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675 Cards in this Set

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  • Back
A surrender of rights; point when a broker makes no effort to service or sell listed property; failure to perform.
Absentee owner
A property holder who does not reside on the property and who usually relies on a property manager to supervise the investment.
Abstract of title
Condensed history of title to real property consisting of a summary of the links in the "chain of title" extracted from documents bearing on the title status.
Acceleration clause
Stipulation in a mortgage that the entire unpaid balance of the debt may become due and payable if a default of expressed conditions should occur.
Voluntary receipt of an item offered by another.
Gradual addition of land caused by natural forces, such as wind, tide, flood, or watercourse deposits.
Formal declaration before an authorized official, by the person who executed the instrument, that it is a free act.
Actual notice
Information a person has actually learned by reading, seeing, or hearing.
A judicial or court decision.
Adjustable-rate mortgage (ARM)
A financing technique in which the lender can raise or lower the interest rate according to a set index.
Adjusted basis
The owner's original cost plus buying expenses plus capital improvements.
Administrative law judge
An attorney employed by the Division of Administrative Hearings, Department of Administration, to hear complaints and issue recommended orders.
Ad valorem
According to the value; in proportion to worth.
Advance fees
Up-front money collected by a broker for the listing of real property.
Opponent; a person or group that opposes another.
Adverse interest
A purpose in opposition to the interest of another party (as, for example, with a buyer and a seller).
Adverse possession
A method of obtaining title to real property by occupying it in an open and hostile manner contrary to the interests of the owner.
A sworn statement written down before a notary or public official.
Express or implied authorization for one person to act for another.
A representative; one who is authorized to act on behalf of another.
Defined in Chapter 475, F.S., to mean property zoned as such, consisting of more than ten acres.
Air rights
The freedom to use the open space above a property.
The act of transferring ownership, title, or an interest or estate in real property.
Allodial system
A theory of land ownership that individuals may own land free of the rights of an overlord.
Alluvion (alluvium)
The increase of land by the gradual and imperceptible action of natural forces (e.g., deposits of sand and mud on a riverbank).
Amortized mortgage
A loan characterized by payment of a debt by regular installment payments.
Anniversary date
Recurring each year; the date an insurance policy must be renewed to continue in effect.
Annual debt service
The amount of money required each year for the payment of all mortgage interest and principal.
Annual percentage rate (APR)
Total yearly cost of credit.
A request to some authority for a decision or judgment.
A person who applies for something; a candidate.
Professional service provided by a registered, licensed, or certified appraiser or real estate licensee to produce an estimate of value.
Appraisal plant
Copies of current statistics and publications kept by appraisers in their library or record room.
Appraised value
Estimated worth of a property determined by someone qualified in valuation
Appraiser, real estate
One who is a registered, licensed, or certified by the DBPR and provides an estimate of value.
An increase in value.
The act of having a third party render a binding decision in a dispute between two parties.
The state of being behind in the discharge of an obligation; paid at the end of the period for which due (the opposite of in advance).
The combining of two or more adjoining properties into one tract.
Assessed value
Worth established for each unit of real property for tax purposes by a county property appraiser.
The imposition of a tax or charge according to a preset rate; the allocation of the proportionate individual share of a common expense in a condo or co-op building.
Anything of value.
Person to whom a right or interest is transferred.
Written instrument that serves to transfer the rights or interests of one person to another.
Assignment of mortgage
A legal instrument that states that the mortgagee assigns (transfers) the mortgage and promissory note to the purchaser.
Person who gives his or her legal rights or interests to another person.
Person working for a broker.
An organization of persons having a common interest.
Assumption of mortgage
The taking over of an existing mortgage by a buyer.
A legal writ obtained to prevent removal of property that is expected to be used to satisfy a judgment.
One who is authorized to perform certain acts for another under a power of attorney.
Attorney, power of
Designation of another person to act for a principal who may not be present.
Automated underwriting
A service that enables lenders to obtain a credit risk classification using applications software in the loan underwriting process.
Balance sheet
A financial report that shows the company's financial position at a stated moment in time.
Balloon payment
A single, large payment made at maturity of a partially amortized mortgage to pay off the debt in full.
Bargain and sale deed
A type of deed in which title is transferred and a limited number of warranties are made respecting title to or use of the property.
Base industries
Businesses that attract outside money into the area; primary.
Base lines
Imaginary lines running east and west and crossing a principal meridian at a definite point; used by surveyors for reference in locating and describing land under the government survey system.
Before-tax cash flow (BTCF; cash throwoff; gross spendable income)
The resulting amount when annual debt service is subtracted from net operating income.
Biennium (biennial)
A period of two years.
Bilateral contract
An agreement wherein both parties are legally obligated to each other to perform.
A memorandum given subject to the writing of a formal contract for sale, usually acknowledging receipt of a portion of the down payment for purchase of real property.
Blanket mortgage
One debt instrument covering two or more parcels.
Blind advertisement
An advertisement of a principal's property providing only a telephone number, a post office box, and/or an address without the licensed name of the brokerage firm.
The illegal practice of inducing homeowners to sell their property by making misrepresentations regarding the entry or prospective entry of minority persons in order to cause a turnover of properties in the neighborhood; discriminatory acts against sellers.
Bona fide
Without deceit or fraud; genuine; in good faith.
Money or other property that is not like-kind, which is given to make up any difference in value or equity between exchanged properties.
Borrower (debtor)
The mortgagor; one who gives a mortgage as security for a debt.
Branch office
A business location other than the real estate broker's principal place of business.
Failure to do or perform what has been promised.
A licensee who acts as an intermediary between two parties and negotiates contracts between them.
Broker associate
An individual who is qualified to be issued a broker's license but who operates as a sales associate in the employ of another.
Buffer zone
A strip of land separating one land use from another.
Building codes
Government ordinances regulating construction practices and materials.
Business brokerage
The sale, purchase, or lease of businesses that provide goods and/or services.
Business broker
Real estate licensees who engage in the sale, purchase, or lease of businesses.
Business opportunity brokerage
The real estate activity dealing in the sale, purchase, or lease of businesses.
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.
A 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.
Buyer brokerage agreement
An employment contract with a purchaser.
Buyer's market
The supply of available properties exceeds the demand.
Rules that govern the administration of the condominium.
A license ceases to exist, effective as of the date approved by the Commission, and does not involve disciplinary action.
The collective wealth (money and property) of a person or business; the investment in a property. (See also Equity.)
Capital asset
Certain property held by a taxpayer, not including inventory for sale to customers.
Capital-deficit area
A region where the total amount of local savings is not sufficient to finance economic development already under way in that area.
Capital gain
The profit from the sale of an asset, including real property.
Capitalization rate
The relationship between the net income from a real estate investment and the present value.
Cash flow (after-tax cash flow)
The resulting amount when annual debt service, tax liability, and capital improvement costs are subtracted from net operating income.
Caveat emptor
Let the buyer beware!
Cease and desist order
An action by a government agency to require a person or business to stop an illegal or unfair practice.
An official act of strong disapproval.
Certificate of occupancy
An occupancy permit issued by the local government after construction is completed and the final inspection is approved.
Certificate of title opinion (opinion of title)
A document signed by a title examiner (attorney or title company agent) stating the judgment that, based on an examination of the public records, the seller has good title to the property being conveyed to the buyer (not to be confused with title insurance).
Certiorari, writ of
An order to bring from a lower court to an appellate court an action or record of proceedings in a case.
