The Ultimate Real Estate Glossary: Letter Fs
Ever been to a real estate investors’ meeting with lots of jargon and trade terms used, and you’ve got no idea what everyone else is talking about?
That’s exactly the reason we’ve assembled the Ultimate Real Estate Glossary. It’s a complete guide to the vocabulary you should be familiar with while you’re working in real estate. Now that you know what you’re talking about, you can chat with fellow property managers and tenants like a pro.
For this edition, we’ll go through the real estate terms that start with the letter F.
Real estate terms: The letter F
Fair Credit Reporting Act: A federal law. As far as property management goes, the FCRA requires that the potential tenant give permission to have a credit report run and know which credit agency runs the report. If a landlord makes an adverse decision to rent to a potential tenant on the grounds of their credit score, the tenant must be notified. A negative decision here means not only refusal to rent, but also charging a higher amount of rent than is typical, requiring a deposit not normally requested of other tenants, etc.
Fax rider: A legal clause that authorizes a document sent via facsimile transmission (fax) to have the same legal effect as the original.
Feedback: The reaction of a client or a real estate agent to a listing or property, typically requested by the listing agent.
Fee simple: A form of ownership. Think of it simply as complete ownership. Under fee simple, the owner can use and dispose of property at their discretion, even if they haven’t paid off the mortgage.
FHA: The Federal Housing Administration. It’s a government agency that provides mortgage insurance to home loans made by approved lenders. FHA coverage extends throughout the United States and its territories.
FHA (Federal Housing Administration) Loan Guarantee: The main function of the FHA. An FHA home loan attracts borrowers with low to moderate-income. The FHA itself doesn’t provide you with the loan, it’s a lender that they approve who does this, but the FHA guarantees the loan. You’ll also need to buy mortgage insurance, and you’ll pay your premiums to the FHA itself. The FHA Loan Guarantee puts homes in the reach of people who would otherwise not be able to afford one due to lack of income or bad credit score.
Fixed-rate mortgage: This is one of the two primary mortgage types. Its main feature is that the interest rate remains fixed over the entire span of the loan. That means the rate stays the same regardless of market forces, and a consumer knows how much they’re paying every period.
Fixture: Personal property that becomes part of real property by being fastened to or affixed to real estates, like a chandelier.
Flat fee: This denotes a fixed amount regardless of circumstances. In real estate, this can also refer to an alternative to commissions. Flat-fee brokers generally charge lower prices than full-service brokers (who charge a commission) but do not include a full range of services like full-service brokers do.
Floor duty or time: The time in which a real estate agent must be in the office to answer telephone or email inquiries not addressed to a specific agent or handle walk-in customers.
For sale by owner (FSBO): When an owner lists a property for sale without the assistance of a real estate agent.
It may take a while to get used to the trade terms, but it’s a lot easier with this guide on hand. You’ll be speaking like an experienced landlord in no time!
Check back on our site for the next list, where we’ll continue covering the following letters in sequence until we reach the letter Z.
Any other terms we missed? Just comment below, and we’ll make sure to touch on them!
Image courtesy of Jessica Ticozzeli