Real Estate Insurance Terms - F

A l B l C l D l E l F l G l H l I l J l K l L l M l N l O l P l Q l R l S l T l U l V l W l X l Y l Z

FACADE - The main face or front elevation of a building.

FACE - (1) The front or facade of a structure. (2) The positioning of a structure, [as to front (face) the ocean]. (3) To surface or cover the front or outer surface of an object. (4) The outside or main appearance of the surface of an object.

FACE BRICK - A treated brick, usually glossy and of even quality, made for use as an exterior finish.

FACED WALL - A masonry wall, using different materials as a facing and backing, but with facing and backing bonded as one unit for load bearing.

FACE VALUE - The value of notes, mortgages, etc, as stated on the instrument, and not considering any discounting.

FACTOR - (1) One who buys or sells goods in his own name, but acting as an agent for another. (2) One who buys accounts receivable at a discount.

FAIR CREDIT REPORTING ACT - A federal law giving one the right to see his or her credit report so that errors may be corrected. A lender refusing credit based on a credit report must inform the buyer which company issued the report. The buyer may see the report without charge if refused credit, or for a charge if just curious.

FAIR MARKET VALUE - Price that probably would be negotiated between a willing buyer in a reasonable time. Usually arrived at by comparable sales in the area.

FAIRWAY - (1) The deepest part of a river or bay, through which boats travel. (2) A passageway kept open in a harbor or bay for boats to enter or exit. (3) A portion of golf course, bounded on its width by the rough and on its length by the tee and the green.

FALLOW - (1) Land tilled and prepared for planting, but not planted. A method of soil conservation. (2) Land left idle which would ordinarily be planted.

FALSE ADVERTISING - In most instances when in connection with real estate, newspaper classified advertising which misrepresents the property, price or terms. A broker may have his or her license suspended or revoked if the offense is prolonged or deliberately fraudulent.

FAMILY ROOM - A room used informally for recreation, usually built off the kitchen.

FARM - (1) A large parcel of land devoted to raising crops. (2) Land used for producing dairy products (dairy farm) or raising certain fish or animals, such as a lobster farm, oyster farm, etc. (3) A geographical area in which a real estate salesperson concentrates his or her business efforts (farms).

FASCIA - A flat long finishing band or board, used at the outer edge of a cornice , or to conceal rafter ends.

FATHOM - A measure of depths, used at sea, being six feet.

FEDERAL DEPOSIT INSURANCE CORPORATION (F.D.I.C.) - The federal corporation which insures against loss of deposits in banks, up to a maximum amount.

FEDERAL FAIR HOUSING LAW - Title VIII of the Civil Rights Act which forbids discrimination in the sale or rental of residential property because or race, color, sex, religion or national origin.

FEDERAL HOME LOAN BANK BOARD - The board which charters and regulates federal savings and loan associations, as well as controlling the system of Federal Home Loan Banks.

FEDERAL HOME LOAN BANKS - Banks created under the Federal Home Loan Bank Act of 1932, in order to keep a permanent supply of money available for home financing. The banks are controlled by the Federal Home Loan Bank Board. Savings and loans, insurance companies, and other similar companies making long term mortgage loans may become members of the Federal Home Loan Bank System, and thus may borrow from one of the regional banks throughout the country.

FEDERAL REVENUE STAMPS - Also called IRS stamps. A transfer of tax of $.55 per $500, based on the sale price of real estate (less remaining loans). The tax ended as a federal tax and was taken up by most states with slight modifications in some areas.

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 on a mortgage or trust deed recorded before the tax lien (except by judicial foreclosure).

FEE - (1) Modernly, and 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.

FELT - A fabric composed mainly of wool mixed with fur, hair, or synthetics, under heat and pressure.

FELT PAPER - A highly absorbent, porous paper, used with tar or asphalt as a roofing paper, or over studs as an insulation.

FENESTRATION - The decorative manner or plan of placing doors or windows in a structure.

F.H.A. (FEDERAL HOUSING AUTHORITY) - 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 Reserve System and the Federal Home Loan Bank System.

FIBER GLASS - Particles of glass spun into a form of insulation or material such as used in drapes.

FIDELITY BOND - Insurance covering an employer for loss caused by dishonest acts of specific employees.

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

FIELD TILE - A series of tiles placed at the base of the superstructure to retard seepage of ground waters through the foundation.

