING AND ZONING ASSOCIATON: Responsible for designating which areas are zoned for rental properties and which ones are not.
GIFT TAX: Charged on gifts of properties in Florida.GOOD FAITH DEPOSIT: Initial deposit of around $1000 to reserve Florida real estate and take it off the market.
INDIVIDUAL TAX IDENTIFICATION NUMBER: Required by individuals without a social security number selling Florida property.
MULTIPLE LISTING SERVICE: Florida real estate agents have access to the MLS which lists all properties in Florida for sale. The commission on the sale is split between the sellers Realtor and the buyers Realtor (who could be from different locations).
PRIVATE MORTGAGE INSURANCE: Insurance required when mortgage on Florida property exceeds 80% loan-to-value (LTV).
REALTOR: Licensed real estate agent usually self-employed but working for one real estate broker. May be working on behalf of the seller or the buyer.
RESORT COMMUNITIES: Florida real estate in purpose-built resort communities containing leisure facilities and other amenities.
TITLE INSURANCE: Cover against loss resulting from defects to the title of properties in Florida.
TITLE AGENT: Florida real estate professional who investigates ownership of Florida property to check for debts or other problems with ownership.
VISA WAIVER PROGRAMME: Allows you to travel to properties in Florida without a visa as a temporary visitor for a maximum of 90 days.
WALK-THROUGH: Home inspection to interior of Florida property used to estimate value but does not investigate structural and other building matters.
