Homeowners Insurance - A policy that protects against losses from fire, theft, and personal liability. In the Florida Keys, standard policies often exclude flood and windstorm damage, which typically require separate coverage.

Windstorm Insurance - Coverage that protects against damage caused by high winds, including hurricanes and tropical storms. In the Florida Keys, this type of policy is often required by lenders.

Flood Insurance - A separate policy that covers damage from rising water, storm surge, or flooding. In the Florida Keys, it is required for financed homes in FEMA flood zones and recommended for all buyers, including cash purchases.

Mitigation Credits - Insurance discounts given for hurricane-resistant features such as impact windows, storm shutters, metal roofs, or elevated construction.

Base Flood Elevation (BFE) - FEMA’s projected height that floodwaters are expected to reach during a 100-year flood event in a specific area.

Elevation Certificate (EC) - A surveyor’s report that shows a home’s elevation in relation to the Base Flood Elevation (BFE). It is used to determine flood insurance rates.

Survey - A boundary and property survey conducted by a licensed surveyor, standard in real estate transactions. In the Florida Keys, surveys often confirm shoreline boundaries, dock placement, and identify potential encroachments.

Title Search - A review of public records to verify the seller’s legal right to transfer ownership and to identify any liens, easements, or disputes on the property.

Title Insurance - A one-time policy purchased at closing that protects against ownership disputes or defects in the property’s title. There are two types: an Owner’s Title Policy for the buyer and a Lender’s Title Policy for the lender. In the Florida Keys, the party who pays for title insurance typically has the right to choose the closing agent or attorney.

Riparian Rights - Legal rights associated with waterfront property ownership, including water access and potential dockage. In the Florida Keys, these rights should be confirmed during the title review process.

Earnest Money Deposit - A buyer’s good-faith deposit that shows commitment to purchase and is credited toward the price at closing. In the Florida Keys, this often consists of two deposits, with the second due after the inspection period. If the contract is cancelled within the inspection/right-to-cancel period, the deposit is fully refundable.

Inspection / Right to Cancel Period - The timeframe after a contract is executed, typically up to 15 days but negotiable, during which the buyer may inspect the property and perform their due diligence. The buyer usually pays for property inspections, which may include a home inspection, dock or seawall inspection, and wood-destroying organism (WDO) inspection.

Closing Costs - The expenses due at closing that are separate from the purchase price. In the Florida Keys, buyers typically pay for lender fees, appraisal, inspections, and recording fees, while sellers usually pay for real estate commissions and the documentary stamp tax on the deed. If the buyer is financing, the buyer also pays for intangible taxes and documentary stamp taxes on the mortgage. Exact responsibilities may vary by contract and many are negotiable.

Monroe County Rider - A local addendum to the standard Florida real estate contract used in the Florida Keys. It addresses unique issues such as responsibility for open permits and code violations.

Building Right vs. Building Permit - A building right is the entitlement to add a new dwelling unit (allocated under local programs such as ROGO/BPAS), which is limited and highly regulated in the Florida Keys. A building permit is the approval to begin construction on a specific code-compliant project such as a pool, fence, tiki hut, signifiant renovations or new home. Without a building right, a new home cannot be permitted.

ROGO (Rate of Growth Ordinance) - Monroe County’s permitting system that regulates new home construction outside of incorporated municipalities. It controls how and when new residential building rights are allocated.

BPAS (Building Permit Allocation System) - A local permitting system used by certain Florida Keys municipalities, such as Marathon, to regulate new home construction. It determines how and when building rights are allocated within city limits.

1031 Exchange - A tax-deferred exchange that allows investors to use proceeds from the sale of one property to purchase another, deferring capital gains taxes. It must be structured through a qualified 1031 intermediary.

Substantial Improvement/Damage Rule -

FEMA regulation requiring that if a property’s structure is improved or damaged by more than 50% of its market value, it must be brought up to current floodplain management and building standards.