Real Estate Glossary

This list is provided for reference only. Each state has it's own real estate laws, terms and regulations for Realtors. In Arizona, your Realtor and Title Company handle most real estate transaction activities that involve attorneys in many other states. However, you have the right to seek the advice of an attorney or other professional counsel in any real estate transaction.

Facilitator - An agent who assists the parties to a potential real estate transaction in communication, interposition, and negotiation, between or among them, without being an advocate for any interest. Does not represent any of the parties to the transaction and is not allowed to assist any party in gaining an advantage over any other party in the transaction. Does not have the same Fiduciary Duties as an Exclusive Agent - . Extremely limited in services he can offer to either party. Also know as Intermediary - , Transaction Broker - , Mediator, or Non-Agent - . Caution: This form of agency offers a reduced level of service and should never be considered unless you are very knowledgeable about real estate.

Federal National Mortgage Association - Fannie Mae (FNMA) popularly known as Fannie Mae. FNMA was established for the purpose of purchasing loans from primary lenders (mortgage companies). FNMA is a private corporation and it's stock is traded on the New York Stock Exchange.

Fair Housing Laws - Federal, state, and local laws, particularly Title VIII of the 1968 Civil Rights Act, Title VI of the Civil Rights Act of 1964, and the Civil Rights Act of 1866, which forbid discrimination because of race, sex, color, religion, or national origin, in the selling or renting of homes or apartments, and in other specified transactions. These laws have been recently been expanded to include familial status (having children) and disabilities (Americans with Disabilities Act).

Fair Market Value - See Market Value -

Federal Home Loan Bank - Provides liquidity to supervised financial service companies, such as savings and loans and credit unions. The bank system has several districts.

Federal Home Loan 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 Mortgage Corporation - Freddie Mac (FHLMC) A federal Agency purchasing first mortgages, both conventional and federally insured, from members of the Federal Reserve System, and the Federal Home Loan Bank System.

Federal Housing Administration (FHA) - A federal agency which insures first mortgages, enabling lenders to loan a very high percentage of the sale price.

Federal Reserve Bank - The regulatory agency for certain commercial banks and bank holding companies. Sets monetary policy for the country and provides liquidity for supervised financial institutions.

Federal Tax Lien - A lien attached to property for nonpayment of a federal tax.

Fee Simple Estate - The most complete form of ownership of real property; absolute ownership. Commonly used to to denote a property where the owner has undivided title to the land on which the property is situated.

FHA - The Federal Housing Administration which insures mortgage loans made by approved lenders, in accordance with FHA regulations.

Fiduciary - A real estate broker who becomes an agent of a seller or buyer is deemed to be a Fiduciary. Other examples of fiduciaries are trustees, executors, and guardians. As a fiduciary, a real estate broker is held by law to owe specific Fiduciary Duties - to his/her Principal - (the person who they are representing), in addition to duties or obligations set forth in a Listing Agreement, Buyer Representation Agreement, or other contract of employment. Subagents of the broker also owe the same Fiduciary Duties to the broker's principal.

Fiduciary Duties - A broker or agent always owes these duties to the person they are representing (their principal): Loyalty - , Obedience - , Disclosure - , Confidentiality - , Reasonable Care and Diligence - , and Accounting - .

These duties are inherent in all agency relationships and enforced by all courts of law in the United States.

First Mortgage - A mortgage which is in first lien position, taking priority over all other liens (which are financial encumbrances).

Fixed Rate Mortgage - A mortgage with an interest rate and monthly payment that doesn't vary for the term of the loan.

Fixture - Personal property which has been attached to real estate so as to become part of the real property. The article must meet at least one of three conditions: (1) Attached in a permanent manner. (2) Specially adapted to the property. (3) Intentionally made part of the real property.

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.

Fraud - A misstatement of a material fact made with intent to deceive or made with reckless disregard of the truth, and which actually does deceive.

Front Foot - One linear foot (12 inches) along the street side of a lot.

Full Disclosure - Revealing all the known facts which may affect the decision of a buyer or tenant.

Functional Obsolescence - Loss of value of real property caused by modernization or changing tastes or standards; e.g. single bath, inadequate closet space, etc. Also see Economic Obselescence. -