Your Online Legal Resource Center for Property Management

FACADE - The part of a building facing the street or a courtyard.

FAE - Forced air electric furnace.

FAG - Forced air gas furnace.

FACE BRICK - A shiny exterior brick of even quality an size.

FACE VALUE - The amount stated on the face of a note or mortgage, not considering discount.

FAIR CREDIT BILLING ACT - A federal law that governs credit and charge-card billing errors. If a credit or charge card company violates any provision, , consumers can sue to recover damages.

FAIR CREDIT REPORTING ACT - A federal law passed in 1971 that regulates the activity of credit bureaus. It is designed to prevent inaccurate or obsolete information from staying in a consumer's credit file and requires credit bureaus to have reasonable procedures for gathering, maintaining and disseminating credit information. The act also requires credit bureaus to show a consumer their credit file if the consumer presents proper identification, although the bureau reserves the right to charge a fee for doing so.

FAIR DEBT COLLECTION PRACTICES ACT - A federal law, passed in 1977 which outlaws debtor harassment and other types of collection practices. The act regulates collection agencies, original creditors who set up a separate office to collect debts, and lawyers who have been hired by the creditor to help collect overdue bills. An original creditor; the company or individual that originally granted the credit; is not covered by the act, but may be covered by similar measures approved by state governments.

FAIR HOUSING ACT LANDMARK - federal law passed in 1965 and amended in 1988 that makes it illegal to deny rent or refuse to sell to anyone based on race, color, religion, sex or national origin. The 1988 amendment expanded the protections to include family status and disability.

FAIR MARKET VALUE - The estimated price arrived at by making comparisons with other similar properties that a seller and buyer may agree upon.

FALSE ADVERTISING - Any advertising which misrepresents a real property in some way; cause for the revocation of a broker's or sales agent's license.

FAMILY ROOM - A second but less formal living room in a home.

FANNIE MAE - The official name of the Federal National Mortgage Association, it is a congressionally chartered, shareholder-owned company that buys mortgages from lenders and resells them as securities on the secondary mortgage market.

FARM - In real estate, an area in which a sales person cultivates contacts for the purpose of obtaining listings, etc.

FARMER'S HOME ADMINISTRATION - A US Department of Agriculture agency that provides credit to farmers and rural residents.

FASCIA - A board that connects the ends of the roof rafters and provides a surface to support gutters.

FEASIBILITY SURVEY - A study of an area which is being considered for develop to determine the probability of financial success.

FEDERAL FAIR HOUSING LAW - That portion of the Civil Rights Act prohibiting racial and other types of discrimination concerned with housing.

FEDERAL HOME LOAN BANK - A bank or savings and loan chartered under the Federal Home Bank Act of 1932 which may obtain funds for first mortgages on homes from regional banks who have a fairly constant supply of money; they contain the word "federal" in their name.

FEDERAL HOME LOAN MORTGAGE CORPORATION - The Federal Home Loan Mortgage Corp., commonly known as Freddie Mac. The company buys mortgages from lending institutions, pools them with other loans and then sells shares to investors.

FEDERAL HOUSING ADMINISTRATION (FHA) - The government agency operates a variety of home-loan programs. Its most popular is the Sec. 203(b), program, which provides low-rate mortgages to buyers who make a down payment as small as 3 percent.

FEDERAL NATIONAL MORTGAGE CORPORATION - Now officially dubbed Fannie Mae, the federally chartered agency buys mortgages from lending institutions, pools them with other loans and sells shares to investors.

FEDERAL RESERVE BOARD - A group of economists and other experts who set the nation's monetary policy. Its chief tool to control inflation is the power to control interest rates.

FEDERAL SAVINGS AND LOAN ASSOCIATION - See Federal Home Loan Bank.

FEDERAL TAX LIEN - A claim against property for taxes that are outstanding, such as estate or income; not automatically cleared by a foreclosure proceeding.

FEDERAL TRADE COMMISSION - The government agency responsible for regulating a variety of companies and industries, from credit bureaus and collection agencies to timeshare operators and certain types of creditors. National headquarters: Sixth and Pennsylvania Avenue. NW, Washington, D.C. 20580. Phone: (202) 326-2222.

FEE - A nonrefundable charge for a service rendered; refers to a type of ownership in real property.

FEE SIMPLE - This type of ownership is the maximum interest a person can have in a piece of real estate. It entitles the owner to use the property in any manner they see fit, in accordance with state and local laws.

FEE SIMPLE ABSOLUTE - The greatest interest one may possess in real property; the most complete and least restricted.

FEE SIMPLE DEFEASIBLE - The owner of the property holds a fee simple title contingent upon certain conditions.

