A–E: Core Transaction Terms
Addendum: A document added to a contract that modifies or supplements the original terms. Common addendums in Florida: financing addendum, inspection addendum, HOA addendum.
As-Is Contract: Florida's standard residential contract allows sellers to offer property as-is. Buyers can still inspect and cancel — but the seller is not obligated to make repairs. Most luxury transactions use as-is contracts because sellers of high-value properties are not willing to perform repairs.
Assessed Value: The value placed on your property by the county property appraiser for tax purposes. Differs from market value and is typically lower for properties with Homestead Exemption and the Save Our Homes cap.
Bridge Loan: A short-term loan allowing a buyer to use equity from their current home to purchase a new one before selling.
Cap Rate: Capitalization rate — a measure of investment property return. Net Operating Income ÷ Purchase Price. Rarely used in luxury primary residence transactions but relevant for investment properties.
Clear Title: Title to a property that is free of liens, encumbrances, or legal questions. Required to close.
Closing Disclosure (CD): The federal form itemizing all loan costs and closing costs provided to buyers at least 3 business days before closing.
Comparative Market Analysis (CMA): Your agent's analysis of recent comparable sales used to advise on offer price. A good CMA goes beyond Zillow — it weights sq/ft, lot, condition, view, and floor level.
Concurrent Closing: When a buyer closes on the sale of their current home and the purchase of their new home on the same day — a logistically complex but common scenario.
Contingency: A condition that must be met for the contract to proceed. Common contingencies: financing, inspection, appraisal, HOA approval, sale of current home.
Documentary Stamp Tax (Doc Stamps): Florida state tax charged on deed transfers ($0.35/$100) and mortgage amounts ($0.002/$1). See the closing costs guide for amounts.
Due Diligence Period: The inspection and investigation period after a contract is signed. In Florida's AS-IS contract, this is typically 15–21 days for luxury properties — buyers may cancel for any reason during this period and receive their deposit back.
Earnest Money: A good-faith deposit submitted with an offer, typically 1–3% of the purchase price for luxury transactions. Held in escrow by the title company.
Effective Date: The date all parties have signed the contract — all deadlines in the Florida contract are calculated from this date.
Encumbrance: Any lien, easement, restriction, or claim against a property. Discovered during title search.
Escrow: A neutral third party (the title company in Florida) that holds funds and documents until the transaction closes.
Estoppel Letter: A document from an HOA or condo association confirming current fees, assessments, violations, and account status. Required before closing on any HOA property. Budget $150–$500 per association.
F–M: Financing and Market Terms
Flood Zone Designation: FEMA designation indicating flood risk. AE and VE zones require mandatory flood insurance. X zones are lower risk. Critical to check before buying any waterfront property in Florida.
Floor-to-Ceiling Glass: A design feature in luxury high-rises where windows extend from floor to ceiling, maximizing views. Standard in properties like ONE St. Petersburg and Signature Place.
Homestead Exemption: Florida constitutional provision reducing assessed value by $50,000 for primary residents. Must be applied for by March 1 of the year following purchase.
HOA: Homeowners Association — the governing body of a community or condo building that enforces rules and collects fees for shared amenities maintenance. Review CC&Rs, bylaws, and financials before buying.
Jumbo Loan: A mortgage exceeding the conforming loan limit ($806,500 in Pinellas County in 2026). Requires stronger credit, higher down payment, and has slightly different underwriting standards.
Lien: A legal claim against a property for unpaid debts. Must be resolved before clear title can be conveyed.
Listing Agreement: The contract between a seller and their listing agent. Contains terms of the listing including price, commission, and duration.
Loan-to-Value (LTV): The ratio of the loan amount to the property's appraised value. A $1.5M loan on a $2M property = 75% LTV. Lower LTV means less risk for the lender and typically better rates.
Market Value: The price a property would command between a willing buyer and willing seller with reasonable market knowledge. Distinct from assessed value and appraised value.
Millage Rate: The unit of measure for property tax rates. 1 mill = $1 per $1,000 of taxable value.
MLS (Multiple Listing Service): The shared database of listed properties maintained by the Stellar MLS in the Tampa Bay area. The most comprehensive source of active and sold listings.
N–Z: Condo, Contract, and Florida-Specific Terms
Net Sheet: A seller's estimated proceeds calculation showing sale price minus commission, closing costs, and mortgage payoff. Your agent should provide this for any price you're considering.
NFIP: National Flood Insurance Program — the federal flood insurance program administered by FEMA. Maximum $250K structure / $100K contents. Most luxury properties need private flood coverage above these limits.
Offer: A written proposal to purchase a property at specified terms. Becomes a binding contract upon acceptance by all parties.
Off-Market Listing: A property sold without being listed on the MLS. Common in luxury markets where sellers value privacy. Access to off-market inventory is a key value-add of working with an experienced luxury agent.
Portability: Florida constitutional provision allowing Homestead owners to transfer their Save Our Homes accumulated cap savings to a new Florida primary residence. Can save tens of thousands per year.
Pro-Ration: Adjustment at closing for prepaid or unpaid expenses (property taxes, HOA fees) divided between buyer and seller based on the closing date.
Reserve Study: A financial analysis of a condo association's reserve fund requirements over time. Required under Florida SB 4-D. Underfunded reserves are a red flag — they signal potential special assessments.
SB 4-D (Senate Bill 4-D): Florida's 2022 condo safety law requiring building inspections, milestone structural reviews for buildings 30+ years old, and full-funded reserves. Significantly impacted HOA fees in many downtown St. Pete buildings. Every condo buyer must understand the target building's SB 4-D compliance status.
Save Our Homes (SOH): Constitutional cap limiting assessed value increases on Homestead properties to the lesser of CPI or 3% per year.
Seawall: A structure along the waterfront protecting the property from erosion and wave action. Inspection and repair are critical due diligence items for any waterfront property. Seawall replacement can cost $250–$1,000/linear foot.
Settlement Statement / HUD-1: The document itemizing all financial transactions at closing (now replaced by the Closing Disclosure for purchase transactions).
Special Assessment: A one-time fee charged by an HOA or condo association for a specific capital expense not covered by reserves. Can range from a few thousand to hundreds of thousands per unit for major building work.
Title Insurance: Insurance protecting against defects in title that existed before your purchase. One-time premium at closing. The owner's policy protects your equity; the lender's policy protects the bank.
Under Contract: A property that has an accepted offer but has not yet closed. "Pending" and "under contract" are often used interchangeably in MLS systems.
Walk-Through: A final inspection of the property before closing, typically done the day before or morning of closing. Not an inspection — it's a verification that the property is in the agreed-upon condition.
Waterfront: In St. Petersburg real estate, "waterfront" typically means direct water frontage with potential for dock access. "Water view" means you can see water from the property but do not have frontage — a meaningful value distinction.
1031 Exchange: An IRS provision allowing investors to defer capital gains taxes by rolling proceeds from an investment property sale into a new "like-kind" property within specific time limits. See our dedicated 1031 Exchange guide for details.