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 attention.
FEASIBILITY STUDY - An analysis of a proposed project with
emphasis on the attainable income, expenses, 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 practices.
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.
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 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.)
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 property which is unencumbered
by any liens, mortgages, clouds or other encumbrances.
Making an Offer on a Home
