Legal Glossary

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 #

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Fair Housing Act: Landmark federal law that makes it illegal to refuse to rent or sell to anyone based on race, color, religion, sex, or national origin. The 1988 amendments to the act expanded the protections to include family status and disability.

Fair trade laws: State laws which permit manufacturers or producers to set minimum rates for resale of the product. These laws have been repealed and/or found to be in violation of state constitutions in several states.

Fair use: The non-competitive right to use of copyrighted material without giving the author the right to compensation or to sue for infringement of copyright. With the growing use of copy machines,

Family Medical Leave Act: The federal law that requires certain employers to give time off to employees to take care of their own or a family member's illness, or to care for a newborn or adopted child.

Fannie Mae: The official name of the Federal National Mortgage Association, it is a congressionally chartered, shareholder-owned company that buys mortgages from lenders and resells them as securities on the secondary mortgage market.

Federal Housing Administration (FHA): A federal agency that sets guidelines and insures loans on residential housing.

Fee Simple: Absolute ownership without limitations, conditions or restrictions burdening particular heirs.

FHA loans: Mortgages that are insured by the Federal Housing Administration (FHA). The FHA operates loan plans for investors and purchasers of rural property, and provides low-rate mortgages to buyers who make a down payment as small as 3 percent.

Fiduciary duty: The relationship of trust that buyers and sellers expect from a real estate agent. The term also applies to legal and business relationships.

Fiduciary relationship: A special relationship in which one party, the fiduciary, owes heightened duties of good faith and responsibility to the other party.

Filing Fee: Fee charged for note filed with the county to process a lien.

Final discharge: Extinguishing the debtor's personal liability on certain debts, through the granting of a permanent injunction protecting the debtor from efforts to collect such debts as a personal liability.

Final judgment: The written ruling on a lawsuit by the judge who presided at trial. This completes the case unless it is appealed to a higher court. This term can be used interchangeably with a final decree or final decision.

Financed closing costs: Closing costs that are added to the loan amount. This practice saves the borrower cash up front, but increases the borrower's monthly payment.

Findings & award: A written decision by a judge about a case. This decision is final unless an appeal is filed.

Fraud:  Any knowingly false statement made for the purpose of obtaining workers' compensation or other governmental benefits.

First mortgage: The primary mortgage on a property. The first mortgage takes priority over all other voluntary liens.

Fixed-Rate Mortgage: A mortgage in which the interest rate does not change during the term of the loan.

Flood certification: The process of determining whether a property is located within a known flood zone. If the property is in a flood zone, the lender will probably require federally provided flood insurance.

Flood Insurance: Required by lender if property is situated in 100-year flood plain.

Foreclosure: Legal process by which a lender ends the borrower's interest in a property after a loan is defaulted. The lender may sell the property and keep the proceeds for mortgage and legal costs, using excess proceeds to satisfy other liens or return to the borrower.  It is also the process used by associations to collect assessments.

Foreign corporation: A corporation which is incorporated under the laws of a different state or nation. A "foreign" corporation must file a notice of doing business in any state in which it does substantial regular business.

Franchise: A right granted by the government to a person or corporation, such as a taxi permit, bus route, an airline's use of a public airport, business license or corporate existence.

Franchise tax: A tax levied in consideration for the privilege of either incorporating or qualifying to do business in a certain state. A franchise tax may be based upon income, assets, outstanding shares, or a combination.

Fraud: Occurs when intentional false statements are made to entice a victim to give up something of value.

Fraudulent transfer or conveyance: a debtor's conveyance or transfer of an asset, without adequate consideration, primarily for the purpose of concealing it from his creditors or the bankruptcy estate.

Freddie Mac: The common name for the Federal Home Loan Mortgage Corporation (FHLMC), a congressionally chartered institution that buys mortgages from lenders and resells them as securities on the secondary mortgage market.

Front-end ratio: A lender calculation that compares a borrower's monthly housing expense (principal, interest, taxes, and insurance) to gross monthly income.

Front pay: A type of damages award in an employment lawsuit that represents the amount of money the employee would have earned if the employee was reinstated or hired into the higher-paying position from which he or she was illegally rejected.

Fully reporting company: A public company that is subject to the Securities and Exchange Commission's periodic reporting requirements.

Funding Fee: May be charged by a lender to initiate a loan.

Fungible things: Sometimes merely called "fungibles," goods which are interchangeable, often sold or delivered in bulk, since any one of them is as good as another. Grain or gravel are fungibles, as are securities which are identical.