miamidivum

6024 VILLAS AT MOORS

Wed, 29 Oct 2025 17:47:11 GMT

6024 NW 172 Ter Cir

2 FLOORS ! , 2 BED! , 2 BATH ! , 2 PARKING ! - with an INSIDE BALCONY ! and BAR STYLE KITCHEN. This unit is safely located inside a quiet guarded / GATED COMMUNITY, and is literally 2 blocks away from the highway. Excellent amenities include CLUBHOUSE POOL, TENNIS & wide backyard patios. Dont miss this opportunity to get in before the holidays AND ENJOY THIS ONE OF KIND HOME, AVAILABLE NOW !

¡2 PISOS!, ¡2 HABITACIONES!, ¡2 BAÑOS!, ¡2 ESTACIONAMIENTOS! - con BALCÓN INTERIOR y COCINA ESTILO BAR. Esta unidad se encuentra en una tranquila comunidad cerrada y vigilada, a solo dos cuadras de la autopista. Excelentes comodidades: piscina en la casa club, cancha de tenis y amplios patios traseros. ¡No pierda la oportunidad de alquilarla antes de las fiestas y disfrutar de esta casa única, ya disponible!

#MIAMIDIVUM #MIAMI #MiamiDadeCounty #InterInvestmentRealty # IIR #DivumRentals #TheMoors #33015 # Hialeah

2,650 / Mo

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REAL ESTATE VOCABULARY

Sun, 24 Mar 2024 04:13:03 GMT

REALTY Vocab ( A - B - C )

REALTY Vocab ( D - E - F - G - H - I )

REALTY Vocab ( J - K - L - M - N - O )

REALTY Vocab ( P - Z )

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Associations

REALTY Vocab ( D - E - F - G - H - I )

Sun, 24 Mar 2024 02:29:55 GMT

REAL ESTATE - D -

DATA BANK (APPRAISAL PLANT)
An up-to-date library of statistical information compiled by appraisers, such as real estate sales data, governmental and trade publications, maps, zoning information, land use, and economic studies.

DATUM
A point of reference for measuring elevations, such as the mean (average) sea level in New York Harbor.

DEBIT
In accounting, an increase in assets or a decrease in liabilities. On a closing statement, funds that are to be paid by the seller or buyer. To charge with a debt.

DEBT COVERAGE RATIO
The ratio of net operating income to annual

DEBT SERVICE = NOI/ADS
debt serviceSynonymous with mortgage payments.Principal and interest payments.

DEBTOR (BORROWER)
The party who owes a debt and is responsible for its repayment. >>_ mortgagor.

DECLARATION OF CONDOMINIUM
The instrument or instruments by which a condominium is created, as they are amended from time to time.

DECLARATORY JUDGMENT
As applied to contracts, a legal action that permits the contracting parties to settle a controversy pertaining to 1) the meaning of certain words in the contract; or 2) the rights granted to the parties by the words.

DEDICATION
A transfer of land by its owner for public use and accepted for such use by the public (eg., streets, playgrounds, parks, and recreational areas).

DEED
A written instrument, signed by the grantor and witnessed by two persons, which transfers title to real property and declares or creates legal rights and obligations.

DEED IN LIEU OF FORECLOSURE
A borrower may want to voluntarily deed the mortgaged property to the lender when he or she anticipates foreclosure. The borrower should obtain cancellation of the unpaid debt. The lender avoids the costs and time associated with foreclosure and the wait involved in redemption periods.

DEED OF TRUST
Used to convey title or an interest in property to a third-party trustee to be held as security for a debt or obligation owned by the trustor (borrower) to the beneficiary (lender). A deed of trust is similar to a mortgage and is used in states other than Florida, such as California and Texas.

DEED RESTRICTION
A clause in a deed that limits the use of land or prohibits certain uses (e.g., the use, type, style, design, or size of a structure that may be constructed on the land). The restrictions cannot be discriminatory against any of the protected classes established by the Federal Fair Housing Act. The restrictions only apply to a specific property whereas restrictive covenants apply to an entire subdivision. >>_ Federal Fair Housing Act and restrictive covenants.

DEFAULT
The failure or omission to perform or fulfill a legal duty, obligation, or promise.

DEFEASANCE CLAUSE
A clause in a mortgage contract that defeats conveyance of the borrower's property to the lender so long as the borrower repays the debt as agreed, and complies with the terms and conditions of the mortgage contract.

DEFECT
The absence of some legal requisite. A deficiency or imperfection in something essential to completeness (e.., a defect in title to real property).

DEFENDANT
The party who is sued in a court action, either civil or criminal, or summoned to answer a charge or complaint at a trial or hearing.

DEFICIENCY JUDGMENT
As applied to mortgage law, a judgment rendered by a court that imposes personal liability on the borrower because the foreclosure or short sale did not net enough money to satisfy the lien(s). >>_ foreclosure and short sale.

DELIVERY
The actual transfer of a properly executed deed to the grantee by the grantor, with the intention that the deed is to take effect as a conveyance from the date of delivery.

DEMAND
A characteristic of value. DEMAND IS A NEED OR DESIRE FOR THE USE OR AMENITY OF A PROPERTY, COUPLED WITH THE FINANCIAL CAPABILITY OR PURCHASING POWER TO FILL IT.
>>_ supply.

DENSITY
The number of units per acre. Residential zoning is usually based on density. Various subcategories allow for a number of different types of residential uses including single-family homes, condominiums, apartments, and residential estates.

DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION (DBPR)
An agency of state government (Florida) that functions as a consumer protection agency for the purpose of regulating the professions outlined in Chapter 20, F.S.The Department is governed and regulated in accordance with Chapter 455, F.S.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)
A department of the federal government that participates in national housing programs, such as urban renewal, public housing, rehabilitation loans, FHA subsidy programs, and water and sewer grants.

DEPARTMENT OF VETERANS AFFAIRS (VA)
Succeeded the Veterans Administration in1989The VA does not lend money directly (with one exception); it partially guarantees permanent long-term loans by VA-approved lenders for owner-occupied residences including condominiums and mobile homes that meet VA standards, and it is available to most veterans of military service based on entitlement according to the duration and period of military service.

DEPOSIT
As applied to real estate, a sum of money or its equivalent given by a potential buyer to a broker or sales associate as earnest money or security for the performance of a contract. It is often forfeited if the depositor (i.e., the buyer) fails to perform in accordance with the contract. >>_ liquidated damages.

DEPOSIT INSURANCE FUND (DIF)
The Federal Deposit Insurance Reform Act of 2005 merged the Bank Insurance Fund and the Savings Association Insurance Fund into a new fund called the Deposit Insurance Fund effective March 31, 2006.The fund insures banks and savings associations.

DEPOSITION
The sworn, oral testimony of a witness, which has been reduced to writing and duly authenticated for use in court or a legal hearing.

DEPRECIATION
As used in appraising, a loss in building (or improvement) value from all causes, such as physical deterioration, or functional or external obsolescence.

DESCENT AND DISTRIBUTION
The transfer or passing of title to property by inheritance upon the death of the property owner who died without leaving a will (i.e., intestate).

DESIGNATED SALES ASSOCIATE
When real estate licensees are involved in a transaction where both the buyers and sellers are working with the same real estate brokerage, a broker may allow different sales associates of the same firm to be designated sales associates to represent the buyer and seller as single agents. Designated sales associate relationships are not permitted in residential sales transactions.

DEVELOPMENT
The construction of improvements on land (e.g., roads, utilities, and buildings).

DEVISE
A written document that disposes of real and personal property, but which does not take effect until after the death of the person making it (e.g., a last will and testament).

DIRECT PARTICIPATION PROGRAM
A group investment that provides for 1) a flowthrough of all tax benefits and obligations to its investors; and 2) third party management.

DISABILITY
A physical or mental impairment that substantially limits one or more major life activities, a history or record of such impairment, or a person perceived by others as having such impairment.

DISCOUNT POINTS
A fee or charge made by lenders for services related to originating a mortgage loan in which each discount point equals1% of the loan amount.

DISCOUNT RATE
The interest rate the Fed charges for its loan of money to member institutions. The Fed may lower or raise the discount rate.When the discount rate is raised, the institutions borrow less from the Fed, their supply of money decreases, and they usually raise their interest rates which tends to reduce demand. This is the least effective technique the Fed has for controlling the money market.

DISCRIMINATION
A failure to treat all persons equally or fairly.

DISINTERMEDIATION
The process that occurs when individuals withdraw their funds being held in savings accounts and time accounts at financial institutions for direct investment in stocks or other securities.

DISTRICT COURT OF APPEAL
A court that hears appeals from lower courts or administrative bodies, such as the Florida Real Estate Commission. Decisions of such courts are subject to review by the Florida Supreme Court.

DIVEST (DEVEST)
To make clear one's exact position or ownership interest. For example, a real estate broker or sales associate is required to divest himself of his identity as such when buying or selling real estate in which he plans to acquire an interest or in which he has an interest.

DIVISION OF ADMINISTRATIVE HEARINGS
(DOAH) When an administrative complaint against a licensee results in a formal hearing, it is heard by this governmental entity.

DIVISION OF REAL ESTATE (DRE)
A division established within the Department of Business and Professional Regulation that provides recordkeeping services, examination services, legal services, investigative services, plus any other services required to implement Chapter 475 and 455, F.S. The DRE is funded by fees and assessments of the FREC. Funds collected by the FREC are only used to fund real estate regulation.

DOCUMENT
A written instrument on which is recorded the official, legal, or original form of something used to prove a fact (e.g., contracts, agreements, deeds, mortgages, notes, receipts).

DOCUMENTARY STAMP TAX
A Florida state tax on deeds, conveyances, and written promises to repay money (e.g., notes and mortgages), which is collected when the document is recorded into the public record. Documentary stamp tax on the deed is based on the total sales price and documentary stamp tax on the note is based on the total amount of the notes (new and assumed).

DOMESTIC CORPORATION
A corporation (for profit) formed under the laws of the State of Florida, which may be registered to broker real estate.

DOMICILE
The established, principal, and legal residence of a person, as distinguished from a temporary or transient place of residence.

DOMINANT ESTATE
The property that benefits from an easement. >>_ also servient estate.

DORMER
A window that projects out of a sloping roof.

DOUBLE-HUNG
A type of window design where only one half of the window can be open at one time, either sliding the top half down or the bottom half up.

DOWN PAYMENT
The amount of money or percentage of sales price or appraised value the lender requires the borrower to provide.

DRAWS
Installment payments made to builders in a construction loan.

DUAL AGENCY
An agency relationship in which the broker represents both parties as a fiduciary in a real estate transaction, with the knowledge and consent of each. Dual agency is prohibited in Florida. >>_ also Brokerage Relationship Disclosure Act.

DUE DILIGENCE
The process of inspecting a commercial property to determine if actual conditions reflect the presented information in order to reduce risk.

DUE-ON-SALE CLAUSE
A type of acceleration clause contained in a mortgage contract that permits the lender to require immediate, full payment of all funds due upon sale or transfer of the real property if done without the lender's written consent.

DURESS
The unlawful act of forcing or otherwise coercing a person to act against his free will.

DYNAMIC CAPITAL RISK
The risk that actual construction costs will exceed estimates.

REAL ESTATE - E -

EARNEST MONEY
>>_ deposit.

EASEMENT
The legal right of a person to trespass or use the land of another for a specific purpose, which is considered to be an interest in real property.

EASEMENT APPURTENANT
An easement interest that attaches to the land and passes with it from owner to owner.

EASEMENT BY NECESSITY
An interest in real property that permits an owner of a landlocked parcel to cross a portion of land retained by a grantor (both parcels must have been part of a single unit of land at one time).

EASEMENT BY PRESCRIPTION
An interest in real property created by the wrongful use and long-continued enjoyment of another's property (e.g., the unauthorized use of a road or walkway) for a statutory period of time—20 years in Florida.

EASEMENT IN GROSS
A personal interest in and right to use the land of another (e.g., rights-of-way for water or sewer lines, or power lines).

ECONOMIC BASE STUDY
A study that analyzes the employment in anarea.

ECONOMIC LIFE
The period of time during which an income-producing property (e.g., an apartment or an office building, or a motel) yields a competitive return on investment.

EFFECTIVE AGE
The number of years old that a building appears to be based on observed depreciation.

EFFECTIVE DATE
The date licensure is granted; usually the date applicants are officially notified in writing of passing the state exam. The date specified in a contract when the last party has signed or initialed an offer or final counter-offer.

EFFECTIVE GROSS INCOME (EGI)
The total gross income minus the predicted vacancy and collection loss.

ELECTIVE SHARE
An amount equal to 30% of a decedents net distributable estate to which the surviving spouse is entitled if he or she files for an elective share as required by law. It does not apply to the decedent's homestead or any property held in atenancy by the entirety. >>_ homestead and tenancy (estate) by the entireties.

EMINENT DOMAIN
The power of the local, state, or federal goverment to obtain title to private property for public use and without the consent of the owner. This governmental right must be exercised through condemnation proceedings and a fair price must be paid. It is often done for the purpose of acquiring a right-of-way for road construction, land for public buildings or projects, and so on.

EMPLOYEE
A person who is in the service of another under any type of employment agreement, wherein the employer has the right to control and direct the result of that person's work and the means by which the result is to be accomplished. When used in real estate, the relationship between a broker and a sales associate include an independent contractor relationship when such relationship is intended by and established between broker and a sales associate. The existence of such relationship shall not relieve either the broker or the sales associate of her or his duties, obligations, or responsibilities. >>_ independent contractor.

EMPLOYER
One who employs the services of others.For example, an owner of real property may employ a broker to sell, lease, or exchange his property. >>_ client (principal or employer) and principal.

ENCROACHMENT
The unlawful physical intrusion or trespass upon the real property of another (e.g., part of a building, driveway, or fence belonging to one person extending onto an adjacent parcel of land). Generally, an encroachment can be revealed only by a current survey of the properties involved.

ENCUMBRANCE
Any claim, lien, mortgage, lease, encroachment, easement or night-of-way. unpaid taxes, and so on, attached to and binding real property, which may cause the title to be clouded and thus affect the property's value.

ENFORCEABLE CONTRACT
A contract that is recognized by law. Also known as a valid contract.

ENVIRONMENTAL IMPACT STATEMENT
A document that summarizes the effect proposed development will have on the surroundings.

ENVIRONMENTAL PROTECTION AGENCY (EPA)
An agency of the federal government that administers various federal laws and regulations pertaining to environmental concerns, which include air and water pollution, noise pollution, solid waste management, radiation, pesticides, and so on.

ENVIRONMENTAL RISK
The risk that substantial costs may be required to conform to new environmental protections that were not known when the investment was made.

EQUAL CREDIT OPPORTUNITY ACT (ECOA)
Regulation B Federal law that stipulates every applicant must be judged on the basis of his or her own credit rating and income unless the applicant specifically requests in the application for a mortgage loan the consideration of another's income or credit history. The extension of credit should not be discriminatory towards race, color, religion, national origin, sex, marital status, age, or receipt of income from public assistance programs.

EQUITABLE TITLE
The legal interest in real property acquired by the buyer when a sales contract is executed (i.e., signed) by the seller and buyer. The buyer becomes the equitable owner of the property while the seller retains legal title as security for payment of the purchase price by the buyer.

EQUITY
The surplus value or remaining interest belonging to an owner of real property over and above any mortgage indebtedness of other liens against the property.

EQUITY OF REDEMPTION
The right of a mortgagor (i.e., a borrower) in default on a mortgage to redeem his interest in the mortgaged property by curing the reason for default (e.g., paying the sum of money required by the lender, interest, costs). This right to redeem is a matter of law, and not negotiation in Florida, but it must be exercised by the borrower prior to the entry of a foreclosure judgment.

EROSION
The loss of land due to natural causes and is very common along Florida's coast.

ESCALATOR CLAUSE
A clause in a contract, mortgage, or lease providing for an increase of a price, rental amount, or interest rate when an event or contingency occurs.

ESCHEAT
The right of the government to obtain title to the real and personal property of a person who died intestate (i.e., without a will) and with no known heirs.

ESCROW
A system of transfer in which money, documents, or real or personal property are delivered to a disinterested third party and held in trust for others until all conditions in a contract or agreement are fulfilled (e.g., delivery of a deed to an escrow agent until full payment under a contract for deed is made).

ESCROW ACCOUNT
A trust account maintained by a neutral third party in which the funds of others are deposited until the terms of an agreement or contract are fulfilled by the parties; for example, a separate account maintained by a broker where binder and earnest money deposits are held before closing. Florida real estate license law requires brokers escrow accounts to be in a Florida bank, savings association or credit union.

ESCROW CLAUSE
A clause in a mortgage on real property that requires the borrower to include approximately one-twelfth of the estimated cost of annual property taxes and insurance with each monthly mortgage loan payment.

ESCROW DISBURSEMENT ORDER (EDO)
An order issued by the FREC regarding the disbursement of disputed escrow monies.

ESTATE
The degree, quantity, nature, and extent of interest that one has in real and personal property. The extent of interest being held in real property will determine whether one has a freehold or leasehold estate. >>_ freehold estate and leasehold estate.

ESTATE AT WILL (OR TENANCY AT WILL)
Is legally known as a period-to-period tenancy with rights that run from week-to-week, month-to-month, quarter-to-quarter, or even year-to-year. The period for which rights exist is typically measured by the frequency of the rental payments. This agreement continues "at the will" of both the landlord and tenant with no specified time or duration for the rights to continue. A non-freehold estate that either party can terminate with proper notice.

ESTATE FOR YEARS (OR TENANCY FOR YEARS)
A type of non-freehold estate with a definite beginning date and a definite ending date.This estate may not be terminated except by mutual agreement to terminate, by breach (which could result in a lawsuit), or by expiration of the agreed upon time period.

ESTATE IN EXPECTANCY
An estate whose title has not yet been received by the party entitled to receive it (e.g., a remainder estate or reversion estate). An estate in expectancy can be either vested or contingent.

ESTATE IN POSSESSION
Refers to an estate whose titleholder is in possession of the rights to which he or she is entitled. This estate is vested.

ESTATE IN SEVERALTY
Ownership vested in one owner; also referred to as ownership in severalty, tenancy in severalty, or sole ownership.

ESTOPPEL
A principle by which a person is forbidden by law to speak against or deny his own act or deed because of his previous words, acts, or deeds.

ESTOPPEL CERTIFICATE (OR LETTER)
A signed statement by an association or lender certifying for the benefit of another party that certain facts are correct as of that date (e.g., the current mortgage loan balance, the current interest rate, the date to which interest has been paid, the terms and conditions of the mortgage, and the assessments or special assessments due the association). Delivery of the statement will prevent the party making it from later claiming a different set of facts.

EXCLUSIVE AGENCY
A listing contract in which the owner agrees to list his property with only one broker.However, the owner can sell the property without obligating himself to the payment of a fee or commission to the broker.

EXCLUSIVE RIGHT TO SELL
A listing contract in which the owner agrees to list his property with only one broker, and to pay that broker a fee or commission even if the property is sold by another broker or the owner during the term of the listing contract.

EXCULPATORY CLAUSE
A non-recourse clause in a mortgage contract that prevents the lender from obtaining a deficiency judgment against the borrower when the proceeds from a foreclosure sale are insufficient to satisfy the unpaid balance on the mortgage loan.

EXECUTE
To perform all required formalities, such as making, signing, and delivering a contract, mortgage, or note.

EXECUTED (EXECUTION)
Fully performed or completed (e.g., an executed contract) is one in which both parties have fully performed as required and nothing remains to be done by either party.

EXECUTIVE POWERS
The Florida Real Estate Commission's power to publish materials to inform and advise licensees, to fostering licensee education, and to enforce the license law.

EXECUTORY
That which is yet to be fully performed or completed (e.g., an executory contract) is one in which some additional act must be performed by one or more parties to satisfy all terms and conditions of the contract.

EXEMPT PROPERTY
Property that is taxed by the property appraiser but has been made exempt and the owner is released from the obligation to pay.

EXPRESS
Clear, definite, or unmistakable; set forth in words, although not necessarily written (e.g., an express contract) is one in which both parties have agreed, either orally or in writing, to all terms and conditions of the contract.

EXTERNAL OBSOLESCENCE
In appraising, a loss in real property value caused by adverse factors that are external to or exist outside of the property's boundary (e.g., unpleasant environmental conditions in the immediate area); may also be economic or locational obsolescence.

REAL ESTATE - F -

FACSIMILE
An exact copy that preserves all marks of the original document.

FAILURE TO ACCOUNT
A type of conversion, that occurs when a broker collects a commission and fails to divide or account for any share due his or her sales associate as required by their agreement.

FALSE ADVERTISING
Advertising by any means or through any media that is false, misleading, or deceptive. Such advertising by a broker or sales associate for the purpose of selling, purchasing, leasing, or renting real estate located in Florida is a violation of Chapter 475, F.S.

FAMILIAL STATUS
Refers to families with children including women who are pregnant and people with children under the age of 18.

FARM
A parcel of land used for agricultural purposes (e.g., raising crops, livestock, poultry).

FARMERS HOME ADMINISTRATION (FMHA)
An agency of the U.S. Department of Agriculture that assists farmers and families living in rural areas obtain high loan-to-value ratio financing. >>_ loan-to-value ratio.

FARMING
A type of marketing method that solicits business from a targeted property type or client.

FEASIBILITY STUDY
A report that estimates whether a project is economically feasible.

FEDERAL DEPOSIT INSURANCE CORPORATION
(FDIC)A federally chartered corporation that insures the accounts of depositors in its member banks up to $250,000, if an insured bank becomes insolvent and cannot pay its depositors. Deposit accounts are insured up to $250,000 per depositor for each institution that the account holder has an account. Formerly the limit was $100,000 and is set to revert back onJanuary 1, 2014.

FEDERAL FAIR HOUSING ACT
The Federal Fair Housing Act, which is contained in Title VIII of the Civil Rights Act of 1968, makes it illegal for real estate brokers or sales associates to discriminate against any person because of race, color, religion, sex, or national origin 1) when selling, leasing, or advertising residential housing or building sites; or 2) when providing any real estate brokerage service.

FEDERAL HOME LOAN MORTGAGE
Corporation (FHLMC or FREDDIE MAC)An agency of the federal government that develops the secondary mortgage market by buying and selling conventional, FHA insured, and VA guaranteed mortgages. It deals primarily with federally insured savings and loan associations or from commercial banks that have insured deposits. FHLMC acquires funds by selling mortgages from its portfolio, by selling mortgage backed bonds or guaranteed securities, by selling participation certificates in a pool of mortgages, and from interest earned on mortgages in its portfolio.

FEDERAL HOUSING ADMINISTRATION (FHA)
An agency of the federal government that operates within the Department of Housing and Urban Development (HUD). It insures mortgage loans on real property made by approved lenders, which protects the participating lenders against loss when a mortgage is in default and foreclosure occurs. The FHA does not construct homes or make mortgage loans.

FEDERAL INCOME TAX LIEN
May be filed against real and personal property for nonpayment of federal income taxes.

FEDERAL NATIONAL MORTGAGE ASSOCIATION
(FNMA or FANNIE MAE)A private corporation whose operations are regulated by the federal government. It develops the secondary mortgage market by buying and selling conventional, FHA insured, and VA guaranteed mortgages from lenders in the primary mortgage market. The secondary mortgage market provides a source of liquidity to these lenders since they have the option of selling mortgage loans for cash should the need arise. The FNMA acquires funds to purchase mortgages by selling its own government guaranteed debentures at market interest rates, by selling mortgages from its portfolio, and from interest earned on mortgages in its portfolio.

FEDERAL RESERVE BOARD (FRB)
An agency of the federal government that has general overall responsibility for and supervision of the Federal Reserve System(FRS). Its operations are administered by a seven member Board of Governors who are appointed by the president and confirmed by the U.S. Senate.

FEDERAL RESERVE SYSTEM (FRS OR THE FED)
A federal system consisting of twelve federal reserve districts, with each having a Federal Reserve Bank. The FRS is the central banking organization in the U.S. whose primary function is to control and regulate the economy with several tools that directly or indirectly affect interest rates. The tools used by the FRS to control the monetary system include its openmarket operations, changing the reserve requirements of member banks, and changing the discount rate.

