Real Estate Glossary Terms Beginning With – F

Updated: November 22, 2021

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Terms Beginning With - F

Property Development & Investment Glossary, Terms & Definitions

Facade

The front of a building's exterior.

Face interest rate

The interest rate that is shown on a mortgage paperwork.

Face value

Amount indicated in dollars on a paper.

Factory outlet

A shopping complex made up of manufacturer's retail outlet facilities where items are sold directly to the public in stores that the company owns and operates.

Fact sheet

The information displayed in a real estate listing.

Fair market rent

The amount of rent a property may command at any particular moment, if available.

Fair market value

The current market worth of a property.

Fannie Mae

The Federal National Mortgage Association is also known as the Federal National Mortgage Association (FNMA).

Farmers Home Administration (FmHA)

A federal body that administers aid to buyers of houses and farms in rural regions and is part of the United States Department of Agriculture.

Fashion-oriented center

A shopping mall with a high concentration of fashion stores, boutiques, and handicraft stores that sell hand-picked products of excellent quality at a premium price. A modest speciality department shop might be included. Usually found in a high-income neighbourhood.

Feasibility study

A report that considers a variety of aspects in relation to an investment and expresses a judgement on the likelihood of success.

Federal Deposit Insurance Corporation (FDIC)

It was founded in 1933 as a public business. In most commercial banks, it guarantees each depositor up to $100,000.

Federal Home Loan Mortgage Corporation (FHLMC)

A company that purchases mortgage debts.

Federal Housing Administration (FHA)

A division of the United States Department of Housing and Urban Development (HUD) that manages a variety of loan, loan guarantee, and loan insurance programmes. Its goal is to increase the number of homes available.

Federal National Mortgage Association (FNMA)

A business that specialised in buying mortgage debts.

Federal Savings and Loan Insurance Corporation (FSLIC)

A government institution that guarantees savings and loan association deposits against principle loss.

Fee simple

An encumbrance-free title to property is referred to as an encumbrance-free title.

Fenestration

Window design and placement in a structure.

Fidelity bond

An employee's bond insures against the loss of monies or assets.

Fiduciary

A person, firm, or organisation that holds assets in trust for a beneficiary and is responsible for prudently investing the funds for the beneficiary's benefit.

Financial leverage

Because the funds were borrowed, the rate of return to the equity investor increased.

Financial management rate of return (FMRR)

Two after-tax reinvestment rates are utilised in this form of the internal rate of return assessment.

Financial risk

The danger of borrowing money and the difficulties that will arise if the investor is unable to satisfy the debt service obligations.

Financial statement

A statement that shows the revenue and costs for a certain accounting period, as well as the assets, liabilities, and equity as of a specific date.

Financing

The process of borrowing money in order to purchase real estate.

Finder's fee

A charge paid to someone who performs a service but is not a broker.

First mortgage

A initial lien on a piece of real estate.

First right of refusal

One party's right to purchase or lease a property before another.

Fiscal year

A financial reporting period of 12 months that may or may not correspond with the calendar year.

Fit-up

Within the confines of the enclosing walls, the essential structure (leased space). Partitioning, doors, telephone and electrical outlets, completed wall surfaces, painting or wallcoverings, flooring, and lighting fixtures are all part of this package.

Fixed expenses

The running expenses that are typically fixed in amount each earnings period. They don't usually change according to the number of people in the house.

Fixtures

Personal property that is attached to the land and forms part of the real estate.

Flood insurance

Property damage caused by natural floods is covered by flood insurance.

Floodplain

A floodplain is a piece of land that is prone to flooding on a regular basis and is generally designated by the local authority.

Floor area ratio (FAR)

The total square footage of the land divided by the total floor area of the building (gross or net).

Floor loan

The smallest loan amount that a lender will consider.

Floor plan

The organization of rooms in a structure.

Foot candle

A light metre is a device that measures the amount of light in a room. It's the same as the amount of light emitted by a single candle at a distance of one foot.

Footprint

The shape and layout of a structure.

Force majeure clause

A condition in a construction contract that provides for extra time to finish a structure owing to an unavoidable reason of delay, such as bad weather, labour conflicts, or accidents.

Foreclosure

A legal procedure in which the rights of a property owner who has defaulted on a loan payment are forfeited.

Forfeiture

The money loss or other possessions as a result of a contract's failure to perform.

Freddie Mac

The Federal Home Loan Mortgage Corporation is also known as FHLMC (FHLMC).

Free and clear rate of return

The entire capitalization rate is also known as the capitalization rate.

Free and clear title

There are no liens on a piece of real estate.

Freehold

An undetermined amount of time in which you have an interest in a property.

Frontage

A property's linear distance along a road, lake, river, or ocean.

Frontend load

The overall remuneration earned by a syndicator on the sale of property to a partnership, which may include commissions on unit sales, loans or acquisition fees, or a resale mark-up on the property to be sold to the partnership.

Front foot

The frontage of a piece of land is used to determine its size.

Front money

The amount of money needed to start a transaction before it is completed.

Full disclosure

The obligation to disclose any and all relevant information about a financial transaction.

Functional depreciation

A decrease in the value of a property caused by factors other than physical degradation. Poor floor plans and outmoded plumbing fixtures are two examples.

Functional obsolescence

Functional depreciation is the same thing.

Future interest

A future property right or interest in a property.

Future return

The estimated value of an asset at some point in the future.

Glossary Index

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