Guides
Florida real estate, in plain English.
Two sentences per term, then a link to go deeper.
- Annexation
A city bringing land into its limits, so city services, rules and taxes apply instead of the county’s. It usually comes with a land-use and zoning change.
- Appraisal
A licensed appraiser’s opinion of value, usually ordered by the buyer’s lender. If it comes in below the price, the contract’s terms decide what happens next.
- Brokerage relationship
Under Fla. Stat. 475.278, a Florida licensee may work with you as a transaction broker or a single agent, or have no brokerage relationship with you. Each comes with different duties.
- Closing Disclosure
The lender’s final statement of the loan terms and closing costs, delivered before closing. Compare it with what you expected.
- Documentary stamp tax
Florida’s tax on deeds (Fla. Stat. 201.02) and on notes and mortgages (Fla. Stat. 201.08). On a deed it is 70 cents per $100 of the price, and on a note 35 cents per $100 of the loan amount.
- Earnest money deposit
The deposit a buyer puts down when an offer is accepted, usually held by the title company, an attorney or a broker’s escrow account. The contract says when it can be refunded.
- Escrow account
A lender account that collects a share of your property taxes and insurance with each payment, funded with a cushion at closing.
- Flood disclosure
Under Fla. Stat. 689.302, a seller of residential property must give the buyer a flood disclosure at or before the time the contract is signed.
- Four-point inspection
A look at the roof, electrical, plumbing and heating and air conditioning. Many insurers ask for one on older homes before writing a policy.
- HOA disclosure summary
When a mandatory homeowners’ association applies, Fla. Stat. 720.401 requires a disclosure summary before the buyer signs.
- Homestead exemption
A Florida property-tax exemption for a home you own and live in as your permanent residence (Fla. Stat. 196.031). Apply with the property appraiser by March 1.
- Intangible tax
A one-time Florida tax of 2 mills (0.2%) on the amount a new mortgage secures, under Fla. Stat. 199.133. Cash buyers don’t pay it.
- Material fact (seller disclosure)
Under the Florida Supreme Court case Johnson v. Davis, a seller of a home must disclose known facts that materially affect its value and aren’t readily observable to the buyer.
- Personal representative
The person a Florida court appoints to handle an estate. Whether they can sell real property without a court order depends on the will and the court (Fla. Stat. 733.613).
- Plat
A recorded map that divides land into lots, streets and common areas. Once it’s recorded with the Clerk, lots can be sold and building permits can follow.
- Portability
Florida lets a homestead owner move some of their Save Our Homes savings to a new Florida homestead, within limits and deadlines set in Fla. Stat. 193.155(8).
- Probate
The court process for settling an estate. Florida has formal administration and summary administration, a shorter process for some estates (Fla. Stat. 735.201).
- Property tax disclosure
Fla. Stat. 689.261 requires a summary telling the buyer not to rely on the seller’s current tax bill, because a sale can trigger reassessment.
Your new tax bill may be higher · Monthly payment with local taxes
- Radon notice
Fla. Stat. 404.056 requires a standard radon gas notice on contracts for sale and lease of buildings.
- Rezoning
A change to the zoning district on a property, decided by the city or county after public notice and hearings.
- Save Our Homes
Once a home has a homestead exemption, its assessed value can rise by no more than 3% a year or the change in the Consumer Price Index, whichever is less (Fla. Stat. 193.155).
- Security deposit
Fla. Stat. 83.49 sets how a residential landlord holds a deposit and the deadlines for returning it or making a claim after a tenant moves out.
- Sinkhole coverage
Fla. Stat. 627.706 requires property insurers to cover catastrophic ground cover collapse, a narrow term. Broader sinkhole coverage is usually optional.
- Special Flood Hazard Area
FEMA’s higher-risk flood zones, beginning with A or V. With a federally backed loan in one, the lender will require flood insurance.
- Survey
A licensed surveyor’s drawing of the boundaries and improvements, which can reveal encroachments or easements.
- Title insurance
A one-time policy that protects against covered problems with ownership that existed before you bought.
- Variance
Permission to depart from a specific code requirement, such as a setback, on one property. Each government has its own process.
- Wind mitigation inspection
An inspection that documents features like roof-to-wall connections and opening protection, which may qualify a home for insurance discounts.
General information, not legal, tax or insurance advice. We are real estate professionals, not attorneys. Laws change, so check the statute or ask a professional about your situation.