Ameraco

FAIR MARKET VALUE:
The value of an item as established by a consideration of how much an independent buyer would pay to an independent seller in a completely free transaction for the item.

FEES:
1) The money required at the outset by a lender from the borrower or held back from the mortgage advance. 2) The amounts charged by a professional for services rendered.

FINAL VALUE ESTIMATE:
The product of a real estate appraiser’s completed work, an assessment of the value of a property based on all factors and taking into consideration the different evaluation methods available.

FINDER’S FEE:
Commission paid to a mortgage broker for placing a mortgage with a specific institution.

FIRM AND BINDING:
Description of a legal contract once all conditions have been removed. It is now legally enforceable by the parties to it.

FIRM OFFER:
An offer to purchase delivered to the potential Vendor by a potential Purchaser who will not negotiate any changes to the offer.

FIRM PRICE:
An indication in a real estate advertisement that the price asked for the property is not open for negotiation.

FIRST LIEN:
The registered legal claim which stands first in line to enjoy the proceeds of a sale of the property. Liens generally are ordered according to time or registration but various statutes allow some liens (realty taxes) to jump to the head of the line.

FIRST MORTGAGE:
A mortgage that, when registered, is first in line on the property, giving the lender superior right to the proceeds of the sale of the property over other, later claimants.

FIXING-UP EXPENSES:
Moneys spent on minor repairs to improve the marketability of a property.

FIXTURE:
An item which is attached to an forms part of the buildings or land itself and are, therefore, included in the sale or property unless specifically excluded in the contract.

FLEA BAG:
Slang term for a cheap, run-down property.

FLIP:
The rapid turnover of a piece of property by one person who buys it for a certain price then sells it soon thereafter for more.

FLOOR AREA:
The total space covered by all floors in a building.

FLOOR AREA RATIO (FAR):
A comparison of the total area of the floor of a building with the total area of the land upon which it stands. Maximum or minimum FARs may be established by local zoning rules.

FLOOR PLAN:
A sketch of an existing or proposed building showing the design and layout of the building and the specifications of each room. May also show doors, windows, stairways and other features.

FOR SALE BY OWNER (FSBO):
Indication that the owner of a property is attempting to find a purchaser for his property on her own, without employing an agent.

FORCED SALE:
The marketing of a property as a result of some outside influence, such as bankruptcy, where the price obtained might not be optimum.

FORECLOSURE:
An enforcement process in which the lender under a defaulted mortgage takes title to the property for the purposes of selling it to recoup moneys owed under the mortgage.

FORFEITURE:
The loss of a right, claim, interest or item of property as a result of one’s failure to meet one’s legal obligations.

FORMAL CONTRACT:
A contract under seal.

FORTY-YEAR SEARCH:
An investigation of the records regarding title to a property that goes back forty-years prior to the date of the search. Statute law in Ontario has deemed that any registered interest which is older than forty years and has not been renewed is unenforceable.

FREE AND CLEAR:
A description of title to property which is unencumbered and subject to no competing claims.

FRONTAGE:
The measurement of a property’s boundary that runs along the side of a particular feature (street, lake, ocean, river, etc.).

FULL DISCLOSURE:
The revelation to another party in a contract or legal dispute of all relevant information in one’s possession. An agent acting for both parties in a real estate purchase must fully disclose this conflict of interest to all parties.

FULL-PRICE OFFER:
A proposal by a purchaser to buy a property at the price and on the terms asked by the vendor in her property listing.

FULLY ASSUMABLE MORTGAGE:
A land loan that may be transferred to a new owner without any change to the terms, as long as the new owner qualifies.

FULLY EXECUTED SALES CONTRACT:
An agreement in which all parties have agreed and signed to all terms of the agreement.

Tags: Real Estate Terminology

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