A • B • C • D • E • F • G • H • I • J • K • L • M • N • O • P • Q • R • S • T • U • V • W • X • Y • Z • Notes on Using this Glossary - F -Fee Simple: The largest estate a person can have in real estate. Denotes totality of ownership, unlimited in point of time, as in perpetual. Fiduciary: A person to whom property is entrusted; a trustee who holds, controls, or manages for another. A real estate agent is said to have a fiduciary responsibility and relationship with a client. Financial Distress: The events that lead up to the declaration of bankruptcy by a business. Fixed Rate: An interest rate that is fixed for the term of the loan. Fixed-Rate Loans: Fixed-rate loans have interest rates that do not change over the life of the loan. As a result, monthly payments for principal and interest are also fixed for the life of the loan. Fixed-rate loans typically have 15-year or 30-year terms. With a fixed-rate loan, you will have predictable monthly mortgage payments for as long as you have the loan. Foreclosure: A legal term applied to any of the various methods of enforcing payment of the debt secured by a mortgage, or deed of trust, by taking and selling the mortgaged property and depriving the mortgagor of possession. Forfeiture Clause: A clause in a lease enabling the landlord to terminate the lease and remove a tenant when the latter defaults in payment of rent or any other obligation under the lease. Freehold: An interest in real estate of not less than a life estate: either a fee simple estate or a life estate. Functional Obsolescence: An impairment of the desirability of a property arising from its being out of date with respect to design and style, capacity and utility in relation to site, lack of modern facilities, and the like. - G -General Warranty Deed: A deed that conveys not only all the grantor’s interests in and title to the property to the grantee, but also warrants that if the title is defective or has a “cloud” on it (such as mortgage claims, tax liens, title claims, judgments, or mechanic’s liens against it) the grantee may hold the grantor liable. Good Faith Estimate: Written estimate of the settlement costs the borrower will likely have to pay at closing. Under the Real Estate Settlement Procedures Act (RESPA), the lender is required to provide this disclosure to the borrower within three days of receiving a loan application. Grace Period: Period of time during which a loan payment may be made after its due date without incurring a late penalty. The grace period is specified as part of the terms of the loan in the Note. Grantee: That party in the deed who is the buyer or recipient; the person to whom the real estate is conveyed. Grantor : That party in the deed who is the seller or giver; the person who conveys the real estate. |