F Terms Flashcards
facilitator
A person working as a liaison between buyer and seller, but without agency duties. Also called an intermediary.
FICO Score
Lender scoring system for loan worthiness.
fee tail
An estate in which conveyance is limited to the descendants of the grantee.
fee simple
The highest ownership possible; has no time limit and can be transferred or inherited (the word fee means an inheritable estate). Also called fee simple absolute.
fee simple determinable
A grant that automatically ends should a property no longer be used for a designated purpose.
fee appraiser
An appraiser who works either as an independent contractor or for an independent appraisal firm.
fee
An estate of inheritance.
Federal Reserve System (the Fed)
A federal agency that regulates the money supply, interest rates, and reserve requirements of member banks.
Fair Credit Reporting Act
Allows a person to know what is in his/her credit file, and to have explanations inserted and information investigated and removed if wrong.
Federal Land Bank
A farm credit administrative agency that provides financing for farm purchases.
Federal Housing Administration (FHA)
A federal agency that insures mortgage loans.
Federal Deposit Insurance Corporation (FDIC)
Insures bank and thrift deposits. The maximum federal insurance is $250,000 for an account.
feasibility study
A study of the economic practicality of an investment.
Fannie Mae
A private corporation, now under government conservatorship, that provides a secondary marketplace for mortgages.
fictitious name
A name that does not include the surname of every principal in a business. To use a fictitious name, the fictitious name publication and recording statutes must be complied with.
foreclosure
The legal procedure whereby the lender forces the sale of property to pay indebtedness in the event of default.
footing
The concrete poured in the ground on which the foundation rests. The footing distributes the building load to the soil.
floor space
The interior square footage measured from the inside walls.
floodwater
The water overflowing a defined channel.
floodplain
Level areas along waterways subject to inundation.
flat lease
A level-payment lease with no escalation clause; also called a gross lease.
fixture
A former item of personal property that has become so connected to the realty that it has become part of the real property.
first right of refusal
See right of first refusal.
firm commitment
A loan commitment made for a particular borrower and property.
fidelity bond
Bond for employee covering employee honesty.
fire wall
A wall built of fireproof material to limit or contain a fire.
fire block
A horizontal block between studs to prevent a fire from rising through a wall.
finder’s fee
A fee paid to a non-licensee for an introduction only; legal in some states.
financing statement
An instrument filed by a lender on a personal property loan to give public notice that the goods are security for the loan (under the Uniform Commercial Code).
Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA)
Requires state licensing and certification of appraisers.
fiduciary
The duty of trust and honesty of an agent to the principal.
filtering down
The process in which housing passes down to lower economic groups.
Foreign Investment in Real Property Tax Act (FIRPTA)
Requires buyer withholding of taxes when the seller is a foreign national, except for exempt sales.
funding fee
A fee paid by a veteran for a VA loan.
functional obsolescence
Obsolescence that is built in by design or by construction.
front-end ratio
The ratio of gross income to total loan payments (PITT); used to qualify buyers as to the amount of a loan.
front foot
A linear measurement of land based on the number of feet fronting on a road (could also refer to water frontage).
freehold
A higher-interest category of estates (fee simple and life estates), as opposed to non-freehold estates, which are leasehold interests.
Freddie Mac
A private entity under government conservatorship that serves as a secondary mortgage market and sells participation certificates.
fraud
An intentional act or omission to deceive another to the detriment of that party.
foundation
The masonry substructure on which the building rests. The foundation rests on the footing.
franchise
A right to distribute goods and services under a marketing plan established by a franchisor.