Chain of title
A successive listing of all previous holders of title (owners) back to an acceptable starting point.
Any item of personal property. (See also Personal property.)
A square measuring 24 miles on each side and representing the largest unit of measure in the government survey system.
Circuit breakers
Devices that will shut off the flow of electricity if more electrical current is flowing through the wire than the wire can handle.
Statements of alleged violations and the penalties to be imposed.
Civil Rights Act of 1866
A federal act that prohibits any type of discrimination based on race in any real estate transaction (sale or rental) without exception.
A distinct provision in a written document.
Final settlement between the buyer and seller; the date on which title passes from the seller to the buyer
Cloud on title
Any defect, valid claim, or encumbrance that serves to impair the title or curtail an owner's rights.
Real or personal property pledged as security on a debt.
Two or more parties jointly attempting to defraud a third party.
Color of title
A condition in which ownership of real property appears to be good but is not good because of a defect.
A 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.
To mix together money or a deposit with personal funds; combine; intermingle.
Compensation paid to a broker or sales associate for successfully concluding a real estate transaction; short form for the Florida Real Estate Commission (FREC).
Common elements
The parts of a multiple-ownership property not included in the units; those parts in which each unit owner holds an undivided interest.
Common law
A system of law based on accepted customs and traditions.
Community property
Real property acquired during a marriage. (Florida is not a community property state.)
Comparable property (comparable; comp)
A recently sold property similar to one being evaluated.
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.
Anything of value or a valuable consideration, directly or indirectly paid, promised, or expected to be paid or received.
A party to a contract who possesses the legal capacity to enter into a binding contract.
A person who makes an allegation or a charge against another (the respondent). (See also Plaintiff.)
Formal allegation or charge.
Comprehensive plan (master plan)
A statement of policies for the future physical development of an area (e.g., city, county, region).
The act of keeping from sight or keeping secret.
A provision in Florida's Growth Management Act that mandates that the infrastructure, such as roads and water and waste treatment facilities needed to support additional population, be in place before new development is allowed.
The taking of private real property for a public purpose under the right of eminent domain for a fair price.
A multiunit project consisting of individual ownership of a dwelling unit and undivided ownership of common areas.
Conflicting demands
When different parties each make claims that are inconsistent with one another.
Inducement offered to conclude a contract.
Construction lien
A 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.
Constructive notice
The recording of a document or an instrument in the public records designed to give adequate notice to all.
Consumer Price Index (CPI)
A measurement of average price changes of goods and services using a base period.
An agreement between two or more competent parties to do, or not do, some legal act for a legal consideration.
Contract for deed
A financing technique wherein the seller agrees to deliver the deed at some future date and the buyer takes possession while paying the agreed amount (also called land contract, an installment sale contract, and an agreement for deed).
Conventional mortgage
A real estate loan granted that is neither FHA-insured nor VA-guaranteed.
Unauthorized use or retention of money or property that rightfully belongs to another person.
Convertible mortgage
A financing instrument allowing a change from an adjustable-rate to a fixed-rate mortgage.
Written instrument that serves to transfer an interest in real property from one party to another.
A 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.
Co-ownership (concurrent or multiple ownership)
Title to real property held by two or more persons at the same time.
Corner lot
A lot bounded with streets on two sides (intersecting).
An artificial or fictitious person formed to conduct specified types of business activities.
Corporation not for profit
An artificial or fictitious person organized for business purposes and similar to a corporation for profit.
Corporation sole
An artificial or fictitious person formed by an ecclesiastical body.
The amount to produce or acquire something.
Cost-depreciation approach
A method for estimating the market value of a property based on the cost to buy the site and to construct a new building on the site, less depreciation.
Professionals who analyze existing or potential real estate problems and recommend a course of action.
A rejection of the original offer by proposing a new offer, thereby terminating the original offer.
A warranty, guarantee, or promise formally given in a legal document.
As a verb, to make an entry on the right or credit side of an account; as a noun, payment or value received.
A lender; person or business entity to whom a debt is owed.
Cul-de-sac lot
A lot located where a street is open at one end only and the street has a circular turnaround at the other end.
Culpable negligence
Inadequate attention to duties and obligations by one who knows, or should know, what is required of him or her.
When the correction of a defect results in as much added value as the cost to correct the defect.
Curbstone operation
Conducting business without maintaining an office.
Current mailing address
Where a licensee receives letters and so forth through the U.S. Postal Service.
One with whom the broker or sales associate hopes to be successful in accomplishing the purpose of employment. Per Section 475.01, F.S., a member of the public who is or may be a buyer or seller of real property and may or may not be represented by a real estate licensee in an authorized brokerage relationship.
Losses incurred as a result of a breach of contract or some other cause. (See also Liquidated damages and Unliquidated damages.)
As a verb, to make an entry on the left or charge side of an account; as a noun, a charge or expense.
A deceased person, usually one who has recently died.
The legal document that the developer of a condominium must file and record in order to create a condominium under state law.
Declaration of trust
A formal instrument filed by a business trust with the Department of State as a prerequisite for creating the trust.
Declaratory judgment
A course of action declaring rights claimed under a contract or statute intended to prevent loss or to guide performance by the party or parties affected.
An offer of land for some public use, by an owner, together with acceptance by or on behalf of the public.
A type of conveyance; a written instrument to transfer title to real property from one party to another.
Deed in lieu of foreclosure
A friendly foreclosure (nonjudicial procedure) in which the mortgagor gives title to the mortgagee.
Deed restrictions
Provision placed in deeds to control future uses of the property.
Failure to comply with the terms of an agreement or to meet an obligation when due.
Defeasance clause
A provision in a mortgage that specifies the terms and conditions to be met in order to avoid default and thereby defeat the mortgage.
The person or party being sued or charged.
Deficiency decree
Judgment brought when a mortgage is foreclosed and the sale proceeds fail to cover the costs of the sale, taxes, and the unpaid mortgage balance.
The quantity of goods or services wanted by consumers.
Demand deposits
Checking accounts; payable on demand by holder.
A refusal or rejection.
The number of homes or lots per acre.
Earnest money or some other valuable consideration given as evidence of good faith to accompany an offer to purchase or rent. (See also Binder and Earnest money.)
Written testimony of a witness under oath.
A loss in value for any reason; a deduction for tax purposes.
The passage of title to real property upon the death of the owner to his or her legal descendants.
Designated sales associates
Two real estate licensees designated to represent the buyer and the seller as single agents in a nonresidential transaction. The buyer and seller must have assets of $1 million or more and sign disclosures stating their assets meet the required threshold.
Development of regional impact (DRI)
A large project affecting more than one county.
A gift of real property by a will.
One who receives real property under a will.
One who gives real property through a will.
Discount points
A method for increasing a lender's yield. (See also Point, Mortgage discount.)
Discount rate
The amount of interest the Federal Reserve charges to lend money to its eligible banks.
A disengagement process when depositors withdraw money from savings for direct investment in stocks, money market funds, and other securities.
Doc stamps
An abbreviated term for documentary stamp tax.
Any written paper that provides information or evidence.
Documentary stamp tax on deeds, state
Tax required on all deeds or other documents used as conveyances. The charge is based on the total purchase price.
Documentary stamp tax on notes, state
Tax required on all promissory notes. The cost is based on the face value of the note.
A projection built out from the slope of a roof, used to house windows on the upper floor and to provide additional light and ventilation.
A window consisting of two sashes that move up and down in a pair of channels and are held open by tension springs.
