Central Florida Relocation Glossary: Terms Every Newcomer Should Know

Glossary of Central Florida Relocation Terms

BPO (Broker Price Opinion)

A BPO is a real estate professional's estimate of a property's value, typically requested by a lender or servicer. It is less detailed than a full appraisal but more informed than an automated valuation. BPOs are commonly used in pre-foreclosure situations, short sales, and loan modifications. For relocators, understanding BPOs is most relevant if you are considering a short sale or distressed property purchase.

CDD (Community Development District)

CDD stands for Community Development District. It is a special-purpose local government that finances and manages infrastructure in new communities, such as roads, water systems, sewer lines, drainage, and parks. CDDs are common in newer Central Florida communities like Lake Nona, Horizon West, and Sunbridge. The CDD fee is paid annually as part of your property tax bill. These fees can range from a few hundred to several thousand dollars per year. When shopping for a home in a newer community, always ask about the CDD fee and whether it is fixed or subject to increase. Learn more about CDD fees and other costs.

Citizens Insurance

Citizens Property Insurance Corporation is a state-run, not-for-profit insurance company that provides coverage to Florida homeowners who cannot find insurance in the private market. It was created by the Florida Legislature as a "last resort" insurer. In recent years, as private insurers have left the Florida market or raised rates, Citizens has become the largest property insurer in the state. If you are buying a home in Florida, you may end up with a Citizens policy, especially in higher-risk areas. Rates are regulated but can increase significantly. See our Florida homeowners insurance guide.

Doc Stamps

Documentary stamp tax (commonly called "doc stamps") is a tax imposed by the state of Florida on certain documents, including deeds and mortgages. When you buy a home, you pay doc stamps on the deed at a rate of $0.70 per $100 of the purchase price. There is also a tax on the mortgage note. Doc stamps are typically paid at closing. They are one of the closing costs that buyers should budget for. For a $400,000 home, the doc stamp tax on the deed alone would be roughly $2,800.

Due-on-Sale Clause

A due-on-sale clause is a provision in most mortgage contracts that requires the borrower to pay the full remaining loan balance when the property is sold or transferred. This means you generally cannot transfer your existing low-interest mortgage to a new buyer. The clause is important for relocators to understand because it prevents creative financing strategies like "subject-to" transactions without the lender's approval. It also means that when you sell your home, your existing mortgage must be paid off from the proceeds.

E-Pass / SunPass

E-Pass and SunPass are electronic toll collection systems used on Florida's toll roads. Orlando has an extensive network of toll roads, including SR 408 (East-West Expressway), SR 417 (Central Florida Greenway), and SR 429 (Western Beltway). An E-Pass or SunPass transponder allows you to drive through toll plazas without stopping. The tolls are deducted automatically from a prepaid account. For daily commuters in Central Florida, toll costs can easily reach $100 to $200 per month. A transponder is essential for anyone who drives on Orlando's toll roads. Learn more about transportation costs.

Florida Sinkhole

A sinkhole is a depression or hole in the ground caused by the collapse of underground limestone or dolomite formations. Florida's geology is underlain by limestone, which can dissolve over time, creating cavities. When the roof of one of these cavities collapses, a sinkhole forms. Sinkholes can range from small depressions to large, property-destroying events. Florida law requires property insurers to cover sinkhole damage, though the rules and coverage amounts have changed over the years. A sinkhole inspection may be recommended in certain areas, particularly in parts of Central Florida with a history of sinkhole activity. Not all areas of Central Florida have the same sinkhole risk.

Four-Point Inspection

A four-point inspection is a property inspection that focuses on four specific areas: the roof, the electrical system, the plumbing system, and the HVAC (heating, ventilation, and air conditioning) system. Florida homeowners insurance companies often require a four-point inspection on homes older than a certain age (typically 20 to 25 years) before they will issue a policy. The inspection helps the insurer assess the risk of the property. If the inspection reveals issues, the insurer may require repairs or decline coverage. For relocators buying an older home, a four-point inspection is almost always required. Learn more about insurance requirements.

HOA (Homeowners Association)

A Homeowners Association (HOA) is an organization that manages and enforces rules for a community. HOAs are common in Central Florida, especially in master-planned communities, condominiums, and townhome developments. The HOA sets rules about property appearance, landscaping, parking, noise, and more. HOAs collect monthly or annual fees that cover maintenance of common areas, amenities, and sometimes insurance. Fees range from $50 per month in older neighborhoods to over $500 per month in luxury communities. Always review the HOA documents, including the covenants, conditions, and restrictions (CC&Rs), before purchasing a home. Learn more about HOA fees and other costs.

Homestead Exemption

The Homestead Exemption is a Florida property tax benefit for homeowners who make their property their permanent residence. It exempts the first $25,000 of the assessed value from property taxes for most taxing authorities. An additional exemption of up to $25,000 applies to assessed values between $50,000 and $75,000. Surviving spouses of military veterans or first responders, and homeowners with disabilities, may qualify for additional exemptions. The Homestead Exemption can save homeowners hundreds of dollars per year. It must be applied for with the county property appraiser's office and is not automatic. You must be a Florida resident and own the property as of January 1 of the tax year. See our property tax guide.

