A
- Abstract of Title
- A condensed history of a property's recorded ownership, transfers, and encumbrances.
- Amortization
- Paying off a loan through regular installments of principal and interest over a set term.
- Appraisal
- A licensed professional's opinion of a property's market value, usually required by the lender.
C
- Chain of Title
- The sequence of recorded owners of a property from the original grant to today.
- Clear Title
- Ownership free of liens, defects, or competing claims that would prevent a clean transfer.
- Closing
- The final step of a transaction where documents are signed, funds are disbursed, and ownership transfers.
- Closing Disclosure
- A five-page form from the lender detailing final loan terms and closing costs, delivered at least three business days before closing.
- Commitment for Title Insurance
- A document issued before closing that states the terms, requirements, and exceptions of the title policy to be issued.
D
- Deed
- The legal document that transfers ownership of real property from seller to buyer.
- Documentary Stamp Tax
- A Florida tax on deeds and mortgages, calculated per $100 of the sale price or loan amount.
E
- Earnest Money
- A good-faith deposit from the buyer, held in escrow and credited at closing.
- Easement
- A right for someone else, such as a utility company, to use part of a property for a specific purpose.
- Encumbrance
- Any claim, lien, or restriction that affects a property's title or use.
- Endorsement
- An addition to a title policy that changes or expands its coverage.
- Escrow
- A neutral arrangement where a third party holds funds and documents until all conditions of a contract are met.
- Escrow Agent
- The neutral party, such as a title company, that manages escrow funds and documents.
H
- Homestead Exemption
- A Florida property tax benefit that reduces the taxable value of a primary residence.
- HOA Estoppel Certificate
- A statement from a homeowners or condo association confirming dues owed and the account's status.
I
- Intangible Tax
- A one-time Florida tax of 0.2% on new mortgages recorded in the state.
J
- Judgment
- A court decision that can become a lien against a person's property until it is paid.
L
- Lender's Title Policy
- Title insurance that protects the lender's interest in the property for the life of the loan.
- Lien
- A legal claim against a property used as security for a debt, such as a mortgage or unpaid taxes.
O
- Owner's Title Policy
- Title insurance that protects the buyer's ownership interest for as long as they or their heirs own the property.
P
- Payoff Letter
- A statement from a lender showing the exact amount needed to pay a loan in full on a given date.
- Promulgated Rate
- A title insurance premium set by the State of Florida, so it is the same at every title company.
R
- Recording
- Filing documents such as deeds and mortgages with the county clerk to make them part of the public record.
S
- Settlement Statement
- An itemized list of every charge and credit for the buyer and seller at closing.
- Survey
- A drawing by a licensed surveyor showing property lines, improvements, and any encroachments.
T
- Title
- The legal right to own, use, and transfer a property.
- Title Search
- A review of public records to confirm ownership and uncover liens, judgments, and other issues.
W
- Wire Transfer
- An electronic transfer of funds between banks, commonly used to deliver closing funds.
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