Title Insurance and Closing Services Since 1954
Terms Defined
The Real Estate Industry has its own unique language and, without some knowledge of this language, you may find yourself a bit confused if you become involved in a real estate transaction. Wayne County Title Agency, Inc. has compiled the following Definition of Terms commonly used in the real estate industry. Whether you are entering the real estate market for the first time or have invested in it before, this handy reference will provide an understanding of basic real estate words and phrases.
Fee Simple
An estate in which the owner is entitled to the entire property, with unconditional power of disposition during the owner’s life, and which descends to the heirs upon the owner’s death if the owner dies without a will.
FHA
Federal Housing Administration, an agency of the federal government which insures private loans for financing of new and existing housing and for home repairs under government approved programs.
FHLMC (Freddie Mac)
Federal Home Loan Mortgage Corporation, an affiliate of the Federal Home Loan Bank, which creates a secondary market in conventional residential loans and in FHA and VA loans by purchasing mortgages from members of the Federal Reserve System and the Federal Home Loan Bank System.
Financing Statement
A document filed with the Register of Deeds or Secretary of State securing the title to personal property.
Fixed-Rate Mortgage
A loan that carries an unchangeable interest rate over its entire term – typically a period of 15-30 years.
Fixture
Personal property that by state law becomes real property upon being attached to real estate.
Flood Certification
A common term for a Federal Emergency Management Agency (FEMA) Standard Flood Hazard Determination Form (SFHDF). This determines whether land or a building is located within a Special Flood Hazard Area for purposes of flood insurance requirements under the National Flood Insurance Program.
FNMA (Fannie Mae)
Federal National Mortgage Association, a federally sponsored private corporation which provides a secondary market for housing mortgages.
Foreclosure
Legal process by which a mortgagor of real property is deprived of interest in that property due to failure to comply with terms and conditions of the mortgage.
Forfeiture of Title
A common penalty for the violation of conditions or restrictions imposed by the seller upon the buyer in a deed or other proper document. For example, a deed may be granted upon the condition that if liquor is sold on the land, the title to the land will be forfeited (that is, lost) by the buyer (or some later owner) and will revert to the seller.
Forgery
The fraudulent signing of another’s name to an instrument such as a deed, mortgage or check.