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GLOSSARY of American & Mexican
Real Estate Terms
F
401(k)/403(b)
An employer-sponsored investment plan that
allows individuals to set aside tax-deferred income for retirement or
emergency purposes. 401(k) plans are provided by employers that are
private corporations. 403(b) plans are provided by employers that are
not for profit organizations.
401(k)/403(b) loan
Some administrators of 401(k)/403(b) plans allow
for loans against the monies you have accumulated in these plans.
Loans against 401K plans are an acceptable source of down payment for
most types of loans.
Factura
An official receipt
Fair Market Value
The price negotiated for a parcel of Flagstaff real
estate
in a competitive market where both buyer and seller are free to act
and under no undue pressure.
Fee Simple Absolute
The maximum possible estate one can possess in
real property; also referred to as fee simple or fee.
Fees - Honorarios
A sum paid or charged for a service.
Fiduciary
A person who essentially holds the character of
trustee. A fiduciary must carry out the duties in a manner which best
serves the interest of the party for whom the fiduciary relationship
is established. A real estate licensee has a fiduciary duty to
his/her client (Seller, landlord, buyer or tenant).
Financial Statement - Estado Financiero
A document which sets out the assets, income,
expenses and debts of a person or company to allow a third person to
assess that person or corporation's financial health (i.e. when
considering lending money to that person or corporation).
First Lien
Claim with highest priority against property;
also known as a superior to the rights of subsequent lenders
(Recorded first).
First Mortgage
A mortgage on Flagstaff real estate in which the
lender's
rights are superior to the rights of subsequent lenders (Recorded
first).
Fixture
Broadly defined as personal property which has
become realty. Examples include built-in cabinets or bathtubs.
Foreclosure
A legal procedure to levy on pledged property
used to secure a debt under a mortgage or other lien.
Fraud
A misrepresentation of a material fact, which is
made with knowledge of its falsity, and with intent to deceive a
parry who in fact relies on the misrepresentation to his or her
detriment and injury.
Freehold Estate
One which continues for an indefinite period of
time. For as "least a lifetime or greater" (will).
Fully Amortized Mortgage
A method of loan repayment in which the dollar
amount of each payment is the same. The first part of each payment is
interest and the remainder reduced the principal. Over the life of
the mortgage, the outstanding balance is reduced to zero.
Functional Obsolescence
A loss in value due to conditions within the
structure which make the building outdated when compared with a new
building (4 bedrooms and 1 bath, insulation, narrow stairway,
etc.).
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