USPAP
Rules and guidelines that must be followed by any professional conducting an appraisal
Absentee Owner
A property owner whondoes not reside on thenoroperty and who usually relies on a property manager to oversee the investment
Appraisal
A supported, defended estimate of the value of property rights as a given date
Business Opportunity Brokerage
The marketing and sale of a going convern operation. Florida requires that business brokers have a real estate license to market business opportunities
Comparative Market Analysis
An informal estimate of market value performed by a real estate licensee for the seller to assist in arriving at an appropriate listing price, or if working with the buyer, an informal estimate of market value to assist the buyer in arriving at an appropr
Dedication
A deliberate transfer of infrastructure by its owner for public use and accepted for such use by the public
Farm Area
A selected and limited geographical to which a sales associate devotes special attention and study
Real Estate Brokerage
A commercial activity in which the sale, purchase, leasing, rental, exchange or management of real property is conducted by qualified and licensed individuals acting either for themselves or for others for compensation
Subdivision Plat Map
The layout of a subdivision showing lots, roads and other infrastructure by the developer to a loval government agency
Adjudication Withheld
When a criminal final judgement is withheld or not recorded in public record
Broker
One who is licensed bybthe state of Florida to carry on the business of dealing in real estate. A broker may receive a commission for their part in bringing together parties in a real estate transaction
Broker Associate
An individual qualified to be issued a brokers license but who operates as a sales assiciate in the employ of another
Caveat Emptor
Let the buyer beware
Nolo Contendre
A plea of no contest entered in a criminal court of law
Prima Facie Evidence
Evidence that is valid and admissible in its face requiring no further proof of authenticity
BAR SALE
Buy Advertise Rent Sell Auction Lease Exchange
Active
A sales associate license is active (also known as "active and current") when it is registered with a broker and the licensee is not delinquent with their education or renewal requirements
Cancelled
Status of brokerage's registration if a brokerage's sole broker of record dies, resigns, or is otherwise removed as broker of record, and no replacement broker is designated within 14 days
Cease to be in Force
Status occurs when a brokerage fails to notify DRE of a business change of address within 10 days, or when a licensed associate changes broker (or owner-developers) and does not notify the DRE within 10 days
Group License
License issued to a sales associates and broker associates when there is proof that ownership or control of various properties is substantially held by the same individual(s)
Involuntary Inactive
License status when the licensee fails to timely renew; also applies to a licensed associate when their employing brokerage is cancelled; also applies if a licensed associate is registered with a brokerage partnership that is in dispute
Multiple License
Additional license(s) issued to a broker when necessary for the conduct of brokerage business
Null and Void
Applies after a license declared expired after two years of Involuntary Inactive status due to failure to renew; also applies when a licensee fails to timely complete the post-license education course
Revoked
A discplinary sanction issued by FREC that permanently prevents a licensee from performing real estate services for compensation
Suspension
A discplinary sanction issued by FREC that permanently prevents a licensee from performing real estate services for compensation for a maximum of 10 years
Voluntary Inactive
A sales associate's license is Voluntary Inactive when it is not currently registered with a broker (unemployed), and the licensee is not deliquent with their education or renewal requirements
Cooperative
Form of real property ownership where a cooperation or association divides a single property into portions, with each use owning stock in the corporation
Declaration
The recorded document that creates a condominium
Estate for Years
A lease that had a beginning date, and an ending date, and is in writing
Fee Simple Estate
The most popular type of estate with the greatest "bundle of right" available
Fixture
Personal property that is permanently attached to real property
Freehold Estate
An estate that consists of ownership rights of an unknown duration
Joint Tenancy
Ownership by two or more persons with the "unities" of time, title, interest, and possession present plus the right of survivorship
Leasehold Estate
An interest in real property where ownership or possession is measured in calendar time (non-freehold estate)
