FACADE The front of a building, often used
to refer to a false front and as a metaphor.
FAIR MARKET VALUE
This is the amount of money
that would be paid for a property offered on the open market
for a reasonable period of time with both buyer and seller knowing
all the uses to which the property could be put and with neither
party being under pressure to buy or sell.
FANNIE MAE An acronymic nickname for Federal
National Mortgage Association (FNMA).
FARMERS HOME ADMINISTRATION An agency of
the Department of Agriculture. Primary responsibility is to provide
financial assistance for farmers and others living in rural areas
where financing is not available on reasonable terms from private
sources.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)
Agency of the federal government which insures deposits at commercial
banks, savings banks and savings and loans.
FEDERAL HOME LOAN MORTGAGE CORPORATION An
independent stock company which creates a secondary market in
conventional residential loans and in FHA and VA loans by purchasing
mortgages.
FEDERAL HOUSING ADMINISTRATION (FHA)
An agency
of the federal government that insures private mortgage loans
for financing of new and existing homes and home repairs.
FEDERAL LAND BANK SYSTEM Federal government
agency making long term loans to farmers.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)
"Fannie Mae" a quasipublic agency converted into a private corporation
whose primary function is to buy and sell FHA and VA mortgages
in the secondary market.
FEDERAL RESERVE SYSTEM The federal banking
system of the United States under the control of central board
of governors (Federal Reserve Board) involving a central bank
in each of twelve geographical districts with broad powers in
controlling credit and the amount of money in circulation.
FEE An estate of inheritance in real property.
FEE SIMPLE DEFEASIBLE An estate in fee subject to the
occurrence of a condition subsequent whereby the estate may be terminated.
FEE SIMPLE ESTATE
The greatest interest that one can have
in real property. An estate that is unqualified, of indefinite duration, freely
transferable and inheritable.
FEUDAL TENURE A real property ownership system in which
ownership rests with a sovereign who may grant lesser interests in return for
service or loyalty. This is in contrast to allodial tenure.
FHLMC See FEDERAL HOME LOAN MORTGAGE CORPORATION.
FIDELITY BOND A security posted for the discharge of an
obligation of personal services.
FIDUCIARY A person in a position of trust and confidence,
as between principal and broker; broker as fiduciary owes certain loyalty which
cannot be breached under the rules of agency.
FIDUCIARY DUTY That duty owed by an agent to act in the
highest good faith toward the principal and not to obtain any advantage over
the latter by the slightest misrepresentation, concealment, duress or pressure.
FILTERING The process whereby higher-priced properties
become available to lower income buyers.
FINANCIAL INTERMEDIARY Financial institutions such as
commercial banks, savings and loan associations, mutual savings banks and life
insurance companies which receive relatively small sums of money from the public
and invest them in the form of large sums. A considerable portion of these
funds are loaned on real estate.
FINANCING PROCESS
The systematic 5 step procedure followed
by major institutional lenders in analyzing a proposed loan, which includes
filing of application by a borrower; lender'.s analysis of borrower and property;
processing of loan documentation; closing (paying) the loan; and servicing (collection
and record keeping).
FINANCING STATEMENT The instrument which is filed in order
to give public notice of the security interest and thereby protect the interest
of the secured parties in the collateral. (See definition of Security Interest
and Secured Party.)
FIRST MORTGAGE
A legal document pledging collateral for
a loan (See "mortgage") that has first priority over all other claims against
the property except taxes and bonded indebtedness. That mortgage superior to
any other.
FIRST TRUST DEED
A legal document pledging collateral
for a loan (See "trust deed") that has first priority over all other claims
against the property except taxes and bonded indebtedness. That trust deed
superior to any other.
FISCAL CONTROLS Federal tax revenue and expenditure policies
used to control the level of economic activity.
FISCAL YEAR A business or accounting year as distinguished
from a calendar year.
FIXITY OF LOCATION The physical characteristic of real
estate that subjects it to the influence of its surroundings.
FIXTURES
Appurtenances attached to the land or improvements,
which usually cannot be removed without agreement as they become real property;
examples:
plumbing fixtures, store fixtures built into the property, etc.
FORECLOSURE Procedure whereby property pledged as security
for a debt is sold to pay the debt in event of default in payments or terms.
FORFEITURE Loss of money or anything of value, due to failure
to perform.
FRANCHISE A specified privilege awarded by a government
or business firm which awards an exclusive dealership.
FRAUD
The intentional and successful employment of any
cunning, deception, collusion, or artifice, used to circumvent, cheat or deceive
another person whereby that person acts upon it to the loss of property and
to legal injury. (Actual Fraud: A deliberate misrepresentation
or representation made in reckless disregard of its truth or its falsity, the
suppression of truth, a promise made without the intention to perform it, or
any other act intended to deceive.)
FRAUDS, STATUTE OF (See Statute of Frauds.)
"FREDDIE MAC"
(See FEDERAL HOME LOAN MORTGAGE CORPORATION.)
FREEHOLD ESTATE An estate of indeterminable duration,
e.g., fee simple or life estate.
FRONTAGE A term used to describe or identify that part
of a parcel of land or an improvement on the land which faces a street. The
term is also used to refer to the lineal extent of the land or improvement
that is parallel to and facing the street, e.g., a 75-foot frontage.
FRONT FOOT
Property measurement for sale or valuation
purposes; the property measured by the front linear foot on its street line,
each front foot extending the depth of the lot.
FRONT MONEY
The minimum amount of money necessary to initiate
a real estate venture to get the transaction underway.
FROSTLINE The depth of frost penetration in the soil.
Varies in different parts of the country. Footings should be placed below this
depth to prevent movement.
FULLY INDEXED NOTE RATE As related to adjustable rate
mortgages, the index value at the time of application plus the gross margin
stated in the note.
FUNCTIONAL OBSOLESCENCE A loss of value due to adverse
factors from within the structure which affect the utility of the structure,
value and marketability.
FUTURE BENEFITS The anticipated benefits the present owner
will receive from the property in the future.
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