Glossary of Terms

CDD (Community Development District) – A local special-purpose government framework authorized by Chapter 190 of Florida Statuses as amended, and is an alternative to municipal incorporation for managing and financing infrastructures required to support development of a community.

REO (Real Estate or Bank Owned Property) –Property owned by a bank after a foreclosure or other liquidation process.

Short Sale –A sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property.

CMA (Comparative Market Analysis) –The best method available to home sellers to learn their home’s current value so they can select the best sale price with CMA. CMA is the term real estate agents use when they conduct an in-depth analysis of a home’s worth in today’s market.

ADOM -Active Days on Market.

CDOM –Cumulative days on Market.

As is”-Owner is selling the house in its current condition and will make no repairs, improvements or give the buyer any credits to fund these fix-its.

FAR/BAR Contract-Refers to the form issued by the Joint Committee of Florida Realtors a standardized Residential Contract for Sale and Purchase.

Effective Date – Determined by the final date of acceptance. The final date of acceptance is the date on which the contract becomes binding between the parties. It is the date that both Buyer and Seller have agreed to all terms of the contract and have executed the contract.

Homestead Exemption– Reduces the taxable value of real property up to $25,000, $50,000 for a married couple. It is an ad valorem tax exemption provided by Florida law for qualified residents who own and reside on the property as their primary residence.

Escrow Deposit –The deposit is a good-faith gesture to the seller, indicating you’re serious about buying their home. Once deposited, this money can’t be moved or touched without written consent from both buyer and seller. Money deposit is applied to the balance of down payment.

Escrow Agent –Under Florida Law, the escrow agent must be a third party. Escrow Agent can be anyone, but is usually a person related to transaction, meaning one of the real estate brokerages involved in the sale or an attorney.

FHA Loan –is a mortgage that’s insured by the Federal Housing Administration. However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults. Borrowers can qualify for a FHA loan with a down payment as little as 3.5% for a credit score of 580 or higher.

Home Fixtures – A fixture is legally considered something like decorations, equipment, or appliances that have been attached to the house. Fixtures are regarded as part of the property, and it is given that they will go to the buyer along with the rest of the property.

Title Insurance – Protects property buyers and mortgage lenders against defects or problems with a title when there is a transfer of property ownership. Homebuyers typically need two title insurance policies: an owner’s policy and a lenders policy, which protects the lender.

Municipal Lien Search –Property Debt Research will thoroughly search property history for any code or permit violations, unrecorded municipal liens, real property taxes and utilities that are associated with the property.

Home Warranty – A Homeowners home warranty is a contract covering repairs and replacements on systems and appliances in your home, usually for a period of one year.

Hazard Insurance – Protects a property owner against damage caused by fires, serve storms, earthquakes or other natural events. As long as the specific event is covered within the policy, the property owner will receive compensation to cover the cost of any damage incurred.

Flood Elevation Certification – An important tool of the National Flood Insurance Program. Elevation Certificates can only be completed by a licensed land surveyor engineer, or architect who is licensed by the state to perform such functions.

Does Not Convey –In a residential listing contract, if the seller wants to KEEP an appliance, it is written that the “appliance” does not convey. That means if you buy the house, you know the owner wants to keep the refrigerator… So, basically it is stating that the seller wants to keep it.