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Frequently
Asked Questions
Glossary
of Real Estate Terms
Glossary for "F"
Facade
The part of a building facing the street or a courtyard.
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 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.
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.
Farmer's
Home Administration
A U.S. 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.
Federal
Home Loan Mortgage Corporation
The Federal Home Loan Mortgage Corporation, 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)
This 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 Association
Now officially dubbed Fannie Mae, this 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
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
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 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. Details include bigger windows and a front doorway
surrounded by glass and topped with an arched window.
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.
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.
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.
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.
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 timeshare arrangement
has access to accommodations.
Fixer-upper
A house that needs refurbishment or remodeling It usually sells
at a below-market price.
Fixture
Personal property permanently attached to a house, such as drapery
rods, toilets, built-in bookcases or a furnace.
Flashing
Metal strips placed around chimneys, skylights, vents, windows,
doors, beneath shingles and along seams in the roof to prevent water
seepage.
Flat
fee
A set fee charged by a broker instead of a commission.
Flat
roof
A roof with a level surface.
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.
Float
floor 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.
Flood
insurance
Hazard coverage that is required in designated flood areas.
Flood
plain
Flat, flood-prone areas located along waterways.
Florida
rooms
Enclosed porches built on the side or back of a home.
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.
Foreclosure
The legal process reserved by a lender to terminate the borrower's
interest in a property after a loan has 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.
For
Sale By Owner (FSBO)
The owner acts as the agent to avoid paying a sales commission.
Foundation
The support structure of a house.
Foyer
The entrance hall to a home or building.
Framing
The construction of the skeletal framework of a house.
Freddie Mac
The common name for the Federal Home Loan Mortgage Corporation,
a congressionally chartered institution that buys mortgages from
lenders and resells them as securities on the secondary mortgage
market.
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.
Fully
amortized adjustable-rate mortgage
A mortgage that amortizes, or pays down, the balance of a loan.
Furnace
An enclosed heating device powered by coal, oil, propane or natural
gas.
Fuse
A device that allows power to be channeled into a home.
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