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Fair Housing Act (1988)

A federal Act that compels a person to not refuse to sell or rent, or negotiate to sell or rent, a dwelling to anyone who has made a bone fide offer regardless of race, color, religion, national origin, sex or handicap. Family status has been added to the list by many states.


Fair Market Value (FMV)

A term that is no longer used by most appraisers that has been shortened to "market value."  All market value appraisals are inherently fair since properties are objectively analyzed. 


Target marketing used by real estate agents to work on a specific geographic area, neighborhood and/or property type. Agents often use newsletters and personal contacts to keep home owners in their "farm area" in touch with market activity.

Federal Home Loan Mortgage Corporation (FHLMC-Freddie Mac)

An origanization that provides a secondary mortgage market for financial institutions by purchasing conventional loans. The requirements for the purchase of mortgages are stringent. Additional funds for mortgage loans are secured by Freddie Mac through the sale of interests in pools of mortgage loans that they have purchased.

Federal Housing Administration (FHA)

A Department of Housing and Urban Development agency responsible for the administration of programs dealing with home loans made from private funds.

Established by the National Housing Act (1934) the FHA was adopted to assist the public with home ownership. FHA loans are insured by the federal government and require the payment of a mortgage insurance premium (MIP) often paid monthly over the life of a loan. FHA loans can often be assumed by third parties and require only a modest down payment. FHA has several successful loan programs. There are specific requirements under each program which must be met. Financial institution familiar with FHA lending are usually a good source for additional information.

Federal National Mortgage Association (FNMA or Fannie Mae)

A corporation that is privately owned and operated that buys the mortgages given by other financial institutions. The organization issues securities and stocks to secure it's mortgage acquisition funding.

Fee Estate

An interest or estate in real property. Fee simple is used to describe all of the possible rights in real estate that an owner can acquire.

FHA Graduated Payment Loan

A loan structured to start out with low payments that are gradually increased for five to ten years and then remain level. Interest is sometimes deferred with loans of this type.

FHA Price Level Adjusted-Mortgage (PLAM)

A long-term amortized mortgage that adjusts with changes in the inflation rate. Mortgages of this type offer very low initial interest rates due to the fact that less risk is being taken by the lender.


There are duties and responsibilities created for an agent in a listing relationship that include; loyalty, disclosure, obedience, reasonable care/due diligence, confidentiality and accounting.

Financial Institutions Reform Recovery and Enforcement Act (FIRREA)

This law was enacted to deal with the Savings and Loan crisis, and it called for the licensing of real estate appraisers and for stricter requirements on lenders.


The exchanging of money for a security interest in real or personal property. Normally accomplished through the use of a mortgage or trust deed that pledges the property as security for the debt.

First Mortgage

A first mortgage is normally the mortgage that was recorded first, and the first position usually offers the lender the most security. Second and subsequent mortgage lenders are paid from the balance of the proceeds, if any, that remain from the sale of a foreclosed property.

Fixed-Rate Mortgage

A description given to a mortgage with an interest rate that does not change during its term.  While adjustable rate mortgages often offer lower initial interest rates, fixed-rate mortgages offer security to long-term owners.


Personal property items that are attached to real estate are called fixtures. These items become part of the real estate and their removal can be the cause of contract disputes in real estate contracts. Your Realtor® or real estate attorney can provide you with detailed information with regard to what is considered to be a fixture.

For Sale By Owner (FSBO)

The term used by real estate professionals for a property that is being marketed by the owner on his own. This situation most often occurs in areas where housing or land is in short supply, or in a "seller's market." A seller in a strong real estate market finds it difficult to imagine that costly marketing will be required to sell land or a home, and fees are often discounted by real estate agents in this type of market.


The legal process used to recover a real property interest. Foreclosure is usually initiated after a default has been made to the terms of a contract, and requires that a person or company using it follow legal guidelines.


The loss of an interest in real estate, money or any valuable concession. This loss is often due to the failure of a person to perform under the terms of a contract.


Some real estate companies are owned by individuals who pay for the right to affiliate with a larger franchise organization, or they are owned outright by a national franchise company. Independently owned and operated real estate companies gain the benefit of recognition, national advertising, training programs, sales rallies, referrals, pre-prepared marketing materials and other franchise developed business aides.

A Real estate franchise is not unlike a fast food franchise although the product quality may not be as consistent in real estate. Real estate service often depends more on the qualifications and abilities of an individual agent than with the franchise affiliation of the firm.


A legal term that has a specific meaning in each State and in Federal courts. In general it is used to describe an intentional deception that is the cause for a loss of another. The legal definition of fraud often includes an intentional and an un-intentional type.

Functional Obsolescence

A loss of functional capacity or efficiency.  In real estate functional obsolescence is most often caused by a poorly designed or dated layout, inadequate or super-adequate items.


Copyright © 2007 Horizon Village Realty & Appraisal

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.