Abstract of Title : A condensed history or summary of all transactions affecting a particular tract of land.

Access: The right to enter and leave a tract of land from a public way.

Acre : The standard land term. An acre consists of 43,560 square feet (sq ft) of land area. Farm land, commercial sites, and other real estate are often referenced by acre. Prices are also given in this format. For example, a tract of land that consists of 100 acres may be priced at $500 per acre, giving a total price of $50,000. A square lot consisting of 1 acre is equivalent to 208.71 feet by 208.71 feet.

Ad Valorem Tax: The real estate tax on any given property. This tax differs from other assessments or charges that may occur. The amount of tax for any given year is found by multiplying the tax assessment (after any deductions for homestead exemption) by the tax millage rate.

Addendum: An attachment to any offer, counter-offer, or contract containing additional term and conditions to the deal.

Adjustable Rate Mortgage (ARM): Any mortgage with an adjustable interest rate during the term of the loan. The interest rate is fixed for a specific period of time and then adjusts to an index rate plus a margin. For example, a 7/1 would be a seven year fixed rate then adjusted every year thereafter.

Annual Cap: An annual or maximum amount which the interest rate can be adjusted upward. This protects the borrower from excessive interest rates and is normally associated with adjustable rate mortgages.

Appraisal: An estimate of value of a real estate property by a professional third party. Virtually all non-owner financed mortgages will require an appraisal and is generally paid for by the buyer.

Appraised Value: The value established by an appraiser. Appraisals are subject to differing opinions by appraisers, depending to some degree on the intent of the appraiser. If the appraisal is being performed by the local taxing authority, the resulting value may only take into account the property size, building square footage, and age of construction. However, a property owner ordering an appraisal to show maximum value possible usually shows comparable properties that are on the market or have recently sold, which support a higher value.

Appreciation: The increase in value that occurs when the market value of a property increase.

Assessed Value: The value of a property as determined by the local tax jurisdiction that is used to determine the amount of your property taxes.

Assumable Mortgage: A mortgage which, by its terms, allows a new owner to take over its obligations.

Building Codes: The rules and regulations that govern the methods, materials, and designs used in construction. Each community may vary the overall standards from neighboring communities.

Bundled Golf Community: Where home ownership includes full membership to the community's golf club. There are mandatory annual dues, which may or may not be included in the master association fees. Local examples include: Vasari, Stonebridge, Naples Lakes , Foxfire, Pelican Sound, Copperleaf, and Spring Run.

Buyer's Agent: A real estate agent who has made an agreement to represent the buyer exclusively, rather than the seller. The professional designation is ABR (accredited buyer's agent).

Carriage/coach home: A home that shares a common wall with its neighbors. A garage is generally included, and there are first floor and second floor locations. There can be just 2 units per building, or as many as 18 or more.

Closing: The process that affects the final transfer of the deed from the seller to the buyer, as well as finalizing all aspects of a mortgage of the property.

Closing Costs: Any fees paid by the borrowers or sellers during the closing of a real estate transaction. This normally includes any fees associated with a mortgage including origination fee, discount points, and attorney's fees, as well as title insurance, survey, real estate commissions and any items that must be prepaid, such as taxes and homeowners association fees.

Closing (HUD or Settlement) Statement: A form utilized at closing to itemize the costs associated with purchasing a home. This statement is used universally by mandate of HUD, the Department of Housing and Urban Development.

Commitment Letter: A written agreement in which the lender agrees to lend money if the borrower meets certain conditions.

Community Development District (CDD) : A governmental agency created to plan, finance, construct, operate and maintain certain community-wide infrastructure and services specifically for its District. The infrastructure and services are financed through non ad-valorem assessments which are part of your tax bill and are collected by the County Tax Collector . This is in addition to county and other local governmental taxes and assessments. Mediterra, The Brooks, Pelican Marsh, Fiddler's Creek, Lely and Miromar Lakes are some of the local CDD Communities. www.cddswf.com for more information.

Comparable Market Analysis (CMA): A comparison of the prices of similar houses in the same general geographic area. A CMA is used to help determine the value of a property, either for a seller or a buyer.

