Florida Real Estate Practice Exam Vocabulary Review

Comprehensive vocabulary flashcards covering Florida real estate practice exam topics including contract law, agency relationships, financial calculations, and property rights.

Unilateral Contract

An agreement in which only one party promises to perform without receiving a reciprocal promise from the other party.

Open Listing

A listing that allows the owner to sell the property himself or list it with any number of brokers; the first broker to secure a buyer earns the commission.

Statute of Limitations (Florida Contracts)

The period of time to enforce contract terms, which is $5$ years for written contracts and $4$ years for parol contracts.

Buffer Zone

An area of land that separates different land use areas.

Note

A document containing the loan amount, interest rate, and payment schedule.

Remainder Estate

The interest held by a party, such as a son, who inherits property after the death of someone holding a life estate.

Gross Lease

A lease where the tenant pays a fixed rent and the landlord pays the property taxes, insurance, and utilities.

Compensatory Damages

An amount of money awarded to a damaged party equal to the extent of loss resulting from a breach of contract.

Effective Age

The age a building or house appears to be based on its condition.

Lien Theory State

A state where the borrower holds the title to the property while the lender holds the lien.

Special Agent

A real estate broker typically authorized by a principal to assist in the sale of a single house.

Redlining

The illegal practice of denying loans, insurance, or housing based on the ethnic or racial makeup of an area.

Reliction

The unveiling of additional land caused by receding water.

Specific Liens

A group of liens that apply only to a particular property, such as Construction Liens and Mortgage Liens.

Adjusted Basis Formula

$$\text{Purchase Price} + \text{Costs to Buy} + \text{Capital Improvements}$$

Quitclaim Deed

A deed used normally to clear clouds on a title or resolve possible trouble spots in the deed history.

Loan to Value (LTV) Ratio

The calculation of the loan amount divided by the purchase price (e.g., $\$200,000 / \$236,000 = 85\%$).

Nolo Contendere

A plea where the defendant does not admit or deny a charge but chooses not to contest it.

Functional Obsolescence

A loss in value caused by internal design factors, such as having only a one-car garage.

Lender's Yield Calculation

The interest rate plus $\frac{1}{8}$ for every point charged (e.g., $5\% + 3 \text{ points} = 5.375\%$).

Florida Statute 20

The law governing the executive branch of government.

General Warranty Deed

A deed containing the covenants of seisin, against encumbrances, further assurance, quiet enjoyment, and warranty forever.

Net Listing

A listing to sell property for a specified amount to the owner, with anything above that amount going to the broker as commission.

Statute of Frauds

The requirement that contracts conveying real property or those taking more than $1$ year to perform must be in writing to be enforceable.

Appurtenances

Rights, privileges, or improvements that run with the land.

Lis Pendens

A notice indicating that a lawsuit is pending regarding the property.

Eminent Domain

The power of the government to take private property for public use.

Escheat

The transfer of property to the government when an owner dies without a will (intestate) and has no heirs.

Blockbusting

The illegal practice of inducing panic selling by telling owners that certain classes of people are moving into the area.

Plottage

The concept that combining two properties creates a value greater than the sum of the individual parts.