Down payment
A portion of a purchase price paid prior to closing the transaction. Earnest money may be part of or the entire down payment.
Draw (installment)
Disbursement made by a lender to a builder.
Dual agency
Representing both principals in a transaction (not a legal agency relationship in Florida).
Dual agent
A broker who represents both the buyer and the seller of a transaction in a fiduciary capacity.
Due-on-sale clause
A provision in a conventional mortgage that entitles the lender to require the entire loan balance to be paid in full if the property is sold.
Dynamic risk
The risk that arises from the continual change in the business environment and therefore dynamic risk cannot be transferred to an insurer.
Earnest money deposit
A 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.
A right, privilege, or interest in real property that one individual has in lands belonging to another; a legal right to trespass; right-of-way authorizing access to or over land.
Economic base studies
An analysis of employment in the primary industries of a region.
Economic life
The period of time a property may be expected to be profitable or productive; useful life.
Effect a sale
A provision in a listing contract requiring the broker to obtain a signed contract from a ready, willing, and able buyer on the terms specified.
Effective gross income (EGI)
The resulting amount when vacancy and collection losses are subtracted from potential gross income. (See also Vacancy and collection losses.)
Elective share
An estate defined as consisting of 30 percent of the decedent's personal property and Florida real property, except homestead-exempt property and claims.
Eminent domain
The 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.
The individual who hires the services of another.
Empty nester
Older parents whose housing needs change after their children have moved away.
Unauthorized use of another person's property.
Any lien, claim, or liability affecting the title or attaching to real property.
Encumbrance clause
A provision in a deed to real property that warrants that no liens, claims, or liabilities exist on the property being conveyed, except as specified.
Equitable title
The 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; beneficial interest.
The market value of a property less any debt against it; in a business entity, assets minus liabilities equals capital (owner's equity); a system of legal rules administered by a court of chancery.
Equity of redemption
The right of a mortgagor, before a foreclosure sale, to reclaim forfeited property by paying the entire indebtedness.
Gradual loss of land due to water or other natural causes.
Escalator clause
A provision in a mortgage permitting the lender to increase the interest rate that is usually tied to an event or a contingency.
Reversion of property to the state when an owner dies without leaving a will or any known heirs.
Escrow account
An account in a bank, title company, credit union, savings association, or trust company used solely for safekeeping customer funds and not for deposit of personal funds; impound account or trust account.
Escrow disbursement order (EDO)
A course of action for determining the disposition of a contested deposit.
Tenancy; the interest one holds in real property; the total of one's property and possessions.
Estate by the entireties
A tenancy created by husband and wife jointly owning real property with instant and complete right of survivorship.
Estate for years
A tenancy measured from a starting date to a termination date (may be for a few days or longer than any natural life; e.g., a leasehold is an estate for years).
Estate in reversion
An estate that comes back to the original grantor.
Estate in sole
Real property owned by a corporation sole.
Estate of remainder
An estate that can become effective only after another estate has terminated.
A principle of law that prohibits (stops) a person from defending himself or herself against his or her own acts or lack of action.
Estoppel certificate
A written statement that bars the signer from making a claim inconsistent with the instrument (commonly used with a mortgage assumption).
The moral obligations and duties that a member of a profession or craft owes to the public, to a client, or to other members of the profession or craft.
Any proof that may legally be admitted in settlement of an issue.
The right of an owner to control entry onto the property.
Exclusive-agency listing
Employment contract given to one real estate broker as the sole agent for the sale of an owner's property.
Exclusive-right-of-sale listing
An 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 contract period.
Exculpatory clause
A provision in a mortgage or note in which the lender waives the right to a deficiency judgment against the borrower and the borrower is relieved of personal liability to repay the loan.
Executed contract
An agreement in which the terms have been fully performed by all parties; a signed document
Executive power, FREC
Duties related to the education of licensees, the regulating of professional practices, and the publishing of materials.
Executory contract
An agreement containing some act or condition that remains to be completed.
Exempt property
Property that has been decreed to be excluded from taxation or claim by others.
Express contract
An agreement wherein the terms are specifically stated by the parties, either orally, in writing, or by a combination of the two.
Facsimile ("fax")
An exact copy.
Factor market
A resource pool representing the four major elements (factors) of production that are bought and sold.
Fair Housing Act
An act contained in Title VIII of the Civil Rights Act of 1968 that created protected classes of people and prohibits discrimination when selling or renting residential property when based on race, color, religion, sex, national origin, familial status, or handicap status.
Familial status
As defined in the Fair Housing Act, a situation in which one or more individuals younger than 18 live with a parent or legal guardian. Pregnant women are also specifically covered under the Act.
Fannie Mae
A private institution in the secondary mortgage market that buys and sells mortgages.
Farm area
A selected and limited geographical district to which a sales associate devotes special attention and study; to farm an area or neighborhood.
Federal Deposit Insurance Corporation (FDIC)
A federal agency that insures deposits of member banks and savings associations.
Federal Housing Administration (FHA)
Insures mortgage loans made by FHA-approved lenders on homes that meet FHA standards in order to make mortgages more desirable investments for lenders.
Federal Housing Finance Board (FHFB)
Supervises regional Federal Home Loan Banks and oversees their mortgage lending.
Federal Reserve System (the Fed)
A central banking authority that influences the cost, availability, and supply of money.
Federal Trade Commission (FTC)
A federal agency that investigates and eliminates unfair and deceptive trade practices.
Federally related transaction
Any sale transaction that ultimately involves a federal agency in either the primary or secondary mortgage market. Under FIRREA, state-certified or state-licensed appraisers must be used for certain loans in federally related transactions.
Fee simple estate
The most comprehensive and complete interest one can hold in real property; freehold estate. Also known as fee or fee simple absolute.
A person in a position of trust and confidence with respect to another person.
Fiduciary relationship
An alliance of trust and confidence that creates a moral and legal obligation when extended by one person and accepted by another.
Final order
A decision rendered by the FREC.
Find a purchaser
A provision in a listing contract requiring a broker to produce a ready, willing, and able buyer or offer on the terms specified.
An object that was once considered to be personal property but has become real property because of attachment to, or use in, improvements to real property.
Flag lot
A lot characterized by a long access road or driveway leading back to the main part of the lot.
What a sales associate does after a sale to maintain customer contact and goodwill.
A court process to transfer title to real property used as security for debt as a means of paying the debt by involuntary sale of the property.
Formal complaint
An outline of the charges against a licensee that must be answered within the statutory time limit.
Formal contract
Any agreement that contains all the essentials of a contract, including that it is in writing and under seal; a contract dependent on a particular form.
The intent to misrepresent a material fact or to deceive to gain an unfair advantage or to harm another person.
Freddie Mac
Formerly called the Federal Home Loan Mortgage Corporation (FHLMC). A secondary mortgage market institution that buys and sells conventional, FHA, and VA loans.
Free and clear
Title to real property that is absolute and unencumbered.
Freehold estate
A tenancy in real property with no set termination date that can be measured by the lifetime of an individual or can be inherited by heirs.
Further assurance
A provision in a deed containing a covenant or warranty to perform any further acts the grantee (buyer) might require to perfect title to the property.
A roof design that peaks at the center ridge and extends downward on two opposite sides.
General agent
A representative authorized by the principal to perform only acts related to a business or to employment of a particular nature.
General lien
A claim that may affect all of the properties of a debtor.