Life Estate
An ownership in real property that is tied to the death of a pre-determined party
Proprietary Lease
A lease that is created for individual use within a cooperative
Real Estate
The land and all improvements permanently attached to the land (tangible)
Real Property
Real estate plus the legal "bundle of rights" that a person acquires by having an interest in real estate
Remainderman
When a life estate terminates, the property reverts to a pre-determined third party, not the original grantor
Right of Survivorship
Surviving owners in a Joint Tenancy or Tenancy by the Entireties absorb all interest and rights in a property
Tenancy at Sufferance
When a lease expires and no agreement has been made as to future occupancy (the tenant is a holdover)
Tenancy at Will
A lease agreement that is not in writing or does not have a beginning date and an ending date or both (a month-to-month tenant)
Tenancy by the Entireties
Ownership of real property by husband and wife only
Tenancy in Common
Ownership of real property whereby the co-owners may or may not have acquired title at the same time, may or may not have the same interest and right of use, and do not have the right of survivorship
Abstract of Title
A compilation of the recorded documents relating to a parcel of land, from which an attorney may give an opinion as to the condition of title (a history of title)
Acknowledgment
A written declaration by a person signing a document, given before an officer authorized to give an oath (notary public), stating that the signing is the persons voluntary act
Actual Notice
Giving oral or written notice, presenting a deed, giving verbal notice or physically moving into a property
Adverse Possession
A method of acquiring title by possession under open, notorious, exclusive, and hostile conditions for seven or more years
Assignment
A transfer to another of any property, real or personal, or of any rights or estates in said property
Committees deed
Utilized when the grantor is mentally incompetent
Constructive Notice
Notice given by publishing in a newspaper, public records, or other method
Deed
Any one of many conveyance or financing instruments, but generally a conveyance instrument given to pass to title to property upon sale
Deed Restriction
Limitations on the use of property placed in a deed by the grantor which bind all future owners
Easement
The legal right that a party has to use another's property
Eminent Domain
The legal right that government and quasi-government agencies have to take property from individuals for public use
Encroachment
A physical intrusion or trespass that can be detected by an up-to-date survey
Encumbrance
Any conditions (liens, deed restrictions, encroachments, unpaid property taxes, et al.) of title that deviates from "free and clear" (unencumbered)
Escheat
When a person dies intestate (without a will) and with no heirs, all real and personal property transfers to the state of Florida
Further Assurance
The grantor agrees to obtain and deliver any legal documents or instruments that might be required to clear title in the future
General Warranty Deed
The most common type of conveyance instrument with full covenant and warranty
Grantee
The person or party receiving the deed
Granting Clause
Words of conveyance found in the premises clause
Grantor
The person or party giving the deed
Gross Lease
A lease in which a tenant pays a specified rent payment and the landlord pays any operating expenses required for maintenance
Ground Lease
A lease on the land only
Guardians Deed
Utilized when the grantor is under 18 years of age
Habendum
The clause in which the type of estate is declared (i.e. :fee simple)
Speculative Construction
Builder owns the land, constructs a house to the builders taste and satisfaction, and then offers the completed construction for sale to the public
Tract Construction
Involves some input from the buyer for design and layout of a particular floor plan or model previously chosen by a developer
Custom Construction
Builder consults with landowner and constructs a home in accordance with the landowners wishes and designs
Condominium
Single unit ownership in a multiple unit dwelling
Blind Advertisement
An advertisement of a principal's property providing only a telephone number, a post office box and/or an address without the licensed name of the brokerage firm
Commingle
To mix together money or a deposit with personal funds; combine
Conflicting Demands
When the buyer and seller make demands for a deposit
Conversion
An unauthorized act of using the funds or property of another for one's own use
Coporation
An artificial or fictitious person formed to conduct specified types of business activities
Earnest Money Deposit
Money given as evidence of good faith to accompany an offer to purchase or rent
