|
|
Real Estate Dictionary Terms - F
Facade
The face of a building, especially the front face.
Fair Credit Reporting Act
A consumer protection law that regulates the disclosure of consumer
credit reports by consumer/credit reporting agencies and establishes
procedures for correcting mistakes on one's credit record.
Fair Housing Act
The federal law that prohibits discrimination in housing based on
race, color, religion, sex, handicap, familial status and national
origin.
Fair Market Value
The highest price that a buyer, willing but not compelled to buy,
would pay, and the lowest a seller, willing but not compelled to
sell, would accept. The amount of money that would be paid for a
property offered on the open market for a reasonable length of time
with both the buyer and the seller knowing all uses to which the
property could be put and with neither party being under pressure
to buy or sell. See market Value.
False Promise
A statement used to influence or persuade.
Fannie Mae (FNMA)
See Federal National Mortgage Association (FNMA) The Federal National
Mortgage Association, which is a congressionally chartered, shareholder-owned
company that is the nation's largest supplier of home mortgage funds.
For a discussion of the roles of Fannie Mae, Freddie Mac (FHLMC),
and Ginnie Mae (GNMA), see the Library.
Farm
It is a specific geographical location in which an agent walks every
month in order to obtain listings.
Farmer's Home Administration (Fmha)
An agency of the federal government that provides credit assistance
to farmers and other individuals who live in rural areas.
Federal Deposit Insurance Corporation (FDIC)
A federal corporation that insures deposits in commercial CORPORATION
banks (FDIC). An independent federal agency that insures the deposits
in commercial banks.
Federal Fair Housing Act
Was established under Title VIII of the United States Civil Rights
Act of 1969. It was amended in 1988. It was created to provide fair
housing through out the United States.
Federal Home Loan Bank (FHLB)
A district bank of the Federal Home Loan Bank System that?lends only
to savings and loan associations who are members.
Federal Home Loan Mortgage Corporation (FHLMC)
A federal corporation that provides savings and loan associations
with a secondary mortgage money market for loans. It is also known
as Freddy Mac. A corporation established to purchase primarily conventional
mortgage loans in the secondary mortgage market.
Federal Housing Administration (FHA)
An agency of the federal government that insures mortgage (FHA) loans.
An agency of the U.S. Department of Housing and Urban Development
(HUD). Its main activity is the insuring of residential mortgage
loans made by private lenders. The FHA sets standards for construction
and underwriting but does not lend money or plan or construct housing.
Federal National Mortgage Association (FNMA)
A federal corporation that provides lenders with a secondary mortgage
money market. A quasi-government agency established to purchase any
kind of mortgage loans in the secondary mortgage market from the
primary lenders.
Federal Reserve System
The federal banking system of the United States under the control
of a central board of governors (Federal Reserve Board). It involves
a central bank in each of 12 geographical districts, with broad powers
in controlling credit and the amount of money in circulation. The
country's central banking system, which is responsible for the nation's
monetary policy by regulating the supply of money and interest rates.
Federal Savings And Loan Insurance Corporation (Fslic)
A federal corporation that insures deposits in savings and loan associations.
Fee
An estate of inheritance in real property for life.
Fee Simple
The greatest possible interest a person can have in real estate.
Fee Simple
An estate in real property by which the owner has the greatest possible
power over the title. In modern use it expressly establishes the
title of real property with the owner without limitation or end.
He or she may dispose of it by sale, trade, or will, as he or she
chooses. In modern estates the terms "Fee" and "Fee
Simple" are substantially synonymous.
Fee Simple Absolute
The highest estate known at law. A freehold estate of indefinite
duration, incapable of being defeated by conditions or limitations.
Sometimes simply called fee or fee estate. The maximum possible estate
or right of ownership of real property, continuing forever.
Fee Simple Defeasible
A fee simple estate to which certain conditions or limitations attach,
such that the estate may be defeated or terminated upon the happening
of an act or event. Also called a fee simple subject to a condition
subsequent estates. See defeasible fee estate.
Fee Simple Estate
An unconditional, unlimited estate of inheritance that represents
the greatest estate and most extensive interest in land that can
be enjoyed. It is of perpetual duration. When the real estate is
in a condominium project, the unit owner is the exclusive owner only
of the air space within his or her portion of the building (the unit)
and is an owner in common with respect to the land and other common
portions of the property.
Fee Simple Subject To A Condition Subsequent
A fee simple defeasible estate that requires the holder of the future
interest to act promptly to terminate the present interest, in order
for that interest to be terminated.
Feudal System
A system of ownership usually associated with precolonial England,
in which the king or other sovereign is the source of all rights.
The right to possess real property was granted by the sovereign to
an individual as a life estate only.
FHA
The FHA does not loan money. The FHA loan may be paid off at any
time without a penalty. Discount points on a FHA loan may be paid
by the buyer or the seller The down payment on a FHA loan is usually
LESS than the down payment on a conventional loan.
FHA Loan
A loan insured by the Federal Housing Administration and made by
an approved lender in accordance with the FHA's regulations.
FHA Mortgage
A mortgage that is insured by the Federal Housing Administration
(FHA). Along with VA loans, an FHA loan will often be referred to
as a government loan.
