Real Estate Terms for Florida Sellers: Plain Glossary

HOMKEYS seller guide · By Dor Tzadok

Quick answer: This glossary explains over 35 real estate terms Florida home sellers hear, in plain English. It covers creative sale terms like subject-to, wrap mortgage, and seller financing, listing words like 1% listing and listing agreement, plus closing words like doc stamps, estoppel, lis pendens, and title company. Each term links to a longer guide where we have one.

Selling a home comes with its own language. Buyers, agents, lenders, and title companies may use words you have never needed before. If you do not know what a word means, you cannot tell if a deal is good for you. Use this page as a quick reference. Terms are in A to Z order.

Seller Terms From A to Z

1% listing: A listing where the fee for the listing side is 1% of the sale price. HOMKEYS offers it through our licensed Florida real estate partner, because HOMKEYS is not a brokerage. Any pay to a buyer’s agent is separate and negotiable. See how a 1% listing works.
Arrears: Past due payments on a loan. If you are behind on your mortgage, the missed payments plus fees are the arrears. See behind on mortgage options.
As is: A sale where the buyer takes the home in its current condition. The seller does not make repairs. In Florida, a seller still must disclose known hidden defects that affect value.
Assignment of contract: When a buyer transfers its rights under a purchase contract to another buyer, usually for a fee. The contract must allow it. A good buyer tells you up front if it may assign.
Assumable loan: A mortgage a new buyer can take over with the lender’s approval, keeping the same rate. HUD says all FHA insured loans are assumable, with buyer approval for newer loans. See selling with a low rate.
Balloon payment: A large lump sum due at the end of a loan, after smaller monthly payments. Common in seller financing.
Cash offer: An offer where the buyer pays without a bank loan. It can close sooner, but often for a lower price. See cash vs listing vs terms.
Closing: The day the deal is finished. Papers are signed, money is paid out, and the deed is delivered.
Closing agent: The person or company that runs the closing, often a title company or attorney.
Deed: The legal document that transfers ownership. In Florida, it is recorded with the county clerk.
Documentary stamp tax (doc stamps): Florida’s tax on deeds. Florida Statute 201.02 sets it at 70 cents per $100 of the price. Miami-Dade has its own rate. See seller closing costs.
Due-on-sale clause: A loan term that lets the lender demand the full balance if the home is sold or transferred without its consent. Federal law lists some transfers where it cannot be used.
Earnest money (escrow deposit): Money the buyer puts down to show good faith. It should be held by a licensed title company, attorney, or broker, not handed to the buyer’s own account.
Equity: What your home is worth minus what you owe on it.
Equitable distribution: Florida’s way of dividing marital property in a divorce. The court starts from an equal split. See selling during a divorce.
Estoppel certificate: A letter from an HOA or condo association that states what is owed on the home. Florida law caps the fee and sets a 10 business day deadline.
Foreclosure: The court process a lender uses to sell a home when the loan is not paid. Florida Statute 702.01 says all mortgages are foreclosed in equity, which means through the courts.
Homestead: Your permanent home in Florida. Homestead has tax benefits and special rules, including that a married owner’s spouse generally must join in a sale.
Lien: A legal claim against a property for a debt, like a mortgage, unpaid taxes, a code fine, or a contractor bill. Liens are paid at closing.
Lis pendens: A recorded notice that a lawsuit affects a property, often filed at the start of a foreclosure. Florida Statute 48.23 covers it.
Listing agreement: The written contract between a seller and a real estate brokerage to market a home for sale. It sets the fee, how long the listing lasts, and how it can end. Read all of it before you sign.
Loan servicer: The company that collects your mortgage payments. It may not be the company that made the loan.
Owner’s title policy: Insurance that protects the buyer if an old ownership problem shows up later. Who pays depends on county custom and the contract.
Payoff statement: A letter from your lender with the exact amount to pay off the loan by a certain date.
Personal representative: The person a Florida probate court appoints to handle an estate. See selling an inherited house.
Power of attorney: A document that lets someone sign for you. The title company will usually need to review and accept it before closing.
Probate: The court process for passing a person’s property after death.
Promissory note: The signed promise to repay a loan. The mortgage secures it with the home.
Proration: Splitting a cost, like property taxes or HOA dues, between buyer and seller by the days each owned the home.
Quitclaim deed: A deed that passes whatever interest the signer has, with no promises about the title. It does not pay off or remove a mortgage. Never sign one to a buyer you do not know.
Reinstatement: Bringing a loan current by paying all past due amounts and fees.
Seller financing: When the seller acts as the bank and the buyer pays the seller over time.
Settlement statement: The itemized list of all money in and out at closing, prepared by the closing agent.
Short sale: A sale for less than the loan balance, with the lender’s approval.
Subject-to: A sale where the buyer takes the deed and makes the payments, while the existing loan stays in the seller’s name. See our subject-to guide.
Sunbiz: The Florida Division of Corporations website, where you can look up a company, its officers, and its registered agent.
Title company: A company licensed to search title, issue title insurance, and run closings. In Florida, title insurance agents are licensed by the Department of Financial Services.
Title search: A review of public records to find owners, liens, and problems before closing.
Wholesaler: An investor who puts a home under contract and then assigns the contract or resells to another buyer.
Wrap mortgage: Seller financing that “wraps” around an existing loan. The buyer pays the seller, and the seller keeps paying the original lender. The due-on-sale clause still applies.