Hurricane Shutters

Hurricane shutters are protective coverings installed over windows, doors, and other openings to protect them from damage during hurricanes and tropical storms. Florida building codes have become stricter over the years, and many newer homes come with impact-resistant windows or built-in shutter systems. For older homes, you may need to install accordion shutters, roll-down shutters, or storm panels. Hurricane shutters can also lower your homeowners insurance premium through wind mitigation credits. Learn more about wind mitigation and insurance.

I-4 Corridor

I-4 (Interstate 4) is the major highway running through the heart of Central Florida, connecting Tampa and Daytona Beach via Orlando. The "I-4 Corridor" refers to the broader region along this highway, which has experienced massive growth and development. The corridor includes downtown Orlando, the tourist district, and the growing suburbs in Osceola and Polk counties. I-4 is notoriously congested, particularly between downtown Orlando and the tourist corridor. The I-4 Ultimate improvement project added managed toll lanes and rebuilt interchanges, but traffic remains heavy. The corridor is a major factor in commuting patterns, housing choices, and economic development in Central Florida.

Intangible Tax

Intangible tax is a Florida state tax on the value of certain intangible personal property, including mortgages and other financial instruments. When you take out a mortgage to buy a home in Florida, you pay an intangible tax on the mortgage amount. The rate is $0.002 per $100 of the mortgage amount. For a $300,000 mortgage, the intangible tax would be $6. This tax is typically paid at closing and is relatively small compared to other closing costs. As of recent years, the intangible tax on mortgages has been eliminated or reduced in some cases. Check with your closing agent for current rates.

MLS (Multiple Listing Service)

The MLS is a database used by real estate professionals to list and share information about properties for sale. In Central Florida, the primary MLS is the Stellar MLS, which serves the greater Orlando area. The MLS contains detailed information about listings, including price, property details, photos, and status. When you work with a real estate agent, they can search the MLS to find properties that match your criteria. Public-facing websites like Zillow and Realtor.com pull data from the MLS, but the information may not always be as current or complete as what your agent can access. For the most accurate and up-to-date listings, work with a local agent who has direct MLS access.

Prorated Taxes

Prorated taxes are property taxes that are divided between the buyer and seller at closing. In Florida, property taxes are paid in arrears, meaning you pay for the previous year. When you buy a home, the seller credits you for the portion of the year they owned the property, and you pay the taxes for the remainder of the year. This proration is handled at closing and is adjusted based on the exact closing date. Prorated taxes are part of the closing costs that buyers and sellers should expect to see on their settlement statement.

Radon

Radon is a naturally occurring radioactive gas that can seep into homes through the ground. While radon is more commonly associated with northern states, it can be present in Florida homes as well. Radon testing is not typically required in Florida real estate transactions, but it is recommended by the EPA. If elevated levels are found, mitigation systems can be installed to reduce radon levels. For relocators, radon testing is an optional but recommended due diligence step, particularly for homes with basements or slab-on-grade foundations.

REO (Real Estate Owned)

REO stands for Real Estate Owned, which refers to properties that have been repossessed by a bank or lender after a failed foreclosure auction. These are "bank-owned" properties. REO properties are typically sold "as-is" and may have been vacant for some time. They can offer opportunities for buyers looking for discounted prices, but they often require significant repairs. If you are considering an REO property, a thorough inspection is essential. REO properties in Central Florida are a small portion of the market in 2026, unlike during the 2008-2012 period when they were much more common.

Retention Pond

A retention pond (also called a stormwater pond) is a man-made basin designed to collect and manage stormwater runoff. In Florida, where the water table is high and drainage is a major concern, retention ponds are a common feature of residential communities. They help prevent flooding, filter pollutants, and recharge groundwater. Many retention ponds in Central Florida communities are designed to be attractive landscape features, with fountains, landscaping, and walking paths. However, they also require maintenance and HOA fees to cover that maintenance. When buying a home near a retention pond, be aware of potential mosquito issues and the need for ongoing drainage management.

Save Our Homes

Save Our Homes is a Florida constitutional amendment that limits the annual increase in assessed value of homesteaded properties to 3% or the Consumer Price Index (CPI), whichever is lower. This means that for homeowners who remain in their home, the taxable value cannot increase by more than 3% per year, regardless of how much the market value increases. Over time, this can create a significant gap between the market value and the assessed value, resulting in lower property taxes for long-term homeowners. The benefit is portable to a new home within Florida, up to certain limits, through a process called "portability." Learn more about Save Our Homes and portability.

Short Sale

A short sale occurs when a homeowner sells their property for less than the amount owed on the mortgage, and the lender agrees to accept the proceeds as full payment. Short sales were common in Central Florida during the 2008-2012 housing crisis but are much less common in 2026. They typically require lender approval, which can take months. Short sales are sold "as-is" and may have deferred maintenance. For relocators, short sales are rarely a significant factor in the current Central Florida market.