Fiduciary
A person in a position of trust and confidence, as between principal
and broker. A fiduciary may not make a profit from his or her position
without first disclosing it to the beneficiary. One in whom trust
and confidence is placed; a reference to a broker employed under
the terms of a listing contract or buyer agency agreement.
Fiduciary Relationship
A relationship of trust and confidence, as between trustee and beneficiary,
attorney and client or principal and agent.
Financial Freedom
Most be have no game plan to reach financial freedom.
Financial Institutions Reform, Recovery And Enforcement Act (FIRREA)
This act restructured the savings and loan association regulatory
system; enacted in response to the savings and loan crisis of the
1980s.
Financing Statement
The instrument filed to perfect the security agreement and give constructive
notice of the security interest, thereby protecting the interest
of the secured parties. (See Security Agreement; Security Interest;
and Secured Party.) The security interest in personal property. It
is analogous to a mortgage on real property, except that it secures
personal property. Under the U.C.C., it may be filed in Sacramento
with the secretary of state.
Financing Statement
See Uniform Commercial Code
Finder's Fee
Money paid to a person for finding someone interested in selling
or buying property. To conduct any negotiations of sale terms, the
finder must be a licensed broker or he violates the law.
Finish Floor
The final covering on the floor, such as wood, linoleum, cork, or
carpet.
Fire Stop
A solid, tight closure of a concealed space placed to prevent the
spread of fire and smoke through the space.
Firm Commitment
A lender’s agreement to make a loan to a specific borrower
on a specific property.
First Amendment
The constitutional amendment guaranteeing freedom of speech, press,
assembly, and religion.
First Mortgage
The mortgage that is in first place among any loans recorded against
a property. Usually refers to the date in which loans are recorded,
but there are exceptions.
Fiscal Policy
The government's policy in regard to taxation and spending programs.
The balance between these two areas determines the amount of money
the government will withdraw from or feed into the economy, which
can counter economic peaks and slumps.
Fixed-Rate Mortgage
A mortgage in which the interest rate does not change during the
entire term of the loan.
Fixture
Personal property that becomes real property when attached in a permanent
manner to real estate. An item of personal property that has been
so attached to real property as to be considered part of that real
property. An item of personal property that has been converted to
real property by being permanently affixed to the realty. Items that
were originally personal property but that have become part of the
real property, usually because they are attached to the real property
more or less permanently. Examples: Store fixtures built into the
property and plumbing fixtures.
Flashing
Sheet metal or similar material used to protect a building form water
seepage.
Flipper Property
Any property bought for immediatel resale and profit.
Flood Insurance
Insurance that compensates for physical property damage resulting
from flooding. It is required for properties located in federally
designated flood areas.
Footing
The base or bottom of a foundation wall, pier or column.
Forcible Detainer
Wrongful retention of property by actual or constructive force.
Forcible Entry
Entry into property without the consent of the owner, by acts that
constitute more than mere trespass.
Foreclosure
The legal process by which a borrower in default under a mortgage
is deprived of his or her interest in the mortgaged property. This
usually involves a forced sale of the property at public auction
with the proceeds of the sale being applied to the mortgage debt.
A legal proceeding to enforce a lien on such as a mortgage or deed
of trust. The process by which secured property is seized and sold
to satisfy a debt. A mortgage or involuntary lien must be sold by
a court-ordered sale; a sale under a deed of trust may be either
by court action or through a private trustee's sale. A legal procedure
whereby property used as security for a debt is sold to satisfy the
debt in the event of default in payment of the mortgage note or default
of other terms in the mortgage document. The foreclosure procedure
brings the rights of all parties to a conclusion and passes the title
in the mortgaged property to either the holder of the mortgage or
a third party who may purchase the realty at the foreclosure sale,
free of all encumbrances affecting the property subsequent to the
mortgage.
Forefeiture
Loss of a legal right, interest, or title by default.
Formal Will
A will signed by the testator in the presence of two or more witnesses,
who must themselves sign the will.
Foundation
That part of a structure or wall wholly or partly below the surface
of the ground that is the base or support, including the footings.
Fourteenth Amendment
The constitutional amendment that directs that no state can deprive
a person of life, liberty ,or property without due process or equal
protection of the law.
Fractional Section
A parcel of land less than 160 acres, usually found at the edge of
a rectangular survey.
Fraud
Deception that deprives another person of his her rights or injures
him or her. False representation or concealment of material facts
that induces another justifiably to rely on it to his detriment.
Freehold
An estate of fee. An estate in real property that is either a life
estate or an estate in fee.
Front Foot
Property measurement for sale or valuation purposes. The property
measurement is along the street line, and each front foot extends
to the depth of the lot. It is usually used in connection with commercial
property.
Frostline
The depth of frost penetration in the soil.
Fructus
Fruits, crops, and other plants. If the vegetation is produced by
human labor, such as crops, it is called fructus industrials; vegetation
growing naturally is called fructus naturales.
Furring
Strips of wood or metal fastened to wall to even it, form air space,
or to give the wall greater thickness.
Future Advances
Future (additional) loans made by a lender and secured under the
original deed of trust. The advances may be either optional or obligatory,
but the deed of trust or mortgage must provide in the security instrument
that it will cover any such future advances.
Future Interest
An estate that does not or may entitle one to possession or enjoyment
until a future time.
|
|
