40-year recertification

Also called: recert, 25-year, 50-year

Miami-Dade and Miami Beach require aging buildings to recertify structure and electric. It is separate from SIRS but often hits the same towers. A pending recert can mean assessments and delayed closings.

55+ community

Also called: age restricted, senior

Housing for older adults under federal housing rules. At least one occupant usually must be 55+. Families with children are generally not allowed. Confirm before you tour.

15-day condo rescission

Also called: cancellation period, 15-day, 20-day

Florida gives condo buyers a window to cancel after receiving the required association documents. For most resale condos it is 15 days. Do not skip the docs to “speed up” closing.

3-day notice

Also called: notice of nonpayment

The Florida notice a landlord serves before filing an eviction for unpaid rent. It is not an eviction itself. The form and delivery have to be done correctly or the case gets dismissed.

AS-IS contract

Also called: Florida AS-IS, FR/BAR

The standard Florida Realtors/Bar sale contract. “AS-IS” means the seller does not have to fix items, but the buyer still gets an inspection period and can cancel in that window. It is not “no inspections.”

Appraisal gap

Also called: appraisal shortfall

When the lender’s appraisal comes in below the contract price. The buyer must bring extra cash, renegotiate, or the loan can fail. Still shows up on some Miami condo deals when comps are thin.

Board / HOA approval

Also called: application, screening, interview

Many Miami condos must approve a buyer or tenant before closing or move-in. Expect an application, fees, financials, and often a wait of one to several weeks. A deal can still fail after you go under contract if the board says no.

Bylaws

How the association governs itself: meetings, voting, board elections. Different from house rules about guests, moving, and the pool.

Common elements

Also called: common areas

Parts of the property owned together: lobby, pool, hallways, roof, structure. You pay for them through dues. You do not get to remodel them on your own.

Capital contribution / transfer fee

Also called: working capital, estoppel fee, move-in fee

A fee the association charges when a unit sells or a tenant moves in — often one or two months of dues. It hits the net sheet and the renter’s move-in cash.

Chapter 718

Also called: Florida Condominium Act

The Florida statute that governs condos: documents, meetings, reserves, sales disclosures, and the buyer’s cancellation window. Most “condo law” questions in Miami start here.

Cash to close

What the buyer must bring on closing day: down payment, plus closing costs, minus deposits already in escrow. HOA transfer fees and prepaid insurance add up on Miami condos.

Cap rate

Also called: capitalization rate

Net operating income divided by purchase price. A quick yield snapshot for investors. Miami condos need honest HOA, tax, insurance, and vacancy numbers or the cap rate is fiction.

Condo rider

Also called: comprehensive rider

An addendum to the Florida sale contract covering association approval, documents, assessments, and related condo issues. This is where SIRS, pending special assessments, and board approval usually live in the paperwork.

Cash buyer

A buyer who is not using a mortgage. Still needs HOA approval and can still cancel in the inspection window. “Cash” does not skip condo docs or SIRS risk.

Condotel

Also called: condo-hotel

A condo inside a hotel rental program. Financing, occupancy rules, and nightly-rental income are different from a residential tower. Florida has extra rules — do not underwrite it like a normal Brickell unit.

Concession

Also called: seller credit, closing cost credit

A credit the seller gives the buyer at closing, often for repairs or closing costs. It changes the buyer’s cash to close and the seller’s net. Lenders cap how large it can be.

Declaration of condominium

Also called: condo docs, declaration

The recorded document that creates the condo and sets ownership percentages, use rights, and many of the rules. It beats marketing copy. Always read rental caps and pet rules here.

Debt-to-income ratio

Also called: DTI

Monthly debt payments divided by gross income. Lenders use it to cap your loan. HOA dues count in the housing payment, which is why Miami condos with high maintenance can shrink buying power.

Days on market

Also called: DOM, CDOM

How long the listing has been active (CDOM includes prior failed listings). Long DOM in a Miami tower often means price, assessment news, or a tired unit — not just “the market.”

Documentary stamp tax

Also called: doc stamps, transfer tax

Florida tax on the deed (and separately on new mortgages). In Miami-Dade the deed rate is higher than most of Florida. Sellers usually pay the deed stamps on resale condos.

Estoppel letter

Also called: estoppel certificate, status letter

A paid letter from the association stating what the seller owes, pending assessments, rental status, and rule violations. Florida sets timing and fee caps for condo estoppels. Title will not close without a current one.

Earnest money deposit

Also called: EMD, deposit, good faith deposit

Money the buyer puts in escrow to show they are serious. Released or kept depending on contract deadlines. Wire it only using verified title-company instructions — Miami has a lot of wire fraud.

FIRPTA

Also called: foreign seller withholding

Federal withholding when a foreign person sells U.S. real estate. The buyer/title can be required to withhold a percentage of the price unless an exemption or reduced certificate applies. Common on Miami condo sales.

Flood zone

Also called: NFIP, flood insurance, AE, VE

FEMA maps that drive flood-insurance cost. Waterfront and low-elevation Miami condos in AE or VE zones can need a separate flood policy even if the building has a master policy. Lenders in high-risk zones require it.

First, last, and security

Also called: move-in funds, prepaid rent

The cash stack many Miami landlords ask for at lease signing. Add HOA application fees, parking, and pet deposits. Run the rent-affordability calculator before you apply.

HOA / condominium association

Also called: condo association, association, board

The legal entity that runs the building: budgets, rules, insurance, and common areas. In Florida this is usually a condominium association under Chapter 718, not a homeowners association for houses.