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

FINDER'S FEE - A fee paid to someone who finds a buyer or property for a broker, buyer, etc. The term is sometimes used to attempt to pay a commission to an unlicensed person. Generally, a finder's fee is considered a commission and may only be paid to one who holds a real estate license.

FINISH FLOOR - The flooring over the subfloor, usually of hardwood, tile, or other finish on which one may walk. In some modern construction where carpeting is installed by the builder, plywood is used as a finish floor.

FIREBRICK - A brick specially made of clay which can be exposed to extremely high temperatures without damage. Used in furnaces, fireplaces, and similar high temperature areas.

FIRE INSURANCE - Insurance against loss or damage by fire to specific property. May also include other coverage.

FIREPLACE - A square, rectangular, or arched opening usually in a wall at the base of a chimney, lined with stone or masonry and used for an open fire within a structure. Modernly, a decorative, more than necessary, part of a home.

FIRE STOP - A means of preventing fire or smoke from traveling through a structure by filling concealed air spaces with fire-resistive materials.

FIRE WALL - A wall to divide parts of a building and prevent the spread of fire. Should rise from basement level to a minimum of three feet above roof level, and openings through the wall should be protected by fireplace doors.

FIRST MORTGAGE - A mortgage having priority over all other voluntary liens against certain property.

FIRST REFUSAL RIGHT - A right, usually given 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.

FISCAL YEAR - An accounting year, which may be the calendar year or any other one-year period. The United States budget is based on a fiscal year from July 1 to June 30.

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

FIXED LIABILITY - A liability that will not mature during a company's fiscal period, such as a 20-year mortgage.

FIXED RATE MORTGAGE - A mortgage having a rate of interest which remains the same for the life of the mortgage.

FIXED WINDOW - A window which has no moveable parts, such as a picture window.

FIXTURES - Personal property which is attached to real property and is legally treated as real property while it is so attached. Fixtures, not specifically excepted from an accepted offer to purchase, pass with the real estate.

FLAGSTONE - A decorative, flat, slate-like stone used in walkways and patios and processed in a variety of colors.

FLAT - A building containing a single living unit on each floor, and sometimes referred to by the number of units, such as two flat, four flat. Flats are no longer built, having given way to duplexes, fourplexes, etc.

FLAT ROOF - A roof having an almost level surface, except for either being slightly convex, to allow drainage towards its edges, or slightly concave, allowing water to drain at the center of the roof.

FLITCH BEAM - A beam formed by two or more timbers, cut lengthwise, called flitches, between any two of which is placed a metal plate for additional strength, and all pieces are bolted together.

FLOAT - Funds in connection. The amount of a check in the possession of one bank but drawn on another is the float.

FLOOD - An overflowing of a body of water from its normal boundaries, so that land usually dry is covered with water. May be a regular occurrence (sometimes even desirable for farming) or a disaster, if severe.

FLOOD INSURANCE - Insurance indemnifying against loss by flood damage. Required by lenders (usually banks) in areas designated (federally) as potential flood areas. The insurance is private but federally subsidized.

FLOODPLANE - The extent of the land adjoining a river, which, because of its level topography, would flood if the river overflowed its banks.

FLOOR - (1) The inside bottom or lowest horizontal surface of a room, on which one walks or stands. (2) The different levels (stories) in a building, such as main floor, second floor, etc.

FLOOR DRAINS - Sewer drains in the floor of a building, used where there may be a heavy accumulation of water, such as in a basement of a house, or where floors may be cleaned with a hose, such as in an industrial building.

FLOOR FURNACE - A furnace placed directly below a floor, which has no ducts and heats only through a grill the floor.

FLOOR HANGER - An iron, stirrup-like brace, used to support a floor joist.

FLOOR JOIST - A joist used to support flooring placed over it.

FLOOR LOAD - The live load in pounds per square foot, which a floor is capable of holding safely.

FLOOR LOAN - The lower of two amount of a single take out loan. For example: A lender agrees to loan on an office building being constructed, in the amount of eighty percent of appraised value if the building is seventy-five percent occupied, but only seventy percent of appraised value if the building is less than seventy-five percent occupied. The lower amount is the floor loan.