FEDERAL SAVINGS ASSOCIATION
A federally chartered savings association that is privately owned by either stockholders or depositors. These institutions are regulated by the Office of Thrift Supervision and have the word federal in their name. Individually owned accounts in all federal savings associations are insured up to a maximum of $250,000 by the Deposit Insurance Fund, which is administered by the FDIC. >>_ Deposit Insurance Fund and savings association.

FEDERAL TRADE COMMISSION (FTC)
An agency of the federal government whose principle functions are to promote free and fair competition in interstate commerce through prevention and elimination of general trade restraints and unfair competition, dissemination of false or deceptive advertisements of consumer products, and unfair and deceptive trade practices.

FEDERALLY CHARTERED BANKS
1) have the word national in their name; 2) are chartered by and subject to the control of the Comptroller of Currency; and 3) are members of and regulated by the Federal Reserve Banking System. The Deposit Insurance Fund insures individually owned accounts up to a maximum of $250,000.>>_ Deposit Insurance Fund.

FEDERALLY RELATED TRANSACTION
Any real estate related financial transaction in which a federal financial institution regulatory agency or the Resolution Trust Corporation engages in, contracts for, or regulates and that requires the services of an appraiser. Only licensed or certified appraisers may perform appraisals for these transactions.

FEE (COMPENSATION OR COMMISSION)
Payment or remuneration for services rendered or acts performed.

FEE SIMPLE (FEE OR FEE SIMPLE ABSOLUTE)
An estate in real property that confers absolute ownership of real property to the titleholder with the unconditional power ofdisposition during his life or which will descend to his heirs upon his death intestate. It is the highest estate or most comprehensive interest one can have in real property, which is subject only to certain restrictions imposed by law. >>_ intestate.

FEE SIMPLE DEFEASIBLE
>>_ qualified fee estate.

FEUDAL SYSTEM
A political and social system that dominated Europe from the eleventh through the thirteenth centuries, which was the entire basis for real property law. Under this system, a person was granted possession of land as a tenant on the condition that certain duties and services are performed for a king or overlord.

FHA MORTGAGE
A type of mortgage loan originated by anFHA approved lending institution that insures the lender against loss when the mortgage is in default and foreclosure occurs.

FIAT
A short order or warrant of a judge or authorized official directing some act to be done.

FICTITIOUS NAMES STATUTE
A Florida statute requiring any person or entity who desires to engage in business under a fictitious or trade name to advertise his or its intention to register the fictitious name in a local newspaper as prescribed by law; and upon receiving proof of publication, register the name with the clerk of the circuit court of the county where his or its principal place of business is located.Real estate brokers who are sole proprietors are exempt from these requirements. Individual brokers or brokerage entities may use a fictitious name after it is registered with the DBPR.The DBPR will only allow registration of a fictitious name if it is not being used by any other licensee.

FIDUCIARY
A broker in a relationship of trust and confidence between that broker as agent and the seller or buyer as principal. Theduties of the broker as a fiduciary are loyalty, confidentiality, obedience, full disclosure, and accounting and the duty to use skill, care, and diligence.

FIDUCIARY RELATIONSHIP
A relationship that exists whenever one person trusts and relies upon the judgment and advice of another.

FIDUCIARY WARRANT
An assurance to the grantee by someone in a fiduciary capacity that he or she has done nothing that would in any way injure the title while he or she had control of the property.

FINAL ORDER
The Florida Real Estate Commission's final decision as to the guilt or innocence of a licensee and the appropriate penalty. It is issued at the conclusion of an informal hearing or after reviewing the ALJ's recommended order at the conclusion of a formal hearing.

FINAL ORDER PANEL
Consists of all FREC members except those who served on the probable cause panel in the same action. The final order panel may accept the ALJ's recommended order or reduce the recommended penalty without a review of the record. They may increase the penalty or reject or modify the findings of fact in the recommended order only after a complete review of the record.

FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT (FIRREA)
Known as the savings and loan bailout legislation. This Act requires all states to establish laws for the licensing and certification of real estate appraisers.

FINANCIAL RISK
>>_ operating financial risk.

FINDER'S FEE (REFERRAL FEE)
Compensation paid to a party for either locating a seller to list his real property for sale or procuring a buyer to purchase property. A Florida real estate broker may pay a finder's fee to or share a commission with a broker licensed by another state if that broker does not violate any Florida law.However, a broker cannot legally pay a finder's fee to or share a commission with an unlicensed person unless they are a party to the contract and full disclosure is made.

FIXED EXPENSES
Recurring operating expenses that must be paid regardless of whether or not the property is occupied or producing income.

FIXED-RATE MORTGAGE
An amortizing loan that has the same (fixed) rate of interest for the term (life) of the loan. Either a term loan or an amortized loan could be a fixed rate loan.

FIXED WINDOW
Fixed windows do not open. They do not provide any ventilation.

FIXTURE
An article of personal property that has been so attached to real property, in a more or less permanent manner, that it is considered to be a part of the property (e.g., plumbing and light fixtures, heating and air conditioning equipment, or a sprinkler system installed in a building).

FLAG LOT
An interior lot located to the rear of another lot but with a narrow portion of the lot (flagpole) extending to a public street to provide access.

FLAT LEASE

(FIXED LEASE OR STRAIGHT LEASE)
Requires equal rental payments over the term of the lease to be paid by the lessee to the lessor monthly, quarterly, or annually as stipulated in the lease.

FLAT ROOF
A flat roof has barely any slope at all or just enough to allow water runoff.

FLIP/FLOP
Associated with a buyer purchasing a short sale at a discount and immediately reselling for a profit without any improvement to the property to justify the difference in price.>>_ short sale.

FLOOD PLAIN INSURANCE
Insurance coverage for damage from floods or tidal waves offered by private insurance companies that are subsidized by the federal government. Generally, lending institutions require such insurance on mortgaged properties located in designated flood or tidal wave zones.

FLORIDA ASSOCIATION OF REALTORS® (FAR)
A state trade organization affiliated with the National Association of REALTORS®.

FLORIDA BUILDING ENERGY-EFFICIENCY
Rating ActProvides a statewide uniform system for rating the energy-efficiency of buildings and ensures ratings are disclosed to prospective purchasers who request the ratings. The rating system applies to all public, commercial, and residential buildings in Florida.

FLORIDA DEPARTMENT OF STATE
This department consists of the Office of the Secretary and the Divisions of Administrative Services, Corporations, Cultural Affairs, Elections, Historical Resources, and Library and Information Services.

FLORIDA LAND USE AND ENVIRONMENTAL
Dispute Resolution ActAllows owners who request development permits (e.g., building permits, zoning permits) to use a simplified request for relief if the owner's property has been unreasonably or unfairly burdened by goverment action.

FLORIDA REAL ESTATE APPRAISAL BOARD (FREAB)
An appointed board within the Department of Business and Professional Regulation whose purpose is to regulate certified, licensed, and registered appraisers within the State of Florida and thus protect the public from potential economic loss.

FLORIDA REAL ESTATE COMMISSION (FREC)
An appointed commission within the Department of Business and Professional Regulation whose purpose is to regulate real estate brokers, sales associates, and schools within the State of Florida and thus protect the public from potential economic loss.

FLORIDA REAL ESTATE RECOVERY FUND
Created to provide financial reimbursement to persons who have suffered a loss as the result of actions of a real estate licensee.

FLORIDA RESIDENT
A person who has resided in Florida continuously for a period of four calendar months or more within the preceding one year or a person who presently resides in Florida with the intention to reside continuously in Florida for a period of four months or more commencing on the date that the person began the current period of residence in Florida. It does not matter if the place of residence is a hotel, recreational vehicle, or other temporary or permanent residence. Once a person becomes a Florida resident, they can no longer qualify for licensure under mutual recognition even if they maintain licensure in a state that has mutual recognition with the FREC. >>_ mutual recognition.

FLORIDA STATUTES (F.S.)
The written laws that have been enacted over a number of years by the Florida legislature.

FOR EXAMPLE, CHAPTER 475, F.S.
Part I, which is the Real Estate License Law. >>_ Statutes.

FOLLOW-UP
Returning client and customer calls; what a licensee does for buyers and sellers after the sale.

FORECLOSURE
A legal action that enforces the terms and conditions of a mortgage contract, and terminates the borrower's equity of redemption and legal rights in the mortgaged property.

FOREIGN CORPORATION
A corporation formed under the laws of another state (i.e., not Florida) which may be registered to broker real estate in Florida provided that it has been authorized by the Department of State (Florida) to transact business within the state; and has fully complied with Chapter 475, F.S.

FORFEITURE
Loss of a right, money, property, or anything of value as a consequence of some illegal act, or nonperformance of an act, obligation, or condition. For example, a buyer may forfeit his earnest money deposit if he defaults on a real estate sales contract.

FORMAL COMPLAINT
>>_ administrative complaint.

FORMAL CONTRACT

(OR SPECIAL OR SPECIALTY CONTRACT)
A contract that is wholly written ................

FORMAL HEARING
A hearing required whenever the substantial interests of a licensee are to be determined by an agency, such as the Florida Real Estate Commission, and a disputed issue of material fact exists between the parties. It is conducted as an adversary proceeding before a hearing officer assigned from the Division of Administrative Hearings pursuant to Chapter 120, F.S., the Administrative Procedures Act.

FRAME
Skeleton of a house to which the exterior and interior finish is applied.

FRAUD
A term embracing all of the various means by which one person or entity can intentionally gain advantage over another by false suggestions, suppression of truth, trick, cunning, surprise, or any unfair way by which another is cheated. Any type of fraud may-be grounds for a possible civil suit for damages. If committed by a broker or sales associate, fraud may be grounds for disciplinary action against the licensee by the Florida Real Estate Commission.

FREE ENTERPRISE SYSTEM
An economic system that operates to produce and allocate (distribute) goods (products) and services by the free application of the four factors of production.

FREEHOLD ESTATE
A right of title to land or other real property for an indefinite period of time. Involves estates of ownership. >>_ non-freehold estate.

FRIABLE ASBESTOS
Dry, crumbling asbestos, a condition more likely to release fibers than if it is non-friable.

FUNCTIONAL OBSOLESCENCE
...........................................................................

REAL ESTATE - G -

GABLE ROOF
A popular roof in the United States. It has two upward sloping sites that meet in the ........... at the same angle.

GAMBRELL
A type of roof that is gabled, peaks at the ridge line, and has a broad upper stung.Gambrel roofs are associated with beams.

GENERAL AGENT
An individual authorized to act for the employer on a continuing basis, but with the authority limited to acts related to a specific trad or business. A sales associate is a general agent of their broker.

GENERAL PARTNERSHIP
A type of business organization in which two or more persons engage in business together, with either an express or implied agreement to share the profits and losses.In Florida, at least one of the partners must be cumenity licensed as an active broker in order for the general partnership to be registered to broker real estate.

GENERAL POWER
Authorizes the attorney-in-fact to generally act in a person's behalf.

GENERATIVE FUNCTION
Function of businesses (eg., furniture stores, car dealers) in commercial areas that generate business from shoppers who intend to go there.

GOING CONCERN VALUE
The value of a business which includes both the tangible assets, including real estate, and the intangible assets, including good will and intellectual property. >>_ liquidation value approach.

GOOD CONSIDERATION
Usually not considered to be valuable consideration, which is only binding when the contract is fully performed by all parties (e.g., love, affection, duty, moral obligation).

GOOD FAITH
Honesty of purpose, without deceit or fraud, and being faithful to one's duty or obligation.

GOOD FAITH DOUBT
A situation where closing has passed and the broker has not received either conflicting or identical instructions from the parties concerning escrow funds; or closing has not passed but one or more of the parties has expressed intentions not to close and makes a claim for the funds.

GOOD FAITH ESTIMATE (GFE)
A disclosure required by the Real Estate Settlement Procedures Act (RESPA) that lenders must give to borrowers within three business days of application. The disclosure is to accurately describe all the costs that the borrower can expect to pay at closing. >>_ closing and Real Estate Settlement Procedures Act (RESPA).

GOODWILL
An intangible asset of a business such as reputation, expertise, quality, pricing, or dependability that gives the business an advantage in its marketplace.

GOVERNANCE FORM
A publication provided by the Division of Florida Condominiums, Timeshares, and Mobile Homes that must be provided to a resale condominium buyer. It is an informal educational overview of the rights of unit owners, the finances and association budget, and the role of the board of directors. >>_ resale condominium.

GOVERNMENT LOT
A fractional piece of land in the government survey system that is less than one-quarter section in area. >>_ government survey system.

GOVERNMENT NATIONAL MORTGAGE
Association (GNMA or GINNIE MAE)An agency of the federal government that is best known for its special assistance function and cooperation with the FNMA in secondary mortgage market activities. On occasion, the GNMA and FNMA combine their efforts through the tandem plan. This plan is a two-part process in which the FNMA is permitted to purchase high-risk, low yield mortgage loans at full market rates, and the GNMA guarantees payments and absorbs the difference between the low-yield and current market rates.

GOVERNMENT SURVEY SYSTEM (RECTANGULAR SURVEY SYSTEM)
A method used to legally describe regularly shaped tracts of land. The government survey of Florida starts at the intersection of two main reference lines, which are a north/south line called the Tallahassee principal meridian; and an east/west line called the Tallahassee base line.

GRADUATED LEASE (STEP-UP LEASE)
Provides for a fixed rental payment for an initial term and then predetermined increases in the rental payments at specified times during the term of the lease.

GRANT
The transfer or conveyance of title to real or personal property by deed or writing.

GRANTEE
The person or entity that acquires an interest in real property by receiving a deed or other conveyance of title. For example, the buyer is the grantee when title to real property is conveyed at closing.

GRANTING CLAUSE
A clause in a deed that contains the words of conveyance (e.g., grants, bargains, and sells).

GRANTOR
The person or entity that conveys or transfers an interest in real property to another by giving a deed or other conveyance of title. For example, the seller is the grantor when title to real property is conveyed at closing.

GREENBELT EXEMPTION
Special real property tax break given to owners of agriculture real property, resulting in a lower assessed value and lower taxes even though the millage rate is the same as for other real property.

GROSS INCOME METHOD
A method of appraising income-producing property that provides a value indication using gross rent per month or gross income per year. This value is called the gross income multiplier (GIM).

GROSS LEASE
A lease agreement in which the tenant pays a specified rental amount and the landlord is responsible for paying the operating expenses related to the property (e.g., maintenance, property taxes, and utilities).

GROSS RENT MULTIPLIER (GRM)
Used in the gross income method of appraising income-producing property, derived using the sales price and monthly rents of comparable properties to estimate the value of the subject property.

GROUND LEASE
A lease agreement wherein the lessor grants use, possession, and occupancy of vacant land to the lessee in return for rental payments. This type of lease is usually on a net basis, and the lessee pays all real estate taxes, insurance, and maintenance and makes improvements (e.g., buildings)to the land.

GROUP LICENSES
Issued only to active sales associates or active broker associates employed by owner/developers. A group license may be issued if proof is submitted that various properties are held in the names of various individuals, corporations, or partnerships, and all such owners are so connected or affiliated that such ownership, for practical purposes, is substantially in the same ownership entity.

GROWTH MANAGEMENT ACT
Limits and controls Florida's future growth to levels acceptable to natural, environmental, political, social, and human tolerances.

GUARDIAN'S DEED
A deed used to convey title to the real property owned by a ward or minor.

GUIDE MERIDIANS
Imaginary lines located every 24 miles east and west of the principal meridian. These lines are used in the government land survey system of legal description. >>_ correction lines.

REAL ESTATE - H -

HABENDUM CLAUSE
The "to have and to hold" clause in the deed indicating the legal rights or estate or interest the deed is conveying.

HANDICAPPED (STATUS)
Defined under the Fair Housing Act as "a physical or mental impairment which substantially limits one or more major life activities; a record of such impairment; or being regarded as having such an impairment.*

HARD MONEY (HARD EQUITY)
A form of lending based on a low loan-to-value and very short term due between one to three years at a higher than normal interest rate. >>_ loan-to-value ratio.

HEALTH ORDINANCE
Local codes that regulate the sanitation and maintenance of public areas. >>_ ordinances.

HEARING OFFICER
A person assigned from the Division of Administrative Hearings who conducts formal hearings involving applicants for licensure or real estate licensees pursuant to Chapter 120, F.S., the Administrative Procedures Act. Anyone employed as a full-time hearing officer must have been a member of the Florida Bar in good standing for the five years preceding his employment.

HEIR
A person who inherits the real and/or personal property of a decedent who died testate (i.e., with a will) or by laws of descent and distribution of a decedent who died intestate (i.e., without a will).

HIATUS
A break, gap, vacancy, or lack of continuity such as 1) breaks or gaps in a chain of title; or 2) a land area between imaginary lines that do not abut one to another, such as range lines in the government survey system of describing real property.

HIGHEST AND BEST USE (IMPROVED PROPERTY)
The existing or an alternate use of improved property is its highest and best use until demolition and construction of a new improvement becomes economically feasible.

HIGHEST AND BEST USE (VACANT LAND)
The most likely, profitable, optimum, and efficient use of the land.

HIP ROOF
A type of roof where all four sides come to a point at the roof peak.

HOME EQUITY INDEBTEDNESS
Debt incurred on a principal or secondary residence not to exceed the fair market value of the residence.

HOME EQUITY LOAN
Allows property owners to tap the equity that has built up in their homes, largely due to appreciation and mortgage balance decline. The interest on home equity loans is tax deductible up to $100,000 of equity loan. Always check with a tax advisor to make sure the use of the funds will qualify for the deduction.

HOMESTEAD
The real property owned and occupied by a natural person as his primary residence, which includes the land and buildings surrounding the dwelling.

HOMESTEAD EXEMPTION
An exemption provided in the Florida Constitution which reduces the amount of property taxes owed. Homeowners are entitled to $25,000 exemption from assessed value of the home for city, county, and school board taxes. Homeowners are entitled to an additional $25,000 exemption from only city and county taxes on the property s assessed value between $50,001 and $75,000. If the assessed value exceeds $75,000, then the full $50,000homestead exemption applies.

HOMOGENEOUS
Of the same or a similar kind or nature. In appraising, the term describes an area in which property types or uses are comparable, and the social, economic, and cultural backgrounds of the people are similar.

HORIZONTAL SLIDING
Windows that move horizontally on a track.

HOUSEHOLD
One or more individuals living in one dwelling unit.

HYPOTHECATE
The pledging of real or personal property as collateral for the debt without giving up possession of the property.

REAL ESTATE - I -

ILLEGAL COMMISSION
Any commission, compensation, or fee paid to a licensee that he is not legally entitled to collect or retain; a form of fraud.

IMMEDIATELY
For sales associates and broker associates, defined as by the end of the next business day following receipt of the item to be deposited. For brokers, defined by the end of the third business day following receipt of the item to be deposited. (Saturdays, Sundays, and legal holidays are not considered business days.)

IMMOBILITY
Fixed or incapable of being moved (e.g., land).

IMMUNE PROPERTY
Property that is not assessed and cannot be taxed (e.., governmental real property).

IMPLIED
The intention of the parties with regard to the subject matter is not expressly or directly stated in words, but is derived by implication or deduction from the circumstances, the general language used, or conduct of the parties.

IMPLIED CONTRACT
A contract or agreement in which some of the terms and/or conditions have not been expressly stated, either orally or in writing, but are inferred from the acts or conduct of the parties.

IMPROVEMENT
A valuable addition made to real or personal property that consists of more than repairs (costing labor or capital) and is intended to enhance the property's value, beauty, or utility or adapt it for a better or alternate use.

INACTIVE LICENSE
Voluntarily inactive status pertains to a person who has attained license status with the Commission, either as a broker or sales associate, and has requested, before the end of the license period, that the license be placed on inactive status. A voluntarily inactive license may be renewed at the end of each license period (i.e., indefinitely) or activated at any time by filing a request in proper form.

INVOLUNTARILY INACTIVE STATUS

PERTAINS TO THE LICENSE OF ANY BROKER OR SALES ASSOCIATE THAT IS NOT RENEWED ON OR BEFORE THE END OF THE LICENSE PERIOD.
Any license that has been involuntarily inactive for more than two years shall automatically expire, and become null and void without any further action of the Commission.

INCHOATE
Incomplete; begun but not completed. For example, a real estate sales contract that has not been executed (i.e., signed) by all of the parties.

INCOME CAPITALIZATION APPROACH
An approach used to appraise income-producing real property. In applying the approach, the appraiser estimates the annual net operating income that the property likely will produce and converts it into a value indication by a mathematical process known as capitalization.

INCOMPETENT
A lack of mental or physical fitness, or legal qualification to discharge a required duty or conduct business matters. For example, one of the essential elements of a valid and enforceable contract is competent parties, which means that all parties must be at least 18 years of age and mentally competent. Note that a deed only requires a competent grantor.

INCREMENT (EARNED)
An increase in real property value due to labor or improvements to the property, such as adding a family room.

INCREMENT (UNEARNED)
An increase in real property value as a result of forces outside of the influence and control of the property owner, such as a favorable shift of population in the area.

INCURABLE
Depreciation is incurable when the cost to .................... functional deficiency that is not economical to correct.

INDENTURE
A mortgage or deed of trust under which there is an outstanding security establishing a claim against the debtor, a claim secured by a lien against the debtor's property, or an equity security of the debtor.

INDEPENDENT CONTRACTOR
One who contracts to render a service according to his own methods and is subject to his employer's control only as to the final result of his efforts. For example, many sales associates are considered to be independent contractors and not employees of their registered broker.

INDEX
A rate set by market forces and published by a neutral third party. The index will go up and down due to market factors. The index is used to determine the adjusted interest for an adjustable mortgage by adding it to the margin that was set at the mortgage's inception.

INDEX_EXAMPLES
Examples of indexes include the one-year U.S. Treasury Bill and the London Inter Bank Offering Rate (LIBOR). >>_ adjustable rate mortgage and margin.

INDEX LEASE
Provides for adjustments in the amount of rent due based on changes in a specified index. Rent may be based on a consumer price index, a wholesale price index, or any other agreed-upon index.

INDUSTRIAL
Properties that have land uses of manufacturing, assembly, or processing of materials and products (e.g., lumber mill sand solid waste disposal areas). INDUSTRIAL AREAS INCLUDE INDUSTRIAL PARKS AND subdivisions.

INEFFECTIVE LICENSE
Condition of a license when it is inactive or suspended.

INFORMAL HEARING
A hearing before the FREC for final action on a complaint where the respondent does not dispute the administrative complaint allegations. >>_ administrative complaint and respondent.

IN-HOUSE SALE
Occurs when the brokerage firm, through one or more of its real estate licensees, acts as both listing and selling agents.

INITIAL ISSUE
The first license requested by applicants is an initial issue for the license status to which they are entitled.

INJUNCTION
A judicial process that requires the person to whom it is directed to do or refrain from doing a particular thing or act.

INNOCENT PURCHASER
One who purchases real or personal property in good faith without notice of circumstances that would cause a person of ordinary prudence to question the title of the seller.

INSOLVENT
Inability to pay one's debts as they become due, or in the usual course of business. installment contract >>_ contract for deed.

INSTALLMENT SALE
Owner financing that allows the owner to defer paying the capital gain tax until payments are received. Under current tax law, the installment sale is only available for gains and not for losses.

INSTITUTE OF BUSINESS APPRAISERS (IBA)
The oldest professional society established in 1978 devoted solely to the appraisal of closely held businesses.

INSTITUTE OF REAL ESTATE MANAGEMENT
(IREM) An institute whose membership is comprised of those specializing in management of real estate.

INSTITUTIONAL LENDER
A savings association or commercial bank whose lending practices are regulated by law, and who commonly invests the funds of depositors in mortgage loans.

INSTRUMENT
A written legal document such as a contract, deed, or lease.

INSULATION
Adequate insulation prevents air leakage.
INSULATION MATERIAL IS MEASURED BY ITS R-VALUE AND THE HIGHER THE R-VALUE, THE MORE RESISTANT THE MATERIAL IS TO HEAT FLOW.
Fiberglass is a leading insulation material.>>_ R-Value.

INSURANCE VALUE
Value of property often estimated for insurance coverage purposes and is based on new cost minus physical deterioration and insurance exclusions and does not include the land value.

INTANGIBLE PROPERTY (ASSET)
Items of personal property that represent or evidence value (e.g., stock certificates, certificates of deposit, bonds, and promissory notes).

INTANGIBLE TAX
A tax on intangible property. For example, a Florida state intangible tax is collected when newly created mortgages are recorded into the public record. Loan amount x .002=intangible tax due.

