When buying or selling real estate, people will use real estate terms that you may not be familiar with. The real estate process can be a bit confusing, so here are some real estate terms that hopefully will be of some use to you. (Keep in mind these terms pertain to Florida real estate. Each state has their own processes for buying properties, so these terms may vary depending where you are.)
These are some terms you might see, describing real estate properties:
SFH refers to a Single Family Home.
Maintenance Fees, Condos Fees or Association Fees are additional monthly fees you pay on a property. They can cover anything from insurance, to landscaping to pool maintenance to water and so on. It is important to factor this payment in when buying a property, because many fees can be quite pricey.
The property fees include the amenities. Examples are pool, gym, doorman, basketball courts, and tennis courts.
Subdivision or Development Name describes the area where the property is located. Even if a community does not have an association, they still are in some type of subdivision. The property’s legal description will have the subdivision name. (A property’s tax record will have the legal description.)
Living Area and Total Area are two terms describing square feet of a property. Whatever is under air conditioning, makes it the livable sq ft. Anything the roof covers is your total sq ft.
Short Sale properties’ owners owe more to the bank than the property is worth. They are selling it short of what they owe. The buyer’s offer has to be approved by the bank before the property is sold. “Third party approval” refers to the bank’s approval of the contract.
A property is a Foreclosures or Bank Owned, when it is owned by the bank. The seller has lost ownership of the property and the bank has taken over the property.
Property Restrictions are important to pay attention to with any property. Sometimes a property cannot be rented for the first year or two. Some properties have restrictions on pet totals (per household), pet sizes or pet types.