California License Real Estate Terms Glossary

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FACADE

The face of a building, especially the front face.

FAIR MARKET VALUE

The amount of money that would be paid for a property offered on the open market for a reasonable length of time with both the buyer and the seller knowing all uses to which the property could be put and with neither party being under pressure to buy or sell. See market Value.

FALSE PROMISE

A statement used to influence or persuade.

FANNY MAE

The Federal National Mortgage Association (FNMA).

FARM

It is a specific geographical location in which an agent walks every month in order to obtain listings.

FEDERAL DEPOSIT INSURANCE

A federal corporation that insures deposits in commercial CORPORATION banks (FDIC).

FEDERAL FAIR HOUSING ACT

Was setablished under Title VIII of the United States Civil Rights Act of 1969. It was amended in 1988. t was created to provide fair housing through out the United States.

FEDERAL HOME LOAN BANK (FHLB)

A district bank of the Federal Home Loan Bank System that?lends only to savings and loan associations who are members.

FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC)

A federal corporation that provides savings and loan associations with a secondary mortgage money market for loans. It is also known as Freddy Mac.

FEDERAL HOUSING ADMINISTRATION

An agency of the federal government that insures mortgage (FHA) loans.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA)

A federal corporation that provides lenders with a secondary mortgage money market.

FEDERAL RESERVE SYSTEM

The federal banking system of the United States under the control of a central board of governors (Federal Reserve Board). It involves a central bank in each of 12 geographical districts, with broad powers in controlling credit and the amount of money in circulation.

FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION (FSLIC)

A federal corporation that insures deposits in savings and loan associations.

FEE

An estate of inheritance in real property for life.

FEE SIMPLE

An estate in real property by which the owner has the greatest possible power over the title. In modern use it expressly establishes the title of real property with the owner without limitation or end. He or she may dispose of it by sale, trade, or will, as he or she chooses. In modern estates the terms "Fee" and "Fee Simple" are substantially synonymous.

FEE SIMPLE ABSOLUTE

The highest estate known at law. A freehold estate of indefinite duration, incapable of being defeated by conditions or limitations. Sometimes simply called fee or fee estate.

FEE SIMPLE DEFEASIBLE

A fee simple estate to which certain conditions or limitations attach, such that the estate may be defeated or terminated upon the happening of an act or event. Also called a fee simple subject to a condition subsequent estates.

FEE SIMPLE SUBJECT TO A CONDITION SUBSEQUENT

A fee simple defeasible estate that requires the holder of the future interest to act promptly to terminate the present interest, in order for that interest to be terminated.

FHA

The FHA does not loan money. The FHA loan may be paid off at any time without a penalty. Discount points on a FHA loan may be paid by the buyer or the seller The down payment on a FHA loan is usually LESS than the down payment on a conventional loan.

FIDUCIARY

A person in a position of trust and confidence, as between principal and broker. A fiduciary may not make a profit from his or her position without first disclosing it to the beneficiary.

FINANCIAL FREEDOM

Most be have no game plan to reach financial freedom.

FINANCING STATEMENT

The instrument filed to perfect the security agreement and give constructive notice of the security interest, thereby protecting the interest of the secured parties. (See Security Agreement; Security Interest; and Secured Party.) The security interest in personal property. It is analogous to a mortgage on real property, except that it secures personal property. Under the U.C.C., it may be filed in Sacramento with the secretary of state.

FINDER'S FEE

Money paid to a person for finding someone interested in selling or buying property. To conduct any negotiations of sale terms, the finder must be a licensed broker or he violates the law.

FINISH FLOOR

The final covering on the floor, such as wood, linoleum, cork, or carpet.

FIRE STOP

A solid, tight closure of a concealed space placed to prevent the spread of fire and smoke through the space.

FIRST AMENDMENT

The constitutional amendment guaranteeing freedom of speech, press, assembly, and religion.

FIXTURE

An item of personal property that has been so attached to real property as to be considered part of that real property.

FIXTURES

Items that were originally personal property but that have become part of the real property, usually because they are attached to the real property more or less permanently. Examples: Store fixtures built into the property and plumbing fixtures.

FLASHING

Sheet metal or similar material used to protect a building form water seepage.

FLIPPER PROPERTY

Any property bought for immediatel resale and profit.

FOOTING

The base or bottom of a foundation wall, pier. or column.

FORCIBLE DETAINER

Wrongful retention of property by actual or constructive force.

FORCIBLE ENTRY

Entry into property without the consent of the owner, by acts that constitute more than mere trespass.

FORECLOSURE

A legal proceeding to enforce a lien on such as a mortgage or deed of trust. The process by which secured property is seized and sold to satisfy a debt. A mortgage or involuntary lien must be sold by a court-ordered sale; a sale under a deed of trust may be either by court action or through a private trustee's sale.

FOREFEITURE

Loss of a legal right, interest, or title by default.

FORMAL WILL

A will signed by the testator in the presence of two or more witnesses, who must themselves sign the will.

FOUNDATION

That part of a structure or wall wholly or partly below the surface of the ground that is the base or support, including the footings.

FOURTEENTH AMENDMENT

The constitutional amendment that directs that no state can deprive a person of life, liberty ,or property without due process or equal protection of the law.

FRAUD

Deception that deprives another person of his her rights or injures him or her. False representation or concealment of material facts that induces another justifiably to rely on it to his detriment.

FREEHOLD

An estate of fee. An estate in real property that is either a life estate or an estate in fee.

FRONT FOOT

Property measurement for sale or valuation purposes. The property measurement is along the street line, and each front foot extends to the depth of the lot. It is usually used in connection with commercial property.

FROSTLINE

The depth of frost penetration in the soil.

FRUCTUS

Fruits, crops, and other plants. If the vegetation is produced by human labor, such as crops, it is called fructus industrials; vegetation growing naturally is called fructus naturales.

FURRING

Strips of wood or metal fastened to wall to even it, form air space, or to give the wall greater thickness.

FUTURE ADVANCES

Future (additional) loans made by a lender and secured under the original deed of trust. The advances may be either optional or obligatory, but the deed of trust or mortgage must provide in the security instrument that it will cover any such future advances.

FUTURE INTEREST

An estate that does not or may entitle one to possession or enjoyment until a future time.