FLORIDA KEY TERMS – CUMULATIVE |
COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,active describes a license that is current, in good standing, and signifies that the license holder
meets all the requirements to practice real estate
actual notice when an individual actually knows of a fact
ad valorem taxes based on the assessed value of a property
adjudication withheld when a court stays the imposition of a sentence and instead puts the defendant on
probation
adjustable rate mortgage (ARM) A mortgage with an interest rate that can be adjusted based on fluctuations in the cost of
money
adverse possession involuntary transfer of title from an owner who does not use or inspect their land for a
number of years to another person who has some claim to the land and takes possession
agent an individual with authority to act on behalf of another; a state license is required to
operate as an agent in real estate
alienation the transfer of ownership (title) to real property. Alienation may be voluntary or
involuntary
amortized mortgage a mortgage with equal monthly payments that contribute to both principal and interest
until the entire loan is paid
appraisal an official valuation given to a property by a licensed appraiser
appraiser an individual who is trained and licensed to perform appraisals, or officially estimate the
value of real property
appreciation the increase in value of a property
arbitration a process whereby the parties to a dispute present their conflict to a disinterested third
party and honor the third party's binding judgement
arrears A payment that occurs at the end of a period to compensate for charges accrued during
that time.
, asbestos a naturally occurring mineral fiber that is commonly used in insulation, but if airborne or
inhaled, can cause severe respiratory health issues
assemblage the combining of multiple contiguous pieces of real property into a single tract of land,
often resulting in an increase in value
assessed value the value of a property based on the value of other properties in the area, plus any
improvements made to the home since purchasing it; can also take into account various
property traits like location, size, condition, materials, square footage, year built, etc.
assessment limitation (save our homes benefit) limits how much the assessed value of a homesteaded property can increase per year;
also known as the Save Our Homes amendment to the Florida Constitution
asset item of value
assignment the transference of rights and obligations in a contract from one party to another
assumption the process of transferring the obligation of the mortgagor to another party who takes
over the responsibility to pay the note.
attorney-in-fact a representative with power of attorney for another individual
automated valuation models A computerized valuation of a property that takes into account comparables, tax
assessors, nationwide market values, and sales history
balloon payment A payment at the end of a loan period which includes the total outstanding balance of
the loan
baseline a parallel used in reference to a meridian to identify ranges, tiers, and townships in the
government survey method of land description
basis the cost of purchasing a property plus the cost of any improvements, minus the amount
of depreciation
benchmark permanent marker of known location and elevation above sea level as established by a
government survey team (such as the USGS)
COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,active describes a license that is current, in good standing, and signifies that the license holder
meets all the requirements to practice real estate
actual notice when an individual actually knows of a fact
ad valorem taxes based on the assessed value of a property
adjudication withheld when a court stays the imposition of a sentence and instead puts the defendant on
probation
adjustable rate mortgage (ARM) A mortgage with an interest rate that can be adjusted based on fluctuations in the cost of
money
adverse possession involuntary transfer of title from an owner who does not use or inspect their land for a
number of years to another person who has some claim to the land and takes possession
agent an individual with authority to act on behalf of another; a state license is required to
operate as an agent in real estate
alienation the transfer of ownership (title) to real property. Alienation may be voluntary or
involuntary
amortized mortgage a mortgage with equal monthly payments that contribute to both principal and interest
until the entire loan is paid
appraisal an official valuation given to a property by a licensed appraiser
appraiser an individual who is trained and licensed to perform appraisals, or officially estimate the
value of real property
appreciation the increase in value of a property
arbitration a process whereby the parties to a dispute present their conflict to a disinterested third
party and honor the third party's binding judgement
arrears A payment that occurs at the end of a period to compensate for charges accrued during
that time.
, asbestos a naturally occurring mineral fiber that is commonly used in insulation, but if airborne or
inhaled, can cause severe respiratory health issues
assemblage the combining of multiple contiguous pieces of real property into a single tract of land,
often resulting in an increase in value
assessed value the value of a property based on the value of other properties in the area, plus any
improvements made to the home since purchasing it; can also take into account various
property traits like location, size, condition, materials, square footage, year built, etc.
assessment limitation (save our homes benefit) limits how much the assessed value of a homesteaded property can increase per year;
also known as the Save Our Homes amendment to the Florida Constitution
asset item of value
assignment the transference of rights and obligations in a contract from one party to another
assumption the process of transferring the obligation of the mortgagor to another party who takes
over the responsibility to pay the note.
attorney-in-fact a representative with power of attorney for another individual
automated valuation models A computerized valuation of a property that takes into account comparables, tax
assessors, nationwide market values, and sales history
balloon payment A payment at the end of a loan period which includes the total outstanding balance of
the loan
baseline a parallel used in reference to a meridian to identify ranges, tiers, and townships in the
government survey method of land description
basis the cost of purchasing a property plus the cost of any improvements, minus the amount
of depreciation
benchmark permanent marker of known location and elevation above sea level as established by a
government survey team (such as the USGS)