Escrow Account
A depository account in a bank, title company, credit union, savings association or trust company used solely for safekeeping customer funds and not for deposit of personal funds; impound account
General Partnership
Tow or more parties in business together, each to share the profits and losses of business
Good Faith Doubt
When circumstance creates the overwhelming belief that a dispute may occur
Interpleader
A legal proceeding where the disputed money is deposited with the Court and the Judge decides who should receive the money
Kickback
A portion of monies received because of an agreement for referring a party to a particular vendor for services
Limited Liability Company
A business entity that may operate a real estate brokerage having characteristics similar to a partnership and a sub chapter "S" corporation
Limited Liability Partnership
An alternative, hybrid business entity with the combined characteristics and benefits of both limited partnerships and S corporations
Limited Partnership
A business entity consisting of one or more general partners and one or more limited partners
Ostensible Partnership
A partnership formed, NOT by agreement, but by the representations or conduct of two or more parties that cause others to believe that a partnership exists. The parties become liable for the actions of the other
Sole Proprietorship
Operating as an individual in business
Trade Name
Any adopted or fictitious name used to designate a business concern
Agent
A person authorized by another to act on their behalf
Consent to Transition
A written requirement when a licensee is moving from a single agent relationship to a transaction broker
Customer
A person who is or may be a seller or buyer of real property and may or may not be represented by a licensee
Designated Sales Associate
A single agent for different parties in the same nonresidential transaction. The buyer and seller must have assets of $1 million or more and sign disclosures stating their assets meet the required threshold
Dual Agent
Representing both principals in a transaction
Fiduciary
A person in a position of utmost trust and confidence with respect to another person (see also single agent)
General Agent
An agreement whereby the agent represents and may bind the principal or customer on transactions falling within a specific range of activities (Property Manager is an example)
Limited Representation
A broker that offers to buyers and/or sellers representation as a transaction broker without offering full fiduciary duties
Non-representation
Real estate brokers working with buyers and/or sellers but not representing them as single agents or transaction brokers. If a buyer of seller chooses not to be represented, a licensee can still work with them
Principal
A party employing the services of a single agent
Residential Sale
A residential property up to four (4) units, a vacant parcel zoned for residential up to four (4) units, or agricultural property of 10 acres or less
Single Agent
A broker who represents either the buyer or the seller in a transaction but no both. The broker is the fiduciary of the party that is being represented
Special Agent
The relationship between a client and broker wherein the broker is acting for the client in one specific transaction or activity only
Sub-agency
The relationship of a sales associate working under a broker's supervision with the broker acting as a principal and the sales associate as an agent
Transaction Broker
A broker that provides limited representation to either the seller or the buyer or both in a real estate transaction (no fiduciary requirements)
Bilateral Contract
A contract in which both parties enter into mutual promises
Competent
Having mental and age capacity to enter into a contract
Contract
An agreement between two or more competent parties, supported by consideration, to do, or not to do, a certain legal act
Exclusive Agency Listing
Listing agreement whereby the seller may find a buyer without owing a commission, although the seller agrees not to list the property with any additional brokers
Exclusive Right of Sale
Listing agreement whereby the broker earns a commission no matter who procures the buyer
Liquidated Damages
A specific dollar amount of damages to be paid by a breaching party as specified in the contract
Meeting of the Minds
An agreement and understanding between the parties concerning the intent of their contractual terms
Net Listing
A listing agreement whereby the broker keeps funds over a definite net amount to be received by the seller
Novation
Substitution of a contract and a party for another contract and another party
Open Listing
Listing agreement whereby the seller promises to pay a broker a commission if that broker procures a buyer. The seller may sell the property itself with owing a commission, and the seller may enter an open listing with several different brokers simultaneo
