F

Fair Market Value - Price that probably would be negotiated between a willing seller and willing buyer in a reasonable time. Usually arrived at by comparable sales in the area.

Federal Tax Lien - A lien attaching to property for nonpayment of a federal tax (estate, income, etc.). A federal tax lien differs from other liens in that it is not automatically wiped out by foreclosing o a mortgage or trust deed recoded before the tax lien (except by judicial foreclosure).

Fee - (1) Modernly, an not in strict legal terms, synonymous with fee simple or "ownership". (2) A charge made by a landlord to a tenant, which is not refundable. For example: A cleaning deposit would be refunded if the tenant left the rented property reasonably clean. A cleaning fee would be a charge by the landlord for cleaning the rented property and would not be refunded regardless of the condition of the property.

Fee Simple - An estate under which the owner is entitled to unrestricted powers to dispose of the property, and which can be left by will or inherited. Commonly, a synonym for ownership.

Fee Simple Absolute - A term now used synonymously with fee simple.

Fee Simple Conditional - (See Defeasible Title).

Fee Simple Defeasible - (See Defeasible Title).

Fee Tail - An estate of inheritance which specifies the descendants or classes or heirs of the devisee who may succeed to the said estate.

F.H.A. (Federal Housing Administration) - A federal agency which insures first mortgages, enabling lenders to loan a very high percentage of the sale price.

FHLMC (Freddie Mac) - Federal Home Loan Mortgage Corporation. A federal agency purchasing first mortgages, both conventional and federally insured, from members of the Federal Reserve System, and the Federal Home Loan Bank System.

Fiduciary - One acting in a relationship of trust, regarding financial transactions.

File And Use - In most states, title insurers file rate schedules, title insurance policies and endorsement forms with the State Insurance Department or other state agency and then may use such items or rates starting within a specified period of time after filing. Rates so filed usually are mandatory.

Final Decree - A decree completely deciding all pending matters before a court, and obviating the need for further litigation.

Financing Costs - The cost of interest and other charges involved in borrowing money to build or purchase real estate.

Financing Statement - A recorded instrument, taking the lace of personal property liens in some states. Used instead of chattel mortgages, inventory liens, pledges, etc.

First Refusal Right - A right, usually given by an owner to a lessee, which gives the lessee a first chance to buy the property if the owner decides to sell. The owner must have a legitimate offer which the lessee can match or refuse. If the lessee refuses, the property can then be sold to the offeror.

First User - A tax term signifying the one who builds or buys property and is the first one to put the buildings to use. Certain tax (depreciation) advantages are given to a first user. The term concerns only depreciable property (improvements) and prior use of the land only (farming) would not be considered.

Fixed Assets - Permanent assets, necessary for the operation of a business, such as buildings, heavy machinery, etc.

Fixed Expenses - Property expenses not effected by use or occupancy. Example: Property taxes would be fixed while maintenance would vary with use and occupancy.

Fixed Rate Mortgage - A mortgage having a rate of interest which remains the same for the life of the mortgage.

FNMA (Fannie Mae) - A private corporation dealing in the purchase of first mortgages, at discounts.

Footing - A foot-like projection at the base of a foundation wall, column, pier, etc., used to secure, support, and help eliminate settling or shifting.

Forbearance - The waiting for payment of a debt by a creditor after the debt becomes due.

Foreclosure - A proceeding in or out of court, to extinguish all rights, title, and interest, of the owner(s) of property in order to sell the property to satisfy a lien against it.

Foreclosure Sale - A sale of property used as security for a debt, to satisfy said debt.

Forfeiture - The taking of an individual's property by a government, because the individual has committed a crime. IN the United States, private property cannot be taken, except by eminent domain upon payment of just compensation, or for nonpayment of taxes.

Forfeiture Of Title - A common penalty for the violation of conditions or restrictions imposed by the seller upon the buyer in a deed or other proper document. For example, a deed may be granted upon the condition that if liquor is sold on the land, the title to the land will be forfeited (that is, lost) by the buyer (or some later owner) and will revert to the seller.

Forgery - A false signature or material alteration with intent to defraud. The forged signature of the grantor will not pass title regardless of recording or lack of knowledge by the grantee or future grantees. Title insurance will insure against forgery. The word may extend beyond signatures (forged paintings, documents, etc.).

Fraud - A deception, intended to wrongfully obtain money or property from the reliance of another on the deceptive statements or acts, believing them to be true.

Free and Clear - Real property against which there are not liens, especially voluntary liens (mortgages).

Frontage - The linear measurement along the front of a parcel, that is, the portion facing a road, waterway, walkway, etc. that would be considered the most valuable measurement of the property.

Full Disclosure - A builder must give to a potential buyer the facts of his new development (are there adequate school facilities?; sewer facilities?; an airport nearby?; etc.). A broker cannot charge a commission to buyer and seller unless both know (disclosure) and agree. In real estate, revealing all the known facts which may affect the decision of a buyer or tenant. A broker must disclose known defects in the property for sale or lease.

Funds - Money available for a qualified purpose, such as loan funds for F.H.A. insured loans, conventional loan funds, etc.

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