Miami Condo Glossary

Real estate comes with its own language. Here are plain-English definitions of the terms you’ll run into most often when buying, selling, or owning a Miami condo. Where a topic has a full guide, we’ve linked to it.

A

Amortization — The schedule by which a mortgage loan is paid off over time through regular payments of principal and interest.
Appraisal — A licensed appraiser’s professional opinion of a property’s market value, usually required by a lender before approving a mortgage.
Assessment — See Special Assessment.

B

Backup Offer — An offer accepted by a seller that becomes active only if the primary contract falls through.
Bylaws — The rules that govern how a condo association operates, including board elections, meetings, and owner responsibilities — distinct from the building’s rental or pet restrictions.

C

Cap Rate (Capitalization Rate) — A quick metric investors use to estimate a property’s return: annual net operating income divided by purchase price. See our Investment Property & Rental Yield Guide.
Closing Costs — Fees and charges due at closing beyond the purchase price — title insurance, recording fees, prorated taxes, and more. Full breakdown in our Closing Costs Guide.
Closing Disclosure — The final statement of loan terms and closing costs a buyer’s lender must provide at least three business days before closing.
Condo Association — The legal entity (run by a board of unit owners) responsible for managing shared building finances, maintenance, and rules.
Contingency — A condition that must be met for a contract to move forward — common ones include financing, inspection, and appraisal contingencies.

D

Deed — The legal document that transfers property ownership from seller to buyer.
Down Payment — The portion of the purchase price paid upfront, in cash, rather than financed through a mortgage.
Due Diligence Period — A window after signing a contract during which the buyer can review HOA documents, financials, and inspections before committing.

E

Earnest Money — A good-faith deposit a buyer puts down when submitting an offer, held in escrow and applied toward closing costs if the deal closes.
Equity — The portion of a property’s value you actually own — market value minus what’s still owed on the mortgage.
Escrow — A neutral third party holds funds or documents until all conditions of a sale are met.
Estoppel Letter — An official statement from the condo association confirming a unit’s dues, assessments, and any outstanding balances — required before every sale. Full details in our Estoppel Letters guide.

F

FIRPTA — A federal law requiring buyers to withhold a portion of the sale price when purchasing from a foreign seller, remitted to the IRS. See our Foreign Buyer’s Guide.
Flood Zone — A FEMA-designated area indicating flood risk, which affects whether flood insurance is required. See Flood Zones.

H

HOA / Condo Fees — Monthly dues owners pay to cover building maintenance, insurance, staff, and reserves. Breakdown in HOA Fees Explained.
Homestead Exemption — A Florida property tax break for primary residences that reduces taxable value. Details in Property Taxes & Homestead Exemption.

L

Lien — A legal claim against a property, often for unpaid debt, that must typically be resolved before the property can be sold.
Loan-to-Value (LTV) — The loan amount as a percentage of the property’s appraised value — a key factor lenders use to set mortgage terms.

M

Master Policy — The condo association’s building-wide insurance policy, which typically covers common areas and the building structure — not the interior of individual units. See Insurance Requirements.
Milestone Inspection — A Florida-mandated structural inspection for condo buildings three stories or taller once they reach a certain age. See Milestone Inspections.

P

PITI — Principal, Interest, Taxes, and Insurance — the four components that typically make up a monthly mortgage payment.
Pre-Approval — A lender’s written confirmation of how much they’re willing to lend you, based on a review of your finances — stronger than a pre-qualification.
Pre-Construction — A condo purchased before the building is complete, usually at a lower price with a deposit schedule tied to construction milestones. See our New Construction & Pre-Construction Guide.

R

Reserve Study / Reserves — A fund (and the analysis behind it) that a condo association sets aside for major future repairs, like roofs or structural work. See Condo Reserves.

S

SIRS (Structural Integrity Reserve Study) — A Florida-required engineering study that determines how much a condo building must reserve for major structural components. See SIRS.
Special Assessment — A one-time fee charged to unit owners, on top of regular dues, to cover unexpected or major repair costs. See Special Assessments.
Short-Term Rental — Renting a unit for less than the minimum lease term set by the association or local ordinance — often restricted. See Short-Term Rental Rules.

T

Title Insurance — A policy that protects the buyer (and lender) against defects in the property’s title, like unpaid liens or ownership disputes.
Title Search — A review of public records to confirm a seller has clear legal ownership before a sale closes.
1031 Exchange — A tax strategy that lets investors defer capital gains taxes by reinvesting sale proceeds into a similar property. See our 1031 Exchange Guide.

W

Walk-Through — A final inspection of the unit shortly before closing, to confirm its condition matches the contract.
Warrantable Condo — A building that meets Fannie Mae/Freddie Mac lending guidelines, making financing easier and often cheaper. See Warrantable vs. Non-Warrantable Condos.

Don’t see a term you’re looking for? Ask Jason directly and we’ll get you an answer.