INTENSITY
Concerns the degree of use (e.g., building coverage of the land and open space to one another).

INTEREST
1) A term used to denote a right, title, or share in something, such as an estate in real property; or 2) the amount charged for the use of money for a period of time, the price of money.

INTEREST ACCRUED
The amount of interest that has been earned as of a given date.

INTEREST RATE
The percentage applied to a sum of money to compute the charge for its use for a period of time. It is often expressed as an annual percentage rate (APR).

INTEREST RATE RISK
The risk is related to changes in interest rates.

INTERIOR LOT
A lot set between other lots.

INTERMEDIARY
A third party who facilitates a deal between two other parties (e.g., when a homeowner is upside down, an intermediary negotiates between the lender and the homeowner for a reduction in amount owed if the home is sold as a short sale). >>_ mortgage modification, short sale, and upside down.

INTERMEDIATION
The process by which funds of individuals are placed in savings accounts and time accounts with financial institutions.

INTERMINGLE (INTERMINGLING)
>>_ commingling.

INTERNATIONAL REAL ESTATE FEDERATION
(IREF) An organization headquartered in Paris that works for the promotion of high professional standards and good relations among its members who are engaged in the real estate profession worldwide.

INTERPLEADER
Places the escrow funds with the court for a determination of the rightful claimant when the broker who is holding disputed escrow funds does not have any claim to them.Interstate Land Sales Full Disclosure Act Passed in 1968, regulates interstate land sales by requiring developers to file a registration statement disclosing relevant information concerning real estate developments (subdivisions) with HUD's Office of Interstate Land Sales Registration.

INTESTATE
A person who dies without leaving a will is said to die intestate.

INVESTMENT VALUE
The value of property to an individual investor based on his or her standards; often subjective and represents the maximum a buyer would pay or the minimum a seller would accept for a given property.

INVOLUNTARY ALIENATION
Transfer of property that takes place when a person dies without a will or dies without avalid will, by escheat, eminent domain, or adverse possession.

INVOLUNTARILY INACTIVE
Licensure status of individuals who do not renew their licenses. This generally occurs when a licensee fails to renew at the end of the license period, whether voluntarily or involuntarily. A licensee who fails to complete the 14 hours of continuing education will also become involuntarily inactive. A licensee can be involuntarily inactive for two years and then the license becomes null and void.

INVOLUNTARY LIEN
A lien that attaches to property without the consent of the owner (e.g., a real estate tax lien). >>_ voluntary lien.

REALTY Vocab ( J - K - L - M - N - O )

Adperio@hotmail.com (Adperio Divum) — Sun, 24 Mar 2024 02:29:54 GMT

REAL ESTATE - J -

JALOUSIE
A type of window where glass louvers overlap one another to form the panes which are opened with a crank or turn-screw. Provides a lot of ventilation but not energy efficient or secure.

JOINT ESTATE (JOINT TENANCY)
A form of real property ownership in which two or more persons receive an undivided interest in the property at the same time, by the same conveyance, and with an undivided right of possession. >>_ undivided interest.

JOINT VENTURE (OR ADVENTURE)
A type of business organization formed by the oral or written agreement of two or more persons, corporations, or partnerships that combine their efforts to engage in a single business enterprise for profit. In Florida, a joint venture cannot be registered to broker real estate.

JUDGMENT
The final decision of the court that resolves a dispute and sets forth the rights and obligations of the parties.

JUDGMENT LIEN
A legal right or claim to the land of the judgment debtor that permits the judgment creditor to have the property sold to satisty the judgment.

JUDICIAL
Pertaining to or connected with the administration of justice (e.g., the proceedings of a court of justice).

JUDICIAL REVIEW
A respondent may challenge FREC's final order within 30 days by filing an appeal for judicial review with the DBPR and the appropriate district court. If the final order is reversed, the the respondent's rights as a licensee are restored as to the date of filing.Also, if the court reverses or sets aside the final order, then the court may award court costs and attorney fees to the aggrieved prevailing party.

JUMBO LOAN
A loan that does not conform to Fannie Mae and Freddie Mac standards. For a one-unit property, the loan amount exceeds $417,000.

JUNIOR MORTGAGE
Any mortgage that is subordinate to another mortgage and has a lower priority in the order of payment.

JUST VALUE
The fair, honest, and reasonable value of property. Also called fair market value.

KEY LOT
A lot shaped similar to a key shaft and bounded by five or more lots.

KICKBACK
A return of part of a sum of money received, which could result from a confidential agreement or coercion.Generally, the term infers an illegal or improper act, which could result in disciplinary action by the Commission if it involves a real estate licensee.

LAISSEZ-FAIRE
A philosophy opposing governmental interference in economic affairs beyond the minimum necessary for the maintenance of peace and property rights.

LAND
>>_ real estate.

LAND SALES CONTRACT
>>_ contract for deed.

LAND SURVEYOR
>>_ surveyor.

LAND USE STUDY
A study undertaken by a government agency as a part of the planning process for land use and zoning, which analyzes and examines the existing land uses in a given area.

LARCENY
Taking and carrying away the property of another without the owner's consent, and with the felonious intent to appropriate the property or to deprive the owner the use of it.

LATENT (LATENT DEFECT)
Concealed, hidden, or not apparent (e.g., a latent defect in a building which a reasonable inspection would not reveal).

LEAD-BASED PAINT
Banned in 1978, an environmental contaminant that if disturbed can create dust or chips that are harmful if ingested.

LEASE CONTRACT
An agreement whereby the owner of a parcel of real estate gives to another party (the tenant) the rights of possession, occupancy, use, enjoyment, and possible profit from the use of the property for a specified period of time.

LEASEHOLD ESTATE
A less-than-freehold or nonfreehold estate which grants mere possession of the real property of another to a tenant for either a definite or indefinite period of time. It is an estate in real property held under a lease or rental agreement that does not convey title to the property. >>_ nonfreehold estate.

LEASE OPTION
A clause in a lease contract that gives the lessee the right to purchase the real property held under the lease at a specific price for a specified period of time under specified terms and conditions.

LEGAL AGE
The statutory age at which a person acquires full legal capacity to transactbusiness (e.g., executing his own contracts, deeds, mortgages).

LEGAL CAPACITY
Being mentally competent and of legal age 18 years of age in Florida.

LEGAL DESCRIPTION
A description of land recognized by law that identifies the real estate and locates its boundaries. >>_ metes and bounds method, monuments method, government survey system, and lot and block.

LEGAL TITLE
In a contract for deed, the seller retains the legal title to the property until performance by the buyer. Since the seller has the legal title, there are potential problems - judgment liens and probate claims against the seller may be attached to the property, in the event of the death of the seller. The seller also retains the right to sell his interest in the property and to place a mortgage on it. >>_ equitable title.

LEGALLY SUFFICIENT
A complaint that alleges that a violation of Florida statute or FREC or DBPR rule has occurred. If the complaint is legally sufficient it must be investigated. If not, no further action will be taken.

LEGISLATIVE
Pertaining to the process of making or enacting laws by the legislative branch of government.

LEGISLATIVE RISK
Risk that legislative changes that require additional costs for future investments could actually decrease the value of investments that were made prior to the legislative changes.

LESSEE (TENANT)
One who rents or leases the property of another. As applied to real estate, the lessee is also known as the tenant.

LESSOR (LANDLORD)
One who rents or leases his property to another. As applied to real estate, the lessor is also known as the landlord.

LEVEL PAYMENT PLAN
An amortized mortgage with periodic payments of principal and interest. When all the scheduled payments have been made,the balance is zero and no further interest is due. >>_ amortized mortgage.

LEVERAGE
The use of borrowed money to acquire assets.

LICENSE
1) A written instrument issued by the Department of Business and Professional Regulation that certifies that the person or entity named thereon was duly licensed on the effective date shown; 2) as applied to real property, a privilege to go onto land for a specified purpose, which does not confer any estate, title, or interest in such property.

LICENSED APPRAISER
A person licensed by the department as qualified to issue appraisal reports for residential real property of one to four family residential units or on such real estate or real property as may be authorized by federal regulation. After July 1, 2003, the DBPR stopped issuing licenses for the category of licensed appraiser.

LICENSEE
As applied to real estate, anyone who holds a broker's or sales associate's license issued by the Department of Business and Professional Regulation.

LICENSE REACTIVATION
A licensee who has been involuntarily inactive for more than 12 months but less than 24 months may reactivate their license by successfully completing a 28 hour Commission-prescribed education course.Students who fail the end of course exam must wait at least 30 days from the date of the exam to retest and have up to one year to retest one time or they can retake the course to avoid the 30 day wait. >>_ involuntarily inactive.

LICENSURE
The DBPR shall license any applicant whom the FREC certifies to be qualified to practice as a broker or sales associate. The DBPR may not license any applicant currently under investigation in any other state, territory, or jurisdiction of the United States or any foreign national jurisdiction for any act that would constitute a Chapter 475 F.S. or Chapter 455 F.S. violation until theinvestigation is complete and disciplinary proceedings have been terminated.

LIEN
A claim or liability attached to property which 1) affects the title to the property; and2) provides security for a debt collectable against the property that can be enforced by court action (e.g., real estate tax liens, special assessment liens, mortgage liens, mechanic's liens, and vendor's liens which are encumbrances on real property).

LIEN HOLDER (LIENOR)
A person who owns a lien or has a right of lien upon the property of another.

LIEN THEORY
A view that a recorded mortgage on real property creates a lien or claim on the mortgaged property in favor of the lender until the loan is paid off. Florida is a lien theory state. >>_ title theory.

LIFE ESTATE
A freehold estate in real property of indeterminate duration that is limited to the life of the person holding it (i.e., the life tenant), or the life of some other person.Upon the death of the life tenant, or the other person as the case may be, the property passes to the holder of the remainder interest or to the grantor by reversion. >>_ remainderman and reversion estate.

LIFETIME CAP
Limits the interest rate increase over the life of an adjustable-rate mortgage.

LIKE-KIND EXCHANGE
An exchange of real estate for real estate used in a tax-deferred exchange. While it does not matter where the real estate is located, the properties must have a similar use, such as a four-unit residential rental property in exchange for an eight-unit residential property. limitations, statute of >>_ statute of limitations. limited liability company or LLC A business entity that may broker real estate and has the best characteristics of a corporation and a partnership.

AN LLC
offers personal liability protection like a corporation but treated as a partnership for income tax purposes.
LIMITED LIABILITY PARTNERSHIP OR LLP A BUSINESS ENTITY THAT MAY BROKER REAL ESTATE AND HAS CHARACTERISTICS SIMILAR TO THAT OF A LIMITED PARTNERSHIP.
An LLP offers the partners protection from personal liability like a limited partnership.

LIMITED PARTNERSHIP
A type of business organization formed by two or more persons who must have one or more general partners and one or more limited partners. In Florida, at least one of the general partners must be currently licensed as an active broker in order for the limited partnership to be registered to broker real estate. The limited partners cannot manage. They can only make an investment of cash or property, never services.

LIMITED REPRESENTATION
Occurs when fiduciary duties are not owed to either party, although limited confidentiality is owed to the party represented. The broker is not permitted to represent one party to the detriment of the other.

LINE OF CREDIT
The maximum borrowing power of a person or business entity from a financial institution, such as a commercial bank.

LINEAL
Being in a direct line of descent from an ancestor (e.g., from a father or mother to a son, or from a father or mother to a daughter).

LINEAL DESCENDENT
A person in the direct line of descent from an ancestor (e.g., a child or grandchild, as contrasted with a niece or nephew).

LIQUIDATED DAMAGES
The monetary penalty for breach of contract that is specified in the contract. Normally the earnest money.

LIQUIDATION VALUE
The amount for which a property is most likely to sell in a forced sale. Sometimes used in valuing foreclosed properties and those properties having a tax lien. It does not include any intangible assets. >>_ going concern value.

LIQUIDATION ANALYSIS (LIQUIDATION VALUE APPROACH)
For appraisal purposes, involves an analysis of the business based on the premise that the assets of the business will be sold for market value and the proceeds used to satisfy any liabilities of the business.

LIQUIDITY
The ability of a person or business entity to convert assets into cash or its equivalent.

LIS PENDENS, NOTICE OF
A notice filed on public record that serves as a warning that the title to certain property is involved in a lawsuit and subject to the court's decision.

LISTING (LISTING CONTRACT)
A broker's employment contract with his principal or customer that 1) creates the agency relationship between the parties or nonagency relationship; and 2) establishes the broker's right to compensation if he performs as stated in the agreement.
LITTORAL RIGHTS
The legal rights of real estate owners whose land abuts non-flowing water (e.g., an ocean, sea, or lake) to use and enjoy the water and shore abutting their property. loan origination fee >>_ origination fee.

LOAN SERVICING
In residential financing, when the lender collects the monthly payments, disburses the funds to pay property taxes and insurance, supervises the loan, and handles delinquencies, early payoffs, and mortgage releases.

LOAN-TO-VALUE RATIO
A ratio that represents the lender's investment in mortgaged property as compared to the value (or purchase price) of the property.

LOCUS SIGILLI (L.S.)
The place occupied by the seal of written instruments, which is usually abbreviated by the letters L.S. In accordance with Florida statutes, a seal is not necessary on any document that conveys an interest in real property.

LOT
Measured section of land, often a particular parcel of land on a registered plan.

LOT AND BLOCK
A method of legally describing real property that is normally used in conjunction with the government survey system or a metes and bounds description of a parcel being subdivided. The parcel will first be divided into areas called blocks and each block will be further subdivided into smaller areas called lots. >>_ government survey system and plat (plat map).

REAL ESTATE - M -

MAILING ADDRESS
The current residential address used by the licensee to receive mail through the U.S.Postal Service. A post office box is an acceptable mailing address.

MAJORITY
The legal age at which a person is entitled to the management of his own affairs and to the enjoyment of civil rights. >>_ legal age.

MANDAMUS, WRIT OF
A writ issued from a court of competent jurisdiction that orders an inferior court, board, agency, corporation, or person to perform a particular duty imposed by law.

MANDATORY
An order or command requiring strict obedience.

MANSARD
A type of roof named after a French architect that has two slopes on all four sides. The lower slope is steeper than the upper slope.

MARGIN
A percent added to the lending institution's index rate to determine the rate the borrower is to pay. The margin is really a profit margin (i.e., usually 1 to 2% added to the index rate to increase the lender's profit).

MARKETABILITY
The ability to sell an asset for market value.

MARKETABLE (MERCHANTABLE) TITLE
A good and marketable title to real property in fee simple, which can be held without reasonable fear of being challenged, and is readily transferable in the market.

MARKET DATA APPROACH
>>_ sales comparison approach.

MARKET PRICE
An amount actually paid by a buyer to a seller for property in a real estate transaction.

MARKET RENT
Also called economic rent; the rent the property commands in the open market.

MARKET VALUE
The most probable price in terms of money that a property should sell for in a competitive and open market under all conditions requisite to a fair sale. This definition assumes that both the buyer and seller act prudently, knowledgeably, and that the price is not affected by undue stimulus.

MASSACHUSETTS TRUST
>>_ business trust.

MASTER DEED
An enabling declaration (document) that conveys a parcel of real property held under a single deed into a number of individual condominium estates plus an estate for the common areas and elements of a condominium.

MATERIAL FACTS
Those issues that affect the value of the property. Information is considered material if its existence substantially affects property value, to the extent that if the information had been disclosed, the sales contract would not have been signed.

MECHANIC'S LIEN
A statutory lien created for the purpose of securing priority payment for labor or materials furnished to construct or improve real property. It is enforced by foreclosure, but such action must be taken within one year or the lien becomes void.

MEDIATION
The settlement of a dispute between two contending parties by action of a neutral third party. One of the settlementprocedures available to a broker in an escrow dispute.

MEETING OF THE MINDS
The mutual agreement or assent of parties to a contract regarding the substance, terms, and conditions of the agreement.Meeting of the minds is one of the essential elements of a valid and enforceable contract.

MERCHANTABLE TITLE
A good and marketable title to real property that is free from material defects, encumbrances, and any reasonable doubt as to who is the owner.

MERIDIANS
>>_ principal meridian.

METES AND BOUNDS METHOD
A method used to legally describe regular or irregularly shaped tracts of land. A metes and bounds description starts at a point of beginning and follows the boundaries of the property and returns to the point of beginning. It is often used in conjunction with the government survey system when accuracy is important and the property is more valuable. The services of a qualified land surveyor are required to prepare a metes and bounds legal description. >>_ government survey system, point of beginning, and surveyor.

MIDDLEMAN
An intermediary who merely brings two parties together to enable them to make their own contract. A broker may act as a middleman to bring a seller and buyer together if he does not have an agency relationship with either, and if each party is aware of and agrees to the arrangement.

MILL
One tenth of one cent. There are 1000 mills in one dollar. In Florida, a millage rate is used to compute real property taxes; the maximum levy by any unit of local government is 10 mills.

MILLAGE RATE
>>_ tax rate.

MINERAL RIGHT
An interest in minerals in land, which permits the holder to extract the minerals or otherwise derive a profit from them.

MINOR
An infant or person who is under the legal age of majority or legal competence.

MINORITY
1) As defined in the Civil Rights Act of1968, a minority is any group or individual member of a group that can be identified by race, color, religion, sex, or national origin;2) the state or condition of a minor as defined by law.

MISREPRESENTATION
An untrue, incorrect, or deceptive statement of fact made by one person to deceive or mislead another, which is a form of fraud.

MISTAKE
An unintentional act, omission, or error resulting from ignorance, surprise, or misplaced confidence.

MODIFY (MODIFIED)
To alter, enlarge, reduce, change, or limit in degree or extent.

MONUMENT
A physical and topographical feature such as a tree or fence that is used as a point of reference.

MONUMENTS METHOD
A rather imprecise method of legally describing real property that uses physical features as points of reference to locate the boundaries or corners of the property (e.g., trees, fences, rivers, bridges, roads).

MORAL(S)
Relating to character, conduct, social behavior, conscience, or the general principles of right conduct.

MORAL TURPITUDE
Any premeditated act or behavior that is morally wrong and gravely violates accepted moral standards (e.g., embezzlement, larceny, rape, robbery, kidnapping).

MORATORIUM
The suspension of activity such as a building moratorium.

MORTGAGE
A written instrument executed by a borrower that pledges his property as security for repayment of a debt. In Florida, it does not convey legal title of the mortgaged property to the lender. >>_ lien theory.

MORTGAGE BANKER
A person or business entity that originates and sells mortgage loans into the secondary market; sometimes called a bridge between the primary and secondary mortgage markets.

MORTGAGE BROKER
One who functions as an intermediary. middleman, or loan arranger who brings borrowers and lenders together for the purpose of obtaining a mortgage loan for the borrower. Effective October 1, 2010, a mortgage broker refers to a business entity and a licensed individual is a mortgage loan originator. >>_ mortgage loan originator.

MORTGAGE INSURANCE PREMIUM (MIP)
Charged to FHA borrowers annually and collected monthly with the mortgage payment.

MORTGAGE LOAN ORIGINATOR (MLO)
A person licensed by a state and registered with the Nationwide Mortgage Licensing System (NMLS).

SEE NATIONWIDE MORTGAGE
Licensing System.

MORTGAGE MODIFICATION
Granted by the lender to the mortgagor, a change in the original terms of the mortgage.

SEVERAL METHODS INCLUDE LOWERING THE INTEREST RATE, GRANTING A PAYMENT ABATEMENT, LOWERING THE MONTHLY PAYMENT, OR REDUCING THE PRINCIPAL BALANCE.
A modification could utilize one method or combine all of the methods.

MORTGAGE NOTE (BOND)
>>_ promissory note.

MORTGAGE UNDERWRITING
The process by which a lender estimates the risk involved with originating a mortgage loan by analyzing the real property as security tor the debt and the borrower's ability to repay the debt.

MORTGAGE WAREHOUSING
The process whereby a lender originates and retains a number of mortgage loans in-house until they are assembled into a package which is salable in the secondary mortgage market.

MORTGAGEE
The one who receives the mortgage from the borrower and to whom the mortgaged property is pledged as security for repayment of the debt; the lender.

MORTGAGEE'S (LENDER'S) TITLE POLICY INDEMNIFIES THE LENDER ONLY UP TO THE AMOUNT OWED ON THE MORTGAGE LOAN FOR ANY LOSS (NOT EXEMPTED IN THE POLICY) SUSTAINED BY REASON OF DEFECTIVE TITLE.
If the mortgagee sells (assigns) (transfers) the mortgage to another party, the mortgagee's policy may be transferred to the new owner of the mortgage. >>_ title insurance.

MORTGAGOR
The one who gives the mortgage to the lender and pledges his real property as security for repayment of the debt; the borrower.

MULTIPLE LICENSES
Issued only to active brokers if it is clearly shown that such additional licenses are necessary to the conduct of legitimate business, and that there is no opportunity for such licenses to be used in a manner harmful to the public or to the business associates of the license holder.

MULTIPLE LISTING
A listing available only to real estate brokers and their sales associates who are members of a multiple listing service (MLS).It usually consists of an exclusive right to sell listing contract which authorizes and obligates the listing broker to place the listing in the MLS.

MULTIPLE LISTING SERVICE (MLS)
An organization that distributes the real property listings of its REALTOR® member brokers to REALTOR® member-cooperating brokers.

MUTUAL RECOGNITION
Allows the Florida Real Estate Commission to enter into written agreements regarding licensing with similar licensing authorities.The mutual recognition agreements recognize the experience and education of individuals licensed in another state to obtain a Florida real estate license or vice versa. However, the agreements only apply to nonresidents who are licensed in theother state.

MUTUAL RECOGNITION_2011
As of 2011, FREC has agreements with nine states including Alabama, Arkansas, Connecticut, Georgia, Indiana, Mississippi, Nebraska, and Oklahoma. An applicant under mutual recognition is not required to take a pre-license course. They are required to take a state license law exam with 40 questions and they must score at least a 75% (30 questions correct). The successful applicant will still need to complete the applicable post-license and continuing education. >>_ continuing education, Florida resident, and post-license education.

MUTUAL SAVINGS BANK
Lending institutions regulated by the FDIC that are mutually owned and operated for the benefit of the depositors who have rights to earnings based on their share of the deposits.

REAL ESTATE - N -

NATIONAL ASSOCIATION OF REALTORS® (NAR)
The national trade organization of the real estate profession whose membership is comprised of REALTORS® andREALTOR®- Associates. The NAR functions through the various state associations and the local boards of REALTORS®, whose members operate under a strict code of ethics. >>_ code of ethics.

NATIONAL FLOOD INSURANCE ACT (REGULATION H)

PROTECTS AGAINST LOSSES FROM DAMAGE CAUSED TO REAL AND PERSONAL PROPERTY BY FLOODS OR TIDAL WAVES IF THE COMMUNITY IN WHICH THE PROPERTY IS LOCATED PARTICIPATES IN THE NATIONAL FLOOD INSURANCE PROGRAM. Flood insurance is offered by private insurance companies and subsidized by the federal government with the insurance companies participating on a risk-sharing basis.

NATIONWIDE MORTGAGE LICENSING SYSTEM (NMLS)
The legal system of record for licensing in all participating states (including Florida), the District of Columbia, and all U.S.Territories.

NMLS
The NMLS was created by theConference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. The NMLS does not grant or deny license authority. The NIMLS streamlines the licensing process by providing a centralized and standardized system for mortgage licensing.

NATURAL PERSON
In general usage, a human being.

NEGATIVE AMORTIZATION
The type of amortization that results when the mortgage payment is less than the interest due on the principal balance of the loan. Consequently, the borrower owes more than he did before making the payment, because the unpaid interest is added to the remaining principal balance of the loan.

NEGATIVE LEVERAGE
The rate of return from the investment is lower than the interest rate paid on borrowed funds.

NEGOTIABLE
Legally capable of being transferred or assigned.

NEGOTIABLE INSTRUMENT
A written document that promises to pay on demand a sum of money to the bearer (e.g., a personal or cashier's check, or negotiable bond).

NET LEASE (TRIPLE-NET LEASE)
A lease agreement in which the tenant pays a specified rental amount to the landlord, plus operating expenses (e.g., maintenance, property taxes, and utilities) as agreed between the parties.

THE MORE
'nets' means that the tenant pays more expenses (e.g., net lease, net-net lease, or net-net-net lease).