Terms That Matter Most for Creative Sales

If a buyer offers anything other than a plain cash or bank financed sale, slow down and make sure you understand these four words: subject-to, due-on-sale clause, wrap mortgage, and seller financing. Each one can be a good tool, and each one has trade-offs. A Florida real estate attorney can review any terms deal before you sign. Our guide to cash offer vs listing vs selling on terms compares them side by side.

Not sure which way fits your house?

See cash as is, creative terms and a 1% listing side by side, in writing. It takes about a minute.

See my options

Words That Should Make You Ask Questions

A few terms deserve extra care. Be cautious if someone asks you to sign a quitclaim deed before a closing, offers to “stop your foreclosure” for a fee, or sends new wire instructions by email. Read our guide on how to spot a bad home buyer before you sign anything.

About HOMKEYS

HOMKEYS LLC buys houses across Florida. We explain every term in plain English before you sign. Depending on the home, we can offer cash as is, a purchase subject to your existing mortgage, seller financing, or a 1% listing through our licensed Florida real estate partner. Every closing goes through a licensed Florida title company.

Subject to qualification, property inspection, and transaction terms.

We buy in many areas, including Lake City, Lake Wales, Parrish, and Spring Hill. Have a question about a word in your contract? Reach out with a few details or call (305) 914-4191.

Frequently Asked Questions

What is the difference between subject-to and an assumption?

In an assumption, the lender approves the new buyer, who takes over the loan. HUD says the lender must release the seller when a creditworthy buyer assumes an FHA loan. In a subject-to sale, the lender does not approve anything. The buyer makes the payments, but the loan stays in the seller’s name, and the due-on-sale clause can apply.

What is the difference between a listing and an assignment?

With a listing, you keep the house and sign a listing agreement with a licensed brokerage, which markets it on the MLS. You then sell directly to a buyer whose offer you accept. With an assignment, a buyer who has your house under contract passes its purchase contract to another buyer, often an investor. Both should be explained in writing before you sign.

Are doc stamps the same everywhere in Florida?

No. Florida Statute 201.02 sets 70 cents per $100 for deeds. The Florida Department of Revenue says Miami-Dade County uses 60 cents per $100 for single family homes, plus a 45 cent surtax per $100 for other property types.

What does a lis pendens mean for my sale?

It means a lawsuit, often a foreclosure, is pending against the property, and it is in the public record. You can usually still sell, but the case must be resolved at closing, often by paying off the loan. Florida Statute 48.23 sets rules for these notices. A title company or attorney can explain your case.

Why should every sale close through a title company?

A licensed title company searches the records, pays off liens, holds deposits, records the deed, and makes sure money goes to the right people. It protects both sides. Florida Statute 626.8417 says a person may not act as a title insurance agent without a license from the Department of Financial Services, unless an exemption applies, such as for Florida attorneys.

Not legal advice. This guide is general information about Florida home sales. Laws change and every situation is different. Talk with a Florida attorney, tax professional, or insurance professional about your own case before you sign anything.

Want to see your own numbers?

Tell us about the house. We will show you cash, terms and listing side by side, in writing. Subject to qualification, property inspection, and transaction terms.

See my options Call (305) 914-4191

Sources

⌂ Equal Housing Opportunity. HOMKEYS LLC does not give legal or tax advice. Talk with a Florida real estate attorney or tax professional about your situation.

Real Estate Terms for Florida Home Sellers: A Plain-English Glossary