Miami Beach Real Estate Glossary
used terminology used in the mergers and acquisitions industry.
A declaration by someone that something is true.
A sworn statement; written oath such as acknowledgment.
A solemn declaration; a non-religious oath.
The legal relationship between a principal and his agent arising
from a contract in which the principal engages the agent to
perform certain acts on the principals behalf.
A written explanation to be signed by a prospective buyer or
seller, explaining to the client the role that the broker plays in
the transaction. The purpose of disclosure is to explain whether
the broker represents the buyer or seller or is a dual agent
(representing both) or a subagent (an agent of the sellers
broker). This allows the customer to understand to which party the
broker owes loyalty.
A person (natural), corporation, society, association or
partnership (legal persons) acting by authority of a principal in
a realty transaction for compensation.
Agreement of Sale
A bilateral contract whereby buyer promises to buy and seller
promises to sell by execution and delivery of deed; also know as
Purchase and Sale Agreement (P&S). Agreement means the same as
Act of liquidating an indebtedness by equal and periodic payments
usually monthly; this direct reduction method means each payment
remains constant but ratio of principal and interest changes with
an increasing larger portion credited to reducing debt; savings
and loan associations popularized method.
An estimate of value.
Increase in value resulting from market forces such as demand
stronger than supply.
A writ issued, beginning or during a legal action commanding
sheriff to attach (seize) property, rights and effects of
defendant to satisfy possible credit demands of plaintiff if
judgment comes out in plaintiffs favor.
Anyone who is authorized in writing to perform certain acts for
another under written power of attorney; valid only during
lifetime of party giving this power.
A written instrument which is the evidence of transfer of one
persons right in personal property to another.
Investments of cash for improvements to remain competitive in a
Have an economic life of one year or more and the cost is moved to
the balance sheet, and then these costs can be written down by
depreciation or amortization over time.
Profit after principal and interest are deducted from net
operating income (NOI).
Costs of seller and buyer at conveyance of realty.
A written accounting of funds to seller and buyer at passing of
A security, such as a mortgage, given to protect debt.
The mixing of funds held for the benefit of others with the
brokers personal or business funds.
Money or other valuable consideration given to broker by principal
for services rendered; amount is by agreement.
Conditional Sales Contract
A contract in which owner retains title until buyer has met all
terms and conditions; a familiar device in land sales; also called
land contract or installment contract. Buyer acquires equitable
title until final payment; after delivery of deed, buyer has legal
Something of value exchanged between parties of a contract; money,
services, goods or promises.
A legal instrument between two parties to do or not to do
something; in reality, it must be in writing to be enforceable.
Counter Offer: voids first offer and creates new offer.
A promise in an agreement or contract agreeing to performance or
nonperformance of certain acts, or requiring or preventing certain
acts or uses.
A pact that forbids buyers, sellers, and their agents in a given
business deal from disclosing information about the transaction to
Court award to lender if sale at public auction does not equal
Decrease in value for various reasons
Due diligence is often performed on the acquirer as well as the
Deposit or binder given with Agreement to Buy.
Value or interest an owner of realty has above ay debt on
property; difference between value and mortgage debt.
The holding of something of value by a person (escrowee or escrow
agent) for the benefit of other parties.
Exclusive Right to Sell
An employment agreement and contract giving the broker the right
to receive a commission if the property or business is sold by
anyone including the seller during the term of the agreement.
Anything that a company buys that has an economic life of less
than one year. It shows up immediately on the income statement.
A position of trust (e.g. broker to principal).
Fee to broker for arranging loan for client; can also mean fee to
broker for locating a property for client
Owner receives rent and pays out expenses such as in apartment
leasing; Net Lease: owner receives rent and tenant also pays out
expenses normally paid by owner such as taxes, etc.
A court action describing indebtedness of one to another.
Contract between lessor (landlord) and lessee (tenant) for
exclusive possession of realty for specified period under specific
terms after which property reverts to lessor.
The purchase of improved property and the leasing of it back to
seller; creates capital and favored tax treatment for seller.
The interest which a lessee has in realty.
Letter of Intent
A document agreement between a buyer and a seller used in
connection with the acquisition of a company. The letter of intent
describes the basic terms and conditions of the transaction
between the buyer and the seller, including price, due diligence
periods, exclusivity or no-shops, and the basic conditions to
closing the deal. Customarily presented before a definitive
purchase agreement is entered into, the letter of intent provides
a road map for the parties involved in the transaction.
A debt; a claim against property for payment of some debt.
Notice filed in a registry of deeds warning all persons that title
to certain property is in litigation.
A written engagement (contract) between a principal and an agent
authorizing the agent to perform services for the principal
involving the principals property (business). Generally the
services provided by the agent involve the proposed sale of the
principals property or business. Also, the property or business
listed by the agent is called a Listing.
To obtain a Listing Agreement
A legal term that means the cause resulting in accomplishing a
goal. Used in real estate [or business brokerage] to determine
whether a broker is entitled to a commission.
A statement or condition made that something is true or accurate.
(Certified Lender Program)
This process is for the more sophisticated and experienced lenders
who have graduated beyond GP status. Typically, the lender now
submits a complete package to the SBA and as a CLP Lender they are
guaranteed a 3-day turnaround from the SBA.
GP (General Program)
This is the lowest rating and is given to lenders who know little
about the SBA process. These lenders must submit each loan
application to the SBA for additional underwriting and ultimate
approval. This process can take up to two weeks with multiple
requests for additional information.
PLP (Preferred Lender Program)
This is the top designation and enables the respective lenders to
approve their own loans with no additional underwriting by the
SBA. Typically, this designation means that the lender has
sufficient experience and track history to adhere to SBA standards
and make quality loans.
To make a special demand for something as a condition of an
An expressed or implied statement that a situation or thing is as
it appears to be or is represented to be.