NET LISTING
A listing contract in which the owner specifies the minimum amount that he will accept for his property after all closing costs, liens (if any), and the broker's commission have been paid.

NET OPERATING INCOME (NOI)
As used in the income capitalization approach, the effective gross income minus allapplicable operating expenses. >>_ income capitalization approach.

NEUTRAL LEVERAGE
The rate of return from the investment is equal to the interest rate paid on borrowed funds.

NO BROKERAGE
Occurs when a broker is not acting as an agent for others or as a transaction broker in a residential sale transaction. The broker still must deal honestly and fairly, disclose all known facts that materially affect the value of residential real property and are not observable by the buyer, and account for all funds entrusted to the broker.

NOLO CONTENDERE
A type of plea by a defendant to the court meaning "I do not contest the charge." If a licensee is charged with a crime and enters a plea of nolo contendere, such plea is considered to be a conviction for the purposes of Chapter 475, F.S.

NOMINEE
A person designated to act for or represent another in his or her place.

NONCONFORMING LOAN
A loan that does not conform to Fannie Mae and Freddie Mac standards (e.g., a jumbo loan). >>_ jumbo loan.

NONCONFORMING USE
A land use that was lawful prior to the adoption, revision, or amendment of a zoning ordinance, but which fails to comply with present zoning provisions as designated in the ordinance.

NONFREEHOLD ESTATE
Provides possession and use but not ownership. >>_ leasehold estate.

NONREPRESENTATION
A buyer and/or seller can choose not to be represented by a real estate broker since Florida law does not require prospective buyers and sellers to be represented. A REAL ESTATE LICENSEE WHO DOES NOT REPRESENT THEIR PARTY TO THE RESIDENTIAL TRANSACTION IS OPERATING IN A NO BROKERAGE RELATIONSHIP.
>>_ No Brokerage.

NONRESIDENT
Person who has not resided in Florida for four calendar months or more within the preceding one year; or a person who currently resides in Florida but does not intend to reside in Florida for four calendar months or more within the preceding one year.

NONTRADITIONAL MORTGAGE
As defined by the SAFE Act, any mortgage other than a 30-year fixed rate mortgage.>>_ SAFE Act.

NOTARY PUBLIC (NOTARY)
One who is authorized by the state to administer oaths and to attest to the authenticity of signatures on certain classes of documents. In Florida, a notary is considered to be an officer of the state.

NOTE (BOND)
>>_ promissory note.

NOTICE OF IRREVOCABLE CONSENT
This notice must be signed by nonresident Florida real estate applicants and licensees stating that they will defend any suit brought against them in Florida.

NOTICE OF NONCOMPLIANCE
Administrative penalty used for first time minor violations.

NOVATION
The substitution of a new borrower for another; and a new mortgage for an existing mortgage. Generally, novation occurs when a buyer assumes a seller's mortgage and the seller is released from liability by the lender, which relieves the seller of all personal liability under the mortgage and note.

NULL AND VOID
Without legal validity or effect.

REAL ESTATE - O -

OCCUPANCY RATIO
The percentage of rental units occupied.Determined by dividing the number of occupied units by the total number of units.

OCCUPATIONAL LICENSE
A license issued by a city or county government that authorizes a person or business entity to conduct a particular occupation or business enterprise.

OFFER
In real estate contracts, the proposal of a potential buyer to purchase the realproperty of another under stated terms, conditions, and so on. >>_ counteroffer.

OFFEREE
The person to whom the offer is made (e.g., an owner who wishes to sell his real property).

OFFEROR
The person who makes the offer (e.g., a potential buyer of real property).

OFFICE OF THE COMPTROLLER OF THE CURRENCY (OCC)
Effective July 1, 2011, federal savings associations are supervised by the OCC.

OFFICE OF FAIR HOUSING AND EQUAL
Opportunity (FHEO)Investigates complaints filed with HUD.

OFFICE OF THRIFT SUPERVISION (OTS)
A part of the U.S. Treasury Department that regulated all federally chartered savings associations. The OTS transferred this supervisory responsibility to the OCC on July 21, 2011.

OMISSION
The intentional or unintentional failure to act, or neglect to perform as required by law.

OPEN-END CLAUSE
A clause in a mortgage contract that permits the mortgagor to borrow additional funds whenever the initial loan amount has been substantially reduced. It may be used only at the option of the mortgagee who normally reserves the right to adjust the interest rate. >>_ mortgagor and mortgagee.

OPEN LISTING
A listing contract in which the owner agrees to list his property with a broker, but reserves the right to also list with other brokers or sell the property himself. The owner is not obligated to any broker for a commission if 1) he sells the property to a party not procured by any of the brokers; and 2) the sales contract is executed before any broker procures a purchaser for his property.

OPERATING BUSINESS RISK
The risk that actual income may be lower than projected and expenses may be higher.

OPERATING FINANCIAL RISK
The risk that available resources such as equity investment and financing may be insufficient to fund the operations.

OPINION OF TITLE
An opinion of the condition or status of title in a specific parcel of land, which is based upon facts revealed in an abstract of title. It is an opinion rendered by an attorney-at-law or other person competent to examine titles that does not guarantee that the documents in the abstract are genuine or that the owner has a good and marketable title in the property. >>_ abstract of title and marketable (merchantable) title.

OPTION CONTRACT
A unilateral contract where the optionor must perform if required by the optionee. A written agreement in which a property owner grants to a potential buyer the right to purchase his property at a specified price for a given period of time, or to nominate another purchaser within the same time period but only when substantial, valuable consideration is given. >>_ optionee, optionor, and unilateral contract.

OPTIONEE
The potential buyer who receives an option to purchase the property of another.

OPTIONOR
The property owner who gives a potential buyer the right to purchase his property.

ORAL CONTRACT
A contract that is not in writing, or one that is partly in writing and partly in spoken words. Also called a parol contract.

ORDINANCES
The equivalent of a city or county statute which governs matters not already covered by state or federal law (e.g., zoning, building codes, safety).

ORIGINATION FEE
A fee charged by lenders for services related to originating a mortgage loan; usually computed as a percentage of the loan amount. >>_ points (discount points).

OSTENSIBLE (QUASI-) PARTNERSHIP
A partnership created when two or more parties act, or do business, in such a manner that the public is deceived into believing that a partnership exists when, in fact, it does not. Since it is a partnership that merely appears to exist without any legal basis, it cannot be registered as a real estate broker.

OVERAGE (SECRET PROFIT)
The act of a broker receiving more than the compensation agreed to (i.e., a secret profit) in a real estate transaction without the knowledge and consent of the parties-a form of fraud.

OVER-IMPROVEMENT
An improvement that does not contribute to the highest and best use of the parcel of land on which it is located.

OWNER-DEVELOPER
A business entity that sells, exchanges, and leases its own property and therefore is not required to be licensed. However, any agents working for the owner-developer that are paid commissions must be licensed as an active sales associate or broker.

OWNER-INVESTOR
Usually holds property for the production of income and long-term benefits such as appreciation, tax shelter, and income from the eventual sale of the property.

OWNER'S TITLE POLICY
Insurance that indemnifies the property owner only up to the amount of the policy for any loss (not exempted in the policy) sustained by reason of defective title. If the owner sells the property, the policy is not assignable (transferable) to future owners.

OWNER-USER
Usually holds property as a necessity or convenience for residential, personal, or business use. In addition, the property is usually being held for long-term benefits such as appreciation and tax shelter.

REALTY Vocab ( P - Z )

Adperio@hotmail.com (Adperio Divum) — Sun, 24 Mar 2024 02:29:52 GMT

REAL ESTATE - P -

PACKAGE MORTGAGE
A mortgage that pledges both real and personal property as security for repayment of a debt. The items of personal property are technically chattels (e.g., stoves, refrigerators, washers, dryers).

PARALLEL LINES
Imaginary lines running east and west used in the government survey system.

PARCEL
A quantity or tract of land.

PAROL CONTRACT
>>_ oral contract.

PARTIALLY AMORTIZED MORTGAGE
Requires periodic payments consisting of interest and a partial repayment of the principal. Since the entire amount borrowed will not be repaid by the payments, a balloon payment will be due at the maturity date of the loan. >>_ balloon payment.

PARTIALLY-EXEMPT
Property that is subject to taxation but the owner has been partially relieved of the burden (e.g. HOMESTEAD TAX EXEMPTION).
>>_ homestead exemption.

PARTICIPATION MORTGAGE
A mortgage that permits a lender to receive a portion of the gross or net income of an income producing property in addition to the interest earned on the loan.

PARTITION
A division of real or personal property held by two or more persons that results in each holding an individual interest.

PATENT DEED
As applied to real property, the instrument used by the state or federal government to grant public lands to an individual.

PAYMENT CAP
Limits the increase in the monthly payment for an adjustable rate mortgage from one adjustment period to the next. Usually a percentage of the loan. PAYMENT CAPS CAN LEAD TO NEGATIVE AMORTIZATION BECAUSE INTEREST THE LENDER EARNS IS NOT LIMITED.
>>_ periodic adjustment cap.

PENALTY CLAUSE
A clause in a mortgage contract that specifies the monetary penalty that may be imposed by the lender for partial or total prepayment ahead of schedule of a mortgage loan.

PERCENTAGE LEASE
A lease agreement in which the tenant's rent is based on a percentage of the gross or net profits of the business occupying the leased space, with a minimum rental amount stipulated that will assure the landlord of some basic income. >>_ lease contract.

PER DIEM
By the day; an allowance of a certain paid amount per day.

PERFORMANCE
The fulfillment or completion of a promise, contract, or other obligation according to its terms and conditions.

PERIODIC ADJUSTMENT CAP
Limits the increase in the interest rate for an adjustable rate mortgage from one adjustment period to the next. >>_ payment cap.

PERJURY
Willfully making a false statement under oath as to a matter of fact, opinion, belief, or knowledge by a witness in a judicial or administrative proceeding as a part of his evidence given in open court or hearing, or in an affidavit, or otherwise.

PERSONAL ASSISTANT
A person who can be licensed or unlicensed and can work full or part time.The FREC in their September 2009 meeting published a list of guidelines that an unlicensed personal assistant can legally perform. A link to the guidelines can be found at the end of this dictionary.

PERSONAL PROPERTY (PERSONALTY)
>>_ chattel (personal property).

PERSONAL REPRESENTATIVE
In Florida, a person who acts as an executor, executrix, administrator, or administratrix of a deceased person's estate.

PETITION FOR REVIEW
As applied to real estate, a written application filed in the District Court of Appeals requesting judicial review of a final order of the Florida Real Estate Commission that imposed discipline upon a real estate licensee.

PETITIONER
One who presents a petition to a court, officer, or legislative body.

PHYSICAL DETERIORATION (OBSOLESCENCE)
In appraising, a loss in building value as a result of wear and tear caused by use, negligence, or action of the elements (the extent to which a building or component is physically worn out).

PIER
A type of building foundation that uses columns of masonry to support the entire structure.

PITCH
The slope of the roof. It is measured in inches as the vertical distance (rise) divided by the horizontal distance measured in feet (run) (e.g., a roof that has a pitch of 5/12 has a rise of five inches in height over a one-foot horizontal distance).

PITI (PRINCIPAL, INTEREST, TAXES, AND INSURANCE)
The acronym for the total mortgage payment collected by the lender. The mortgage payment includes the monthly principal and interest plus one-twelfth the annual property tax amount plus one-twelfth the annual insurance amount. >>_ budget mortgage.

PLAINTIFF
A person who brings suit against another in a court of law.

PLANNED UNIT DEVELOPMENT (PUD)
A high density residential development that has mixed land uses and open spaces that are maintained by a nonprofit community association.

PLANNING COMMISSION (OR AGENCY)
A commission or agency established by a local governing body responsible for the preparation and periodic evaluation of the comprehensive plan. >>_ comprehensive plan.

PLAT (PLAT MAP)
A survey map of a parcel of land that has been subdivided into lots and blocks. After a plat map has been prepared and recorded, legal descriptions may be defined by referring to a given map, plus lot and block numbers. >>_ lot and block.

PLOTTAGE (PLOTTAGE VALUE)
In appraising, an increase in value that results from combining vacant and unimproved adjacent parcels of land into a larger tract held by one owner.

POINT OF BEGINNING (POB)
A surveyor's mark at the beginning location in the metes and bounds method of land description.

POINT-OF-CONTACT INFORMATION
Any means by which to contact the brokerage firm or individual licensee including mailing address, physical street address, email address telephone number(s), or facsimile telephone number(s).

POINTS (DISCOUNT POINTS)
A fee or charge made by lenders for services related to originating a mortgage loan in which each discount point equals one percent (1%) of the loan amount.

POLICE POWER
The constitutional authority of state and local government to adopt and enforce laws and regulations which protect the public's safety, health, morals, and general welfare (e.g., zoning ordinances and building codes).

POLICY MANUAL
A set of written office standards and procedures.

POSITIVE LEVERAGE
Occurs when the rate of return from the investment exceeds the interest rate paid on borrowed funds.

POSSESSION
The act of possession under which a person exercises his power and control over real property at his pleasure and to the exclusion of all other persons.

POST-DATED CHECKS
A check that has a date in the future. It is considered a promissory note and theseller's approval must be obtained before acceptance.

POST-LICENSE EDUCATION
Both resident and nonresident licensees (active or inactive) must satisfactorily complete a Commission prescribed or approved post-license educational course prior to their first renewal following licensure. Licensed sales associates must take 45 hours of 50 minutes each and licensed brokers must take 60 hours of 50 minutes each. Both must successfully pass the end of course exam with a grade of 75% or higher. Otherwise, the 30 day waiting time to retest applies just like in the pre-license course.

POTENTIAL GROSS INCOME (PGI)
The total income the property will produce if fully rented for one year.

POWER OF ATTORNEY
A written instrument authorizing a person to act as the agent of another. >>_ attorney-in-fact.

PRE-CLOSING INSPECTION
A walk-though of the property prior to closing to determine that that property is in the same condition as the time of executing the contract.

PREMISES CLAUSE
Also called the granting clause; the only necessary clause in a deed; contains words of conveyance, names of the two parties, the legal description, and the date of the deed.

PREPAYMENT CLAUSE
A clause in a mortgage contract that allows a borrower to pay off all or some portion of the remaining loan balance ahead of schedule without penalty.

PREPAYMENT PENALTY
If the borrower pays off their loan ahead of schedule, then the lender could charge an additional fee called a penalty. FHA, VA, and conforming conventional loans do not contain a prepayment penalty.

PREPAYMENTS
Items typically paid in advance (e.g., rent, insurance, and interest on a new mortgage) that must be identified with the seller's period of ownership in order to debit one party and credit the other party on the closing statement. Note that if the seller is not providing the buyer's mortgage, then the prepaid interest is only a debit to the buyer.

PRICE
The amount actually paid by a buyer to a seller in a real estate transaction.

PRIMA FACIE (EVIDENCE)
On the face of it; a fact presumed to be true unless disproved by evidence to the contrary.

PRIMARY MORTGAGE MARKET
That part of the money market in which primary lenders, such as savings associations, mutual savings banks, commercial banks, life insurance companies, mortgage bankers, and credit unions originate mortgage loans directly to borrowers.

PRINCIPAL
1) A party with whom a real estate licensee has entered into a single agency relationship; a broker's employer; 2) The amount of money borrowed, owed, or loaned; 3) The remaining balance due on a mortgage loan. >>_ client.

PRINCIPAL BASELINE
An imaginary line running east and west crossing a principal meridian at a definite point. There are 37 sets of principal meridians and baselines in the continental U.S. In Florida, this line crosses at a point in Tallahassee. These lines are used in the government survey system of legal description. >>_ principal meridian.

PRINCIPAL MERIDIAN
An imaginary line running north and south crossing a baseline at a definite point.There are 37 sets of principal meridians and baselines in the continental U.S. In Florida, the principal meridian crosses at a point in Tallahassee. These lines are used in the government survey system of legal description. >>_ principal baseline.

PRINCIPLE OF ANTICIPATION
Economic principle that reflects the market value of a property equals the present worth of the future income stream or the amenities of the property.

PRINCIPLE OF CHANGE
Economic principle that states the forces of supply and demand constantly change and cause fluctuations in the market value of a property.

PRINCIPLE OF COMPETITION
Economic principle that states the actions of buyers, sellers, builders, developers, investors, and others in the marketplace create competition for certain types of properties, thereby establishing market values,

PRINCIPLE OF CONFORMITY
Economic principle that indicates an over improved property will tend to conform and decrease in value toward the value of other property in the area.

PRINCIPLE OF CONTRIBUTION
(principle of diminishing marginal returns)Economic principle that reflects the cost of any factor of production (land, labor, capital, and management) added to a property should be evaluated in relationship to the value it returns.

PRINCIPLE OF HIGHEST AND BEST USE
Economic principle that refers to the legal, possible, probable, and reasonable use which, at the time of an appraisal of a property, is most likely to produce the greatest net return (greatest present value) to the land and/or improvements over a given period of time while preserving its utility.

PRINCIPLE OF SUBSTITUTION
Economic principle that states that an informed buyer will pay no more for a property than the cost of acquiring another equally desirable property with the same or equal utility or productivity, (with any time costs or delays encountered taken into account in making the substitution). If two similar houses are for sale, the lowest price house will generally sell first.

PRINCIPLE OF SUPPLY AND DEMAND
Economic principle that concerns the ability of people to pay for real estate and its relative scarcity in the marketplace.
PRINCIPLE OF VARIABLE PROPORTIONS (PRINCIPLE OF BALANCE) (PRINCIPLE OF INCREASING AND DECREASING RETURNS) Economic principle that states real estate achieves its highest and best use, or point of maximum productivity, when the factors of production (i.e., land, labor, capital, and management) are in balance with one another.

PRIVATE MORTGAGE INSURANCE (PMI)
Insurance that protects mortgage lenders against excessive risk and losses due to borrower default on a conventional mortgage loan (usually required when the loan-to-value ratio exceeds 80%).

PRIVATE RESTRICTIONS
Limitations on the use of real property created by restrictive covenants in deeds, conveyances, leases, and mortgages. >>_ deed restriction.

PROBABLE CAUSE
Reasonable grounds to prosecute which is determined by the 2 person probable cause panel. It it is determined that probable cause exists, then a formal/administrative complaint will be filed. >>_ administrative complaint and probable cause panel.

PROBABLE CAUSE PANEL
Receives the DBPR investigator's report and any recommendations from the DBPR.The chairperson of the FREC appoints two current members of the Commission to form the probable cause panel or one current and one former member. One member must be a professional member. If a former member is used, then they must hold an active real estate license.

PROCURING CAUSE
A broker is regarded as the procuring cause of a sale when his efforts lead directly to the closing of the transaction, which entitles him to be compensated.

PROFIT
The amount a person makes above their cost. >>_ cost.

PROGRESSION
A principle in appraising that an inferior property will be enhanced by its association with the same type of superior property.

PROMISSORY NOTE
A negotiable, written instrument that is the legal evidence of a debt, and a promise byone or more parties to repay a definite sum of money by a specified time.

PROPERTY
In the strict legal sense, property is an aggregate or bundle of rights to a thing that is guaranteed and protected by the goverment.

PROPERTY DEVELOPMENT
A multifaceted aspect of the real estate industry and involves everything from buying vacant (raw) land to selling a completed project.

PROPERTY MANAGEMENT
A service of real estate that involves the management of income-producing property of an owner. The objective of property managers is to obtain the highest possible net income for the owner while maintaining high property value.

PROPERTY MANAGEMENT CONTRACT
Provides the details of the relationship between the property manager and the owner, including fees and responsibilities.

PROPERTY REPORT
Under the antifraud provision of the Interstate Land Sales Full Disclosure Act, a developer of 25 or more lots must provide each purchaser a required disclosure called a property report. The report contains information about the real estate and must be delivered prior to signing the contract.

PRORATE (PRO RATA)
To divide proportionally.

PRORATE
The mathematical process of proportionally dividing certain costs between the seller and buyer as of the closing date of the real estate transaction (e.g., real property taxes, prepaid interest, interest paid in arrears, rent and security money, and association fees).

PROPRIETARY LEASE
A lease between an owner-cooperative of real estate and the tenant-stockholder.Gives the tenant-stockholder the right to occupy their unit.

PROSPECT
>>_ customer.

PUBLIC ACCOMMODATION
Public and private facilities that are open to the public must comply with ADA requirements for accessibility (e.g., a certain number of disabled parking spaces, the height of light switches, and grab bars in bathrooms).

PUBLIC GRANT
A grant of public lands to an individual by the state or federal government.

PUBLIC RECORDS
Legal records maintained by a governmental unit or a governmental officer which are subject to public inspection, and thus give notice of their contents to the public at large. >>_ constructive notice.

PUBLIC RESTRICTIONS
A limitation on the use of privately owned real property imposed by the government (e.g., zoning ordinances).

PUNITIVE DAMAGES
Damages awarded to punish a defendant for wrongful behavior or to make an example of him.

PURCHASE AGREEMENT
>>_ contract for sale and purchase.

PURCHASE MONEY MORTGAGE
Any mortgage given to secure a loan that is made for the purpose of purchasing real property. Typically, a purchase money mortgage is 1) a first mortgage given by a buyer to a third party, such as an institutional lender; or 2) a first or junior mortgage given by a buyer to a seller.

PURCHASING POWER RISK
Risk related to the effect inflation may have on the property's value.

REAL ESTATE - Q -

QUALIFIED FEE ESTATE
Fee ownership with certain limitations imposed by the grantor.

QUALIFYING
>>_ mortgage underwriting.

QUANTITY SURVEY METHOD
Used in appraising to determine reproduction cost. The method specifically analyzes each item of construction including building materials and supplies, other products, labor costs, indirect costs, and builder's profit necessary to reproduce the subject property.

QUASI
Related to; of a similar nature.>>_ ostensible (quasi-partnership, quasi-judicial powers, and quasi-legislative powers).

QUASI-JUDICIAL POWERS
The powers granted by Chapter 475, F.S. to the Florida Real Estate Commission which permits them to deny applications for licensure, certification, registration, or permit, or the renewal thereof; and hold informal hearings and issue final orders in all disciplinary proceedings to suspend or revoke licensure, reprimand or fine a licensee, registrant, or permitee, or place any of the foregoing on probation.

QUASI-LEGISLATIVE POWERS
The powers granted by Chapter 475, F.S. to the Florida Real Estate Commission which permits them to 1) enact rules that implement its owners and duties prescribed by law; 2) enact bylaws and regulations for its own government; and 3) establish fees.

QUASI-PARTNERSHIP
>>_ ostensible quasi-partnership.

QUIET ENJOYMENT
The right of an owner of real property or a tenant occupying real property under a lease agreement to enjoy the possession of the premises in peace and without interference.

QUITCLAIM DEED
A type of deed in which the grantor makes no covenants for title and merely releases or relinquishes all right, title, or interest that he has in the real property, without claiming any interest whatsoever. It is commonly used to cure defects in or remove clouds from a title. >>_ cloud on title.

QUORUM
The minimum numbers of members of a deliberative body who must be present before meetings may be held or business conducted. For example, four members must be present for the FREC to conduct business.

REAL ESTATE - R -

R-VALUE
A value for the resistance to heat flow. The higher the R-Value, the more resistant the material. Search by zip code at the U.S.Department of Energy web site.

RADON GAS
A colorless, odorless gas that develops in the earth naturally as a result of the decay of radioactive materials such as uranium.

RANGE
A vertical (north/south) strip of land six miles wide on either side of the principal meridian. >>_ government survey system and principal meridian.

RANGE LINES
The lines running every six miles east and west of the principal meridian. >>_ government survey system and principal meridian.

RATIFICATION (RATIFIED)
Confirmation by a party of a previous act done either by himself or by another.

READY, WILLING, AND ABLE
Words usually contained in listing contracts implying that a potential buyer will complete the transaction at the time and place specified in the contract; has the desire to complete the transaction under the terms and conditions of the contract; and has the financial capability to complete the transaction under the terms and conditions of the contract.

REAL ESTATE
The physical land at, above, and below the earth's surface. It includes any buildings, structures, fixtures, or other improvements erected on or affixed to the land, and anything growing on the land. >>_ real property (realty).