FLOOR PLAN - The layout of a building or portion of a building (apartment, office, etc.) showing the size of the rooms and the purpose of each (bath, bedroom, etc.). A good floor plan should be very important to a builder, since it will be important to a buyer or tenant.

FLOWAGE EASEMENT - Not an easement by agreement but the common law servitude of land of a lower grade level to allow water from land of a higher level to flow across it.

FLOW TIDE - High tide. The highest tide under normal weather conditions, as determined by the phases of the moon.

FLUE - (1) The opening or passageway in a chimney through which smoke, gases, etc., pass from a building. (2) Any opening or passageway for the elimination of gases, fumes, etc.

FLUME - (1) A natural gorge or ravine, through which a stream flows. (2) An artificial channel, inclined as a chute and used to hold running water on which logs are floated from one place to another.

FLUORESCENT LIGHTING - Tubular glass lights, the interior of which has a fluorescent coating. Light is produced by the action of a stream of electrons upon the coating.

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

FNMA BUYDOWN - FNMA (Federal National Mortgage Association) accepts loans containing a buy down provision on single family residential, owner-occupied properties. A prepayment (points) will buy a lower rate of interest during the first one to five years of the loan. Restrictions apply as to the amount of the buydown and rise in payment amount as the loan progresses.

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

FORCED-AIR FURNACE - A furnace having a fan or blower which forces the warm air through the ducts, rather than having the air circulated by the action of gravity.

FORCED SALE - A sale which is not the voluntary act of the owner, such as to satisfy a debt, whether or a mortgage, judgment, etc. The selling price under such a sale would not be considered market value.

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.

FOREIGN CORPORATION - A corporation incorporated in another state. In New York, for example, a Delaware corporation would be a foreign corporation.

FORESHORE - The shore between the average line of the flow tide and the average line of the ebb tide.

FOREST - A large area of land, covered with a heavy growth of trees and underbrush.

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.

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.)

FORMS - (1) Restraints, such as plywood sheets, to control the shape of poured concrete until it hardens. (2) A general term meaning instruments which are not unique, but printed in quantity, usually with blank spaces to be filled in to identify specific facts.

FOUNDATION - The part of a building which supports the superstructure, usually below ground level.

FOYER - The open area or hallway upon entering a building, such as in a theater or hotel; also found in many homes.

FRAME CONSTRUCTION - Type of construction in which the structural parts are of wood or are dependent on a wooden frame for support.

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).

FREEHOLD - An estate, at least of duration of a lifetime, or of fee.

FREE STANDING BUILDING - A building containing one business, rather than a row of stores or businesses with a common roof and side walls.

FREEWAY - A highway with ramp entrances and exits only, all crossroads at a different grade level, and charging no tolls or fees.

FREON - The gas added to a refrigerator or air conditioner, which produces cold.

FRESCO - A method of painting on a wall on wet plaster. The paint becomes part of the wall and remains much longer than if simply painted on a dry plaster wall.

FRONT - (1) The external portion (face) of a building, which usually contains the main entrance. (2) That portion of land bordering on a river, ocean, street, etc.

FULL DISCLOSURE - 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. A builder must give to a potential buyer the facts of his new development (are there adequate school facilities?; sewer facilities?; and airport nearby?; etc.). A broker cannot charge a commission to buyer and seller unless both know (disclosure) and agree.

FUNCTIONAL OBSOLESCENCE - The need for replacement because a structure or equipment has become inefficient because of improvements discovered or invented since its construction.

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

FURLONG - A linear measure, one eighth of a mile, used in horse racing, issued by the executor of an estate.

FURNACE - An enclosed heating device. Modernly, a box-shaped unit containing a burner, which is fed oil or gas through a pipe. The heat from the burning gas or oil is circulated, usually with the aid of a fan through ducts to areas to be heated.

FURNITURE AND FIXTURES - An entry in an accounting statement, referring to those items considered depreciable, as business fixtures and furniture, rather than real property.

FURRING - Narrow strips of wood or metal which are applied to walls, floors, ceilings, etc., as a means of leveling the area before applying the surface boards or laths.

FUSE - A device to prevent the overloading of an electrical circuit, by containing a strip of metal which melts at relatively low heat and breaks the circuit. In modern construction, the fuse has been replaced by circuit breakers.

FUSE BOX - A metal box containing the main wiring and all electrical circuit connections, protected by fuses.