Glossary

Short, plain-English definitions of terms you will see in Florida contracts, closing disclosures, and title documents. Where a Florida statute or rule applies, the definition links to its official text. Definitions are educational, not legal advice.

C · D · E · H · L · N · P · R · S · T · W

C

Closing Disclosure

A form your lender must give you at least three business days before closing on most mortgage loans, under federal rule 12 CFR 1026.19(f). It lists your loan terms, projected payments, and closing costs. Compare it with your Loan Estimate and ask your lender about any changes.

D

Documentary stamp tax on deeds

A Florida tax on documents that transfer an interest in real property, such as a deed. Under s. 201.02, Florida Statutes, the rate is 70 cents on each $100 of consideration, with any fractional part of $100 counted as a full $100. Miami-Dade County uses a different rate and also levies a surtax under s. 201.031, Florida Statutes that does not apply when the property is only a single-family residence.

Documentary stamp tax on notes and mortgages

A Florida tax on promissory notes and other written obligations to pay money, including the note for a mortgage loan. Under s. 201.08, Florida Statutes, the rate is 35 cents on each $100 or fraction of $100 of the debt.

E

Endorsement

An addition to a title insurance policy that changes or extends its coverage, for example coverage related to a condominium or a survey matter. Endorsements are often requested by the lender.

Escrow

Money or documents held by a neutral party until the conditions of an agreement are met. In a Florida purchase, the buyer's deposit is commonly held in escrow. "Escrow" can also mean the account a lender uses to pay your property taxes and insurance.

Estoppel certificate

A statement from a homeowners' or condominium association showing what is owed on a property, such as assessments and fees, as of a given date. Florida law requires the association to issue it within 10 business days after a proper request: s. 720.30851 for homeowners' associations and s. 718.116 for condominiums, Florida Statutes.

H

Homestead exemption

A Florida property tax exemption for a permanent residence owned by the person who lives there. The basic exemption in s. 196.031, Florida Statutes applies to up to $25,000 of assessed value, and other exemptions may also apply. You apply through your county property appraiser.

L

Lien search

A search for unpaid amounts that may be attached to a property, such as mortgages, judgments, or taxes. A municipal lien search looks for open permits, code violations, and unpaid city or county charges, such as utilities, that may not appear in the public records.

N

Nonrecurring intangible tax

A one-time Florida tax on notes and other obligations secured by a mortgage on Florida real property. Under s. 199.133, Florida Statutes, the rate is 2 mills, which is $2 per $1,000 of the obligation.

P

Promulgated rate

A title insurance premium rate set by the State of Florida rather than by each company. Florida's title insurance premium rates are set in Rule 69O-186.003, Florida Administrative Code, so the premium for the same coverage is the same no matter which title agent you use.

Prorations

The division of ongoing costs, such as property taxes and association dues, between the buyer and seller based on the closing date. Each party pays for the days it owns the property.

R

Recording fees

Fees paid to the county clerk to record documents such as the deed and mortgage in the public records. Florida recording fees are set in s. 28.24, Florida Statutes.

S

Settlement agent

The person or company that conducts the closing, prepares the settlement statement, collects and pays out funds, and records documents. In Florida, this is usually a title agent or a closing attorney.

Simultaneous issue

Issuing an owner's policy and a lender's policy on the same property at the same time. Florida's promulgated rate rule, Rule 69O-186.003, Florida Administrative Code, sets the charge for policies issued together in subsection (5), Simultaneous Issue Rates.

Survey

A drawing and report by a licensed surveyor that shows the property's boundaries, buildings, and features such as easements or encroachments. A title insurer may rely on a survey for certain coverage.

T

Title commitment

A document from the title insurer that states the terms on which it will issue title insurance, including the requirements that must be met before closing and the matters the policy will not cover.

Title insurance (owner's and lender's policies)

Insurance against covered problems with title to a property, paid once at closing. An owner's policy protects the buyer for as long as the buyer or their heirs have an interest in the property; who customarily pays for it in Florida depends on the county and the contract. A lender's policy protects the lender's interest up to the loan amount, and lenders usually require one.

Title search and examination

A search of the public records for the property's ownership history and recorded matters, such as mortgages, liens, and easements, followed by a review of what was found. The results are used to prepare the title commitment.

W

Warranty deed and special warranty deed

In a general warranty deed, the seller guarantees clear title and agrees to defend the buyer against claims to the property; it is common in Florida residential sales. In a special warranty deed, the seller guarantees the title only against problems that arose while the seller owned the property.

Wire fraud

A scam in which criminals send fake wiring instructions, often by email, to steal closing funds. Before you wire money, call your title agent or closing attorney at a phone number you already know, not one in the email, to confirm the instructions.