Contingencies: These are clauses or conditions written into real estate offers and contracts to prevent a buyer from being forced to buy a house that is unsatisfactory--either structurally or financially. Examples of contingencies are "This contract is subject to the buyer obtaining a satisfactory whole house inspection." or "Subject to the buyer being able to obtain a mortgage."

Conventional Loan: A mortgage loan up to $ 359,650 .

Co-op Ownership: Purchaser of a co-op is a shareholder of the corporation that owns the co-op, verses a fee simple ownership in a condo. The purchaser has a leasehold estate in their unit and a guaranteed leaseback of the unit from the corporation as long as they hold their stock.

County Property Appraiser: The party in charge of determining the value of all property within a given county.

Courtyard design: is found in single family and “villa” style homes where the courtyard is the focal point. They tend to be L or U shaped, with every room having a view of the pool or garden in the center.

Deed: The formal written document that transfers real property ownership rights from the seller to the buyer. It contains an accurate, specific legal description of the property and is delivered at the closing.

Duplex: 1) A building that has two residences under one roof. This two family building is a good starter home for many investors who live in one part and rent out the other. 2) Often a home or apartment with two levels or more. In this term, there is only one residence referenced.

Earnest Money: Money that is submitted with an offer to purchase which indicates a buyer's seriousness and good faith. In virtually all cases, these funds will need to be submitted at the time of the offer and remain in escrow until the time of closing, at which time it becomes part of the down payment.

Equity: The difference between the value of a property and the total of any outstanding mortgages or loans against it.

Equity Lines: Loans made against the equity in a specified property.

Escrow: Money that is held as deposits toward the purchase or is set aside so that the lender can pay taxes; hazard, flood and mortgage insurance; and other special costs connected with owning property. In some areas, the term "escrow" also refers to the closing process. The escrow account may or may not be interest-bearing.

Estoppel Letter: Letter sent by Associations to verify that all fees and assessments owed that association have been paid by the Seller.

Exclusive Listing: An agreement between seller and real estate agent showing the terms and conditions whereby the owner will pay a pre-determined commission to that agent if that agent, or any another agent, performs the contract (to sell, lease, or exchange the property). Under this listing agreement, the seller can go to contract with a buyer he or she found without the agent, without paying a fee to the exclusive agent.

Exclusive Right of Sale : The most common listing agreement between seller and real estate agent. This agreement obligates the seller to pay the listing agent a pre-determined commission in the event of a sale, lease, or exchange of the seller's property, regardless of who brings the in the other party. This does not prohibit the seller from dealing directly with a prospective buyer, but this type of listing agreement legally obligates the seller to pay the fee to the listing agent, even if the seller goes to contract with a buyer he or she found without the agent.

Federal Housing Administration: The FHA is an agency within the Department of Housing and Urban Development that administers many different loan and loan guarantee programs, which can often be a prime source for maximum financing at reasonable interest rates. Mortgage brokers and bankers are usually the source for these loans.

Federal National Mortgage Association: The FNMA, often called Fannie Mae, is a corporation that buys mortgages from banks, savings and loans institutions, and other loan sources. Most long-term residential financing arranged by banks and other thrift institutions are sold to FNMA or other similar mortgage holders.

Fixed Rate Mortgage: Where the interest rate is fixed for the entire term of the loan.

Foreclosure: The process through which a lender takes back property from a defaulting owner and re-sells it.

GI Loan (also VA loan): Loans that are insured by the Veterans Administration and are available to qualified and eligible veterans (usually 120 days of active duty in the armed forces qualifies). This loan program can provide up to 100% of the acquisition funds for a home loan.

Hidden Defect: Any claim on a property that does not appear in the public records, i.e., an unknown heir or an unrecorded municipal utility lien.

High-rise : The description for buildings with 8 stories or more. The newer buildings are loaded with features such as private foyers, 9' or 10' ceilings, large balconies, and can be as large as 12,000 SF. Generally speaking, prices increase as you go to a higher floor. Amenities may include fitness centers, guest suites, billiards room, pool and spa, social room with a catering kitchen. Residents will pay a fee for common expenses such as landscaping, security, etc.

Homeowner's Association: An owners group, whether in a condominium, townhouse or single- family subdivision that establishes general guidelines for the operation of the community, as well as its standards.