REAL ESTATE BROKER
A licensed person who, for compensation or with the intent to receive compensation, acts as an agent for others in the performance of one or more services of real estate; this includes transactions involving business enterprises or opportunities. As set forth in Chapter 475, F.S., the term broker also includes any person who advertises rental property information or lists; any person who is a general partner of a brokerage partnership or an officer or director of a brokerage corporation; and any person or entity who lists, advertises for sale, promotes, or sells by any means whatsoever one or more time-share periods per year on behalf of others, except as otherwise provided by law.

REAL ESTATE BROKERAGE
A business registered with the Department of Business and Professional Regulation that 1) buys, sells, rents, leases, exchanges, auctions, or appraises the real property of others for compensation; 2) advertises rental property information or lists; or lists, advertises for sale, or promotes; or 3) sells by any means whatsoever one or more time-share periods per year on behalf of others. A brokerage business may be registered and operated as a sole proprietorship, corporation, limited liability corporation, limited liability partnership, or general or limited partnership.

REAL ESTATE EDUCATION AND RESEARCH
FoundationThe major purpose of the foundation is to create and promote educational projects to expand the knowledge of the public and real estate licensees in matters pertaining to Florida real estate.

REAL ESTATE INVESTORS ASSOCIATION (REIA)
Formerly known as the Real Estate Securities and Syndication Institute. A trade association that represents local investor, apartment, property owner, and landlord associations with a mission to educate their members to become better real estate investors.

REAL ESTATE INVESTMENT TRUST (REIT)
>>_ business trust.

REAL ESTATE OWNED (REO)
A property that has gone through foreclosure and is now owned by the lender. The REO property did not find a buyer during the foreclosure auction so the lender takes it back. This type of property is less risky in that a buyer can obtain title insurance at closing to insure against any defects in the title whereas at a foreclosure sale, title insurance would not be available.

REAL ESTATE RECOVERY FUND
A fund established by statute to reimburse any person, partnership, or corporation who is adjudged by a court of law to have suffered monetary damages by reason of certain acts committed as a part of any real estate brokerage transaction involving real property in Florida by any broker or sales associate who held a valid and current license at the time the alleged act was committed.

REAL ESTATE SALES CONTRACT
An agreement whereby one party agrees to buy and the other party (the owner agrees to sell certain real property according to the price, terms, and conditions of the contract.Also known as an agreement for sale, an agreement of sale, a contract for purchase, a contract for sale, contract for sale and purchase, a purchase agreement, and a purchase and sale agreement.

REAL ESTATE SERVICES
Any real estate activities performed for another for compensation require an active real estate license (personal and business).Florida real estate license law identifies eight real estate services that require licensure if compensation is offered or expected - A BAR SALE (advertise real estate services, buy, appraise, rent or provide rental lists, sell, auction, lease, and exchange).

REAL ESTATE SETTLEMENT PROCEDURES ACT
(RESPA) (Regulation X)A federal law that requires lenders to fully disclose the type and amount of closing costs that borrowers are required to pay on government-under written mortgage loans, or on federally related residential mortgage loans. RESPA ATTEMPTS TO ELIMINATE KICKBACKS.
>>_ closing costs and kickback.

REAL PROPERTY (REALTY)
The physical land, and generally whatever is erected on, affixed to, or growing on the land, plus the interests, benefits, and legal rights inherent in the ownership of real estate. The term realty is sometimes used to denote real property.

REALTOR®
A real estate professional who is a member of the National Association ofREALTORS®, a state association of REALTORS®, and a local board or association of REALTORS®. Some boards or associations permit the term to be used only by member-brokers, while others permit it to be used by member-brokers or member-sales associates.

REALTOR® - ASSOCIATE
In some local boards or associations of

REALTORS ®,
a real estate sales associate who is a member of the National Association of REALTORS ®, a state association of REALTORS®, and a local board or association of REALTORS®.

REALTORS® NATIONAL MARKETING INSTITUTE (RNMI)
An institute whose membership is comprised of those specializing in the brokerage of residential, commercial, and investment real property.Offers the Council of Real Estate Brokerage Managers professional certification.

REALTY
>>_ real property.

RECEIVER
A person appointed by the court to receive, preserve, and manage the property of a bankrupt or property in litigation, to receive the rents and profits generated by the property, and to apply or dispose of them at the direction of the court.

RECEIVERSHIP CLAUSE
Allows income from the mortgaged property to be applied to the mortgage payments should the mortgagor default. >>_ mortgagor.

RECOMMENDED ORDER
Issued at the end of a formal hearing by anALJ based on clear and convincing evidence; must include any findings of fact, conclusions of law, interpretation of rules and recommended penalty, if any.

RECONCILIATION
What an appraiser does by weighing the estimates of value that were derived from the sales comparison, cost-depreciation, and income approaches to arrive at a final estimate of market value.

RECORDING
Placing or entering instruments that affect the title to real property into official public records of the county in which the property is located so as to give notice of their contents. >>_ constructive notice.

REDDENDUM CLAUSE
The reserving clause in the deed that reserves a right or restriction in the title, not land, to the grantor (e.g., the grantor reserves the right to receive rent from the property for his life).

REDLINING
An illegal and discriminatory practice by financial institutions that refuse to make mortgage loans on real property in certain areas due to alleged deteriorating or otherwise undesirable conditions, and not the applicant's credit record.

REFEREE'S DEED IN FORECLOSURE
Used to convey property sold in a court-ordered foreclosure sale.

REFEREE'S DEED IN PARTITION
Used to convey property following a court-ordered partition judgment involving property owned jointly by two or more persons who desire to dissolve their joint ownership of the property but who cannot agree on the physical division (partition) of the property.

REFERRAL FEE
>>_ finder's fee.

REFINANCING
To renew financing, or obtain new financing to pay off existing debts or loans.

registered trainee appraiser An individual registered with the Department of Business and Professional Regulation who is permitted to appraise real property under the supervision of a state-certified appraiser.

REGISTRATION
The placing and maintaining on record, by the DBPR, the name and address of each licensed broker and sales associate, and the name and business address of the sales associate's employer.

REGRESSION
A principle in appraising that a superior property will be adversely affected by itsassociation with the same type of inferior property.

REGULATION Z
Published in 1969 by the Federal Reserve Board of Governors and requires that a borrower be shown clearly in both dollars and a percentage amount what is actually being paid for credit. >>_ Consumer Credit Protection Act.

RELEASE CLAUSE
A clause in a mortgage contract that allows individual parcels of land to be released from the mortgage as they are sold and upon payment of a specified amount to the lender. >>_ blanket mortgage.

REMAINDER ESTATE
A future ownership interest in real property that passes to a certain person at a specified time or upon the happening of a necessary event.

REMAINDERMAN
One who receives the remainder of an estate in real property after a preceding estate carved out of it has expired. For example, "A," who owns land in fee simple, conveys it to "B" for twenty years, and at the end of that time, it passes to "C" (a remainderman) in fee simple.

RENT
An agreed sum paid at fixed intervals by the tenant to the landlord. >>_ lessee and lessor.

RENUNCIATION
The act by which a person abandons an acquired right without transferring it to another.

REPLACEMENT COST
As used in the cost-depreciation approach, the current cost of creating a building of equal utility as the building being appraised, but not necessarily with identical materials or in exact physical detail.

REPRODUCTION COST
As used in the cost-depreciation approach, the current cost of creating a duplicate or replica of the building being appraised by using identical materials and design.

RESALE CONDOMINIUM
When the seller of the condominium unit is someone other than the developer it isconsidered a resale. The buyer must be provided the condominium documents that include the articles of incorporation, association rules, bylaws, declaration, the frequently asked questions and answers, governance form, and the most recent year. end financial report.

RESCIND
To terminate, annul, or make void.

RESCISSION (OF A CONTRACT)
The act of canceling or declaring a contract void, which places each party in the position held before the contract was made.

RESERVE FOR REPLACEMENTS
An annual reserve fund for replacement of short-life items that wear out from time to time.

RESERVE REQUIREMENT
The portion of depositors' funds that regulated financial institutions must keep and not loan out. This increases or decreases the amount of money available for loans, depending upon the direction of change in the reserve requirement.

RESIDENTIAL SALES
The sale of improved residential property of four units or fewer, the sale of unimproved residential property intended for the use of four units or fewer, or the sale of agricultural property of 10 acres or fewer.

RESOLUTION
The adoption of a motion that merely expresses an opinion or the will of an official body, such as a resolution of the Florida Real Estate Commission.

RESPONDENT
The party who responds to a pleading in a civil matter. >>_ complainant.

RESTRICTION
A limitation on the use of real property which may be contained in a deed, lease, or zoning ordinance. >>_ deed restriction, private restrictions, and public restrictions.

RESTRICTIVE COVENANT
Recorded with the subdivision plat and affects the entire subdivision. Opposite of deed restriction because deed restrictions affect a single property.reverseTo vacate, set aside, make void, annul, or revoke. For example, the District Court of Appeals could reverse a final order of the Florida Real Estate Commission.

REVERSE ANNUITY MORTGAGE
A loan made by a lender to a 62 years or older homeowner against the equity in his home. The homeowner receives monthly payments directly from the lender based on the homeowner's accumulated equity in his home or through the purchase of an annuity from an insurance company.

REVERSION ESTATE
A future ownership interest in real property that returns or reverts to the grantor, or to his heirs, at the termination of a particular estate. For example, "A," who owns land in fee simple, conveys it to "B" for his lifetime.When "B" dies, the property reverts to "A" or his heirs in a fee simple estate.

REVOCATION (REVOKE)
The taking back of some power, authority, or thing granted, or rescinding a right or status that existed prior to the act of revocation (e.g., revocation of a license by the Florida Real Estate Commission).Revocation is permanent except for two situations-when the licensee filed for renewal but did not comply with the continuing or post license education requirements prior to the expiration date or when an individual files an application for licensure that contains fraudulent information.

RIGHT OF SURVIVORSHIP
The right of a surviving joint owner of property to receive the interest of a deceased joint owner. In Florida, a joint estate may include the right of survivorship if expressly stated in the instrument which creates the estate. >>_ joint estate joint tenancy).

RIGHT-OF-WAY
The right or privilege to pass over the land of another, which is often acquired by contract.

RIGHT TO REINSTATE
Not available in title theory states. >>_ equity of redemption and title theory.

RIPARIAN RIGHTS
The rights of landowners whose property borders on a river or stream.

REAL ESTATE - S -

S CORPORATION
A type of corporation that passes corporate income, losses, deductions, and credit through to their shareholders for federal income tax purposes. >>_ corporation for profit.

SAFE ACT (SAFE)
Secure and Fair Enforcement for Mortgage Licensing Act of 2008 sets minimum standards for the licensing and registration of state licensed mortgage loan originators.>>_ mortgage loan originator.

SALE-LEASEBACK
A method of financing in which the owner of real property sells his property and simultaneously leases it from the buyer for an extended period of time.

SALES ASSOCIATE, REAL ESTATE
A person who performs one or more services of real estate, either as an employee or independent contractor, under the direction, control, or management of a licensed real estate broker or owner-developer. >>_ independent contractor.

SALES COMPARISON APPROACH
Appraisal method for estimating cost based on the principle of substitution.

SALES CONTRACT
>>_ contract for sale and purchase.

SANDWICH LEASE
The lease of a lessee who has sublet all or a portion of the leased space to another, who is now sandwiched between the fee-owner and the party who acquired the sublease.

SATISFACTION
The discharge of an obligation by paying a party; the amount awarded to him by judgment of the court.

SATISFACTION OF MORTGAGE
When a mortgage is paid in full, Florida law requires the lender to file a satisfaction of mortgage discharging the debt within 60 days of receiving the last payment.

SAVE OUR HOMES (SOH)
Chapter 193.155 F.S., states that beginning in 1995 and thereafter, homestead property shall be reassessed annually on January 1 and any change shall not exceed the lesser of 3% of the assessed value or the change in the Consumer Price Index. >>_ Consumer Price Index and homestead.

SAVINGS ASSOCIATION
A type of financial institution whose original function was to promote thrift and home ownership. Savings associations are chartered by either the federal or state government, and regulated by the Office of Thrift Supervision.

SEE OFFICE OF THRIFT SUPERVISION (OTS).
scarcityA characteristic of value, scarcity describes a limited supply relative to the demand for a specific type of property.

SEAL
>>_ locus sigilli (L.S.)

SECOND MORTGAGE
A subordinate or junior mortgage to a first mortgage.

SECONDARY MORTGAGE MARKET
That part of the money market in which secondary lenders, such as federal government agencies, life insurance companies, and pension funds buy and sell closed loans originated in the primary mortgage market. >>_ primary mortgage market.

SECTION
In the government rectangular survey method of describing real property, a tract of land that is one mile square; has an area of one square mile; and contains 640 acres.>>_ township.

SECURITY
A pledge given by a debtor to assure the payment of his debt, which provides the creditor with a resource to be used if the debtor fails to meet his obligation. For example, a mortgage pledges the borrower's real property as security for repayment of the debt. seller property disclosure form Usually resembles a questionnaire or a checklist and requires that the sellers give a detailed and comprehensive report on the property; usually has a signature area where the sellers also agree that this information can be given to prospective buyers.

SELLER'S MARKET
A market where there are more buyers relative to the number of sellers. >>_ buyer's market.

SEPARATE PROPERTY
The real and personal property that married persons individually own.

SERVIENT ESTATE
Adjoining property to a dominant estate; known as the servient estate because it suffers from the right granted by the easement. >>_ also dominant estate.

SEVERALTY
An estate held by a person in his own right; sole ownership.

SHED ROOF
A type of flat roof that slopes in one direction.

SHORT SALE
When the proceeds from the sale are not sufficient to cover the homeowner's mortgage obligations and other closing costs, including the real estate sales commission, property taxes, any past due association fees, and transfer taxes.Usually short sales occur when the homeowner is behind in their mortgage payments and/or other liens. The lender agrees to accept less than what is owed because the homeowner is experiencing a financial hardship and/or is upside down due to decreasing home values. >>_ upside down.

SINGLE AGENCY OR SINGLE AGENT
An agency relationship in which the agent has only one principal per transaction in a residential sale. For example, a single agency exists when either a seller or buyer, but not both in the same transaction, employs a broker.A plot of land set apart for some specific ...........

SITUS
The economic quality of real estate resulting from its location and immobility.

SOCIETY OF INDUSTRIAL AND OFFICE
REALTORS® professional organization that serves commercial brokerage specialists.

SOLE PROPRIETORSHIP
A type of business organization owned and controlled exclusively by one person.

SOLE TITLEHOLDER
The person holding title to property owned by a corporation sole. >>_ corporation sole.

SOLVENT
The ability of a person or business entity to pay debts when due from current assets.

SPECIAL AGENT
An individual who has been authorized to act on the employer's behalf to perform a single act. As an example, a broker employed under a listing contract to market one property is acting as a special agent.

SPECIAL ASSESSMENT
A one-time tax levied by local government against real property for some improvement that will increase the value of the property affected (e.g., for sewer or water mains, sidewalks, streets).

SPECIAL EXCEPTION
A deviation in land use that does not comply with the designated use as specified in a zoning ordinance.

SPECIAL FLOOD HAZARD AREAS (SFHAS)
Delineated according to National FloodInsurance Program criteria where the probability of flooding an area will be at least 1% in any given year.special-purpose property (special use property)Properties that do not fit other zoning categories (e.g., schools, libraries, courthouses, parks, and other government properties).

SPECIAL POWER
Limited to some special act (e.., signing a contract, deed, or mortgage).

SPECIAL TAX DISTRICTS
Established to support specific needs (e.g., fire protection, flood control, hospitals, and emergency ambulance service). These districts are created by the local government, the property owners who desire a special service or improvement through the local government, or by acts of the state legislature.

SPECIAL WARRANTY DEED
A type of bargain and sale deed in which the grantor promises only to guarantee and defend the title to the real property against lawful claims made by himself or anyone claiming by, through, or under him. This type of deed is given by corporations selling their property.

SPECIFIC PERFORMANCE
The actual performance of a contract by a party required to fulfill it; a type of legal action in which one party to a contract requests the court to require another party to perform according to the exact terms of the contract.

SPECULATIVE BUILDING
An improvement (e.g., a house) constructed by developers, contractors, or builders according to their specifications on land they own with the goal of selling the land and the building.

SPOUSE
One's husband or wife.

STATE-CERTIFIED GENERAL APPRAISER
>>_ certified general appraiser.

STATE-CERTIFIED RESIDENTIAL APPRAISER
>>_ certified residential appraiser.

STATUTE OF FRAUDS
Statutory law requiring all contracts for land or any interest in land, that cannot be fulfilled within one year, to be in writing to be enforceable. This statute applies to real estate sales contracts, option contracts, deeds, mortgages, and leases for longer than one year.

STATUTE OF LIMITATIONS
A Florida statute requiring a plaintiff to bring a lawsuit within a specified time period or it will be disallowed by the courts. For example, a legal action on a written contract must be started within five years and within four years on an oral agreement.

STATUTES
Acts by the Florida Legislature (state law) or by the United States Congress (federal law)declaring, commanding, or prohibiting something. The term is used to denote legislatively enacted laws as opposed to case, unwritten, or common laws.

STATUTORY RIGHT OF REDEMPTION
Allows a mortgagor in default to redeem property after foreclosure from the purchaser at the public sale.

STAY OF ENFORCEMENT
A motion that defendants may file when they file an appeal asking that a final order be stayed (delayed) from taking effect. If requested, the stay will be granted and the licensee may continue to operate, unless the FREC can show there is a probable danger to the public welfare. If a stay is not requested, the final order becomes effective.

STEERING
>>_ channeling.

STIGMATIZED PROPERTY
Property upon which some event with more of a psychological impact than a physical impact or defect has occurred or is occurring. Property can be stigmatized by events such as murder, suicide, or drug-related arrest, or the property may be considered haunted by ghosts or spirits.Also includes those premises on which a famous person may have once lived.

STIPULATION
When the Division of Real Estate's attorney meets with the licensee-respondent and their legal counsel to discuss a possible settlement, the agreement reached that states the facts of the case and the penalty determined. A stipulation must be approved by the FREC to be effective.

SUBAGENT
A person employed by an agent to assist in transacting the business of his principal; an agent of an agent.

SUBDIVIDING
Converting a raw parcel of land into smaller parcels.

SUBDIVISION OR SUBDIVIDED LANDS
Any contiguous land which is divided or is proposed to be divided for the purpose of disposition into 50 or more lots, parcels, units, or interests; or any land, whether contiguous or not, which is divided or proposed to be divided into 50 or more lots, parcels, units, or interests which are offered as a part of a common promotional plan.

SUBDIVISION PLAT MAP
An engineer's plan for land use that is superimposed onto a map of the land to be developed. It indicates the streets, public utilities, water and sewer lines, and the individual lots.

SUBJECT PROPERTY
The property being appraised.

SUBJECT TO MORTGAGE
When real property is sold subject to the mortgage, the buyer assumes liability only for the existing mortgage and the seller retains prime liability on the note. In the event of default, the buyer could lose the property and his equity in the property in a foreclosure sale.

SUBLEASE
A lease agreement in which a tenant leases to another party all of the leased space for less than the remaining time of the lease period and/or only part of the leased space for any time period.

SUBORDINATION AGREEMENT
An agreement which allows the rights of one person to rank below the rights of another. For example, the holder of a first mortgage may agree to take a second mortgage position, and thus subordinate or relinquish his priority position to a new mortgage. The subordination clause provides that the mortgagee will allow another mortgage to assume a superior position in priority.

SUBPOENA
A command to appear in court or at a hearing, usually for the purpose of giving testimony on a certain matter.

SUBROGATION
The substitution of one party in the place of another who has a claim against a third party.

SUBSEQUENT
Later in time, following, succeeding.

SUBSURFACE RIGHTS
Include the right in a parcel of real estate to explore, drill, or dig below its surface forminerals (e.g., gas, oil, coal) and water. The mineral rights and certain water rights may be sold or leased.

SUIT FOR DECLARATORY DECREE
Legal action used by a broker who claims an interest in disputed escrow deposits.

SUIT FOR INTERPLEADER
Legal request used by a broker who does not claim an interest in disputed escrow deposits and places them with the court registry.

SUIT TO QUIET TITLE
A proceeding to establish a plaintiffs claim to real property by bringing into court any adverse claimant, and require him to establish his claim or thereafter be prevented from doing so.

SUMMARY SUSPENSION
An emergency suspension of a license.

SUPPLY
A quantity of something. There is an inverse relationship between supply and demand. Supply factors include the availability of land, materials, skilled labor, and construction loans. >>_ demand.

SUPREME COURT (FLORIDA)
The highest appellate court with statewide jurisdiction; court of last resort.

SURFACE RIGHTS
Include the right to control, occupy, and use the surface area of a parcel of real estate along with land and water rights (e.g., building improvements on land and growing crops on it).

SURPLUS MONEY ACTION
A junior mortgage holder who is holding a second or subsequent mortgage position may file a surplus money action so that any funds that are collected at the foreclosure sale will pay all senior claims as well as his or her own against the borrower.
SURVEY
1) The process by which a parcel or tract of land is measured, and its boundaries and contents determined; 2) a map, plat, or explanation of the results of a survey.

SURVEYOR
One who makes surveys and determines the area of a parcel or tract of land, the length and direction of its boundary lines, and contour of its surface.

SUSCIPIENT FUNCTION
Function of businesses (e.g., flower shops, ice cream stores) in commercial areas that depend on attracting passerby traffic.

SUSPENSION OF A RIGHT (SUSPEND)
The act by which a person is temporarily deprived of the exercise of a right for a period of time. For example, the Florida Real Estate Commission has the power to suspend the license of a broker or sales associate for a maximum period of 10 years.

SYNDICATION
>>_ business trust.

REAL ESTATE - T -

TANGIBLE PROPERTY
Real or personal property that may be touched and possessed (e.g., land, buildings, trees, cars, boats, jewelry).

TAXABLE INCOME
For IRS purposes, the gross income minus any allowable tax deductions. For real estate purposes, the net operating income plus reserve for replacements minus the financing costs and allowable depreciation.

TAXABLE VALUE
The property tax rate is applied to the difference between the total assessed value and all exempt value to determine the property tax due.

TAX CERTIFICATE
Failure to pay real property taxes results in the public sale of tax certificates which gives the certificate buyer a right to the delinquent property tax plus interest.

TAX DEED
A deed used to convey title to real property that has been foreclosed by a court order for nonpayment of real estate taxes. >>_ deed.

TAX LIEN
A lien on real or personal property in favor of local, state, or federal government which may be foreclosed for nonpayment of taxes.

TAX RATE
Property tax rates are set by the millage which is determined by the taxing district governing bodies (e.g., city, county, water management, school board, and special districts).

TAX SHELTER
Created when deductions exceed taxable income.

TAX VALUE
Also known as assessment value or what the property is valued for assessment purposes; often less than real market value.

TEASER RATE
The low, temporary, introductory interest rate for an adjustable rate mortgage. >>_ adjustable rate mortgage.

TELEPHONE SOLICITATION
The initiation of a telephone call for the purpose of encouraging the purchase of, or investment in, property, goods, or service.

TENANCY AT SUFFERANCE
A tenancy created when a tenant's legal rights have ended, but he remains in possession of the landlord's property without agreement; also known as a holdover tenant. >>_ nonfreehold estate.

TENANCY AT WILL
A tenancy created by either an oral or written agreement that exists whenever a landlord grants the possession and use of his real property to a tenant for an indefinite period of time (sometimes referred to as a rental agreement). >>_ nonfreehold estate.

TENANCY (ESTATE) BY THE ENTIRETIES
A form of joint ownership that can exist only between a husband and wife, which is normally created when they acquire title to real property at the same time. On the death of one spouse, the surviving spouse becomes the sole owner of the property.

TENANCY (ESTATE) FOR YEARS
A tenancy created when a landlord grants the possession and use of his real property to a tenant for a definite period of time (e.g., a certain number of days, weeks, months, or years from a given date). It is created by a written lease containing specific beginning and ending dates as agreed between the parties.

TENANCY IN COMMON
A form of joint ownership in which two or more persons called co-tenants own a separate and distinct share of real or personal property. A tenancy in common cannot provide for the right of survivorship since each co-tenant can sell, give, will, or otherwise dispose of his interest in the property at any time.

TENANT
>>_ lessee.

TENDER
1) An offer of money to satisfy a claim; 2) an unconditional offer to perform combined with the ability to carry out the offer and produce certain subject matter.

TENENDUM CLAUSE
The clause in the deed that states that the land together with any improvements to the land is being conveyed to the grantee.