Subject-To

"Subject to" is a real estate transaction where the buyer takes title to the property "subject to" the existing mortgage. The existing loan remains in the seller's name, but the buyer makes the payments. This is a creative financing strategy that is used when the seller has a low-interest rate that the buyer wants to assume. However, most mortgages contain a "due-on-sale" clause that requires the loan to be paid off when the property is sold. Subject-to transactions carry risks, including the lender calling the loan due. This strategy is not common in conventional residential transactions and should only be pursued with experienced legal and real estate guidance.

SunRail

SunRail is Central Florida's commuter rail system, operating along a 61-mile corridor from DeLand in Volusia County through downtown Orlando to Poinciana in Osceola County. The system has 17 stations serving communities including Lake Mary, Altamonte Springs, Winter Park, downtown Orlando, and Kissimmee. SunRail operates Monday through Friday, primarily during peak commuting hours. It is a popular option for commuters who work in downtown Orlando and live in the northern or southern suburbs. The system has been expanding and is expected to add weekend service in the future. SunRail connects with LYNX buses and other transit options for the "last mile" of the commute.

Title Company State

Florida is known as a "title company state" because title insurance and closings are typically handled by title companies rather than attorneys. In Florida, the title company (or title agency) is responsible for conducting the title search, issuing the title insurance policy, and facilitating the closing process. This is different from states like New York or Illinois, where attorneys play a larger role in the real estate closing process. For relocators from attorney-closing states, the Florida system may feel different but is well-established and efficient. The seller typically pays for the owner's title insurance policy, and the buyer pays for the lender's title insurance policy.

Turnpike

In Florida, "the Turnpike" refers to Florida's Turnpike, a toll highway system that runs from north of Orlando (Wildwood) south through Orlando to Miami. The Turnpike is a major north-south corridor through Central Florida, providing an alternative to I-4 for travel between the Orlando area and South Florida. The Turnpike is a toll road, and tolls are collected electronically via E-Pass or SunPass. The Turnpike is particularly useful for travel to and from the Lake Nona area, Kissimmee, and the southeastern suburbs. For Central Florida residents, the Turnpike is a key route for travel to the Space Coast, Palm Beach, and Miami.

Wind Mitigation

Wind mitigation refers to building features that reduce the risk of wind damage during hurricanes and tropical storms. A wind mitigation inspection evaluates features such as roof shape, roof-to-wall connections, window protection (hurricane shutters), and garage door bracing. In Florida, homeowners insurance companies offer premium discounts for homes with qualifying wind mitigation features. A wind mitigation inspection, combined with a four-point inspection, is often required to get the best insurance rates. The inspection can save homeowners hundreds of dollars per year in premiums. For relocators buying a home in Florida, a wind mitigation inspection is a worthwhile investment. Learn more about wind mitigation and insurance savings.

Other Important Terms for Relocators

Beyond the specific terms above, here are a few more terms that are useful for anyone moving to Central Florida:

• LTR (Long-Term Rental): A rental property leased for a period of 12 months or more. Central Florida has a strong LTR market, particularly in suburban communities.
• STR (Short-Term Rental): A rental property leased for less than 30 days, commonly associated with vacation rentals. Central Florida has a significant STR market due to the tourism industry.
• CDD Impact Fee: A one-time fee paid by developers or homebuilders to fund infrastructure improvements. These costs are often passed on to buyers in the purchase price of a new home.
• EHO (Equal Housing Opportunity): A statement indicating that the property is available to all buyers regardless of race, color, religion, sex, handicap, familial status, or national origin. All real estate professionals in Florida are required to comply with fair housing laws.
• LUPP (Local Utility Pricing Plan): A pricing structure used by some Central Florida water utilities, particularly in newer communities. Check with the local utility provider for current rates.

Frequently Asked Questions About Florida Real Estate Terms

What is a CDD fee?

A Community Development District (CDD) is a special-purpose local government that finances and manages infrastructure in new communities. The CDD fee is paid annually as part of your property tax bill and can range from a few hundred to several thousand dollars per year.

What is the homestead exemption?

The homestead exemption is a Florida property tax benefit for homeowners who make their property their permanent residence. It exempts the first $25,000 of assessed value for most taxing authorities, with an additional exemption for values between $50,000 and $75,000. You must apply with the county property appraiser's office.

Do I need a four-point inspection to buy a home in Florida?

Insurance companies typically require a four-point inspection for homes over 20 to 25 years old before issuing a policy. It covers the roof, electrical system, plumbing system, and HVAC. If issues show up, the insurer may require repairs or decline coverage.

What is Save Our Homes?

Save Our Homes is a Florida constitutional amendment that limits annual increases in the assessed value of homesteaded properties to 3% or the Consumer Price Index, whichever is lower. The benefit is portable to a new Florida home within limits.

Do I really need a SunPass or E-Pass transponder?

If you drive Orlando's toll roads regularly, yes. SR 408, SR 417, and SR 429 are part of an extensive toll network, and daily commuters can easily spend $100 to $200 per month on tolls. A transponder lets you pass through toll plazas without stopping.

Last updated: August 12, 2026. Published by Moving to Orlando Guide with Tyler Gibson. This glossary is for informational purposes only and does not constitute legal, financial, or tax advice. Always consult with qualified professionals for your specific situation.