fair market value
The highest price that a buyer, willing but not compelled to buy, would pay, and
the lowest a seller, willing but not compelled to sell, would accept. |
fee simple
The greatest possible interest a person can have in real estate. |
fee simple estate
An unconditional, unlimited estate of inheritance that represents the greatest
estate and most extensive interest in land that can be enjoyed. It is of perpetual
duration. When the real estate is in a condominium project, the unit owner is
the exclusive owner only of the air space within his or her portion of the building
(the unit) and is an owner in common with respect to the land and other common
portions of the property. |
fiduciary duty(ies)
The duties of loyalty, disclosure, confidentiality, obedience, reasonable care
and diligence and full accounting that are required by law of any agent relative
to his/her principal. |
finder's fee
A fee or commission paid to a mortgage broker for finding a mortgage loan for
a prospective borrower. |
firm commitment
A lender’s agreement to make a loan to a specific borrower on a specific property.
|
first mortgage
A mortgage that is the primary lien against a property. |
fixed instalment
The monthly payment due on a mortgage loan. The fixed instalment includes payment
of both principal and interest. |
fixed-rate mortgage
(FRM)
A mortgage in which the interest rate does not change during the entire term of
the loan. |
fixture
Personal property that becomes real property when attached in a permanent manner
to real estate. |
flood insurance
Insurance that compensates for physical property damage resulting from flooding.
It is required for properties located in federally designated flood areas. |
foreclosure
The legal process by which a borrower in default under a mortgage is deprived
of his or her interest in the mortgaged property. This usually involves a forced
sale of the property at public auction with the proceeds of the sale being applied
to the mortgage debt. |
forfeiture
The loss of money, property, rights, or privileges due to a breach of legal obligation.
|
fully amortized ARM
An adjustable-rate mortgage (ARM) with a monthly payment that is sufficient to
amortize the remaining balance, at the interest accrual rate, over the amortization
term.
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