General partnership
An association of two or more persons for the purpose of jointly conducting a business, each being responsible for all the debts incurred in the conducting of that business.
General warranty deed
An instrument of conveyance containing the strongest and most comprehensive promises of further assurance possible for a grantor (seller) to convey to a grantee (buyer).
Going concern value
The worth of a business, including real estate, goodwill, and earning capacity.
Good consideration
A promise that cannot be measured in terms of money, such as love and affection.
Good faith
A party's honest intent to transact business, free from any intent to defraud the other party; each party's faithfulness to one's duty or obligations set forth by contract.
An intangible asset (value) of a business.
Government lot
Fractional piece of land less than a quarter section resulting from geographical features (e.g., lakes, streams) interfering with land surveying.
Government National Mortgage Association (GNMA) ("Ginnie Mae")
A federal agency that is part of the Department of Housing and Urban Development (HUD). Ginnie Mae plays an important role in achieving the HUD's goal of providing low-cost mortgage credit to traditionally underserved sectors of the housing market.
Government survey system
A type of land description, developed by the federal government for subdividing lands utilizing surveying lines.
Party who receives a deed or grant; buyer.
Granting clause
The provision in a deed that specifies the names of the parties involved, the words of conveyance, and a description of the property.
Party who signs and gives a deed; seller.
Green Belt Law, Florida
Legislation that authorizes county property appraisers to assess land used for agricultural purposes according to its current value as agricultural land.
Gross income multiplier (GIM)
A rule of thumb for estimating the market value of commercial and industrial properties; the ratio to convert annual income into market value.
Gross lease
An agreement for the tenant to pay a fixed (base) rent and the landlord pays all of the expenses associated with the property.
Gross rent multiplier (GRM)
A rule of thumb for estimating the market value of income-producing residential property; the ratio to convert rental income into market value.
Ground lease
An agreement for the tenant to lease the land only and erect a building on the land.
Group license
A right granted a sales associate or broker associate to work various properties owned by affiliated entities under one owner developer.
A provision in a deed to real property that stipulates the estate or interest the grantee is to receive and the type of title conveyed.
Published by the Florida Real Estate Commission for study and guidance of students, applicants, licensees, and members of the general public on Florida Statute 475 and other laws, acts, rules, and regulations. (Available on the DRE's Web site.)
Handicap status
As defined in the Fair Housing Act, a physical or mental impairment that substantially limits one or more major life activities.
Hazard insurance
Coverage by contract whereby one party undertakes to guarantee another party against loss resulting from physical damage to real property.
Health ordinances
Local codes that regulate maintenance and sanitation of public spaces.
A session in which testimony and arguments are presented, especially before an official.
Highest and best use
A principle of value that focuses on the most profitable legal use to which a property can be put.
Pitched roof with sloping sides and ends.
Home equity loan
A mortgage secured by a personal residence. It provides a line of credit available for draws when needed by the homeowner. It is sometimes used as a home improvement loan.
Term used to describe three separate but related situations: (1) a tax exemption, (2) a tract of land limited in size, and (3) a statutory condition designed to protect the interests of a spouse and lineal descendants.
One individual, or a group of individuals, living in one dwelling unit.
To pledge real or personal property as security for a debt or obligation without giving up possession of the property.
Real property that is owned by a unit of government and is not subject to taxation.
Expressed indirectly (e.g., an implied contract).
Implied contract
An agreement wherein the terms are not stated but are inferred from the conduct of the parties.
Implied listing
An employment contract that arises from the conduct of the broker and seller and may be enforceable even though not clearly spelled out in words.
Addition that increases the value of real property (not repairs).
Amount earned or gained, not return of capital.
Income capitalization approach
A method for estimating the market value of a property based on the present and future income the property can be expected to generate.
Income statement
A summary of all income and expenses of a business for a stated period of time.
When the cost to correct a defect is greater than the value added by the cure.
Status of a license when it is inactive or has been suspended.
Properties that include (1) sites in industrial parks or subdivisions, (2) redeveloped industrial parcels in central areas, and (3) industrial acreage.
Informal hearing
A respondent who does not dispute allegations of material fact in the administrative complaint may request an informal hearing before the FREC for final action on the complaint.
A writ or order by a court forbidding a party from doing something.
Movement into a community or region by new residents
Any legal or formal writing, such as a will, option, lease, contract, or deed.
Insurance clause
A provision in a mortgage that requires the mortgagor to obtain and keep current a hazard insurance policy.
Intangible asset
Something of value lacking physical substance; existing only in connection with something else (e.g., the goodwill of a business).
Intangible tax on mortgages, state
Tax required prior to a mortgage being recorded. The cost is based on the face value of the mortgage.
The concentration of activity (pedestrian and vehicular traffic) used as a means of designating land for commercial zones.
The price paid for the use of borrowed money; estate.
Interest rate
The percentage charged for the use of borrowed money.
Interior lot
A lot that is bounded on either side by another lot (lots in the middle of the block---not on the corner).
The process whereby financial middlemen consolidate many small savings accounts belonging to individual depositors and invest those funds in large, diversified projects.
See Commingle
A course of action when two contesting parties cannot reach an arbitrated agreement; A legal proceeding whereby the broker, having no financial interest in the disputed funds, deposits with the court the disputed escrow deposit so that the court can determine who is the rightful claimant.
Interval ownership
Fee simple possession, for the limited time purchased (one or more weeks), of a time-share unit, complete with deed, title, and equity.
Without a will.
The outlay of money in anticipation of income or profit; the sum risked or the property purchased.
Investment contract
A type of security using the sale of real property as the investment.
Investment value
The worth of a property to a particular investor based on his or her desired rate of return, risk tolerance, etc.
Involuntarily inactive
The license status that results when a license is not renewed at the end of the license period.
Involuntary liens
Claims imposed against real property without the consent of the owner (e.g., taxes, special assessments).
Joint tenancy
An estate or interest owned by more than one person, each having equal rights to possession and enjoyment; the interest a deceased tenant conveys to surviving tenants by specific wording in the deed establishing the joint tenancy.
Joint venture (joint adventure)
Two or more parties in an arrangement confined to only one or a limited number of business deals.
Decree of a court that not only declares that one party owes another party a debt but also fixes the debt amount.
Judicial review
The power of a court to reexamine statutes or administrative acts and to determine their validity; a rehearing or appeal to a higher court.
Just value
The fair market value.
Key lot
A long skinny lot similar to the shaft of a key that is often bounded by as many as five or six lots (the term also refers to a lot that has added value because of its strategic location).
Payment of money from someone other than the buyer or seller associated with real estate business.
Allow to act; noninterference by government in trade, industry, and individual action generally.
The surface of the earth and everything attached to it by nature.
Land description (legal description)
A definite and positive written identification of a specific parcel of land and its location without additional oral testimony.
Lay member
One not belonging to or connected with a particular profession.
An estate for years; an agreement that does not convey ownership but does convey possession and use for a period of time and for compensation.
Leasehold estate
A tenancy in real property held under a lease arrangement for a definite number of years; nonfreehold.
Legal description
A series of boundary lines on the earth's surface.
Legally sufficient
A complaint that contains facts indicating that a violation has occurred of a Florida statute, a DBPR rule, or a FREC rule.
Lender's policy
Title insurance issued for the unpaid mortgage amount to protect the lender against title defects.
A tenant or leaseholder; party given a lease.
The landlord or owner; party granting a lease.
Level-payment plan
A method for amortizing a mortgage whereby the borrower pays the same amount each month.
