Glossary

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There are 56 names in this directory beginning with the letter F.
Facade
The outside front wall of a building.
Face Value
The dollar amount, shown by words and/or numbers on a document.
Facilitator
Performs services for the seller or buyer and facilitates the transaction, but does not assume the fiduciary duties that an agent owes to a client.
Failure of Purpose
When the intended purpose of an agreement or arrangement can no longer be achieved; in most cases, this releases the parties from their obligations.
Fair Credit Reporting Act
A federal law that allows individuals to examine and correct information used by credit reporting services.
Fannie Mae
Popular name for the Federal Na_tional Mortgage Association (FNMA).
Fannie Mae (FNMA)
Federal National Mortgage Association, a federally chartered corporation that purchases mortgages and packages them to sell as securities.
Feasibility Study
A cost-benefit analysis of a proposed project, often required by lenders be_fore giving a loan commitment.
Fed
The Federal Reserve.
Federal Fair Housing Law
A federal law that forbids discrimination on the bais of race, color, sex, religion, or national origin in the selling or renting of property.
Federal Home Loan Mortgage Corporation (FHLMC)
A government supervised second_ary market agency, popularly known as Freddie Mac.
Federal Housing Administration (FHA)
A federal agency within the Department of Hous_ing and Urban Development (HUD) that pro_vides mortgage insurance to encourage lenders to make loans to low- and middle-income homebuyers. See also: Loan, FHA.
Federal National Mortgage Association (FNMA)
A government supervised secondary market agency, popularly known as Fannie Mae.
Federal Trade Commission (FTC)
A federal agency responsible for investigating and elimi_nating unfair and deceptive business practices, which is responsible for enforcement of the Truth in Lending Act.
Fee Agreement
An agreement between a borrower and a broker, which normally specifies the relationship between them and the amount of compensation to the broker.
Fee Simple
Absolute ownership of real property.
Fee Simple Absolute
The highest and most complete form of ownership, which is of poten_tially infinite duration. Also called a fee or a fee simple.
Fee Simple Defeasible
A fee simple estate that is subject to termination if a certain condition is not met or if a specified event occurs. Also called a conditional fee, determinable fee, quali_fied fee, or fee simple subject to a condition subsequent.
FHA
Federal Housing Administration.
Fiduciary Relationship
A relationship of trust and confidence, in which one party owes the other (or both parties owe each other) loyalty and a higher standard of good faith than is owed to third parties. For example, an agent is a fi_duciary in relation to the principal; husband and wife are fiduciaries in relation to one another.
Fiduciary Responsibility
An obligation to act in the best interest of another party. This type of obligation typically exists when one person places special trust and confidence in another person and that responsibility is accepted.
Finance Charge
Any charge a borrower is as_sessed, directly or indirectly, in connection with a loan. See also: Total Finance Charge.
Financial Statement
A summary of facts showing the financial condition of an individual or a business, including a detailed list of assets and liabilities. Also called a balance sheet.
Financing Statement
A brief instrument that is recorded to perfect and give constructive no_tice of a creditor's security interest in an article of personal property. The modern version of a chattel mortgage.
Finder's Fee
A referral fee paid to someone for directing a client or customer to a real estate agent, or for directing a loan applicant to a lender.
First Lien Position
The position held by a mort_gage that has higher lien priority than any other mortgage against the property.
First Mortgage
A first mortgage is in superior position to all other mortgages, liens and judgments (except property taxes).
Fiscal Year
Any twelve-month period used as a business year for accounting, tax, and other financial purposes, as opposed to a calendar year.
Fixed Disbursement Plan
A construction fi_nancing arrangement that calls for the loan pro_ceeds to be disbursed in a series of predetermined installments when various stages of the con_struction are completed.
Fixed Payment Mortgage
A loan secured by real property which features a periodic payment of interest and principal which is constant over the term of the loan.
Fixed Rate Mortgage
A mortgage with an interest rate that remains the same through the life of the loan.
Fixed Term
A period of time that has a definite beginning and ending.
Fixture
An item that used to be personal prop_erty but has been attached to or closely associ_ated with real property in such a way that it has legally become part of the real property. See: Annexation, Actual; Annexation, Constructive.
Flowage Rights
The right to submerge or flood a piece of land. Also called a flowage easement.
Forbearance
An agreement in which one of the parties agrees to not do something.
Foreclosure
The process by which the mortgagor's (borrower's) rights to a property are terminated. While the general process is similar from state to state, the actual procedures tend to vary greatly.
Foreclosure by Advertisement
Foreclosure by a mortgagee without court supervision, un_der the power of sale clause in a mortgage. Also called nonjudicial foreclosure.
Foreclosure, Judicial
1. The sale of property pursuant to court order to satisfy a lien. 2. A lawsuit filed by a mortgagee to foreclose on the security property when the mortgagor has de_faulted. Also called foreclosure by action.
Foreclosure, Strict
When a court orders title to mortgaged property to be transferred directly from the defaulting mortgagor to the mortgagee, without a public auction.
Foreshore
Land between the mean high and mean low water marks. Also called foreshore land.
Forfeiture
Loss of a right or something else of value as a result of failure to perform an obli_gation or condition.
Franchise
A right or privilege granted by a gov_ernment to conduct a certain business, or a right granted by a private business to use its trade name in conducting business.
Fraud
An intentional or negligent misrepresen_tation or concealment of a material fact, which is relied upon by another, who is induced to enter into a transaction and harmed as a result.
Fraud, Actual
Intentional deceit or misrepre_sentation to cheat or defraud another.
Fraud, Constructive
A breach of duty that mis_leads the person the duty was owed to, without an intention to deceive.
FRBO
For Rent By Owner.
Freddie Mac (FHMLC)
Federal Home Loan Mortgage Corporation, a federally chartered corporation that purchases mortgages and packages them to sell as securities.
Free and Clear
Ownership of real property completely free of liens.
Freehold
A possessory interest in real property that has an indeterminable duration; it can be either a fee simple or an estate for life. Some_one who has a freehold estate has title to the property (as opposed to someone who has a leasehold estate, who is only a tenant).
Front Foot
A measurement of property for sale or valuation, with each foot of frontage pre_sumed to extend the entire depth of the lot.
Front Money
The cash required to get a project or venture underway; includes initial expenses such as attorney's fees, feasibility studies, loan charges, and a downpayment.
Frontage
The distance a property extends along a street or a body of water; the distance be_tween the two side boundaries at the front of the lot.
Fructus Industrials
Plants planted and culti_vated by people, such as crops. This is a Latin phrase meaning "fruits of industry."
Fructus Naturales
Naturally occurring plants ("fruits of nature").
FSBO
For Sale By Owner.
Funding Fee
A fee charged in connection with a VA-guaranteed loan. The borrower is required to pay the fee to the Veterans Administration; it may be financed along with the loan amount.