FEDERAL STYLE - The all-American home architecture style that evolved after the Revolutionary War from Georgian designs favored by the English Details include bigger windows and a front doorway surrounded by glass and topped with an arched window.

FELT PAPER - A black, tarred paper used for insulation and as a sub-layer beneath a roof.

FHA - loans Mortgages that are insured by the Federal Housing Administration. The FHA's 203(b) loan program provides low-rate mortgages to buyers who make a down payment as small as 3 percent. The agency also operates loan plans for investors and purchasers of rural property.

FENG SHUI - An ancient Chinese belief that the physical characteristics of a house and the positioning of the home will affect the fortunes of the owner.

FHLMC - (Freddie Mac) Federal Home Loan Mortgage Corporation which buys first mortgages insured by the government and conventionally; a wholesales first mortgage buyer or secondary lender.

FICTITIOUS DOCUMENT - A document which has standard form is filed and all later similar documents recorded or used incorporate its federal terms and provisions.

FIDUCIARY DUTY - The relationship of trust that buyers and sellers expect from a real estate agent. The term also applies to legal and business relationships.

FIELD CHANGES - Modifications made on the construction site that do not match blueprints.

FIELD TILE - Tiles laid beneath a structure to prevent water seepage upward into a foundation.

FILE - The act of recording an original legal document with a government body, making it part of the public record.

FILL DIRT - Soil brought in to solidify a finished foundation.

FILLED LAND - An area where the ground has been raised by adding dirt, gravel or other fill material.

FILTERING DOWN PROCESS - Original high quality homes owned by high and middle income occupant that have, through obsolescence, become available to lower income families.

FINANCIAL INFORMATION SHEET - A form used by real estate associates to gather information from potential buyers to establish their ability to purchase a particular property.

FINANCIAL STATEMENT - Lists a person's or company's assets and liabilities; required by lending institutions for use in conjunction with an application, credit report, etc., to qualify a borrower for a loan.

FINANCING COSTS - The cost of borrowing money, including interest and loan fees.

FINANCE FEE - Loan fee.

FINANCING STATEMENT - A document recording a lien, used in place of a chattel mortgage, inventory lien or pledge in some states.

FINDER'S FEE - A fee in any amount that is paid to someone.

FINISH GRADE - A finish that prepares a lot for landscaping.

FIRE WALL - A buffer composed of fire-resistant material.

FIRM COMMITMENT - A promise made by a lender when it agrees to loan money for the purchase of property.

FIRST MORTGAGE - The primary mortgage on a property that has priority over all other voluntary liens.

FIRST RIGHT OF REFUSAL - The lessee's right given by the lessor to have the first opportunity to purchase a property under specific terms and conditions.

FIRST USER - The first owner of property and is the first to put the improvements to use; a tax term signifying higher rates of depreciation.

FIXED ASSETS - Buildings or heavy machinery needed to operate a business and which are permanent in nature.

FIXED CHARGES - Interest or other recurring charges.

FIXED INSTALLMENT - The monthly payment on a home loan.

FIXED RATE MORTGAGE - A home loan with an interest rate that will remain at a specific rate for the term of the loan . About 75 percent of all home mortgages have fixed rates.

FIXED TIME - The specific weeks in a year an owner of a time-share arrangement has access to accommodations.

FIXER-UPPER - A house that needs refurbishment or remodeling It usually sells at a below-market price.

FIXING-UP EXPENSES - Those expenses incurred for wallpaper, paint, etc., to ready a property for sale; must be paid for within 90 days prior to sales agreement or 30 days thereafter, to qualify as tax deductible.

FIXTURES - Personal property permanently attached to a house, such as drapery rods, toilets, built-in bookcases or a furnace.

FLAG LOT - A lot formed in the shape of a flag with pole.

FLASHING - Metal strips placed around chimneys, skylights, vents, windows, doors, beneath shingles and along seams in the roof to prevent water seepage.

FLAT - An antiquated term for a one level living unit which has been replace by duplex, triplex, four-plex, etc.

FLAT FEE - A set fee charged by a broker instead of a commission.

FLAT ROOF - A roof with a level surface.

FLEXIBLE PAYMENT MORTGAGE - A loan on which payment installments are unequal and which takes into consideration a borrower's current financial position and his or her ability to make larger payments in future years. Either the interest rate or the principal payments may gradually increase.

FLIGHT PATTERN - The pattern an airplane flies when landing or taking off from an airport.

FLOAT DOOR DRAIN - A drain that diverts water from the basement to a collection area. Water is then removed with a sump pump.

FLOATING WALL - Walls built to withstand movement in the basement floor.

FLOAT RATE - An interest rate that is not fixed at one percentage but which "floats" between points.

FLOOD INSURANCE - A federally subsidized flood insurance required by lenders in areas where there is a risk of floods.