The use of borrowed funds to finance the purchase of an asset; the use of another's money to make more money.
Debts; financial obligations; drawbacks.
A privilege granted by the state to operate as a real estate broker, broker associate, or sales associate; a type of time-share interest.
An individual who has qualified for, and been registered as, a real estate broker, broker associate, or sales associate.
Certification as a licensee; the granting by the state of a license to practice real estate.
A claim on property for payment of some obligation or debt.
One whose property is subject to a claim or charge by another.
One who has a claim or charge on the property of another.
Lien theory
Legal concept that regards a mortgage as a just claim on specific property pledged as security for a mortgage debt.
Life estates
Tenancies whose durations are limited to the life of some person; freehold.
Limited liability company (LLC)
An alternative, hybrid business entity with the combined characteristics and benefits of both limited partnerships and S corporations.
Limited liability partnership
A business entity that features protection from personal liability but with fewer legal restrictions compared with other business entities.
Limited partnership
A business entity consisting of one or more general partners and one or more limited partners.
Descended in a direct family line; relating to or derived from ancestors
Liquidated damages
The amount of valuable consideration specified in an agreement as a penalty for default. (See also Damages.)
The process of determining liabilities and apportioning the assets in order to discharge the indebtedness of a business to be sold.
The ability to convert noncash assets into cash quickly; refers to a firm's cash position and its ability to meet obligations.
Lis pendens
A pending legal action.
Oral or written employment agreement between a broker (or a sales associate employed by a broker) and the property owner; authorization to sell, rent, or exchange.
A lawsuit; the act of carrying on a lawsuit; a case before a court of law.
Littoral rights
Legal rights related to land abutting an ocean, sea, or lake, usually extending to the high-water mark.
Loan correspondent
Generally, a mortgage banker or company that provides services for lending institutions
Loan-to-value (LTV) ratio
Relationship between amount borrowed and appraised value (or sale price) of a property.
Lot and block
A type of legal description of land.
A person having attained 18 years of age, or having married, or by court order; no longer a minor; a number greater than half the total.
The committing of an unlawful act, especially by a public official.
Mandamus, writ of
An order of a superior court directing a lower court or body to do some specified act.
Directive from a higher authority to a lower body.
Marketable title (merchantable title)
Rights to real property that are so clear that a buyer may have peaceful and quiet enjoyment of the property free of litigation.
Market value
The most probable price a property will bring from a fully informed buyer, willing but not compelled to buy, and the lowest price a fully informed seller will accept if not compelled to sell.
Master in chancery
An appointed assistant to a court
The act of having a third party attempt to reconcile a dispute between two parties.
Meeting of the minds
The point when two people, thinking of the same thing, reach an agreement through an offer and acceptance.
Any of the imaginary lines of longitude on the earth's surface; in land description, the vertical lines running in a north-south direction parallel to the principal (prime) meridian and separating the various ranges.
Metes-and-bounds description
A method of legal description that identifies a property by specifying the shape and boundary dimensions of the parcel. A metes-and-bounds description starts at the point of beginning and follows the boundaries of the land by compass direction and linear measurements and returns to the point of beginning.
An intermediary who merely brings two parties together.
A unit of money used to specify a property tax rate ($1 for each $1,000 of taxable value).
A tax rate, expressed as the number of mills to be applied.
Any crime punishable by fine or imprisonment other than in a penitentiary.
A lawful act done in a negligent or unlawful manner.
A false or misleading statement of a material fact; concealment of a material fact.
Monetary policy
The actions undertaken by the Fed to influence the availability and cost of money and credit.
Man-made or natural object used to establish boundaries of land
Moral turpitude
An act of corruption, vileness, or moral depravity; a disgraceful action or deed.
A written agreement that pledges property as security for payment of a debt.
Mortgage banker
An individual (or company) who makes loans with the expectation of reselling them to institutional lenders. (See also Mortgage company.)
Mortgage broker
One who finds a lender for a potential borrower, and vice versa.
Mortgage company
A mortgage loan company that originates, services, and sells loans to investors.
A lender who holds a mortgage on specific property as security for the money loaned to the borrower.
Mortgage insurance premium (MIP)
Fee paid by FHA borrowers to obtain a loan (up-front and annual).
A borrower who gives a mortgage on his or her property in order to obtain a loan from a lender.
Multiple licenses
Licenses held by a broker in two or more real estate brokerage firms.
Multiple-listing service (MLS)
An arrangement among members of a real estate board or exchange that allows each member broker to share listings with other members so that greater exposure is obtained and a greater chance of sale will result.
Negative amortization
A financing arrangement whereby monthly mortgage payments are less than required to pay both interest and principal. The unpaid amount is added to the loan balance.
Net income
Profit from property or business after expenses have been deducted; effective gross income less operating expenses.
Net lease
An agreement for the tenant to pay fixed rent plus property costs such as taxes, insurance, and utilities.
Net listing
An agreement or contract to sell or rent a property for a specified minimum net amount for the owner.
Net operating income (NOI)
The resulting amount when all operating expenses are subtracted from effective gross income.
Nolo contendere
A pleading of no contest by a defendant; a plea in a criminal action not admitting guilt but subjecting the defendant to punishment as if it were a guilty plea.
Nonconforming use
Continuing land use that is not in compliance with zoning ordinances.
Nonfreehold estate (leasehold interest)
An estate in real property in which ownership is for a determinable time period, as in a lease.
Legal evidence of a debt that must accompany a mortgage in Florida; a legally executed pledge to pay a stipulated sum of money. (See also Promissory note.)
Notice of noncompliance
Issued by the DBPR in the case of a minor rule violation that does not endanger the public health, safety, and welfare.
The substitution of a new party and/or new terms to an existing obligation.
A lender or mortgagee.
A borrower or mortgagor.
A cause of loss in value.
An intentional proposal or promise made by one party to act or perform, provided the other party acts or performs in the manner requested.
One who receives an offer, usually the seller.
One who makes an offer, usually the buyer.
Office of Thrift Supervision (OTS)
A branch of the U.S. Treasury Department that replaced the Federal Home Loan Bank Board as regulator of the thrift industry.
Open-end clause
A provision in a mortgage allowing the borrower to increase the loan amount as long as the total debt does not exceed the original mortgage loan amount, with the lender often reserving the right to adjust the interest rate to current market rates; a mortgage for future advances.
Open listing
An employment contract given to any number of brokers who work simultaneously to sell the owner's property.
Open market operations
Purchase and sale of U.S. Treasury and federal agency securities.
Opinion of title
A formal statement by an attorney regarding the status of a title after examination of the chain of title.
Opinion of value
An estimate of a property's worth given by a licensee for the purpose of a prospective sale.
Option contract
A right or privilege to purchase or lease real property at a specified price during a designated period based on a sufficient consideration.
The party who takes an option and pays a consideration.
The party who gives an option and receives a consideration.
Origination fee, loan
A charge by a lender for taking a mortgage in exchange for a loan.
Ostensible partnership
One or more parties cause a third party to be deceived into believing that a business relationship exists when no such arrangement exists.
Overage (secret profit; secret commission)
Retaining more than the agreed amount of sales commission, without the express knowledge and consent of the parties involved; a form of fraud.
Overall capitalization rate (OAR)
The relationship between annual net operating income and the value or sale price of a property.
An addition or change to property not in line with its highest and best use, or a betterment that exceeds that justified by local conditions.