TERMINUS
A post or stone marking a boundary. Metes means terminus or measurements (e.g., inches, feet, yards, and miles). >>_ metes and bounds method.

TERMITE INSPECTION
A physical inspection of real property for the presence of termites.

TERM MORTGAGE (STRAIGHT TERM)
A mortgage that requires the payment of interest only at specified intervals, with the entire principal amount borrowed due at the loan maturity date.

TESTATE
A person who dies and leaves a will is said to die testate.

TESTIMONIUM CLAUSE
The clause in the deed that contains the statement, "In witness whereof the parties to these presents have hereunto set their hands and seals." thrift institutionsOrganizations that primarily accept savings account deposits and invest most of the proceeds in mortgages; savings banks, savings associations, and credit unions are other examples of thrift institutions.

TIME IS OF THE ESSENCE
A contract provision that means that the parties will be held to exactly that time period specified. The party that is late is in breach of contract.

TIME-SHARE
A plan or arrangement in which a purchaser receives a fee simple interest in or a right to use a time-share unit, such as an apartment, condominium, or cooperative unit, for a specified period of time each year—usually one week. If the purchaser is merely granted a right to use an accommodation, it may consist of a lease, rental agreement, license, or club membership.

TITLE
The right by which a party is entitled to the present or future ownership of real estate.Ownership includes the right of possession, occupancy, use, enjoyment, and disposition of the property. Title is also the evidence of ownership of real estate. One who owns property has title to it.

TITLE INSURANCE
A title insurance company's guarantee against loss or damage from defects or encumbrances in the title to a specified parcel of land to which the company has not taken an exception. >>_ mortgagee title policy and owner's title policy.

TITLE PLANT
A duplicate set of the public records that include copies of all the essential recorded instruments affecting title to real estate.

TITLE SEARCH
An examination of the public records and other publicly available records for documents that affect title to a parcel of real estate to determine whether any defects exist in the chain of title. >>_ chain of title.

TITLE THEORY
A view that a mortgage conveys legal title to the mortgaged real property to the lender until the terms and conditions of the mortgage contract are satisfied by the borrower. >>_ lien theory.

TLOT
In the shape of a T typically used in alternation in a block; used to provide variety in terms of distance of the houses from the street; allows for higher density building along an area with limited attraction access. Suffers from runaway cars and headlights.

TOPOGRAPHY
The nature and contour of the surface of land.

TORT
A wrongful act or injury, other than breach of contract, which permits the wronged party to bring a civil suit against the alleged wrongdoer for damages suffered.

TOWNSHIP
In the government survey system of describing real property, a tract of land that is six miles square; has an area of 36 square miles; and contains 36 sections.

TOWNSHIP LINE
Drawn every six miles parallel to base lines.>>_ base lines and correction lines.

TOXIC WASTE
Waste material that can cause injury or death. The Department of Environmental Protection regulates the disposal of toxic waste.

TRACT BUILDING
Involves a builder building homes from a variety of floor plans which act as examples of what the builder has to offer in a subdivision. This is also called model home building.

TRADE FIXTURE
An article of personal property annexed or fixed to real estate being rented or leased by a tenant as a necessary part of the tenant's business or trade.

TRADE NAME
>>_ fictitious names statute.

TRANSACTION BROKER
A relationship created when a broker offers limited representation to one or both parties in a residential real estate sale transaction, but does not represent either in a fiduciary capacity or as a single agent.

TRANSFERABILITY
A characteristic of value, transferability means title to a property can be transferred from one person to another.

TRIGGERING TERMS
Creditors are required by the Truth-in-Lending Act to disclose additional information when certain credit terms areused in advertising (e.g., the amount or percentage of down payment, number of payments, term of repayment, amount of any payment, and the amount of any finance charges).

TRUST
An arrangement in which real or personal property is transferred to a trustee with the intention that it be managed for the benefit of another or others.

TRUST ACCOUNT
>>_ escrow account.

TRUSTEE
A person who holds title to real or personal property for another or others.

REAL ESTATE - U -

UNDERGROUND STORAGE TANKS
A tank that holds over 1000 gallons of gasoline underground. A major concern to the landowner is if it leaks. Storage tank cleanups are very expensive. The Department of Environmental Protection regulates the use of underground storage tanks.
UNDERWRITING
When a lender analyzes risk and accepts it by funding a proposed mortgage.

UNDIVIDED INTEREST
An interest in the entire property as opposed to ownership of a certain portion of the property.

UNENFORCEABLE
A contract that will not be upheld in court or cannot be proved but was valid when it was executed.

UNIFORM APPRAISAL DATASET (UAD)
The UAD provides common requirements for appraisals. The UAD has field-specific standardization requirements. For appraisals completed on or after September 1, 2011, the appraisal report must be completed with the UAD for conventional mortgages sold to Fannie Mae or Freddie Uniform Commercial Code (UCO) A standardization of rules throughout the United States regarding the sale or transfer of personal property. Each state in the country has adopted the UCC in some form.

UNIFORM STANDARDS OF PROFESSIONAL
Appraisal Practice (USPAP)The generally accepted standards for professional appraisal practice in North America.

UNILATERAL CONTRACT
A contract in which only one party has promised to perform in accordance with the terms and conditions of the agreement (e.g., an option contract).

UNIT-IN-PLACE COST METHOD
Used in appraisal, utilizes cost manuals to determine the cost of construction of components (parts, materials, and labor).The builder's overhead and profit are added to the construction cost.

UNIT-OF-COMPARISON METHOD
Used in appraisal, requires that the cost of reproduction of the subject property be computed on the basis of the cost per square foot or per cubic foot of comparable buildings to determine the estimated value.In arriving at the unit cost, the appraiser examines the cost of similar structures, called benchmarks.

UNIVERSAL AGENT
An individual authorized to act for and represent the employer in all matters. The agent may do for employers anything employers can do for themselves. An attorney often serves as a universal agent, advising clients on issues as diverse as investments, insurance, and death matters.

UNLIQUIDATED DAMAGES
The damages for breach of contract that are not specified in the agreement.

UPFRONT MORTGAGE INSURANCE PREMIUM (UFMIP)
A charge that is paid in cash or financed forFHA mortgages. As of October 4, 2010, the UFMIP is 1% of the loan amount for a 30 year mortgage (e.g., a $100,000 mortgage has a $1,000 UFMIP that could be financed in the loan for a total loan amount of $101,000).

UPSIDE DOWN
When the net proceeds of a real estate sale are not sufficient to pay the lender andother customary closing costs, the homeowner is considered upside down.When the home is worth less than the liens on the property.

URBAN RENEWAL
A redevelopment plan involving land uses, and improved traffic, public transportation, public utilities, recreation, community facilities, and so on.

UREA FORMALDEHYDE FOAM INSULATION (UFFI)
A home insulation pumped into walls and ceilings, banned by most states in the 1970s and 1980s. Formaldehyde in the insulation reacts with heat and humidity in the air, allowing formaldehyde gas to be released which can cause breathing difficulties, headaches, nausea, nosebleeds, eye and ear irritation, and dizziness.

USURY
Charging more for the use of money than allowed by law.

UTILITY
A characteristic of value, utility is the ability of a property to satisfy human needs and desires.

REAL ESTATE - V -

VACANCY RATE
An indicator of the relationship between supply and demand. Determined by dividing the number of vacant units by the total number of units.

VACATED
To set aside or cancel; annul.

VALID
Legally sufficient; authorized by law; of binding force.

VALID CONTRACT
>>_ enforceable contract.

VALUABLE CONSIDERATION
Required to create an enforceable contract that has not been fully performed or completed (e.g., enforceable promises, money, real or personal property).

VALUATION
>>_ appraisal.

VALUE
The estimated worth of property that is expressed in terms of money. >>_ assessed value and market value.

VA MORTGAGE LOAN
A mortgage loan made to a veteran by an approved lender that is partially guaranteed by the Department of Veterans Affairs (VA).

VARIABLE EXPENSES
Those expenses related to the actual operations of the property (building). These expenses are variable and usually reflect the extent to which the building is occupied.

VARIABLE LEASE
A type of lease where the tenant pays specified rent that is scheduled to increase in the future at set dates usually tied to an index, such as the Consumer Price Index.>>_ lease contract and Consumer PriceIndex.

VARIANCE
A property use which permits its owner to depart from the literal requirements of a current zoning ordinance that would cause an undue hardship to the owner if strictly enforced.

VENDEE
A purchaser or buyer.

VENDOR
A seller.

VENDOR'S LIEN
A lien on property in favor of a seller that provides security for a debt collectable against the property (e.g., a lien that likely would be imposed when a seller takes a purchase money mortgage from a buyer).>>_ lien and purchase money mortgage.

VESTED
Given to someone, such as title or the rights of absolute ownership.

VETERAN'S AFFAIRS (VA)
The Department that partially guarantees mortgage loans made by approved lenders.>>_ Department of Veterans Affairs.

VOID
Null; ineffectual; having no legal force or binding effect. A real estate license is void if it has expired or has been suspended or revoked even though it appears valid on the face of it. A licensee may not operate with a void license.

VOIDABLE CONTRACT
An agreement that that binds one party but gives the other party the right to withdraw.

VOLT
The potential difference between two points on a conductor carrying a current of one ampere, when the power dissipated between the points is one watt.

VOLUNTARY ALIENATION
Transfer that takes place when real property is sold or conveyed by deed or by will.

VOLUNTARILY INACTIVE
The status of an individual who maintains a current license status, but who is not actually performing real estate services, may request and receive an inactive individual status. Inactive individuals must meet the continuing education requirements, pay renewal fees, and properly renew the license in order to remain current. A licensee may remain in a voluntarily inactive status indefinitely.

VOLUNTARY LIEN
A lien that attaches to real property with the consent of the owner, such as a mortgage lien. >>_ involuntary lien.

WAIVE (WAIVER)
The intentional abandonment, renunciation, or surrender of a claim, privilege, or right.

REAL ESTATE - W -

WARRANT
A promise that certain facts are true as declared to be.

WARRANT OF ENCUMBRANCES
An assurance to the grantee by the grantor that there are not encumbrances or liens against the property being conveyed other than those specifically listed in the deed.

WARRANT OF FURTHER ASSURANCE
An assurance to the grantee by the grantor to do such further acts in the future as the grantee may reasonably require to perfect the grantee's title.

WARRANT OF QUIET ENJOYMENT
An assurance to the grantee by the grantor that the grantee shall enjoy the possession of the property in peace and without disturbance by hostile claimants.

WARRANT OF SEISEN
An assurance to the grantee by the grantor that the grantor has the estate of title in the quantity and quality that he or she purports to convey. This is essentially a claim of ownership. warranty against grantor's acts A provision in a bargain and sale deed which the grantor transferring title of property from a decedent's estate warrants or promises that he or she has done nothing to injure or adversely affect the title while he or she was the personal representative of the estate and had control of the property. >>_ bargain and sale deed.

WARRANTY DEED (GENERAL WARRANTY DEED)
A type of bargain and sale deed that contains five covenants of title. It is the most commonly used deed and best for the grantee, for the grantor promises to guarantee and defend the title against defects arising both before and during the time that he held title to the real property.

WARRANTY FOREVER
An assurance to the grantee by the grantor that the grantee shall have possession, completeness, security, and continuance of the title transferred to the grantee. The grantor will forever warrant and defend the grantee's title against all lawful claims.

WATER RIGHTS
May include the water and the land around and under the water.

WATT
A unit of power equal to one joule per second.

WIDOW

A woman whose husband is dead, and who remains unmarried.

WIDOWER
A man whose wife is dead, and who remains unmarried.

WILL(LAST WILL AND TESTAMENT)
A revocable instrument by which a person makes a disposition of his real and personal property, to take effect after his death.regulations

REALTY Vocab ( A - B - C )

Tue, 19 Mar 2024 04:54:42 GMT

REAL ESTATE - A -

ABANDONMENT
The voluntary surrender or relinquishment of all right, title, possession, or claim of property, with the intention of not reclaiming it; failure to perform.

ABSENTEE OWNER
A property owner who does not reside on the property and who usually contracts with a property manager to oversee the investment.abstract continuationThe extension of a title search from the date of the last abstract to the current date.

ABSTRACT OF TITLE
A condensed history of title to real property.It includes copies of all material documents placed in the public record that affect title to a specific parcel of real estate in any manner (e.g., deeds and otherconveyances, mortgages, liens, eas ements, encumbrances, marriages, divorces, deaths, and wills).

ACCELERATION CLAUSE
A mortgage clause in which the time for payment of the balance of the debt is advanced, and becomes due and payable upon the occurrence of a specified event (e.g., failure to make payments of interest and principal when due, sale of the property, or the placing of an encumbrance (a lien] on the property).

ACCEPTANCE
The act of a person to take and receive a thing offered or tendered by another person (e.g., acceptance of a mortgage loan commitment from a lender).

ACCRETION
The process of gradual growth in the amount of land due to natural causes, such as additions in soil to the real property. The new deposits of land are termed alluviumn deposits.

ACCRUED DEPRECIATION
The total loss in building (or improvement) value that has occurred during its life up to the "as of" date of the appraisal.

ACKNOWLEDGEMENT (OF AN INSTRUMENT)
A formal declaration before an authorized official, such as a notary public, by a person who has signed a document that it is his free act.

ACQUIESCE
To give implied consent to an act or transaction by silence or without one's express approval.

ACQUISITION INDEBTEDNESS
The debt incurred in acquiring, constructing, or substantially improving a principal or secondary residence.

ACRE
A quantity or measure of land area containing 43,560 square feet.

ACTIVE INCOME
For U.S. federal income tax purposes, this income includes commissions, wages, tips, salaries, and any activity in which the taxpayer materially participates.

ACTIVE STATUS
The status of a broker or sales associate who maintains a current, valid license for the purpose of actively engaging in the real estate business.

ACTUAL NOTICE
Notice of fact or information actually given to a party. For example, actual notice is served to the public when the owner of real property acquires physical possession of the property.

ADDENDUM
Something that is added. For example, an addendum to a real estate contract consists of a list or section of added or deleted material.

ADJUDICATION WITHHELD
When court action is withheld. When a person is not convicted of the crime but is still found guilty. An applicant for a Florida real estate license must disclose any convictions, guilty or nolo contendere pleas even when adjudication is withheld.

ADJUSTABLE RATE MORTGAGE (ARM)
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ADJUSTED BASIS
The cost to initially purchase investment property plus closing costs plus any capital improvement.

ADJUSTED SALES PRICE (ADJUSTED MARKET PRICE)
The dollar value of the comparable sale after it has gone through the adjustment process to make it the same as the subject property.

ADMINISTRATIVE (OR FORMAL) COMPLAINT
An outline of formal charges filed with the Florida Real Estate Commission (FREC) (also called the Commission) against a licensee for violating the law or rule of the Commission or Department of Business and Professional Regulation (DBPR).

ADMINISTRATIVE LAW JUDGE (ALJ)
A full time employee of the Division of Administrative Hearings (DOAH) that has been a member in good standing of the Florida Bar for the preceding five years who conducts formal hearings under Chapter

120 F.S.
The ALJ must submit their findings, conclusions, and recommended order to all interested parties including the Department of Business and Professional Regulation within 90 days.

ADMINISTRATIVE PENALTIES
Refers to the power of the FREC to penalize a licensee by license fines, suspension, revocation, and other methods.

ADMINISTRATIVE PROCEDURES ACT
(APA) - Florida Chapter 120, F.S. ESTABLISHES THE PROCEDURES THAT
governmental agencies, such as the Florida Real Estate Commission and Department of Business and Professional Regulation must follow when exercising certain powers.

ADOPT
To accept, consent to, and put into effective operation. For example, the Florida Real Estate Commission adopts rules that implement its powers and duties prescribed by law.

AD VALOREM
A term meaning according to value. For example, ad valorem taxes on Florida real estate are based upon the assessed value of the property.

ADVERSE INTEREST
The interest of a party that is opposed to or opposite from the interest of another party to the same transaction (e.g., the adverse interest of a buyer and seller, or landlord and tenant).

ADVERSE POSSESSION
Acquisition of title to another person's real property by a person who enters into open, adverse, hostile, notorious, exclusive, and continuous possession of the property for a statutory period of time without the consent of the owner.
IN FLORIDA, POSSESSION MUST CONTINUE FOR SEVEN OR MORE CONSECUTIVE YEARS WITH THE REAL ESTATE PROPERTY TAXES PAID DURING ALL THE YEARS OF POSSESSION.
Always consult an attorney when acquiring real property through this process.

AFFIDAVIT
A voluntary, written declaration or statement that is confirmed by oath or affirmation of the party making it, and taken before a person having authority to administer such oath.

AFTER TAX CASH FLOW (ATCF)
The cash return after considering income taxes; the amount remaining after paying all expenses, debt service, and income taxes.NOI - annual depreciation - tax liability -capital improvements = ATCF.

AGENCY (OR AGENCY RELATIONSHIP)
A relationship in which one person delegates authority to another person to act for or represent him (e.g., the relationship between a principal and agent, or an employer or proprietor and independent contractor). The general law of agency and the Florida Real Estate License Law (Chapter 475, F.S.) directly affect the relationships between real estate licensees and their principals (i.e., employers or clients).

AGENCY DISCLOSURE
Before any contractual agreement is signed, a real estate licensee is required to make written disclosure to all parties for whom he is not an agent that he is the agent of another party in the transaction.The requirement applies to those residential real estate transactions that involve thesale, exchange, purchase, or lease of real property.

AGENT
A person authorized by another person to act for or represent him. For example, a real estate broker is the agent of his principal.

AGRICULTURAL
As defined in Chapter 475 F.S., property that is more than 10 acres. air rightsThe right to use all or a portion of the air space above a parcel of real estate that is vested by a grant (e.g., fee simple, leasehold agreement, or other conveyance).

ALIENATION CLAUSE
Also referred to as due-on-sale clause; mortgage clause that requires the loan to be paid off upon sale of the property; prevents an assumption of the mortgage.

ALLODIAL SYSTEM
The basis of modern real estate practice in this country today wherein the private ownership of land is free and absolute. It is subject only to governmental and voluntary private restrictions.

ALLUVION DEPOSITS
See accretion.

AMENDMENT
A modification or change in an enacted law or rule, or in a legislative bill prior to its passage.

AMENITIES
As applied to real estate, tangible or intangible features that enhance the desirability of property, contribute to the enjoyment of the property, or increase the property value. Tangible features include a swimming pool, extensive landscaping, or a tennis court; however, property location, view, or access to a body of water are intangible features.

AMERICANS WITH DISABILITIES ACT OF 1990 (ADA)
Prohibits discrimination on the basis of disability in employment, state and local government, and public accommodations (e.g., hotels, theaters, government buildings, schools, commercial facilities, and transportation).

AMORTIZE
To gradually reduce and thus repay the principal balance of a mortgage loan.

AMORTIZED MORTGAGE
A mortgage loan that is repaid in periodic installments of principal and interest over a specified time period or loan term.

AMPERAGE (AMPS)
The measure of electricity to appliances, switches, plugs, and fixture boxes. Amps =Watts/Volts

ANNEXATION
As applied to real estate, the act of joining, attaching, or uniting one thing to another, which may involve either land or fixtures.See fixture.

ANNUAL DEBT SERVICE
The amount of principal and interest paid each year. See debt service.

ANNUAL PERCENTAGE RATE (APR)
Required by the Truth-in-Lending Act.Creditors must disclose the annual cost of credit that includes finance charges.

ANSWER
The formal written statement by a respondent/subject named in anadministrative complaint that sets forth the grounds of his defense.

APPEAL
A formal request to a superior body or court to review the decision of an inferior body or court for the purpose of reversing, revising, or correcting the action taken by the inferior body or court.

APPELLANT
The party who takes an appeal from an inferior body or court to a superior body or court.

APPELLEE
The party against whom an appeal is taken.The party who has an adverse interest to setting side or reversing the action of a lower body or court.

APPRAISAL
An estimate of the value of a specific parcel of real property and/or items(s) of personal property as of a given date.

APPRAISAL INSTITUTE (AL)
An institute whose membership is comprised of persons who specialize in appraising real property.

APPRAISAL MANAGEMENT COMPANY (AMC)
As defined in Chapter 475 F.S, Part II, means the coordination or management of appraisal services for compensation by (1) employing, contracting with, or otherwise retaining one or more appraisers to perform appraisal services for a client; or (2) acting as a broker or intermediary between a client and one or more appraisers to facilitate the client's employing, contracting with, or otherwise retaining the appraisers. House Bill 303 requires the Department of Business and Professional Regulation to create a new license type for the regulation of AMCs effective July 1, 2011.

APPRAISAL REPORT
Generally, a written document that presents the appraiser's analysis, estimate, or conclusion of the subject property's value as of a given date. It can be written or oral but in order to be recognized for a federally related transaction, it must be written. The three types of reports are letter, form, and narrative reports. See certified appraisal report.

APPRAISER
A person who acts for others in an expert capacity to estimate the value of real and/or personal property. See certified general appraiser and certified residential appraiser.

APPRECIATION
The increased value of property over time.

APPURTENANCE
That which belongs to and is annexed to another thing (e.g., a right of way, an easement, a bam, an orchard or a garden which passes or is conveyed with the real property).

APPURTENANT EASEMENT
A right a property owner has to use the adjoining property of another.

ARBITRATION
An arrangement for taking a dispute to an impartial (third) party (i.e., an arbitrator).The parties to the dispute agree in advance to abide by the arbitrator's decision that isrendered after a hearing at which both parties have an opportunity to be heard.

ARM'S LENGTH TRANSACTION (RELATONSHIP)
The opposite of a fiduciary relationship; dealing at arm's length means the partes have adverse interests.

ARREARS
An item unpaid, overdue, or past due (eg., real estate property taxes and mortgage payments are paid in arrears).

ASBESTOS
A strong, flexible material used for fire resistance, insulation, and soundproofing.Asbestos will not bum and is corrosion resistant.

ASSEMBLAGE
The combining of two or more adjoining parcels of real estate under one ownership.

ASSESSED VALUE (OR ASSESSMENT)
The value of a specific parcel of real estate as determined by the County Property Appraiser that serves as the basis for computing property taxes. The Florida Supreme Court has ruled that all assessments are to be made on the basis of just valuation, which is considered to be fair market value. See special assessment.

ASSESSMENT
As defined in Chapter 718, F.S., a share of the funds which are required for the payment of common expenses which from time to time are assessed against a unit owner. See Chapter 718 F.S.

ASSESSOR'S PARCEL NUMBER
A number found in real property records which is assigned by a county to identify and track a particular piece of property. It is used to aid in the assessment of property for tax collection.

ASSET
The real or personal property of a person or business entity that could be used for the payment of debts; anything of value.
ASSIGNEE
A party to whom an assignment (i.., transfer) is made of a contract, lease, mortgage, or other document or obligation.

ASSIGNMENT
A transfer by one party to another of all rights to some kind of property, which is usually intangible property such as a contract, lease, or mortgage.

ASSIGNOR
A party who assigns (i.e., transfers) to another all rights to some kind of property.

ASSUMPTION OF MORTGAGE
The taking of a mortgage originated by another person. For example, the buyer of mortgaged property often assumes the seller's existing mortgage loan and thus becomes personally liable for repayment of the mortgage loan on the property.

AT FIRST CONTACT
Refers to timing of appropriate notice by Florida licensees regarding their relationship to consumers. At first contact means before, or at the time of, entering into a listing agreement or an agreement for representation or before the showing of property, whichever occurs first.

ATTACHMENT
The process of taking or seizing a party's real and personal property by judicial order in the event a judgment is awarded to another.

ATTORNEY-AT-LAW (ATTORNEY OR LAWYER)
A person admitted and authorized to practice law in one or more states, which could include defending and prosecuting civil and criminal actions in a court of law, giving of legal advice, drafting legal documents, and so on.

ATTORNEY-IN-FACT
A person authorized by another to act in his place, either for some specific purpose or to transact business in general. This authority must be conferred by a written document, which is commonly referred to as a power of attorney.

AUCTION
The public sale of real and/or personal property to the highest bidder by a person authorized to do so. To auction real property in the State of Florida, the person conducting the auction (i.e., the auctioneer) must be currently licensed as a real estate broker or sales associate.