Option
A right, given as a continuing offer, to purchase real property upon specific terms within a given period of time
Statute of Frauds
Body of law that states that certain types of contracts must be in writing to be enforceable
Unenforceable
Status of a contract when it violates the Statute of Frauds
Unilateral Contract
A contract whereby only one party undertakes a promise or obligation
Valid
When a contract satisfies all legal requirements
Void
A contract the law will not recognize under any circumstance
Voidable
Contract involving a minor or other incompetent party wherein the incompetent party has a choice to enforce or rescind the contract
Acceleration Clause
A condition in a loan contract that permits the lender to require immediate repayment of the entire loan balance of the loan if the contract is breached or conditions for repayment occur, such as sale or demolition
Assumption
The taking over of an existing mortgage by a buyer
Contract for Deed
An instrument by which a prospective buyer pays for a property in installments. Legal title is conveyed in the future after payment of the full price or an otherwise specified amount
Deed in Lieu of Foreclosure
A deed from an owner to a mortgage lender to avoid the necessity of a foreclosure lawsuit
Defeasance Clause
Provided the borrower with a satisfaction of mortgage once the note has been repaid (a mortgage is defeated and the real property is no longer pledged as collateral)
Discount Point
Pre-paid interest charged by the lender at the time of closing; a discount point is equal to 1% of the loan amount
Due on Sale Clause
A mortgage clause that causes the entire loan balance to become due upon the sale of the property
Equity
The market value of a property less any mortgages attached
Equity of Redemption
The right of a mortgagor, before a foreclosure sale, to reclaim forfeited property by paying the entire indebtedness
Escrow
A depository account in a bank, trust company, title company or attorney having trust powers, credit union, or savings and loan association withing the sate of Florida where funds are placed and held in trust until disposition is authorized
Estopple Certificate
A written statement by a mortgagee verifying the balance due on the mortgage
Exculpatory Clause
The borrower is not personally responsible for the debt (a non-recourse loan): The lender will not seek a deficiency judgment
Interest
The price paid for the use of borrowed money
Lien Theory
Legal concept that regards a mortgage as a just claim (lien) on a specific property y pledged as security for a mortgage debt
Lis Pendens
Constructive notice of a pending legal action
Loan Origination fee
A separate fee charged by a morgeage lender added to the closing costs of the buyer
Loan Servicing
Collecting and processing payments on behalf of the morgagee
Loan-to-Value ratio
The relationship between the loan amount to the value of a property
Mortgage
A document providing written evidence of a creditors right to have a debtors real preoperative sold upon default and foreclosure
Mortgagee
The lender; the one to whom the property is pledged
Mortgagor
The borrower; the one pledging the collateral as security for a debt
Note
Legal evidence of a debt that must accompany a mortgage in Florida; a legally executed pledge to pay a stipulated sum of money
PITI
A mortgage payment that includes principal, interest, taxes, and insurance
Prepayment clause
Mortgage provisions permitting the borrower to make loan payments in advance of their due dates
Prepayment penalty
Mortgage provision that allows a monetary penalty to be imposed if the loans is paid off ahead of schedule
Right to renistate
The ability to recover from default by bringing current all payments due
Satisfaction of Mortgage
Document signed by mortgagee indicating the entire loan is satisfied and the mortgage is discharged
Subject to Mortgage
A grantee taking title to real estate "subject to the mortgage", is not assuming personal liability to the mortgagee for the payment of the mortgage note. In the event of a default on payment of the note, the grantee could lose the property and any equity
Subordination agreement
An agreement whereby the holder (mortgagee) of higher priority mortgage agrees to subordinate or relinquish its priority position to an existing or subsequent mortgage
Title Theory
A concept in lending whereby title temporarily transferals to the mortgagee until the debt is repaid
Wraparound mortgage
In general, a second mortgage with a face amount equal to the balances due under the first and second mortgage. The wrap around mortgagee collects all the money and makes the monthly payment due on the first mortgage
Adjustable Rate Mortgage
