Miami Real Estate Terms Glossary: 50+ Words Every Buyer Should Know

Real estate has its own language, and Miami adds even more terms to the mix. Whether you are a first-time buyer trying to decode your contract or an investor evaluating a complex deal, knowing the vocabulary gives you confidence and helps you avoid costly misunderstandings. This glossary covers the most important terms you will encounter when buying, selling, or investing in Miami real estate — explained in plain English with Spanish translations where helpful.

Consejo: guarda esta página como referencia. Te será útil durante todo el proceso de compra.

A - D

Appraisal (Avalúo):A professional estimate of a property's market value, conducted by a licensed appraiser. Lenders require an appraisal before approving a mortgage to ensure the property is worth the loan amount. In Miami, appraisals typically cost $400-$600 for a single-family home and $300-$500 for a condo.

Assessed Value (Valor Catastral): The value assigned to a property by the county Property Appraiser for tax purposes. In Miami-Dade, this is often lower than market value, especially for homesteaded properties benefiting from the Save Our Homes cap.

Assignment (Cesión): The transfer of a purchase contract from one buyer to another before closing. Common in pre-construction condo purchases in Miami, where buyers may flip their contract to a new buyer for a profit before the building is completed.

Closing Costs (Costos de Cierre): Fees paid at the closing of a real estate transaction, typically 2-4% of the purchase price in Florida. Includes title insurance, documentary stamps, recording fees, lender fees, and prorated taxes. See our buyer's guide for a detailed breakdown.

Contingency (Contingencia): A condition that must be met for a real estate contract to be binding. Common contingencies include inspection, financing, and appraisal. Waiving contingencies makes your offer stronger but riskier.

Documentary Stamps (Sellos Documentarios): A Florida transfer tax paid when real estate changes hands. The rate is $0.70 per $100 of the sale price (or $0.60 in Miami-Dade County for single-family homes). On a $500,000 purchase, expect to pay $3,000 to $3,500.

Due Diligence (Debida Diligencia):The investigation period after a contract is signed, during which the buyer reviews the property's condition, title, and legal status. In Miami, this period is typically 10-15 days.

E - H

Earnest Money Deposit (Depósito de Buena Fe): A deposit made by the buyer to show serious intent, typically 1-3% of the purchase price. Held in escrow by the title company or attorney until closing.

Escrow (Fideicomiso): A neutral third-party account that holds funds during a transaction. In Florida, escrow is managed by the title company or a real estate attorney.

Estoppel Letter (Carta de Estoppel): A document issued by a condo or HOA association confirming the current status of a unit owner's account, including any outstanding fees or violations. Required before closing on a condo sale in Florida. Associations can charge up to $250 for this letter. See our condo selling guide for more.

Flood Zone (Zona de Inundación): A FEMA-designated area indicating flood risk level. Zone AE and VE are high-risk and require flood insurance if you have a mortgage. Zone X is moderate or low risk. Much of coastal Miami falls in high-risk zones. Review our flood zone guide for detailed maps and insurance costs.

FIRPTA: The Foreign Investment in Real Property Tax Act. Requires withholding of 15% of the sale price when a foreign person sells U.S. real estate. Critical for international sellers in Miami. Learn more in our foreign buyer's guide.

Homestead Exemption (Exención Homestead): A Florida tax benefit that reduces your primary residence's assessed value by up to $50,000. Our homestead exemption guide covers the full application process.

HOA (Asociación de Propietarios): Homeowners Association. A governing body that manages common areas and enforces community rules. HOA fees in Miami range from $200 to $2,000+ per month depending on the community and amenities.

I - M

Impact Windows (Ventanas de Impacto): Hurricane-rated windows that meet Florida Building Code requirements for wind-borne debris protection. They can replace the need for shutters and reduce insurance premiums significantly.

Lien (Gravamen): A legal claim against a property for unpaid debts, such as taxes, HOA fees, or contractor bills. Title searches reveal liens before closing, and they must be resolved before ownership transfers.

Like-Kind Exchange (Intercambio 1031): A tax-deferred exchange of investment properties under IRS Section 1031. Read our full 1031 exchange guide for Miami investors.

Millage Rate (Tasa de Millaje): The tax rate used to calculate property taxes. Expressed as dollars per $1,000 of assessed value. Miami-Dade's combined millage rate is approximately 20-22 mills. Check our property tax guide for current rates.

MLS (Multiple Listing Service): The database where real estate agents list properties for sale. Access our MLS search tool to browse the full Miami market.

N - S

Net Metering (Medición Neta): A billing arrangement where solar panel owners receive credit for excess electricity they send back to the grid. Available through FPL in Miami. Learn more in our green homes guide.

Pre-Approval (Pre-Aprobación): A lender's written commitment to lend you a specific amount based on your financial profile. Essential in Miami's competitive market. Use our mortgage calculator to estimate your budget.

Reserve Fund (Fondo de Reserva): Money set aside by a condo association for major repairs and replacements. Florida's post-Surfside laws now mandate full reserve funding. See our reserve fund guide.

Short Sale (Venta Corta):A sale where the property sells for less than the outstanding mortgage balance, with the lender's approval. Less common in Miami's current appreciating market but worth understanding.

Special Assessment (Derrama Extraordinaria): A one-time fee charged by a condo or HOA for unexpected expenses, such as roof replacement or structural repairs. Can range from a few hundred to $100,000+ per unit for major building issues.

SIRS (Structural Integrity Reserve Study): A mandatory engineering study for Florida condo buildings three stories or taller. Required by post-Surfside legislation to determine reserve funding needs for structural components.

T - Z

Title Insurance (Seguro de Título):Insurance that protects the buyer and lender against defects in the property's title, such as undiscovered liens, forgeries, or errors in public records. In Florida, the buyer typically pays for the owner's policy. Cost is approximately $5.75 per $1,000 of purchase price.

TRIM Notice:Truth in Millage notice. Sent by the Property Appraiser in August each year showing your property's assessed value and estimated taxes. This is your opportunity to appeal if you believe the value is too high.

Under Contract (Bajo Contrato):A property with an accepted offer that has not yet closed. Also called "pending." The deal may still fall through if contingencies are not met.

Wind Mitigation Inspection: An inspection documenting hurricane-resistant features of a home, used to qualify for insurance discounts. Costs $75-$150 and can save $1,000-$3,000 per year on premiums.

Zoning (Zonificación): Local regulations that determine how land can be used (residential, commercial, mixed-use, etc.). Critical for investors considering short-term rentals or development. Our land buying guide covers Miami zoning in detail.

For questions about any of these terms or how they apply to your specific situation, visit our FAQ page or reach out directly. If you are ready to start your search, explore current listings or use our MLS search.