AUTOMATED UNDERWRITING
A lender's analysis of a loan application using a computer program to review the applicant's credit history, the property value, and the borrower's ability to repay the loan. Fannie Mae's version is called Desktop Underwriter® and Freddie Mac's version is called Loan Prospector ®. The main advantage is quicker turnaround times for loans sold in the secondary mortgage market. See Fannie Mae, Freddie Mac, secondary mortgage market.

AUTOMATED VALUATION MODEL (AVM)
A computer generated estimate of residential property value using recent sales and computer software models. It is not an appraisal. See appraisal.

AVOID
To annul, cancel, make void.

REAL ESTATE - B -

BAD FAITH
Generally, conduct implying or involving fraud, or a scheme to mislead or deceive another, or a neglect or refusal to perform some duty or contractual obligation. The term implies the conscious doing of a wrong based upon a dishonest purpose and not an honest mistake, for example, if a licensee takes copies of listings, records, or other confidential information of the broker, when the licensee leaves the employ of the broker. Also called breach of trust.

BALLOON PAYMENT
A final payment on a partially amortized mortgage loan that is much larger than the series of periodic payments made to repay the loan.

BARGAIN AND SALE DEED
A type of deed in which the grantor assures the grantee that he is the lawful owner of the real property, but does not agree to warrant (i.e., guarantee) the title. >>_ grantor and grantee.

BASE LINE(S)
In the goverment rectangular survey system of describing real property, imaginary survey lines running east and west crossing a principal meridian. Used toestablish township lines and as boundaries for land areas called townships or tiers. See government survey system.

BASE RENT
Usually a fixed amount of minimum rent required to be paid to the landlord.

BASIS
>>_ adjusted basis.

BEFORE-TAX CASH FLOW (CASH THROW-OFF OR PRETAX CASH FLOW) (BTCF)
A pretax measurement of cash generated by the property. Annual debt service - NOI = BTCF

BENCHMARKS
Used to measure elevations; fixed or permanent reference points.

BENEFICIARY
A person receiving personal property in a will.

BEQUEST
The gift of personal property in a will.Bert J. Harris, Jr., Private PropertyRights Act Provides a landowner with relief from government regulation or payment of compensation if a state law, rule, regulation, ordinance, or state agency limits, restricts, or unfairly affects the landowner's use of his or her private property, or causes the property to be devalued.

BIENNIUM
A period of two years.

BIWEEKLY MORTGAGE
A mortgage loan that takes a monthly payment and splits it in half. The borrower makes this half payment every two weeks; thereby making 13 full mortgage payments per year instead of 12. This allows the borrower to pay less interest over the life of the loan and allows a 30 year mortgage to be paid off in approximately 22 years.

BILATERAL CONTRACT
A contract in which all parties have made promises and are bound to perform in accordance with the terms of theagreement (e.., in a contract for the sale of real property, where the seller is bound to convey his property and the buyer is bound to pay the agreed price for it).

BINDER CONTRACT
Can serve as a basic agreement until all parties can draw a more complete contract.Depending on the wording, this may be no more than a letter of intent between the parties.

BINDER DEPOSIT
A deposit of earnest money given by the buyer to the seller of real property; it serves to indicate the buyer's good faith intent to complete the transaction.

BLANKET MORTGAGE
A single mortgage that pledges multiple parcels of land as security for a debt. It usually contains a release clause, which allows individual parcels to be released from the mortgage as they are sold and upon payment of a specified amount to the lender.

BLIND AD
A deceptive or misleading advertisement which does not properly identify the licensed name of the brokerage firm who placed the ad and merely gives a telephone number, street address, or post office box number. Real estate brokers and brokerage firms are prohibited by law and Florida Real Estate Commission rule from using blind ads.

BLOCKBUSTING
The illegal and discriminatory practice of inducing or attempting to induce a person to sell or rent his real property by representing that people of a certain race, color, religion, or ethnic background are, or likely will be, moving into the neighborhood.

BOARD OF REALTORS®
The local trade organization of the Florida Association of REALTORS® that is affiliated with the National Association ofREALTORS®. bonafide Actual, real, or honest; in or with good faith.

BOND (NOTE)
The written obligation to repay a loan under specific terms that is given by a borrower to a lender. It is usually accompanied by a mortgage that pledges real property as security for the debt. See promissory note.

BOOT
Money or other property that is given to make up the difference in value between exchanged properties. >>_ like-kind exchange.

BORROWER
>>_ mortgagor.

BRANCH OFFICE
Any office maintained by a broker in addition to his principal office is considered to be a branch office, and all such offices must be separately registered with the Department of Business and Professional Regulation.

BREACH OF CONTRACT
Failure, without legal excuse, to perform in accordance with the terms or conditions of a contract.

BRIBERY
The offering, giving, receiving, or soliciting of anything of value to influence a public official in discharge of his legal or public duty.

BROKER ASSOCIATE
A person qualified to be issued a license as a broker, but who operates as a sales associate in the employ of a licensed broker or owner/employer. For all practical purposes, a broker associate must operate as a sales associate. See sales associate and real estate.

BROKER PRICE OPINION (BPO)
Used to obtain the probable sales price and marketing time of a residential property, based on a qualitative analysis of competitive listings and closed sales. The BPO may be utilized for transactions less than $250,000 that do not require completion by a state licensed or certified appraiser. It is not an appraisal and cannot be called an appraisal. See appraisal.

BROKER, REAL ESTATE
A licensed person who, for another, and for compensation, or with the intent to receive compensation, acts as an agent for others in the performance of one or more services of real estate; this includes transactions involving business enterprises or opportunities. As set forth in Chapter 475, F.S., the term broker also includes 1) any person who advertises rental property information or lists; 2) any person who is a general partner of a brokerage partnership, or an officer or director of a brokerage corporation; and 3) any person or entity who lists, advertises for sale, promotes or sells by any means whatsoever one or more time-share periods per year on behalf of others, except as otherwise provided by law.

BROKERAGE, REAL ESTATE
A business registered with the Department of Business and Professional Regulation that buys, sells, rents, leases, exchanges, auctions, or appraises the real property of others for compensation, or advertises rental property information or lists, or that lists, advertises for sale, promotes or sells by any means whatsoever one or more time-share periods per year on behalf of others. A brokerage business may be registered and operated as a sole propnetorship, corporation, or general or limited partnership. See sole proprietorship, corporation for profit, general partnership, and limited partnership.

BROKERAGE RELATIONSHIP DISCLOSURE ACT (BRDA)
Florida's law regarding relationships between licensees and consumers. A licensee may enter into a brokerage relationship as either a single agent, as a transaction broker, or as a designated sales associate. Licensees may also engage in a no brokerage relationship.

BUDGET MORTGAGE
An amortizing permanent long-term loan in which the monthly payment includes principal and interest and one-twelfth of the estimated cost of the annual real estate taxes and hazard insurance on the mortgaged property. >>_ PITI.

BUFFER ZONE
A strip of land that separates one land use from another.

BUILDING CODES
Construction materials and practices which are regulated through governmental ordinances that protect the public. The State of Florida has a state building codeand different municipalities have their own codes which cannot be less strict than the state code.

BUILDING INSPECTION
Normally conducted by a local city or municipality to enforce minimum standards pursuant to the Florida Building Code.

BUILDING PERMIT
Issued by a city or municipality in relation to building, electrical, plumbing, roofing, or mechanical work and installations.

BUSINESS DAY
Any day other than Saturday, Sunday, or a legal holiday.

BUSINESS ENTERPRISES BROKERAGE
A real estate firm that specializes in businesses with values in excess of $200,000.

BUSINESS OPPORTUNITY BROKERAGE
A real estate firm that specializes in businesses with values less than $200,000.

BUSINESS RISK
>>_ operating business risk.

BUSINESS TRUST, REAL ESTATE
A business entity formed for the purpose of purchasing and developing real estate, which is funded by persons who make investments at a stipulated amount per unit or share. Generally, a board of trustees is elected by the shareholders to manage the business affairs of the trust. A business trust also may be called a Massachusetts trust, common law trust, real estate investment trust, or syndication.

BUYER'S MARKET
A market where there are more sellers relative to the number of buyers. >>_ seller's market.

REAL ESTATE - C -

CANCELED
A license that is void. Cancellation of a license is effective on the date that it is approved by the Florida Real Estate Commission. Cancellation does not involve disciplinary action. A licensee who no longer wants to practice real estate can voluntarily cancel being licensed. >>_ void.

CAPITAL ASSET
Real or personal property not held for sale to a taxpayer's customers in the normal course of business.

CAPITAL GAIN (LOSS)
The gain or loss realized from the sale or exchange of a capital asset (e.g., real property) as defined by the Internal Revenue Code.

CAPITALIZATION
A mathematical process used by appraisers in the income capitalization approach to convert the annual net income of an income-producing property into an indication of value.

CAPTION
The title, heading, or clause in an abstract where the legal description of the property appears.

CASEMENT
A type of window that moves outward by the use of pivots or hinges.

CASH FLOW
>>_ after-tax cash flow.

CAVEAT EMPTOR
Literally translated, the term means, "let the buyer beware." It emphasizes that a purchaser must examine, judge, and test for himself before purchasing goods or services. Since Chapter 475, F.S., Florida Real Estate Commission rules and other laws protect the consumer-buyer. Real estate licensees are prohibited from dealing with the buying public on the basis of caveat emptor.

CEASE AND DESIST ORDER
An order or notice which may be issued by the Department of Business and Professional Regulation when it has probable cause to believe that an unlicensed person has violated any provision of Chapters 475 or 455, F.S., or any lawful rule of the Florida Real Estate Commission or Department of Business and Professional Regulation.

CEASE TO BE IN FORCE
A licensee cannot conduct any business while the license is in this status (e.g., a broker's license will expire and cease to be in force until he or she notifies thecommission when changing the business address). License law requires the notification no later than 10 days after the change in address.

CERTIFICATE
A written document intended to relate the facts concerning proceedings, records, and acts of the Florida Real Estate Commission.Certificates are signed by the chairman or vice-chairman, authenticated by the seal of the Commission, and considered as prima facie evidence in all courts of the state.

CERTIFICATE OF DEPOSIT
A written acknowledgement by a commercial bank, savings association, or other type of savings institution with a promise to pay to the depositor, or to some other person, or to his order, the funds deposited with accrued interest, if any, upon maturity or demand.

CERTIFICATE OF OCCUPANCY
An occupancy permit issued by a city or county government when construction has been completed and a final inspection is approved.

CERTIFICATE OF REASONABLE VALUE
A certificate establishing the current market value of a property based upon an approved Department of Veterans Affairs(VA) appraisal. Issued by the VA, such a certificate places a limit on the amount of a VA-guaranteed mortgage loan.

CERTIFIED APPRAISAL REPORT
A written document issued by a state-certified appraiser that presents the appraiser's analysis, estimate, or conclusion of the subject property's value as of a given date.

CERTIFIED GENERAL APPRAISER
An individual certified by the Department of Business and Professional Regulation to issue certified appraisal reports for all types of real property.

CERTIFIED RESIDENTIAL APPRAISER
An individual certified by the Department of Business and Professional Regulation to issue certified appraisal reports for residential real property of one to four units.

CERTIORARI PROCEEDING
A suit for a court review filed by the taxpayer who pays the taxes under protest.

CHAIN OF TITLE
A list of all recorded documents such as deeds, conveyances, mortgages, liens, or other instruments affecting title to a particular parcel of real property. It has been called the basic tool of the title search, for the chain of title begins from the government or original source of title and continues down to the present titleholder.

CHANNELING (OR STEERING)
The illegal and discriminatory practice of directing, channeling, or steeringprospective real estate buyers into or out of certain neighborhoods based upon minority status, or into or out of racially transitional neighborhoods.

CHAPTER 475, F.S., PART I
The numerical identification of the Real Estate License Law contained within the Florida statutes.

CHAPTER 475, F.S., PART II
The numerical identification of Appraiser License Law contained within the Florida statutes.

CHAPTER 718, F.S.
The numerical identification of the Condominium Act contained within the Florida statutes.

CHAPTER 719, F.S.
The numerical identification of the Cooperative Act contained within the Florida statutes.

CHAPTER 720, F.S.
The numerical identification of the Homeowners Association Act contained within the Florida statutes.

CHATTEL (PERSONAL PROPERTY)
All valuable property other than real property. Personal property usually consists of items having a limited life that are easily movable from one place to another (e.g., cars, boats, stocks, bonds, and mortgages).

CHATTEL (REAL)
An interest in real property that is less than freehold (e.g., a leasehold estate).

CHATTEL MORTGAGE
A mortgage that is secured by personal property.

CHECK
In the goverment rectangular survey system of describing real property, the land area contained within the intersection of any two adjacent standard parallels or correction lines and any two adjacent guide meridians. A check is 24 miles square and contains 16 townships.

CHIEF ADMINISTRATOR
The person who is responsible for the overall policies and practices of a real estate proprietary school or state institution teaching Florida Real Estate Commission prescribed educational courses.

CIRCUIT BREAKERS
A safety device designed to interrupt the flow of electric power when a dangerous situation develops.

CITATION
Administrative penalty issued to real estate licensees, permit holders, and DRE registrants. It comes as a result of an audit or investigation and involves fines from $100 to $500. Investigators are authorized to issue citations to licensees when an offense poses no substantial threat to the public health, safety, or welfare, or if the offense poses a substantial threat to the public health, safety, or welfare but the potential for harm has been removed prior to issuance of the citation; or it is a first offense.

CITATION_EXAMPLES
Examples of some citable offenses include failure to properly reconcile an escrow account when the account balances; guaranteeing a pupil will pass an exam; and failure to maintain the required office. A licensee has 30 days after receiving a citation to accept or reject it. If the licensee does not dispute it, then it becomes a final order and the case is closed. If the licensee disputes the alleged violations, then the licensee must file a written objection. Also, the licensee must pay the fine on time; otherwise, the Florida Real Estate Commission will file an administrative complaint.

CIVIL RIGHTS ACT OF 1866
Prohibits discrimination on the basis of race in any rental or sale of real estate.

CIVIL RIGHTS ACT OF 1968
Known as Title VIII - Fair Housing Act, prohibits discrimination on the basis of race, color, religion, sex, or national origin 1) in the sale or rental of residential housing or lots; 2) when advertising the sale or rental of a dwelling; 3) in the origination of residential real estate loans; or 4) when providing any real estate brokerage service.

CLAUSE
A subdivision, single paragraph, a sentence, or part of a sentence of a legal document (e.g., a contract, deed, will, or statute).

CLEAN AIR ACT OF 1970
Requires the Environmental Protection Agency (EPA) to develop and enforce regulations to protect the general public from exposure to airborne contaminants that are known to be hazardous to human health.

CLERK OF THE CIRCUIT COURT
An officer of the court who is responsible for filing pleadings, motions, judgments, and so on, issuing processes, and maintaining records of court proceedings.

CLIENT (PRINCIPAL OR EMPLOYER)
A person who delegates authority to another person to act for or represent him as his agent. In real estate brokerage, the client or principal employs the broker as his agent to perform one or more services of real estate on his behalf. >>_ principal.

CLOSING
The termination of a real estate transaction when title to the seller's property is conveyed to the buyer in return for the purchase price as stated in the sales contract. Although it concludes the broker's legal responsibilities, good business practice dictates that closing does not terminate his ethical responsibilities to the parties to the transaction.

CLOSING COSTS
Expenses incurred by the seller and buyer on the sale of real property. The Real Estate Settlement Procedures Act (RESPA), which is a federal statute, regulates the full disclosure of such costs toborrowers. >>_ Real Estate SettlementProcedures Act.

CLOSING DATE
The date on which the final legal documents pertaining to the sale of real property are completed, and title to the seller's property is conveyed to the buyer in return for the purchase price as stated in the sales contract.

CLOSING STATEMENT
A detailed financial accounting of a real estate sales transaction. Some transactions involve three statements 1) the seller's statement; 2) the buyer's statement; and 3) the broker's statement. Also called HUD-1.

CLOUD ON TITLE
Any valid claim or encumbrance on real property that, if valid, affects or impairs the owner's title in the property. If a properly executed quitclaim deed does not clear a cloud or defect on title, it is necessary to file a suit (or action) to quiet title. >>_ quitclaim deed and suit to quiet title.

CODE OF ETHICS
Written standards of ethical conduct, such as the Code of Ethics of the National Association of REALTORS®.

COERCION
Compelled to compliance by force of arms or threat.

COGNOVIT CLAUSE
A harsh clause that provides that a judgment of default and a lien against all real property owned by the mortgagor can be obtained by simply filing an affidavit in court.

COLLATERAL
Real or personal property that is pledged as security for the satisfaction of a debt (e.g., stocks, bonds, or the real property that the borrower pledges as security on a loan).

COLLUSION
When two or more parties get together to defraud a third party.

COMMERCIAL BANK
A federal or state chartered financial institution that acts as a depository and lender for various commercial businesses and activities.

COMMERCIAL PROPERTY
A classification of real property used for business purposes or to produce income for the owner. Examples include restaurants, shopping centers, and office buildings.

COMMINGLE/COMMINGLING
The act of a broker mixing or intermingling his own personal funds with the funds of a client or customer.

COMMISSION
The compensation that a broker receives for performing one or more services of real estate in accordance with his employment contract; the Florida Real Estate Commission (FREC).

COMMITMENT
An agreement, promise, or pledge to do something (e.g., a loan commitment by a lender that a loan will be made under certain terms if the potential borrower accepts the commitment on or before a certain date).

COMMITMENT FEE
A fee charged by a lender for issuing a loan commitment.

COMMITTEE'S DEED
A deed used to convey title to the real property of a person who is declared legally incompetent. Because a competent grantor must sign the deed, a committee is appointed by the court to administer the incompetent person's affairs and all members of the committee must sign the deed.

COMMON ELEMENTS
Parts of the condominium association property that are necessary or convenient to the existence, maintenance, and safety of the condominium property and the unit owners. Also called common areas. As defined in Chapter 718 F.S., the portion of the condominium property not included in the units.

COMMON LAW
The common law consists of principles and rules of action that relate to thegovernment, and security of persons and property. The authority for such laws is derived solely from usages and customs, or from the judgments and decrees of courtsthat recognize, affirm, and enforce such usages and customs.

COMMON LAW OF AGENCY
The body of law applicable to consensual relationships in which one person consents to act on behalf of another person and subject to that person's control.

COMMON LAW TRUST
>>_ business trust.

COMMUNITY ASSOCIATION MANAGEMENT
(CAM)A manager of a residential community association. A CAM license is required when the association has more than 10 units or a budget of $100,000 or more per year.

COMMUNITY PROPERTY
Under the community property system, property is owned in common by a husband and wife (each having an undivided one-half interest) by reason of their marital status. Florida operates under the common law system and not the community property system.

COMPARATIVE MARKET ANALYSIS (CMA)
A report provided to a real estate agent's customers that provides information helpful in establishing a list price for sellers or offering price for buyers. It is not an appraisal. >>_ appraisal.

COMPENSATION
Anything or any service of value paid, received, or expected to be paid or received.

COMPENSATORY DAMAGES
Compensation to an injured party that , merely makes good or replaces the loss caused by the wrong or injury. It is obtained by filing suit in a court. It is a remedy for breach of contract. >>_ breach of contract.

COMPETENT
Duly or legally qualified, able, adequate, suitable, and capable.

COMPLAINANT
A person who files a complaint with the Department of Business and ProfessionalRegulation. >>_ respondent.

COMPLAINT
Generally, a written statement that charges or accuses the person named therein of having committed a specified offense.
COMPREHENSIVE PLAN
A plan consisting of written and graphic materials that describe principles, guidelines, and standards for the orderly and balanced future economic, social, physical, environmental, and fiscal development of the area served. The plan must be flexible, economically feasible, and meet the goals of the area to be effective.

CONCEALMENT
The intentional withholding of something that one knows and is duty bound to reveal a form of fraud.

CONCURRENCY
A provision of the Florida Growth Management Act that requires growth, zoning, and building permits are kept in line with existing infrastructure.

CONDEMNATION
A judicial process of taking private property for public use through the power of eminent domain. The owner must receive just compensation for his property. >>_ eminent domain.

CONDOMINIUM
A concept of property ownership consisting of an undivided interest in a parcel of real property (common areas together with a separate fee simple interest in a single residential or commercial unit in a building located on the property (e.g., an apartment, office, or store).

CONFLICTING DEMANDS
A real estate broker who maintains an escrow account receives different claims from the parties to a contract. Florida law requires the broker to provide written notification to FREC within 15 business days of the last party's demand. The broker must institute one of the settlement procedures within 30 business days after the last demand (e.g., if the broker waits until the 10th business day to notify FREC, then the broker has 20 business days to institute one of the settlements procedures).>>_ business day.

CONFORMING LOAN
A conventional mortgage loan that conforms to Fannie Mae and Freddie Mac standards (e.g., borrowers who qualify, can finance up to $417,000 for a one-unit property).

CONSENT TO TRANSITION
A principal must give written authorization to the agent prior to changing the representation from single agent to transaction broker.

CONSIDERATION
The promise, cause, motive, price, or compelling influence that induces a party to enter into a contract. Consideration is one of the essential elements of a valid and enforceable contract. Consideration can be good or valuable. Good is love and affection and valuable is monetary.

CONSPIRACY TO DEFRAUD
A confederacy between two or more persons formed to commit an unlawful civil or criminal act, or to perform a lawful act in an unlawful manner.

CONSTRUCTION
A court's interpretation of the terms of an agreement.

CONSTRUCTION LIEN
(mechanic's lien, material-man's lien) A lien filed with the Clerk of the Circuit Court no later than 90 days after the last labor is performed or last supplies are delivered. It is based on the principal of unjust enrichment and a property owner cannot use materials and labor to improve their property without paying the appropriate party. Once filed, the lien is retroactive to the first day of work. Once filed, the lien is valid for only one year.

CONSTRUCTION MORTGAGE
A loan originated to pay the costs of constructing or making improvements to a building, or for development of real property. It is usually a short-term loan and the proceeds are paid in installments as various stages of construction, improvement, or development are completed.

CONSTRUCTIVE NOTICE
Notice served to the public by recording all instruments which convey or affect the title to real property in the office of the Clerk of the Circuit Court of the county in which the property is located (e.g., deeds and other conveyances, mortgages and assignment of mortgages, liens, and leases for a term of one year or more). When such documents are recorded as prescribed by law, subsequent purchasers and creditors are held to have both knowledge of the documents and their contents.

CONSUMER MEMBER
A person appointed to serve on a board who is not, and has never been, a member or practitioner of the profession regulated by such board (e.g., the Florida Real Estate Commission has two consumer members).

CONSUMER CREDIT PROTECTION ACT
(Truth-in-Lending Act) (Reg Z) Federal law that ensures borrowers and customers in need of consumer credit receive meaningful disclosure of information regarding the cost of consumer credit and terms so that they can compare those terms, shop wisely, and thus avoid the uninformed use of credit.

CONSUMER PRICE INDEX (CPI)
The most used measure of consumer price changes over time for goods and services.The Save Our Homes caps increases in property tax assessments to 3% or the CPI, whichever is lower for a homesteaded property. >>_ homestead and Save Our Homes.

CONTEMPT
A willful disregard or disobedience of a public authority.

CONTIGUOUS
In close proximity; adjoining; in actual contact at a point or along a boundary.

CONTINGENCY CLAUSE
A contract clause that provides that a certain act must be completed or that some future event must take place for the contract to become binding on the parties.

CONTINGENT
Possible, but doubtful or uncertain;dependent upon the occurrence of some future event or happening.

CONTINUING EDUCATION
All brokers and sales associates (active and inactive) must satisfactorily complete a minimum of 14 hours of instruction of 50 minutes each of the Commission prescribed or approved education during each renewal period except their first renewal period. The 14 hours are composed of a mandatory three-hour core law course and 11 hours of specialty courses on real estate practices.Note that an involuntarily inactive licensee who is more than 12 months but less than 24 months involuntarily inactive must complete a 28 hour reactivation course instead. >>_ involuntarily inactive.

CONTRACT
A legally binding agreement between two or more persons that creates an obligation to do or not to do a particular thing. A real estate contract must be in writing and signed to be enforceable in court.

CONTRACT FOR DEED
An agreement in which the buyer is contracting for a deed to the seller's real property that will be delivered after payment of a specified sum of money (i.e., principal and interest), often by periodic monthly payments. This document also may be called an installment contract, land sales contract, or agreement for deed.

