Florida Real Estate Vocab. Flashcards

Florida Real Estate Vocab. Flashcards Cloud on titleAny defect, valid claim, or encumbrance that serves to impair the title or curtail an owner's rights.AppraisalProfessional service provided by a registered, licensed, or certified appraiser to produce an estimate of value.Buyer brokerage agreementAn employment contract with a purchaser.DeclarationThe legal document that the developer of a condominium must file and record in order to create a condominium under state law CommercialA classification of real estate that includes income-producing properties such as office buildings, gasoline stations, restaurants, shopping centers, hotels and motels, and parking lots. Commercial property usually must be zoned for business purposes CovenantA warranty. guarantee, or promise formally given in a legal document Defeasance clauseA provision in a mortgage that specifies the terms and conditions to be met in order to avoid default and thereby defeat the mortgage Construction LienA claim based on the principle of "unjust enrichment, favors parties who have performed labor or delivered materials or supplies for the repair or building of an improvement to real property CounterofferA rejection of the original offer by proposing a new offer, thereby terminating the original offer Exclusive agency listingEmployment contract given to one real estate broker as the sole agent for the sale of an owner's property Conventional mortgageA real estate loan granted that is neither FHA-insured nor VA-guaranteed DepositEarnest money or some other valuable consideration given as evidence of good faith to accompany an offer to purchase or rent AssessmentThe allocation of the proportionate individual share of a common expense in a condo or co-op building.Buyer's marketThe supply of available properties exceeds the demand CommunityCollection of homes typically built by a single developer, sometimes gated - also referred to as a sub-division, similar to a new housing estate in the UK Annual percentage rate (APR)the total cost of credit expressed as a yearly percentage Capitalization rateThe relationship between the net income from a real estate investment and the present value

Comparative market analysis (CMA)An informal estimate of market value performed by a real estate licensee for the seller to assist in arriving at an appropriate listing price, or if working with the buyer, an informal estimate of market value to assist the buyer in arriving at an appropriate offering price ContractAn agreement between two or more competent parties to do, or not do, some legal act for a legal consideration.Contract for DeedA financing technique wherein the seller agrees to deliver the deed at some future date and the buyer takes possession while paying the agreed amount CashflowThe resulting amount when annual debt service, tax liability, and capital improvement costs are subtracted from net operating income Building codesGovernment ordinances regulating construction practices and materials BorrowerThe mortgagor; one who gives a mortgage as security for a debt.BylawsRules that govern the administration of the condominium AssignorPerson who gives his or her legal rights or interests to another person, One who assigns or transfers property.AbandonmentA surrender of rights; point when a broker makes no effort to service or sell listed property, failure to perform BreachFailure to do or perform what has been promised AppreciationAn increase in value.Appraiserone who estimates officially the worth or value or quality of things and is registered, licensed, or certified by the DBPR and provides an estimate of value.AssigneePerson to whom a right or interest is transferred., The party to whom the assignment is made.Co-ownership (concurrent or multiple ownership) Title to real property held by two or more persons at the same time Eminent domainThe constitutional right given to a unit of government to take private property involuntarily if taken for public use and a fair price is paid to the owner.Business trust (syndicate)A group of people who associate with each other for the purpose of purchasing shares or units at a specified amount per unit, with the money raised to be used to purchase the real property, often for subdividing and resale.DescentThe passage of title to real property upon the death of the owner to his or her legal descendants.DepreciationA loss in value for any reason; a deduction for tax purposes.Assessed valueEstimated value on real property for tax purposes by a county property appraiser.

Absentee ownerA property holder who does not reside on the property and who usually relies on a property manager to supervise the investment.Business brokerage ageThe sale, purchase, or lease of businesses that provide goods and/or services Deed restrictionProvision placed in deeds to control future uses of the property DeviseA gift of real property by a will CooperativeA multiunit project consisting of individual dwelling units owned by the corporation in which the individual apartment tenants own stock rather than owning their respective units.Associateperson working under a broker AssignmentWritten instrument that serves to transfer the rights or interests of one person to another.ConveyanceWritten instrument that serves to transfer an interest in real property from one party to another Equitable titleThe right of a vendee to obtain absolute ownership of property to which the vendor has legal title; the interest held by a vendee under a sale contract or contract for deed AgencyExpress or implied authorization for one person to act for another Agent. A representative, one who is authorized to act on behalf of another CondemnationThe taking of private real property for a public purpose under the right of eminent domain for a fair price.AcknowledgmentFormal declaration before an authorized official, by the person who executed the instrument, that it is a free act AffidavitA sworn statement written down before a notary or public official.DeedA type of conveyance, a written instrument to transfer title to real property from one party to another ClosingFinal settlement between the buyer and seller, the date on which title passes from the seller to the buyer.ArbitrationA settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both sides Assumption of mortgageAcquiring title to property on which there is an existing mortgage and agreeing to be personally liable for the terms and condition of the mortgage, including payments., The taking over of an existing mortgage by a buyer.CorporationAn artificial or fictitious person formed to conduct specified types of business activities.CreditorA lender; person or business entity to whom a debt is owed Encumbrance clauseA provision in a deed to real property that warrants that no liens, claims, or liabilities exist on the property being conveyed, except as specified.

Economic LifeThe period of time a property may be expected to be profitable or productive; useful life.Attorney, power ofDesignation of another person to act for a principal who may not be present.Business brokerReal estate licensees who engage in the sale, purchase, or lease of businesses DevisorOne who gives real property through a will DeviseeOne who receives real property under a will EncumbranceAny lien, claim, or liability affecting the title or attaching to real property.Demand depositsChecking accounts; payable on demand by holder.AdvaloremTaxation according to the value; in proportion to worth General warranty deedAn instrument of conveyance containing the strongest and most comprehensive promises of further assurance possible for a grantor (seller) to convey to a grantee (buyer) Common LawA system of law based on accepted customs and traditions Balloon paymentA single, large payment made at maturity of a partially amortized mortgage to payoff the debt in full Convertible mortgageA financing instrument allowing a change from an adjustable-rate to a fixed-rate mortgage.Exclusive right of saleAn employment contract given to one real estate broker as the sole agent for the sale of an owner's property, with the commission going to that broker regardless of who actually sells the property during the employment contact period Alienation(law) the voluntary and absolute transfer of ownership, title, and possession of real property from one person to another Earnest money depositA type of money that a broker may handle for others in the ordinary course of business, also referred to as good-faith deposit or binder deposit Discount pointsA method for increasing a lender's yield (See also Point.Mortgage discount.) Estate by the entiretiesA tenancy created by husband and wife jointly owning real property with instant and complete right of survivorship BuydownA financing technique in which points are paid to the lender by the seller or builder that lowers (buys down) the effective interest rate paid by the buyer/borrower, thus reducing the amount of the monthly payment for a set period of time EquityThe market value of a property less any debt against it Documentary stamp taxState tax required on all deeds or other documents used as conveyances. The charge is based on the total purchase price Down paymentA portion of a purchase price paid prior to closing the transaction. Earnest money may be part of or the entire down payment.