An unlicensed entity that sells, exchanges, or leases its own property.
Owner's policy
Title insurance issued for the total purchase price of the property to protect the new owner against unexpected risks.
Package mortgage
A loan covering both real and personal property.
Parol contract
An agreement that is not in writing.
Partially exempt
Property subject to taxation, but the owner is partially relieved of the burden.
Partial release clause
Stipulates the conditions under which the mortgagee will grant freeing building lots from a mortgage lien upon payment of a certain amount of money.
Two or more competent individuals each of whom agrees to share in the profits and losses of the business.
Pass-through securities
Certificates pledging a group (pool) of existing government-backed mortgages used for the purpose of channeling funds into housing markets.
Penalty clause
A provision in a mortgage that requires the borrower to pay a penalty in money if the mortgage payments are made in advance of the normal due date or if the mortgage is paid in full ahead of schedule.
Percentage lease
An agreement for the tenant to pay rent based on the gross sales received by doing business on the leased property.
Per diem
By the day; per day; an allowance for daily expenses.
Point when a party or parties to a contract fulfill the promises or obligations in the contract.
Personal property
Tangible and movable property (transferred by bill of sale); property not classified as real property. Also known as personalty or chattel.
Personal representative
Administrator of a deceased person's estate.
Petition for review
A request to a court of appeal (appellate court) asking it to examine the record of the proceedings in a specific case. (See also Judicial review.)
A type of building foundation that uses columns of masonry to support the structure.
The slope of a roof.
The person or party bringing suit or charges; the complaining party; complainant.
Planned unit development (PUD)
A residential project with mixed land uses and high residential density.
Devising ways and means for achieving desired goals.
Planning commission (board)
An official agency, usually made up of appointed lay citizens, that directs and controls the use, design, and development of land in a city, county, or region.
Plat (plat map)
Subdivision plat map
The added value as a result of combining two or more properties into one large parcel.
Point, mortgage discount
A charge of 1 percent of the mortgage value; assessment by a lender to increase the interest yield to compete with the interest yield from other types of investments. (See also Discount points.)
Point of beginning (POB)
The starting (and ending) place in a land survey using the metes-and-bounds method of property description.
Point of contact information
Any means by which to contact the brokerage firm or individual licensee including mailing address(es), physical street address(es), e-mail address(es), telephone number(s), or facsimile telephone number(s).
Police power
The authority of government to protect the property, life, health, and welfare of its citizens.
Policy manual
The notebook of written rules and regulations that set desired standards and procedures in an office.
Potential gross income (PGI)
The total annual income a property would produce with 100 percent occupancy and no collection or vacancy losses.
Premises section
(See Granting clause.)
Prepayment clause
A provision in a mortgage that allows the mortgagor to pay the mortgage debt ahead of schedule without penalty.
Prepayment penalty
The amount set by the creditor that the debtor is charged for retiring the debt early.
Prescription, easement by
A method of acquiring an interest in real property through long and continued use.
Present value
The worth of all future benefits of an investment in terms of today's dollars.
The amount paid for something.
Prima facie evidence
Requiring no further proof; acceptable on the face of.
Primary lender
Financial institution that makes mortgage loans directly to borrowers (e.g., savings association, bank).
Primary market
A source for the purchase of a mortgage loan by a borrower.
The party employing the services of a real estate broker; amount of money borrowed in a mortgage loan, excluding interest and other charges.
Principal meridians
Imaginary lines running north and south and crossing a base line at a definite point; used by surveyors for reference in locating and describing land under the government survey system.
Private mortgage insurance (PMI)
Needed to insure all of the mortgage representing more than 80 percent of appraised value or purchase price.
Probable cause
Reasonable grounds or justification for prosecuting.
A suspended sentence during good behavior, usually under supervision.
Procuring cause
The person whose efforts are the cause of an executed sale contract, regardless of who actually writes the contract.
Professional Association (PA)
A business corporation consisting of one or more individuals engaged in a primary business that provides a professional service (e.g., lawyer, doctor).
The amount one makes over and above one's cost.
Pro forma statement
An estimate of the economic results of a proposed project; a projected income statement.
The principle that states that the value of an inferior property is enhanced by its association with superior properties of the same type.
Promissory note
A written promise to pay a specific amount.
A bundle of legal rights.
Property management
The leasing, managing, marketing, and overall maintenance of property for others.
Proprietary lease
A written agreement between the owner-corporation and the tenant-stockholder in a cooperative apartment.
To divide or assess proportionate shares of charges and credits between the buyer and the seller according to their individual period of ownership.
Comments or opinions not made as representations of fact and thus not grounds for misrepresentation.
Purchase-money mortgage (PMM)
Any new mortgage taken as part of the purchase price of real property by the seller.
Quarter; any of the four quarters into which something is divided.
The process of reviewing prior to approval (of a buyer's housing needs and financial abilities, of a borrower's mortgage loan application, or of an application for licensure). (See also Underwriting.)
As if; of a similar nature; seemingly.
Powers delegated to the FREC to enact rules and regulations, decide questions of practice, and validate records (imprint with FREC's seal).
Powers delegated to the FREC to discipline real estate licensees for violations of real estate license law and FREC administrative rules.
Quiet enjoyment
A provision in a deed guaranteeing that the buyer may enjoy possession of the property in peace and without disturbance by reason of other claims on the title by the seller or anyone else.
Quiet title
A suit or action in a court to remove a defect, cloud, or claim against the title to real property.
Quitclaim deed
A type of deed that will effectively convey any present interest, claim, or title to real property that the seller (grantor) may own.
The minimum number of persons who may lawfully transact the business of a meeting (51 percent or four of the members of the Florida Real Estate Commission).
In the government survey system of land description, a vertical strip of land six miles wide located between two consecutive submeridians or range lines.
Range lines (submeridians)
The surveyed north-south lines running every six miles east and west of the principal meridian.
The relationship in quantity, size, or amount between two things; proportion.
Ready, willing, and able?
Ready" indicates the buyer is in a position and of a mind to complete the transaction; "willing" implies that the buyer desires to do so at the price and terms agreed; "able" refers to the buyer's financial ability to produce the required money when necessary.
Real estate
Land, including the air above and the earth below, plus any permanent improvements affecting the utility of the land; real property; property that is not personal property.
Real estate business
A commercial activity in which the sale, purchase, leasing, rental, exchange, or management of real property is conducted by qualified and licensed parties acting either for themselves or for others for compensation.
Real estate profession
A profession requiring knowledge of real estate values, experience in dealing with the public, plus exceptional personal integrity and character as qualifications to act as advisors and agents for members of the public.
Real estate services
Real estate activities involving compensation for performing the activities for another.
Real property
Any interest or estate in land, including leaseholds, subleaseholds, business opportunities and enterprises, and mineral rights; real estate.
A real estate broker who is a member of a local board of REALTORS® and is affiliated with the state association (Florida Association of REALTORS®) and the National Association of REALTORS® (not synonymous with "real estate agent").
A synonym for real estate and real property.
Reasonable time
A variable period of time, which may be affected by market conditions, desires of the owner, supply and demand, fluctuations of values, or an official decision.
An independent party appointed by a court to impartially preserve and manage property that is involved in litigation, pending final disposition of the matter before the court.
Receivership clause
A provision in a mortgage, related to income-producing property, that is designed to require that income derived shall be used to make mortgage payments in the event the mortgagor (borrower) defaults.