HOA dues / maintenance

Also called: maintenance fee, condo fee, CAM

The regular (usually monthly) fee covering common insurance, staff, amenities, and sometimes water, cable, or reserves. Miami waterfront towers can run well above $1 per square foot. Always add this to the mortgage payment.

Homestead exemption

Also called: homestead

A Florida property-tax break if the condo is your primary residence and you file with the county. It also feeds the Save Our Homes cap that limits annual assessed-value increases.

HO-6 condo insurance

Also called: walls-in, unit owners policy

Your policy for the interior, belongings, and liability. The association’s master policy covers the building. Lenders require HO-6. In Miami, wind and flood are often extra decisions.

Hurricane / wind deductible

Also called: named storm deductible

A percentage of dwelling coverage (often 2–10%) that you pay before insurance pays for hurricane damage. On a Miami unit this can be a large out-of-pocket number. Read both the HO-6 and the master policy.

Inspection period

Also called: due diligence, inspection contingency

The days after effective date when a buyer can inspect and cancel under the AS-IS contract. In Miami condos this should include the unit, association docs, and questions about SIRS and assessments — not just finishes.

Limited common elements

Also called: LCE, assigned parking, assigned storage

Common property reserved for one unit — a parking space, storage cage, or balcony. Confirm it is assigned in the documents, not just “what the seller uses.”

List-to-sale ratio

Also called: sale-to-list

Sale price divided by last list price. Below 100% means sellers are cutting. Useful with days on market to see if a building is negotiating.

Listing agreement

Also called: exclusive right to sell

The contract between a seller and a broker that sets commission, term, and how the home is marketed. Read compensation language carefully after the NAR practice changes.

Milestone inspection

Also called: phase 1, phase 2, structural inspection

A required engineering inspection of the building’s structure at set ages (earlier for coastal buildings). Phase 2 means repairs. Buyers should read the report before offering; sellers should know if work is pending.

Mortgage pre-approval

Also called: preapproval, pre-qual

A lender’s written read on how much you can borrow after reviewing credit and income. Stronger than a pre-qual. Condo lending also cares about the building: SIRS, delinquency, investor concentration, and litigation.

Millage rate

Also called: property tax rate

The tax rate per $1,000 of taxable value. Miami-Dade millage varies by city (Miami, Miami Beach, Coral Gables, etc.). Use the building’s actual tax bill, not a national average.

Master insurance policy

Also called: building policy, association insurance

The association’s coverage for the structure and common areas. After recent storms, premiums soared and some buildings lost coverage. Ask for the declarations page and any special assessments tied to insurance.

Miami-Dade Tenant Bill of Rights

County rules that add notice and disclosure duties on top of Florida landlord-tenant law. Landlords operating in the county should know it; tenants can use it as a checklist, not a substitute for the lease.

Net proceeds

Also called: seller net, walk-away number

What you actually receive after commission, Florida doc stamps, title, HOA fees, assessments, and mortgage payoff. Run this before you pick a list price.

Net operating income

Also called: NOI

Rent minus operating costs (HOA, tax, insurance, management, vacancy) before mortgage. The input to cap rate. Do not skip HOA or insurance in Miami.

Normal wear and tear

Expected aging of paint, carpet, and fixtures that a landlord generally cannot charge against the deposit. Holes, stains, and broken appliances are a different story. Photos at move-in and move-out matter.

Owner’s title insurance

Also called: title policy

A one-time policy that protects the buyer’s ownership against recorded defects. Lenders require a loan policy; buyers should get an owner’s policy too. Florida premiums are regulated.

Right of first refusal

Also called: ROFR

A clause that lets the association (or sometimes another unit owner) match a signed offer and buy or lease the unit instead. It adds days to the timeline and is common in older Miami buildings.

Reserve funds

Also called: reserves, reserve study

Money the association sets aside for roofs, elevators, concrete, and other big-ticket items. Thin reserves are a red flag in Miami; SIRS now forces many buildings to fund structural items instead of waiving them.

Rental cap / leasing restriction

Also called: lease restriction, minimum lease, rental waiting period

Limits on if, when, and how often you can rent. Common in Miami: no leases the first 12–24 months, 6- or 12-month minimums, a cap on how many units may be rented, or a ban on Airbnbs. Investors must check this before buying.

Special assessment

Also called: assessment

A one-time bill on top of regular HOA dues, usually for repairs, insurance spikes, or SIRS work. In Miami this can be tens of thousands per unit. Ask who pays it at closing — seller, buyer, or a credit.

SIRS

Also called: structural integrity reserve study, SB 4-D, condo reform

Florida’s Structural Integrity Reserve Study. Buildings three stories or more must inspect structural systems and fund those reserves. Non-compliance can block lending, insurance, and sales. This is the main “condo reform” buyers and sellers feel in Miami.

Save Our Homes cap

Also called: SOH, 3% cap

Once homesteaded, the assessed value for tax purposes generally cannot rise more than 3% a year (or CPI, whichever is less). The taxable value can jump when the next owner buys — a surprise for first-year tax bills.

Security deposit (Florida)

Also called: deposit

Money held against damage. Florida has strict notice and return timelines (generally 15 or 30 days depending on whether the landlord makes a claim). Miami-Dade also has local tenant rules on top of state law.

Title company / closing agent

Also called: escrow, settlement

The neutral party that holds deposits, clears title, issues owner’s title insurance, and records the deed. In Florida attorneys or title companies close; confirm wire instructions by phone.

Tenant estoppel (occupied sale)

A statement from a tenant confirming rent, deposit, and lease terms when you sell an occupied unit. Different from the association estoppel. Buyers of investor condos should insist on it.