A mortgage loan with a calculated interest reate that may increase or decrease during the term of the loan
Amortized Mortgage
A mortgage loan that is fully repaid according to a periodic and consistent schedule that includes both principal and interest
Balloon Payment
A final installment payment on a note that is much larger than the previous monthly payments on the note
Biweekly Mortgage
Mortgage payments that are made every other week (26 payments in a year)
Blanket Mortgage
A mortgage that is secured by two or more items of real property
Conforming Loan
A loan that meets FNMA and FHLMC borrowing requirements
Disintermediation
When depositors withdraw money from savings for direct investment with a borrower
Home Equity Loan
A mortgage secured by a personal residence up to the value of the mortgagor's equity
Index
Financial indicator that will be the basis for an adjustable rate mortgage interest fluctuations
Intermediation
The process of depository funds in financial institutions that serve as "intermediaries" for flow of funds for investment and borrowing
Land Contract
An agreement in which the seller of real estate obligates itself to deliver a merchantable title to the buyer upon buyers performance of certain agreed conditions such as payment of a certain number of installment payments; Also knows as a Contract for De
Level Payment Plan
A method for amortizing a mortgage whereby the borrower pays the same amount each month
Lifetime Cap
Sets the upper and lower interest limits for an adjustable rate mortgage
Margin
The additional rate of interest charged over and above the index rate in an adjustable rate mortgage
MIP (Mortgage Insurance Premium)
payment for mortgage insurance which protects the lender in the event of default
Negative Amortization
When the monthly payment is insufficient to pay the accumulated interest for that month, resulting in an increase in the amount of the principal
Nonconforming Loan
A loan that does not meet FNMA or FHLMC borrowing requirements
Package Mortgage
A debt secured by pledge of both real property and personal property such as range, refrigerator or furniture
Periodic Cap
Limits the time period interval for ARM interest rate adjustments
Private Mortgage Insurance (PMI)
Non-governmental mortgage insurance needed to insure the portion of the mortgage balance that exceeds an 80% loan to value ratio
Purchase money mortgage
A mortgage given by the buyer as part or all of the purchase price consideration for real property
Reverse annuity Mortgage
A loan arrangement in which a lender makes payments to the borrower
Teaser Rate
Below-market introductory rate for an adjustable rate mortgage
Term Mortgage
A morgage loan that provides for periodic payments of interest only, with a balloon payment at the end of the loan term
UFMIP
Up Front Mortgage Insurance Premium; lump sum mortgage insurance premium paid at closing for FHA loans
Blockbusting
The illegal practice of inducing homeowners to sell their property by making misrepresentations regarding the entry or prospective entry of minority persons in order to cause a turnover of properties in a the neighborhood; discriminatory acts against sell
Familial Status
Refers to the status of a pregnant woman or a family with children under 18 years of age
Handicap Status
Federal or state status for an individual unable to perform mental or physical functions under normal conditions
Property Report
A brief summary of a subdivision property
Public Accommodation
A hotel, motel, or other facilities that the general public has access to
Redlining
A lending institutions illegal refusal to make mortgage loans in certain areas
Subdivision
A tract of land partitioned into lots for homes or other uses and improved by roads, water, and sewage systems, etc
Steering
The illegal practice of directing buyers to or from certain neighborhoods based on minority status; prohibited by federal, state, and local fair housing laws
Citation
A minor infraction of the license law that generally results in a small fine
Complaint
A charge or accusation that a licensee has committed a specified offense
Formal complaint
An outline of charges brought by the DBPR against an applicant or licensee after a finding of probable cause
Legally Sufficient
When the initial complaint alleges a violation of any Florida Statute, DBPR rule, or FREC rule
Notice of Non-Compliance
A warning that allows a licensee 15 days to correct a minor infraction without consequence
Probably Cause
Reasonable grounds or justification for prosecution
Recommended Order
A final report prepared by an Administrative Law Judge containing finding of facts, conclusions, and suggested penalties, if any
Subpoena
A legal process of ordering a witness to appear and testify before a court of law or formal administrative hearing
Summary Suspension
Emergency or immediate suspension of a license