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Real Estate Glossary of Terms
Looking for the definition of a real estate
term? Click on a letter of the alphabet below to go to that letter's
corresponding page of terms.
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F
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X
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Z FAIR
MARKET VALUE - The highest monetary price which a property would bring, if offered
for sale for a reasonable period of time in a competitive market, to a
seller who is willing but not compelled to sell, from a buyer, willing but
not compelled to buy, both parties being fully informed of all the purposes
to which the property is best adapted and is capable of being used.
FARM
AREA - A selected geographical
area or one specific building to which a real estate salesperson devotes
special attention and study.
FEASIBILITY STUDY - An analysis of a proposed project with emphasis on the attainable
income, probable expenses, and most advantageous use and design.
FEDERAL HOUSING ADMINISTRATION (FHA)
- The FHA was set up in1934 under the National Housing Act to encourage
improvement in housing standards and conditions, to provide an adequate home
financing system by insurance of housing mortgages and credit, and to exert
a stabilizing influence on the mortgage market.
FEDERAL TAX LIEN - A federal lien which attaches to real property, either if the federal
estate tax is not paid, or if the taxpayer has violated the federal income
tax or payroll tax laws.
FEDERAL TRADE COMMISSION (FTC) - A
federal agency created to investigate and eliminate unfair and deceptive
trade practices in business.
FEE
SIMPLE - The largest estate one
can possess in real property. A fee simple estate is the least limited
interest and the most complete and absolute ownership in land: it is of
indefinite duration, freely transferable and inheritable. Fee simple title
is sometimes referred to as "the fee.”
FIDUCIARY - A relationship which
implies a position of trust or confidence wherein one is usually entrusted
to hold or manage property or money for another. Among the obligations a
fiduciary owes to the principal are duties of loyalty; obedience; full
disclosure; the duty to use skill, care and diligence; and the duty to
account for all monies.
FILLED LAND - An area where the
grade has been raised by depositing or dumping dirt, gravel or lava rock.
FINANCE CHARGE - The total of all
costs imposed directly or indirectly by the creditor and payable either
directly or indirectly by the customer, as defined under the federal
Truth-in-Lending Law.
FINANCE FEE - A mortgage brokerage
fee to cover the expenses incurred in placing the mortgage with a lending
institution; a mortgage service charge or origination fee.
FINANCIAL STATEMENT - A formal statement of the financial status and net worth of a person
or company, setting forth and classifying assets and liabilities as of a
specified date.
FINDER'S FEE - A fee paid to
someone for producing a buyer to purchase or a seller to list property; also
called a referral fee.
FIRM
COMMITMENT - A definite
undertaking by a lender to loan a set amount of money at a specified
interest rate for a certain term.
FIRST
REFUSAL, RIGHT OF - The right of a
person to have the first opportunity either to purchase or lease real
property.
FISCAL YEAR - A business year used
for tax, corporate or accounting purposes, as opposed to a calendar year.
FIXTURE - An article which was
once personal property but has been so affixed to the real estate that it
has become real property (e.g. stoves, bookcases, plumbing, etc.). If
determined to be a fixture, then the article passes with the property even
though it is not mentioned in the deed.
FLAG
LOT - A land parcel having the
configuration of an extended flag and pole. The pole represents access to
the site which is usually located to the rear of another lot fronting a main
street.
FLOOR
AREA RATIO - The ratio of floor area to land area expressed as a percent or
decimal, which is determined by dividing the total floor area on a zoning
lot by the lot area.
FLOOR
DUTY - A frequent practice in real
estate brokerage offices of assigning one sales agent the responsibility for
handling all telephone calls and office visitors for a specified period of
time.
FORECLOSURE - A legal procedure
whereby property used as security for 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.
FRAUD
- Any form of deceit, trickery, breach of confidence or misrepresentation by
which one party attempts to gain some unfair or dishonest advantage over
another.
FREE
AND CLEAR TITLE - Title to real property which is absolute and unencumbered by any
liens, mortgages, clouds or other encumbrances.
FRONTAGE - The length of a
property abutting a street or body of water; that is, the number of feet
that "front" the street or water.
FUNCTIONAL OBSOLESCENCE - A loss
in value of an improvement due to functional inadequacies, often caused by
age or poor design.
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