Homestead Exemption: A $25,000 reduction from the taxable value of your property. An even bigger benefit is that a Constitutional Amendment relating to Homesteaded properties states that assessed property value cannot exceed 3% each year following the year you receive homestead exemption. All persons seeking homestead exemption must have legal and equitable title to the property, reside there on or before January 1, and the property must the primary and permanent residence. There is no time limit for residency prior to applying for homestead, not one year, 6 months, or one day. All persons must complete an original application form, in person, at the Office of the Property Appraiser.

Inspection: Examination of a property to see that it meets the standards of the contract, of the lender and of the buyer.

Interest-Only Loans: Allows payments on the interest of the loan without any payment of the principal amount for a specific period of time.

Jumbo Loan: A mortgage for more than $ 359,650.

Land lease: Land that a building is built on is owned by someone else, and a land lease payment is made by the Lessee (usually a co-op association) for a pre-established period of time (usually for 99 years).

Legal Description: A description of the property (usually written by a surveyor). It must be exact and sufficient in itself for the purpose of identifying and locating the property.

Levy: The imposition of a tax, stated in terms of “millage”, against all appropriately located property by a governmental body authorized by law to impose ad valorem taxes.

LIBOR Mortgage Products: The London Interbank Offered Rate is an index used in determining Adjustable Rate Mortgages and is found daily in the Wall Street Journal. The Adjustable Rate Mortgage has a fixed interest rate for a specific period of time and then adjusts to the LIBOR index plus a margin.

Lien: A legal claim on a property that acts as a security for the payment of a debt. A lien can prevent the property from being sold unless it is satisfied (paid off). If the debt is not repaid as promised, the lender or lien-holder can foreclose its claim on the property and force a public sale of the property to pay the debt.

Listing: A property for sale by a real estate brokerage and agent.

Loan Assumption: When a buyer takes over a loan, relieving the original borrower of the obligations they have on that loan.

Loan-to-Value Ratio: A term used to describe the ratio of debt to the actual value of a property. If a property is worth $150,000 and a total debt of $75,000 outstanding, the loan-to-value ratio is $75,000/$150,000, or ½ loan and ½ equity. This term may also be quoted as a percentage, the above example being 50 percent loan to value.

Low-rise: D escribes the one to three story multi-unit buildings. As with other multi-unit complexes, residents share in the cost of common area expenses. There may be a pool, spa, social room and other amenities.

MLS (Multiple Listing Service): A listing (almost always computerized) of all the properties for sale by real estate brokerages in a given geographical area.

Market Value: The presumed value for which a specific property will sell in any given market condition.

Master Plan: The overall comprehensive plan for the development or redevelopment of a community. This is a key to the future of any community, as it establishes the priorities for growth. Master plans indicate the zoning that is allowed for each area of the community and, where applicable, the density allowed for development of residential units.

Mid-rise: B uildings range from four to seven stories high. Like the high-rise buildings, residents will share in the cost of common area expenses. There may be a pool and spa, social room, fitness centers, guest suites and other amenities.

Mill: One-thousandth of a United States dollar.

Millage: Also known as the Tax Rate. May apply to a single levy of taxes or to the cumulative of all levies. The total tax rate is the combined tax rates (millages) of all taxing authorities having jurisdiction over property in the county. The Florida Constitution directly authorized counties, school districts, and municipalities to impose taxes based on the value of a property.

Mold: A micro-organism that occurs naturally in our environment. Mold can also be caused by moisture or water penetration left untreated. If we see mold, smell a musty odor, or see visible water damage/stain, a buyer may want to have an extensive mold inspection (at the buyer's expense).

Mortgage: A document that places a lien on property. The lender holds the mortgage as security for the promissory note.

Non Ad Valorem Tax Assessment: An assessment for a specified amount that is not based on the assessed value of a property.

Owner's Policy: A title insurance policy issued to a property's owner that protects the owner's equity against hidden title defects.

Permanent Residence: The place where a person has his or her true, fixed, and permanent home and principal establishment to which, whenever absent, he or she has the intention of returning. A person may have only one permanent residence at a time, and once it has been a established as the permanent residence, it is presumed to continue to be classified as that until a change has occurred.

