Florida Real Estate Glossary
Every real estate term a Florida buyer, seller, or investor needs to know — defined in plain English, A to Z.
Real estate has a language of its own. Whether you are buying your first South Florida home, selling, or investing, this A–Z glossary defines the terms that matter — in plain English, with links to the Divito Real Estate Group guides that go deeper. Jump to any letter using the bar below.
A
Adjustable-Rate Mortgage (ARM)
A loan whose interest rate changes after an initial fixed period. Run scenarios in our mortgage calculator.
Appraisal
A licensed appraiser’s opinion of a home’s market value, usually required by the lender before funding.
As-Is Contract
Florida’s most common residential contract — the seller makes no repairs, but the buyer keeps an inspection period and the right to cancel.
B
Backup Offer
A secondary offer that automatically moves to primary if the first contract falls through.
Buyer’s Agent
A licensed agent representing the buyer’s interests. Start with our buyer’s guide.
C
Closing Costs
Fees due at closing beyond the price itself — title, lender, taxes, and prepaid items.
Closing Disclosure
The federal form detailing final loan terms and costs, delivered to the buyer three business days before closing.
Comparative Market Analysis (CMA)
An agent’s pricing study using recent comparable sales. See our pricing strategy guide.
Contingency
A condition that must be met for a contract to proceed — such as financing, inspection, or appraisal.
D
Days on Market (DOM)
How long a listing has been active — a key signal of pricing and demand.
Down Payment
The portion of the purchase price paid up front, separate from closing costs.
Dual Agency
When one brokerage represents both buyer and seller. Florida more commonly uses transaction brokerage.
E
Earnest Money
A good-faith deposit the buyer puts down when going under contract, credited toward the purchase at closing.
Escrow
A neutral party holding funds and documents until all closing conditions are satisfied.
F
FHA Loan
A government-insured loan with low down payments, popular with first-time buyers. See our first-time buyer guide.
Fixed-Rate Mortgage
A loan whose interest rate stays the same for the entire term.
FSBO
A “For Sale By Owner” listing, sold without a real estate agent.
G
Gift Funds
Money from family used toward a down payment, allowed by most loan programs with a documented gift letter.
H
HOA
A homeowners association that governs a community and charges dues. Explore South Florida communities.
Homestead Exemption
A Florida property-tax break of up to $50,000 on a primary residence. Read our property tax guide.
I
iBuyer
A company that buys homes directly with instant cash offers, usually below full market value.
Inspection
A professional review of a home’s condition during the contract’s inspection period.
J
Jumbo Loan
A mortgage above conforming loan limits, common on luxury South Florida homes.
L
Listing Agent
The agent representing the seller. See our seller’s guide.
Loan-to-Value (LTV)
The loan amount as a percentage of the home’s value; a lower LTV usually earns better terms.
M
MLS
The Multiple Listing Service where agents share listings. Browse Florida homes for sale.
Mortgage Pre-Approval
A lender’s written estimate of how much you can borrow, which strengthens your offer.
N
NAR
The National Association of Realtors — the trade group whose members may use the Realtor® designation.
O
Offer
A buyer’s proposed contract terms, including price, deposit, and contingencies.
P
PMI
Private Mortgage Insurance, charged when a conventional down payment is under 20%.
Portability
Transferring up to $500,000 of Florida Save Our Homes tax benefit to a new home. See property taxes.
Pre-Listing Inspection
A seller-ordered inspection done before listing to avoid surprises during the buyer’s due diligence.
Proration
Splitting taxes and HOA dues fairly between buyer and seller as of the closing date.
Q
Quitclaim Deed
A deed transferring whatever interest the grantor has without warranties — common in family transfers.
R
Realtor®
A real estate licensee who is a member of the National Association of Realtors and bound by its code of ethics.
Recording
Filing the deed in county records to make the transfer public and official.
S
Save Our Homes
Florida’s 3% annual cap on assessed-value increases for homesteaded properties.
Seller Concession
Money the seller credits the buyer toward closing costs or repairs.
Short Sale
A sale for less than the mortgage balance, requiring lender approval.
T
Title Insurance
A policy protecting against ownership defects; the buyer’s owner’s policy protects their equity.
Transaction Broker
Florida’s default brokerage relationship, where the agent assists both parties without fiduciary loyalty to either.
U
Underwriting
The lender’s review of a borrower’s finances and the property before final loan approval.
V
VA Loan
A zero-down loan for eligible veterans and active service members.
Vacant Land
Unimproved property; financing and due diligence differ from homes. See buying land in Florida.
W
Walk-Through
The buyer’s final inspection just before closing to confirm the home’s condition.
Warranty Deed
A deed in which the seller guarantees clear title — the strongest deed for a Florida buyer.