Recommended order
A determination by an administrative law judge that includes findings and conclusions as well as other information required by law or agency rule to be in a final order.
The process of weighting the estimates of value derived from the sales comparison, cost, and income approaches to arrive at a final estimate of market value.
To place any document or instrument affecting title or an interest in real property in the public records of the county in which the property is located.
Recovery fund (Real Estate Recovery Fund)
A state-regulated account to cover claims of aggrieved parties who have suffered monetary losses from licensee's actions.
Recovery period
The assigned time over which property is depreciated for tax purposes.
Rectangular method
(See Government survey system.)
To repurchase, to buy back, to recover property used as security for a mortgage by paying the debt. (See also Equity of redemption.)
Discriminatory financing by a lending institution.
Authorization by the state to place an applicant on the register (record) of officially recognized individuals and businesses.
The principle that states that the value of a superior property is adversely affected by its association with an inferior property of the same type.
A method of pooling investment money using the trust form of ownership.
Release clause
A provision in a blanket mortgage covering more than one unit of real property that provides for the mortgagor to obtain freedom from the mortgage for each unit when a designated amount has been paid to the mortgagee for each unit.
Gradual receding of water and resulting permanent increase in land once covered.
The party designated to receive an estate at the end of a life estate.
To abandon an acquired right without transferring that right to another.
Replacement cost
The expenditure of constructing a building with current materials and techniques that has the same functional utility as the structure being appraised.
Replacement reserves (reserve for replacements)
A portion of the annual income set aside for covering the cost of major components (e.g., air-conditioning) that wear out faster than the building itself.
An official act of oral and/or written criticism with a formal warning included.
Reproduction cost
Amount required to duplicate the property exactly.
To annul, cancel, repeal, or terminate.
Reserve requirements
The amount of funds that an institution must hold in reserve against deposit liabilities.
Residential sale
The sale of improved residential property of four or fewer units, the sale of unimproved residential property intended for use as four or fewer units, or the sale of agricultural property of ten or fewer acres.
A person who answers to an informal complaint proceeding prior to being adjudged innocent or being named as a defendant.
Any device or action that controls or limits the use of real property.
Restrictive covenants
Conditions placed by developers that affect how the land can be used in an entire subdivision.
That portion of the net proceeds from the sale of property that represents the return of the investor's capital.
To cancel, rescind, annul, or make void; the permanent cancellation of a person's license.
Right of survivorship
A situation by which the remaining joint tenant succeeds to all right, title, and interest of the deceased joint tenant without the need for probate proceedings.
A leasehold interest in a time-share unit based on the limited time (one or more weeks) specified in the agreement.
Riparian rights
Private ownership rights extending to the normal high-water mark along a river or stream and including access rights to water, boating, bathing, and dockage in accordance with state and federal statutes.
The chance of loss of all or a part of an investment; the uncertainty of financial loss.
Rural Housing Services Administration
An agency of the Department of Agriculture that offers assistance to rural residents and communities.
A special rating or method of judging the insulating effectiveness of insulation products.
Sale and leaseback
A financing arrangement in which an investor buys property owned and used by a business accompanied by a simultaneous leasing back of the property to the business by the buyer-investor.
Sale contract (deposit receipt contract; purchase agreement; contract for sale and purchase)
An agreement whereby one party agrees to sell and the other party agrees to buy according to the terms set forth.
Sales associate
A licensed individual who, for compensation, is employed by a broker or owner- developer.
Sales comparison approach
A method for estimating the market value of a property by comparing similar properties to the subject property.
Satisfaction of mortgage
A certificate issued by the lender when the debt obligation is paid in full.
Savings Association Insurance Fund (SAIF)
A federal agency that insures deposits of member savings associations.
A mark, emblem, or impression on a document used to authenticate the document or a signature.
Secondary lender
Agency or financial institution that buys mortgage loans previously made by primary lenders.
Secondary market
A source for the purchase and sale of existing mortgages.
Second mortgage (secondary financing)
A loan that is junior or subordinate to a first mortgage, normally taken out when the borrower needs more money.
One of the primary units of measurement in the government survey system of land description. A section is one mile square and contains 640 acres.
Evidence of a debt or of ownership.
Seisin (seizin)
A covenant in a deed that warrants that the grantor (seller) holds the property by virtue of a fee simple title and has a complete right to dispose of same. Also known as seizin clause.
Seller's market
The demand for available properties exceeds the supply.
Separate property
Real property owned by a husband or wife prior to the marriage with the spouse having no present rights in such property; property owned individually.
Service industries
Businesses that attract local money (e.g., grocery stores, retail shops).
Restrictions established by zoning or deed on the space required between lot lines and building lines.
Sole ownership of real property ("severed" from all others).
The act of removing something attached to the land (e.g., fruit, timber, fence).
Single agent
Per Section 475.01, F.S., a broker who represents, as a fiduciary, either the buyer or seller but not both in the same transaction.
A window characterized by a movable lower sash.
Site plan
A document that indicates the improvement details for a project of greater-than-average size.
Relationships and influences created by location of a property that affect value (e.g., accessibility, personal preference).
Concrete foundation poured directly on the ground.
Sole proprietorship
Dealing as an individual in business.
Special agent
One authorized by a principal to perform a particular act or transaction, without contemplation of continuity of service as with a general agent.
Special assessments
Taxes levied against properties to pay for all, or part of, improvements that will benefit the properties being assessed.
Special exception
An individual ruling in which a property owner is granted the right to a use otherwise contrary to law.
Specific liens
Claims that affect only the property designated in the lien instruments or agreements.
Specific performance
A remedy for an injured party obtained through a court of equity, which requires specific accomplishment of the contract terms by a defendant.
State-certified appraiser
A person verified by the DBPR as qualified to issue state-certified real property appraisals.
Static risk
Risk that can be transferred to an insurer such as the risk of vandalism, fire, and so forth.
An established rule or law passed by a legislative body.
Statute of frauds
An act that requires that certain real estate instruments and contracts affecting title to real property be in writing in order to be enforceable.
Statute of limitations
An act that prescribes specific time restrictions for enforcement of rights by action of law.
Delay temporarily; stop for a limited time.
Discriminatory acts against buyers.
The ownership element in a corporation usually divided into shares and represented by transferable certificates (may be divided into two or more classes of differing rights and stated values).
(See Township lines.)
To segment large, acquired tracts of real property in order to create small tracts for the purpose of resale.
Subdivision plat map
A plan of a tract of land subdivided into lots and showing required or planned amenities.
Subject property
The real property under discussion or appraisal.
Subject to the mortgage
A buyer makes regular periodic payments on the mortgage but does not assume responsibility for the mortgage.
A lessee leasing a property to a third party for a period of time less than the original lease (also referred to as subletting).
(See Range lines.)
Made subject to or subservient to; assignment to a lesser role or position.
Subordination clause
A provision in a mortgage in which the lender voluntarily permits a prior or subsequent mortgage to take priority over the lender's otherwise superior mortgage; the act of yielding priority.
A writ or order commanding the person named to appear and testify in a legal proceeding.
Made subject to or subservient to; assignment to a lesser role or position.
Substitution, principle of
An economic law of value: no prudent buyer will pay more for a property than the cost of an equally desirable replacement property.
An act of suing; an action in a court of law for the recovery of a right or claim.
Summary suspension
Emergency or immediate action against a license to protect the public.
Supersedeas, writ of
A stay of enforcement; temporary stop in a legal proceeding; restraining order.
The quantity of goods or services offered for sale to consumers.