CONTRACT FOR SALE AND PURCHASE
A contract in which the owner of a parcel of real property agrees to convey title to the property to the buyer in the future, and the buyer agrees to purchase the property for a specified price, and under certain terms and conditions, on the same date. This document also may be called a sales contract, purchase agreement, or contract for purchase.

CONTRACT RENT
Also called scheduled rent; the rental amount designated in a lease contract.

CONVENTIONAL MORTGAGE LOAN
A mortgage loan originated with an institutional lender such as a commercial bank, savings and loan association, or a private lender, which pledges real property as security for the debt. The federalgovernment is not involved in guaranteeing or insuring such loans.

CONVERSION
The act of receiving the money or property of another party and fraudulently converting, withholding, or applying it to one's own use and benefit—a form of fraud.

CONVEYANCE
A written instrument that transfers some estate or interest in land from one party to another (e.g., a deed, mortgage, or will).

COOPERATIVE

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CORNER LOT
A lot on the end of the block that is bounded by streets on two sides.

CORPORATE VEIL
The theoretical protection provided by a corporate structure that applies to its officers, directors, and stockholders. For example, debts of a corporation can usually be enforced against the corporation only, and not against the officers, directors, and shareholders. However, if the Florida Real Estate Commission or a court of law has reason to believe that a real estate brokerage corporation has committed an unlawful act, it may be allowed to pierce or lift the corporate veil and take appropriate action against the offending natural (i.e., living) persons, such as the officers, directors, or shareholders of the corporation.

CORPORATION FOR PROFIT (CORPORATION)
A type of business organization formed by one or more natural (i.e., living) persons, that is considered by law to be an artificial or fictitious person. A corporation is a legal entity separate from its owners and, as such, may contract, own property, engage in any lawful business, and sue or be sued in its own name. In accordance with Chapter 475, F.S., a domestic or foreign corporation for profit can be registered tobroker real estate in Florida. >>_ domestic corporation and foreign corporation.

CORPORATION SOLE
An ecclesiastical or church organization that is recognized by Florida law. It cannot be organized for commercial business ventures or registered to broker real estate.

CORRECTION LINES
Imaginary lines located every 24 miles north and south of the base line. These lines are used in the government land survey system of legal description. >>_ guide meridians and check.

COST
The amount of funds expended to create a product or good

COST-DEPRECIATION APPROACH
An approach used to appraise real property that is often applied to estimate the market value of special purpose buildings (e.g., churches, schools, government buildings).The approach involves estimating the reproduction cost of the improvements, subtracting all elements of accrued depreciation, and adding to that result the value of the land as estimated separately.

COUNSELING
A specialized real estate service which involves providing professional, competent, independent advice and guidance to a client on a specific real estate problem.

COUNTEROFFER
Another offer made in response to an offer previously received but not accepted.

COUNTY PROPERTY APPRAISER
An elected county official who determines the assessed value of real property, which serves as the basis for computing property taxes.

COURT
A part of the judicial department of the government where a judge and/or jury administers justice by applying the laws to controversies brought before it.

COVENANT (IN A DEED)
A written promise in a deed by which a party, usually the grantor, binds himself to do or not to do a certain act.

COVERTURE
The condition or state of a married woman.

CREDIT
The ability of a person to borrow money or pay for goods over a period of time based upon his past credit history, reliability, and solvency. On a closing statement, funds that are to be received by the seller or buyer.

CREDITOR (LENDER)
A party to whom a debt or obligation is owed by another party (i.e., the debtor or borrower).

CREDIT UNIONS
Nonprofit cooperative associations, sach as teacher or labor unions, whose members place money in savings accounts, which is then loaned out to members.

CUL-DE-SAC
On a U-shaped block.

CULPABLE NEGLIGENCE
Unintentional and careless (or negligent) acts that are censurable, or the failure to do something that a reasonable, prudent, and honest person would have done.

CURABLE
Depreciation is curable when the cost to repair equals the added value.

CURABLE FUNCTIONAL OBSOLESCENCE
A functional deficiency that is economical to correct.

CURABLE PHYSICAL DETERIORATION
Results from failure to properly maintain the property. Curable problems will return the cost of the repair such as painting or cleaning the building.

CUSTOM BUILDING
An improvement constructed by the developer, contractor, or builder at the customer's (property owner's) request and to his specifications.

CUSTOMER (PROSPECT)
The party with whom the broker hopes to be successful in accomplishing the object of his employment. A buyer or seller of real property that may or may not be represented by a real estate licensee in an authorized brokerage relationship. >>_ transaction broker.

SEWER & SEPTIC

Adperio@hotmail.com (Adperio Divum) — Tue, 10 Oct 2023 04:27:06 GMT

DOES MY HOME HAVE A SEPTIC TANK?

A property’s value is greatly affected by the manner in which it handles waste & disposes of running water. Today, some counties and municipalities are providing incentives to have septic systems converted to city sewer connections. However it is important to properly identify the costs & that are associated with the transition.

Thanks to public digital records and combined efforts of local city official. GIS and PDF maps are available so that the public can identify the type of plumbing associated with each property.

Miami Dade County Currently offers State of the art GIS Online Quick Access parcel identification. And although the efforts are currently in progress for Broward County to have the same. At the moment, PDF Maps are currently being offered on the Broward County websight.

When either purchasing or selling a home. Besure to check with official govertment website public records to ensure that no costly errors are made during the listing of the property. Current active links to Sewer & water Departments for Miami Dade & Broward can be found below.

MIAMI DADE COUNTY

MIAMI DADE COUNTY - Water & Sewer

MIAMI DADE COUNTY - ( ArcGis ) DOH Septic System

BROWARD COUNTY

BROWARD COUNTY - Water & Sewer

BROWARD COUNTY - ( PDF ) Map/s Download

FULL HOME INSPECTIONS

Wed, 04 Oct 2023 05:39:25 GMT

PRE-PURCHASE ( FULL HOME INSPECTIONS )

This Inspection provide an emprical comprehensive & itemized perspective, that recognizes the Highlights & Defficiencies that may be/are present on a home or small business. This documented is specificlly adapted for Real Estate Profecionals, Financial Institutions, Investors, Contractors, and the general Public. Objectivly its purpose is to accuratly assess the condition of the property and its components in a systematic manner.

Along with detailed descriptions. Your custemized report includes GIS Mapping, Sattellite pictures, HD graphics , a Custom Client file and the use of the latest technology. With INFRARED Theremal Cameras, moisture metters & gas leak detectors. Our profecionals can confedintly identify overlooked issues of both, common and uncommon in nature. Itemized summary can be found below:

SAMPLE REPORTS

Wed, 04 Oct 2023 04:45:58 GMT

MIAMI DIVUM SAMPLE REPORTS

STANDARD REPORT FORMAT

• Intro / Cover Page

• INDEX

• Report

• County Data

• GIS Mapping

• Permit Details

• Onsite Graphics

• Special Requests

• Links & Multi Media

4 POINT INSPECTION

WIND MITIGATION

ROOF CERTIFCATION

PRE-LISTING INSPECTION

FULL HOME PRE-PURCHASE INSPECTION

CUSTON / INVESTMENT REPORTS

GFCI OUTLETS

Wed, 04 Oct 2023 03:44:46 GMT

GROUND FAULT CIRCUIT INTERRUPTERS

IDENTIFICATION

Most Ground Fault Interrupters can be seen by the small buttons located on the cover. If the flow of electricity is diverted, the outlet responds by cutting the flow until reset. This function prevents fire and electrical hazards that can occur near water & exterior connections.

INSPECTION

GFCI Outlets must be installed on all access points that are located in the kitchen, bathrooms, and exterior elevations of a home. Furthermore, exterior outlets must be covered and protected from the outside elements.

It has been known to find many remodeled homes fail to properly installed these systems. That is why it important to obtain at least a 4 point inspection when Purchasing, Leasing or Investing in a property.

SPLASH BLOCKS

Wed, 04 Oct 2023 03:06:44 GMT

PREVENTING SUBSIDENCE

In a similar fashion to Water Main Entrance Valve Leaks. Splash Blocks are probably one of the most overlooked items when it comes standard home maintenance. This is because despite their simple appearance. They are specifically designed disperse running water away from the foundation, enough to mitigate the effects of storms & floods.

If the ground beneath the structural slab starts to subside. The home itself will begin to give way and will affect the structural integrity of not only the home, but its mechanical components as well.

• Leaning / Self Opening / Self Closing Doors, Out of Shape Frames, Lifted Tiles, Dethatched Floorboards, Cracked Walls & Ceilings

All these may show signs of Subsidence underneath a structure.

COUNTY APPROVED LABELS

Wed, 04 Oct 2023 02:22:32 GMT

IMPACT RATED ITEMS

IDENTIFICATION

County Approved Impact Rated Home Components can greatly affect a home owners policy cost & premium. Identifying these items is essential when it comes to completing a Wind Mitigation report. With out proper identification. Insurance underwriters can testify to the presence of said component and thus wont be able to provide accurate converge.

It is because of this reason that manufacturers and officials have made it easy to identify these products which give way to allotted discounts & credits that are provided by insurance providers.

Shutters: Are known for having an etching carved or laser printed on to them.

Impact Rated Windows: Generally have a small imprint on one of the corners of the glass.

Garage Doors: Are required to have a sticker notification that can be found on the inside panels.

Impact Rated Doors: Can be discerned from their above average weight and frame installation.

GOLD & SILVER LABELS

Furthermore, Gold Silver and plated labels usually highlights its purchase. Maintaining these labels is generally preferred, and helps provide proof of their installation. If these indicators are not present, difficulties can arise when it comes time to complete the wind mitigation.

PUBLIC PERMIT RECORDS

That is why at MIAMI Divum we emphasize the attainment of public permit records so that the underwriter can facilitate the insurance process.

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IMPACT RATED ITEMS

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WATER SUPPLY LINE

Wed, 04 Oct 2023 01:44:33 GMT

WATER MAIN VALVE LEAK

DETECTION

Water Main Entrances usually cross into private property from the street and their valves can be found somewhere along the path in between. Upon entering private property, it is the owners responsibility to adequately maintain and ensure that the water supply is being used accordingly.

Opposite to wear & tear. The lack of use can also cause material degradation which will lead to a slow but consistent leak. This water diffusion ( Because of its proximity to the home ) will also eventually subside beneath the foundation and begin the structural deterioration of a home.

Despite its minimal plumbing cost of repair. Many homes in South Florida and across the nation leave this small, but very important item unattended.

INSULATION

Wed, 04 Oct 2023 01:20:53 GMT

HEAT MITIGATION

Despite the beautiful sunsets. South Florida is infamous for its heat index and humidity. Many homes in the Tri-County Area are known to have missing insulation. And as a result its inhabitants, owners, and investors are suffering the consequences in several different ways.

If a Home is not insulated properly from the walls, ceilings and floors. Several different factors start coming into play that begin to affect the general home structure in a negative manner.

FLOORS

Starting from the ground up, a water barrier is placed beneath the floor in order to prevent gases and moisture from rising into the property and its structural components.

FRONT, BACK & SIDE ELEVATIONS

Side elevations and their construction ( Cement Block, solid wall, or drywall and plaster ), all have different methods of moisture deflection. Improper installation can compromise an entire section of a home. Especially near the windows and door frames that have been exposed to the outdoor elements with out maintenance. While weep holes allow some structures to breath. Other unnecessary punctures on a house siding can cause lead to rodent and insect infestation.

ATTIC INSULATION

Attic Insulation ( Despite being continuously overlooked ) is one of the single most efficient manners to Heat Mitigate a home. Attic temperatures can reach up 250°. And without insulation, all this heat and energy gets transferred to the interior of the building.

As a result the HVAC Unit is forced to work harder. This increases energy costs, while at the same time reducing the life expectancy due to wear and tear of unit and its forced output.

• HVAC Unite works harder

• Higher Moisture Levels

• Promotes the Growth of Mold

• Attracts Invasive Creatures

• Deteriorates a Home’s Aesthetics

• Paint Peeling ( Walls & Ceiling )

HEAT MITIGATION

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GAS & FUME DETECTION

Tue, 03 Oct 2023 23:42:18 GMT

COMBUSTABLE & OTHER GAS LEAKS

Natural Gas Plumbing for cooking and water heater usage is quite common in Miami and South Florida. Similar to water pipping and other home components. Standard General Maintenance and yearly check ups can prevent greater consequences in the future.

Combustible & other Gas Leak Inspections are usually available upon customer request. And can be added to the standard Insurance & Real Estate inspections when purchasing a home or renewing your insurance policy. Often this item is also requested to detect the intrusion of sewer composites entering through the plumbing when foul smell is present. As well as confirming the HVAC ( A/c ) Refrigerant loss via its heat transfer conduits.

• Natural Combustible Gases

• HVAC Refrigerant leaks

• Water Drainage ( Plumbing ) Functionality

INFRARED INSPECTIONS

Tue, 03 Oct 2023 23:10:25 GMT

INFRARED THERMAL TECHNOLOGY

Infrared Thermal Technology is with each day becoming more and more popular with all the professionals in the real estate industry. This is because thermal cameras have the ability to compile the heat ( Thermal radiation ) into a single image.

These graphic depictions of the environment let the inspectors identify spots that may have been compromised in some manner by either water intrusion or general deterioration. Because different home construction materials retain different levels of heat. Moisture accumulation, leaks and other deficiencies can detected with out necessarily having to open the wall or ceilings.

Today, the same technology expands to industries that go far beyond real estate and is used in almost everything from geology to space exploration. Generally this supplementary service that is performed for an additional cost due to the equipment and licensing that necessary to perform the inspection. Nevertheless, it provide a greater level of certanty to both the consumer and service provider with emperical results and the certifide results.

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INSPECTION TYPES

Tue, 03 Oct 2023 22:06:45 GMT

INSURANCE Vs. REAL ESTATE INSPECTIONS

INSURANCE INSPECTIONS

Are for the most part designed with insurance agencies in mind and are State Certified to best suit the needs of its general population. Different states operate with different variations of general forms, however they serve the purpose of providing the insurance agency with specific documented details of the property and its components.

Usually these inspection are requested by financial institutions and insurance companies before the purchase of a home, after a home upgrade / repair or severe storm. These inspections directly complement each other, and tend to be requested together. Each report is 2 - 3 pages with about 12-18 additional pages of pictures, graphics & permit/s details.

• 4 point Inspection - Designed for the acquisition or renewal of an insurance policy.

• Roofing, Electrical, HVAC, Plumbing.

• Windstorm Mitigation - Purpose to identify construction materials & methods to obtain credits

• Impact Rated Windows & Doors, Roof to Wall Attachments

• Roof Certification - Allows the insurance agency to notified of any roof updates / replacements

• Exterior Roofing Material, Age, and Availible Public Records / Permits

REAL ESTATE INSPECTION

Most commonly known inspection in the real estate market is the Pre-Purchase ( Full Home ) Inspection . Unlike insurance inspection, these reports can vary in format, design, and efficacy from one company to another. Nevertheless, the Home Inspection Standards of Practice provides an empirical frame work that applies to all licensed professionals.

At MIAMI DIVUM, The property is broken down in to 10 basic main components that is sequentially itemized and rated according to its function. In comparison to the insurance inspections, a Pre-Purchase Inspections inspection is much more detailed & client ( Public ) oriented.

New Construction Inspections on the other hand, are done in stages or “phases”. Each inspection is done at different time periods after that specific component of the property has been completed.

• Pre-Purchase ( Full Home ) Inspection – Designed for: General Public / Buyer

• General Size is about 50 - 80 pages w/ graphcs & pictures

• County Data & House History

• Public Records & Permits • GIS Satellite Mapping

• Exterior Elevations • Roofing • Ventilation, Structural

• Electrical • HVAC & A/c • Interior Framing • Insulation

• Water Heater & Plumbing ( Endoscope )

• Combustible Gas & Fumes Detection • Thermal Infrared Camera

• Laser Level Foundation Check • Post inspection Consult •

• Custom Client Folder

• Pre-Listing Inspection – Designed for: General Public / Seller

• New Construction – Designed for: Both the Insurance & the General Public , as well as any other interested 3 ^rd parties that may have interest in the property and its successful outcome.

• Custom / Investment Reports – Available upon request only that is tailored specifically to the clients needs.

REDFIN FEATURED DIVUM

Tue, 03 Oct 2023 18:31:08 GMT

REDFIN BLOG

Click on the image or >> here << to jump to article.

MIAMI DIVUM is glad to inform that we have been featured in a REDFIN Blog Article.

Be sure to check it out and discover how different inspectors from across the nation provide their perspective on things they see most in their area. Each corner of this nation is unique, and consequently so are the issues one might find in a home.

! ! ALSO... Dont forget to ask about our seasonal & COMBO promotions.

19 Types of Home Inspections that Buyers Should Consider

" 5. HVAC inspection

A strange sound or smell could indicate an underlying issue that could affect your HVAC system, leading to increased heating and cooling costs, or worse, needing to replace it with a whole new system. An HVAC inspection provides a clearer picture of the home’s heating and cooling system, and can even give you recommendations for repairs or energy-efficient upgrades.

“The AC unit is one of the most used components in the home, says Kal Hoffman of Miami Divum . “HVAC and vent inspections are probably one of the least thought about, but most cost-effective actions that a homeowner can do once every three to five years. A well-functioning unit with proper ventilation will not only pay for itself, but will also continue to save the homeowner money throughout its lifespan.” "

ROOF CERTIFICATIONS

Tue, 03 Oct 2023 18:12:57 GMT

Much like the 4 Point Inspection & the Wind Mitigation Report. Roof Certifications are State Certified documents designed primarily for the use of insurance agencies to gain knowledge on the roof of a property, and its current condition. Materials, Age, Last Update, along with available Permits are al noted and attached. Deficiencies include:

• Loose, lifted, cracked, missing or damaged tiles / shingles, granule loss, leaks, repairs, obstructive vegetation, deferred maintenance, deteriorated flashing & Sealant.

Roof Certification are mainly performed after a replacement / repair or sever storm has taken place, and primarily focus on the exterior of the roof.

Electrical Entrances, HVAC Units, Ventilation extensions, soffits and all attachments ( E.g. satellite installations & lighting ) should be properly sealed and clear from debree. It is important to branches and general foliage away from the roof itself as they are known to damage and deteriorate the integrity of the structure.

WINDSTORM MITIGATION EXPLAINED

Tue, 03 Oct 2023 14:14:17 GMT

REPORT ITEMS

Windstorm Mitigations is a State Certified Report that is specifically designed (for insurance agencies ) to identify certain construction methods and materials that counteract high velocity ( Hurricane ) storm form winds. This form is divided into 7 section that collects specific details of the structure / property.

Building Code: Building construction date

Roof Covering: Roofing Material & Last Update

Roof Deck Attachment: Nail size & support system

Roof to wall Attachment: Method of construction: Toe Nail, Clips, Straps

Roof Geometry: Roofing Shape & perimeter

SWR ( Second Water Resistance ): Protective Underlayment

Open Protection: All Glazed ( w/ glass ), non-glazed openings, skylights & Shutters

HISTORY

Efforts began in the late 1980 to better understand the effects of roof wind damage and mitigation methods against storms with forces of 100 mph. In August 1992, Hurricane Andrew touched land on Miami Dade county with wind speeds exceeding 160 mph. In 1994 , South Florida was designated HVHZ “High Velocity Hurricane Zone” with the adoption a new South Florida Building Code. This eventually led to the 2001 FBC “Florida Building Code” which was implemented state wide on March 1 ^st .

Each section of the report can provide different degree of "CREDITS" & discounts. It is important to become aware of the availible instalation methods, materials and saving that can be obtained When purchasing a home or upgrading your own. These details are availible via your insurance provider who will be able to better outline the benifits of a protected Wind Mitigated home.

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4 POINT INSPECTION EXPLAINED

Mon, 02 Oct 2023 23:59:50 GMT

A 4 Point Inspection is the Non-Invasive focus on 4 main components of a home that directly impact the functionality of the property and the quality of life that its inhabitants can enjoy. This type of inspection is mostly requested by insurance agencies. Consequently, the form itself is mostly designed to documented and asses the property, thus allowing the acquisition, renewal, or update of an insurance policy. It is also common to have them requested after a home upgrade, repair, insurance claim. Or during the purchase of real estate.

Introduced in 1992 ( after Hurricane Andrew ),

This State Certified form is broken down into 4 specific sections.

• Roofing, • Electrical, • HVAC / Ventilation, • And Plumbing.

ROOFING (Exterior)

Verifies that no obstruction vegetation or damage is present. The inspector will note the age, materials used and pulls any permits when possible. Deficiencies include:

• Loose, lifted, cracked, missing or damaged tiles / shingles, granule loss, leaks, repairs

ELECTRICAL

Electrical panels should clean an clear from debree. Age, Brand Name, type of wiring, and any Recent Updates will be noted. Items of possible hazards include : • Double Tapped Breakers, Fuse boxes, scorched connection, improper grounding, cloth wiring, knob & tube installation, outdated system, missing GFCI outlets

HVAC

All units must be properly installed and maintained with adequate ventilation so that optimal functionality is possible. Lack of attention or misuse can shorten the lifespan of a unit.

• Outdated Unit, loose connections, damaged coils, clogged vents, missing drip pan / filter

PLUMBING

Water Heater Type, Brand & General Connections materials are all recorded. Underneath the kitchen / bathroom sink, shower connections are al reviewed so detect any signs of:

• Leaks, excessive moisture, corrosion, water ponding, tile warping, wall peeling etc.

If an item is found deficient. Most insurance companies will allow a grace period that gives the property owner time to correct the outstanding item. It is important to note. That different insurance agencies hold different standards. And as a result, pricing can vary from one company to another for the same property.

miamidivum

6024 VILLAS AT MOORS

6024 NW 172 Ter Cir

2,650 / Mo ﻿

Zip Codes

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Counties

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Florida

W ELCOME TO FLORIDA

REAL ESTATE VOCABULARY

REALTY Vocab ( D - E - F - G - H - I )

REAL ESTATE - D -

REAL ESTATE - E -

REAL ESTATE - F -

REAL ESTATE - G -

REAL ESTATE - H -

REAL ESTATE - I -

REALTY Vocab ( J - K - L - M - N - O )

REAL ESTATE - J -

REAL ESTATE - M -

REAL ESTATE - N -

REAL ESTATE - O -

REALTY Vocab ( P - Z )

REAL ESTATE - P -

REAL ESTATE - Q -

REAL ESTATE - R -

REAL ESTATE - S -

REAL ESTATE - T -

REAL ESTATE - U -

REAL ESTATE - V -

REAL ESTATE - W ﻿ -

REALTY Vocab ( A - B - C )

REAL ESTATE - A -

REAL ESTATE - B -

REAL ESTATE - C -

SEWER & SEPTIC

DOES MY HOME HAVE A SEPTIC TANK?

MIAMI DADE COUNTY

BROWARD COUNTY ﻿

FULL HOME INSPECTIONS

PRE-PURCHASE ( FULL HOME INSPECTIONS )

SAMPLE REPORTS

MIAMI DIVUM SAMPLE REPORTS

STANDARD REPORT FORMAT

GFCI OUTLETS

GROUND FAULT CIRCUIT INTERRUPTERS

IDENTIFICATION

INSPECTION

SPLASH BLOCKS

PREVENTING SUBSIDENCE

COUNTY APPROVED LABELS

IMPACT RATED ITEMS

IDENTIFICATION

GOLD & SILVER LABELS

PUBLIC PERMIT RECORDS

IMPACT RATED ITEMS

WATER SUPPLY LINE

WATER MAIN VALVE LEAK

DETECTION

INSULATION

HEAT MITIGATION

FLOORS

FRONT, BACK & SIDE ELEVATIONS

ATTIC INSULATION ﻿

HEAT MITIGATION

GAS & FUME DETECTION

COMBUSTABLE & OTHER GAS LEAKS

INFRARED INSPECTIONS

INFRARED THERMAL TECHNOLOGY

INSPECTION TYPES

INSURANCE Vs. REAL ESTATE INSPECTIONS

REDFIN FEATURED DIVUM

REDFIN BLOG

19 Types of Home Inspections that Buyers Should Consider

" 5. HVAC inspection

ROOF CERTIFICATIONS

WINDSTORM MITIGATION EXPLAINED

4 POINT INSPECTION EXPLAINED

ROOFING (Exterior)

2,650 / Mo

REAL ESTATE - W -

BROWARD COUNTY

ATTIC INSULATION

PLUMBING