FLOODPLANE - Low-lying land adjacent to rivers subject to flooding.

FLOOR AREA RATIO - The calculation of the floor area of all homes or buildings in a project. It is used in the planning and development of a site.

FLOOR FURNACE - A radian heat furnace placed in a floor.

FLOOR LOAN - The lowest amount a lender commits itself to loan on a commercial structure based on the degree of occupancy by tenants.

FLOOR TIME - The rotated time a sales agent spends in a real estate office answering the telephone and dealing with walk-in customers, usually established monthly.

FLORIDA ROOMS - Enclosed porches built on the side or back of a home.

FLOWAGE EASEMENT - The common law easement which provides for passage of water from high ground across lower ground.

FLUE - A chimney channel through which gases and fumes escape from a furnace.

FOOTINGS - Concrete foundations that support a structure.

FORBEARANCE - A course of action a lender may pursue to delay foreclosure or legal action against a delinquent borrower.

FORCED AIR FURNACE - A furnace with a fan installed in it to blow the heated air throughout a structure.

FORCED SALE - The sale of property, usually at less than full market value, because of financial hardship when a mortgage or deed of trust is in default.

FORECLOSURE - The legal process reserved by a lender to terminate the borrower's interest in a property after a loan have been defaulted. When the process is completed, the lender may sell the property and keep the proceeds to satisfy its mortgage and any legal costs. Any excess proceeds may be used to satisfy other liens or be returned to the borrower.

FORFEITURE - The relinquishing of property rights by a delinquent borrower.

FORGERY - Illegally duplicating, altering or falsifying documents.

FORMICA - A trade name for a vinyl (synthetic)material used on countertops, paneling, etc, inside a structure.

FOR SALE BY OWNER (FSBO) - The owner acts as the agent to avoid paying a sales commission.

FORUM SHOPPING CLAUSE - A clause in an agreement or contract which specifies the state and the laws which will govern it.

FOUNDATION - The support structure of a house.

FOYER - The entrance hall to a home or building.

FRACTIONAL APPRAISAL - The separate appraisal of a particular interest in property, such as the leasehold interest or the value of improvements.

FRAMEHOUSE - A house built with wood supports and exterior wood siding.

FRAMING - The construction of the skeletal framework of a house.

FRANCHISE - Individual ownership of a business combined with central control. The individual owner pays for the use of the name and often gets benefits of advertising.

FRAUD - Misrepresentation, by an act or a statement, in order to trick another party for the purpose of gain.

FREDDIE MAC - (Federal Home Loan Mortgage Corp.) A congressionally chartered institution that buys mortgages from lenders and resells them as securities on the secondary mortgage market.

FREE AND CLEAR - Real estate which had no liens and encumbrances attached to it.

FREEHOLD - An interest in real property that has no specified or exact termination date, such as a life estate that will terminate upon the death of a named party.

FREE-MARKET LOTS - Owners of these types of lots may hire any builder to construct their home.

FRENCH DOORS - Two adjoining doors inlaid with glass that open from the middle.

FRONTAGE - The portion of property that borders a roadway or body of water.

FRONT FOOT COST - A valuation of real estate which is based on the amount of footage along a main road; used in commercial real estate appraisal.

FRONT MONEY - The amount of money a developer has available in cash for expenses and land costs prior to development of a project, as opposed to the amount he needs to borrow to complete it.

FULL DISCLOSURE - The act of a seller or broker which informs a buyer of all known defects or other pertinent information which may affect his decision to purchase a particular property.

FULL PERFORMANCE - Occurs when all parties have complied with the terms of an agreement or contract.

FULLY AMORTIZED ADJUSTABLE RATE MORTGAGE - A mortgage that amortizes, or pays down, the balance of a loan.

FUNCTIONAL - The use of property for its originally intended purpose.

FUNCTIONAL OBSOLESCENCE - The lack of use of property for its originally intended purpose due to improvement to advancements made since its creation.

FUNDS - Available money

FURNACE - An enclosed heating device powered by coal, oil, propane or natural gas.

FURNITURE AND FIXTURES - Refers to business furniture and fixtures which may be depreciated.

FURRING - Leveling wood or metal stripes on which wall panels or ceiling tiles may be mounted.

FUSE - A device that allows power to be channeled into a home.

FUTURE ACQUIRED PROPERTY - A clause in loan agreement or mortgage which state that property acquired after the initial singing will be encumbered as additional security.

FUTURE ADVANCE CLAUSE - Permits a borrower to obtain more money on a loan security at some future date without negotiating a new instrument or mortgaging additional property.

FUTURE BENEFITS - Anticipated benefits an owner will receive.

FUTURE INTEREST - A current interest in property without the right of possession until a later time.