The procedure used to measure and describe a specific tract of real property for the purpose of determining exact boundaries and the area contained therein.
Survivorship, right of
A legal concept whereby the surviving owners of a joint interest in real property are entitled to the interest formerly owned by one or more deceased owners.
To cause to cease operating for a period of time; the temporary withholding of a person's license rendering it ineffective; a period of enforced inactivity.
Tangible asset
Anything of substance; personal and real property (e.g., cash, building, equipment, land).
Compulsory payment paid by a citizen to a unit of government.
Taxable income
Gross income minus tax deductions; net operating income plus reserve for replacements minus financing costs and allowable depreciation.
Taxable value
The assessed value less allowable exemptions resulting in an amount to which the tax rate is applied to determine property taxes due.
Tax certificate
A document sold by a local tax authority granting the certificate buyer the right to receive delinquent taxes plus interest when paid by the legal property owner.
Tax clause
A provision in a mortgage that requires the borrower to pay all legitimate property taxes.
Tax deed
A type of deed used to convey title after real property is sold at auction by public authority for nonpayment of taxes.
Tax district
An authority, such as a city, county, school board, or special levy area (e.g., water district), with the power to assess property owners annually in order to meet its expenditures for the public good.
Tax lien
A claim against real property arising out of nonpayment of the property taxes.
Tax rate
The percentage of value that is used to determine the amount of tax to be levied against each individual unit of property; ad valorem (according to the value).
Tax shelter
An investment that shields items of income or gain from payment of income taxes; a term used to describe some tax advantages of owning real property (or other investments), including postponement or even elimination of certain taxes.
Telephone solicitation
The initiation of a telephone call for the purpose of encouraging the purchase of, or investment in, property, goods, or services.
The estate or rights of a tenant. (See also Estate.)
Tenancy at sufferance
An estate lawfully acquired for a temporary period of time but retained after a period of lawful possession has expired; nonfreehold estate.
Tenancy at will
An estate that may be terminated by either party at any time upon proper notice; nonfreehold estate.
Tenancy by the entireties
An estate created by husband and wife jointly owning real property with instant and complete right of survivorship.
Tenancy in common
A form of ownership by two or more persons each having an equal or unequal interest and passing the interest to heirs, not to surviving tenants.
A person or party with rights of occupancy or possession of real property.
Term mortgage
A nonamortizing loan that normally calls for repayment of the principal in full at the end of the loan term.
Having left a will.
Testator (testatrix)
A person who makes a will.
Third party
Generally, a member of the public; not the principal or agent in a transaction.
An east-west row of townships (as used in the government survey method of land description).
Time is of the essence
A phrase in a contract making failure to perform by a specified date a breach or violation of the agreement.
An individual interest in a real property unit together with a right of exclusive use for a specified number of days or weeks per year.
T-intersection lot
An interior lot that suffers from its location at the end of a T-intersection (a street ends in front of the lot).
The group of rights that represent ownership of real property and the quality of the estate owned; evidence of ownership of property; legal title.
Title insurance
A policy of insurance that protects the holder from any loss resulting from defects in the title.
Title plant
Copies of recorded documents from the public records kept by title insurance companies; record room.
Title search
An examination of all of the public records to determine whether any defects exist in the chain of title.
Title theory
Legal concept that vests title to mortgaged property in the mortgagee (lender) or a third party.
Surface features (natural and manufactured) of land (e.g., lakes, mountains, roads).
A square tract of land measuring six miles on each side and including 36 sections (formed by the crossing of range and township lines).
Township lines (subbaselines)
The east-west survey lines located every six miles north and south of the primary base line.
Trade fixture
An article that is attached by a commercial tenant as a necessary part of the tenant's business and is personal property.
Trade name
Any adopted or fictitious name used to designate a business concern.
Transaction broker
A broker who provides limited representation to a buyer, a seller, or both in a real estate transaction, but does not represent either in a fiduciary capacity or as a single agent.
Triggering terms
The Truth-in-Lending Act requires creditors to disclose certain information if certain credit terms, called triggering terms, are included in the advertisement. Triggering terms include the amount or percentage of down payment, number of payments, period (term) of repayment, amount of any payment, and the amount of any finance charges.
A right of property, either real or personal, held by one party for the benefit of another.
Trust account
A person or party, either appointed or required by law to administer or manage another's property.
Trustee (escrow agent)
A person or party, either appointed or required by law to administer or manage another's property.
Underwriting (loan qualification; risk analysis)
The analysis of the extent of risk assumed by a lender in connection with a proposed mortgage loan.
A contract that was valid when made but either cannot be proved or will not be upheld by a court.
Unilateral contract
An agreement in which only one party promises to perform without receiving a reciprocal promise to perform from the other party.
Unincorporated association
A group of people associated together for some common, noncommercial purpose.
Unities (four unities)
Individual prerequisites required to constitute a single joint tenancy.
Universal agent
A representative authorized by the principal to perform all acts that the principal can personally perform and that may be lawfully delegated to another.
Unliquidated damages
The amount of valuable consideration awarded by a court to an injured party as a result of default. (See also Damages.)
Charging a rate of interest greater than the legal one; unlawful interest.
Vacancy and collection losses
A deduction from potential gross income for (1) current or expected future space not rented due to tenant turnover and (2) loss from uncollected rent due from delinquent tenants.
Vacancy rate
The percentage of rental units that are not occupied.
To set aside, cancel, or annul; to leave empty.
Sufficient to be legally binding; enforceable.
Valid contract
An agreement binding on both parties and legally enforceable against all parties to the agreement.
Valuable consideration
The money or a promise of something that can be measured in terms of money.
The worth of something.
Variable lease
An agreement for the tenant to pay specified rent increases based on a predetermined index (CPI) at set future dates.
An exception to zoning regulations or ordinances granted to relieve a hardship.
The buyer or purchaser of real property under an agreement of sale.
The seller of real property in an agreement of sale.
Vendor's lien
A claim against property giving the seller the right to hold the property as security for any unpaid purchase money.
Veterans Affairs, Department of (VA)
Guarantees mortgage loans to encourage private lending agencies to give liberal mortgages to veterans and their spouses.
Invalid; without force; no longer effective.
A contract that because of the manner or method in which it was brought about, one of the parties is allowed to avoid his or her contractual duties
Voluntarily inactive
The license status that results when a licensee has met all of the requirements for licensure, yet the licensee chooses not to engage in the real estate business, and has requested his or her license be placed in this status.
Voluntary liens
Claims imposed against real property with the consent of the owner.
A guarantee or covenant, as in a warranty deed.
Warranty forever
A provision in a deed guaranteeing that the seller will for all time defend the title and possession for the buyer.
An improper use or abuse of property by one who holds less than the fee simple ownership of it.
A written document legally executed by which an individual disposes of his or her estate, effective after death.
A person who gives testimony; one who observes and attests to the signing or executing of a document.
Wraparound mortgage
A financing technique in which the payment of the existing mortgage is continued (by the seller) and a new, higher interest rate mortgage, which is larger than the existing mortgage, is paid by the buyer-borrower.
A court order directing a party to do a specific act, usually to appear in, or report to, a court of law.
The rate of return; the return on an investment or the amount of profit stated as a percentage of the amount invested; the ratio of the annual net income from a property to the cost or market value of the property.
Zoning ordinances
Classification of real property for various purposes; the government power to control and supervise the utilization of privately owned real property (actually, the exercise of police powers).