Florida real estate terms, explained
The Florida-specific vocabulary — CDD bonds, Save Our Homes, flood zones, wind mitigation — that catches out-of-state buyers by surprise. Plain English, local numbers.
- CDD (Community Development District) fee
- A bond repayment that funds a new community’s roads, utilities, and amenities — common in Nocatee, SilverLeaf, Shearwater, eTown, and most newer St. Johns County communities. It is collected on your property-tax bill (not the HOA bill), typically $1,000–$3,000+ per year, and usually runs 20–30 years from the community’s founding. Always ask for the exact CDD amount on any home in a newer community.
- Save Our Homes (SOH) cap
- Florida limits how much a homesteaded home’s ASSESSED value can rise each year (3% max). The catch for buyers: the cap resets when a home sells, so the seller’s current tax bill is almost always lower than yours will be. Estimate your taxes at YOUR purchase price, not theirs. Every listing on this site shows taxes estimated at the asking price →
- Homestead exemption
- Florida’s exemption for a primary residence: up to $50,000 off assessed value for tax purposes, plus the Save Our Homes cap and strong creditor protections. You must own and occupy the home on January 1 and file with the county property appraiser (deadline March 1).
- Flood zone (FEMA)
- FEMA maps every parcel into a flood-risk zone. Zones starting with A or V are Special Flood Hazard Areas — lenders REQUIRE flood insurance there. Zone X means minimal risk and optional coverage. Flood damage is never covered by a standard homeowners policy; it is always a separate policy. Listings on this site show their FEMA zone in the Florida Reality Check →
- Hurricane evacuation zone
- Florida counties assign evacuation zones A–F based on storm-surge risk (A evacuates first). Your evacuation zone is about surge, not wind, and it is NOT the same as your flood zone — a home can be in flood zone X and still be in evacuation zone A near the Intracoastal.
- Wind mitigation inspection
- A short inspection documenting a home’s wind-resistance features (roof shape and attachment, straps/clips, opening protection). In Florida it routinely saves hundreds to thousands per year on homeowners insurance — worth ordering on almost any purchase.
- Roof age (and insurance)
- The single biggest driver of Florida homeowners-insurance pricing and insurability. Many carriers restrict or refuse coverage on shingle roofs past 10–15 years. A "new roof 2023" line in a listing is worth real money; an original 2005 roof is a negotiating point.
- Active Under Contract
- The MLS status for a home that has an accepted offer but is still in inspections, financing, or other contingencies. Backup offers are often possible — contracts fall through more than people think.
- Days on Market (DOM)
- How long a listing has been active. Low area-wide DOM signals a fast market; a single home’s high DOM usually signals price. Note that relisting can reset a home’s DOM — cumulative DOM tells the honest story.
- Documentary stamp tax ("doc stamps")
- Florida’s transfer tax: $0.70 per $100 of the sale price on the deed (customarily paid by the seller, though it’s negotiable), plus doc stamps and intangible tax on any new mortgage (paid by the buyer). On a $600,000 sale, deed doc stamps alone are $4,200.
- Earnest money (escrow deposit)
- The deposit that accompanies your offer, held in escrow and credited to you at closing. In Northeast Florida, 1–2% of the price is typical. You can lose it by defaulting without a contingency — which is why contingency deadlines matter.
- Title insurance
- A one-time policy protecting ownership against defects (liens, forged deeds, unknown heirs). In much of Northeast Florida the SELLER customarily pays for the owner’s policy — but it is negotiable and set in the contract, so check yours.
- IDX (Internet Data Exchange)
- The MLS system that lets brokerages display each other’s listings. It’s why this site shows every listing in the NEFAR MLS, not just Krista’s — and why each listing credits its listing brokerage.
- Portability (of Save Our Homes)
- Florida homeowners can transfer up to $500,000 of their accumulated Save Our Homes benefit to a new Florida homestead — a major tax saver when moving within the state. You must file for it; it is not automatic.
A term you didn’t find — or one that applies to your situation?
Krista Fracke has been translating Florida real estate for buyers and sellers for 20+ years. Ask anything.
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