Plat: The actual drawing of a subdivision or part of a subdivision. Most areas of the country require a developer to record a plat of any subdivided land showing the divisions or lots within the property.

Prime Rate: The lowest commercial interest rate charged by banks on short-term loans. Most loans are based on a level over the prime rate. For example, a bank may make a commercial loan at 2 points (percentage points) above the prime. If the prime, at that moment, is 6%, then the loan would carry an interest rate of 8% until the prime either went up or down, requiring an adjustment in the loan rate.

Property Tax: An annual or semi-annual tax paid to one or more governmental jurisdictions based on the amount of the property assessment. Generally paid as part of the mortgage payment.

Purchase (or Sales) Contract: A contract in which the buyer agrees to purchase specific property and the seller agrees to sell under stated terms and conditions and to convey title to the buyer.

Radon Gas: A naturally occurring radioactive gas that has been found in buildings and homes in Florida in amounts exceeding the Environmental Protection Agency's guidelines of 4.0 picocuries per liter (pCi/L). When radon has accumulated in a property in sufficient quantities, it may present health risks to persons who are exposed to it over time. The buyer can have a radon inspection performed at their expense.

Real Estate Agent or Broker: Both are persons tested and licensed by the state to bring buyers and sellers together for the purpose of consummating a sale and earning a commission. Brokers have taken an additional class and state exam, generally following several years in the business, and are authorized to operate a private real estate firm should they desire.

Real Property: Land, buildings, fixtures, and all other permanent improvements to land. The terms “land”, “real estate”, and “real property” may be used interchangeably.

Realtor: A licensed real estate professional who is a member of the National Association of Realtors, an organization with its own educational and ethics standards, in addition to those required by the state.

Recording: The act of entering deed and/or mortgage information into public record with your local government jurisdiction.

Sellers Disclosure: A voluntary form that a seller completes, remarking on every aspect of the property and disclosing any known problem areas.

Taxable Value: The assessed value of a property minus the amount of any applicable exemptions.

Tax Notice: The tax bill sent to taxpayers for payment of any taxes or special assessments.

Tax Receipt: The paid tax notice.

Title: The term "title" has two references:
1. The rights of ownership and possession of a particular property.
2. The document that shows evidence of those rights.

Title Agent (or Title Agency): Similar to other insurance agents, a title agency is authorized to issue title policies and prepare documents in connection with transactions for which it issues policies. Staff members of a title agency do not represent either the buyer or the seller and cannot give legal advice.

Title Defect (Cloud on Title): When the history of ownership to a specific property is examined by the buyer's closing agent and reveals an unsatisfied lien or an improperly executed document form a prior sale, mortgage satisfaction, or other legal action. Any legal right to a property claimed by a person other than the owner. Examples include unpaid real estate taxes or claims to the property such as those of an unknown heir.

Title Examination: An examination of property information located in public records to determine that a property's seller is the legal owner and the effect of any other claims or encumbrances on the property title.

Title Insurance: A type of insurance that protects the policyholder against loss sustained through title defects. Paid at closing, title insurance may be the responsibility of the buyer, the seller, or both, depending on what is traditional in your locality.

Transaction Broker: It is presumed that all real estate licensees operate as a transaction broker unless a single agency or no brokerage relationship is established in writing. A transaction broker is required to deal honestly and fairly, to disclose all known facts that materially affect the value of real property, to account for all funds, to use skill , care, and diligence in the transaction, to present all offers and counteroffers in a timely manner, and to not disclose any terms, conditions, or factors told to the broker in confidence.

Warranty: Covers either most of the house in a new home, or selected items (for example the heating and air conditioning system or the water heater) in a used home. Warranties can vary widely and are optional in used homes (paid for by either the buyer or the seller).

Variance: An Approval granted by the city or county commission to enable a property to be used contrary to one of the building codes or zoning regulations.

Villa or Zero-Lot-line: A building design like a single family home, having no common walls with their neighbors, but are on a small lot. They usually are in a Homeowner association that regulates the design of the homes and has monthly fees which take care of lawn maintenance and the cost of common area expenses.

Zoning: Laws that govern specifically how a zoned area can be used. For example, an area may be zoned for single family residential, condominiums, commercial or retail, or a mix of two or more uses.