United Country Guardian Real Estate - Dillon, Beaverhead Madison County Southwest Montana Real Estate for sale

Dictionary / Glossary / Directory
of Real Estate Terminology
Definitions & Commonly Used
Real Estate Terms

Confused & overwhelmed by the overwhelming number of real estate terms and words? Every person working in real estate or planning to buy or sell real estate can benefit by using this dictionary directory glossary of real estate terminology, definitions and commonly used terms.

Real Estate Terminology Definitions & Commonly Used Terms
In Alphabetical Order

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

    Face Rate:

    Synonym: Contract Rate, Nominal Rate
  • The interest rate contained in a promissory note. The contract rate is lower than the annualized percentage rate (APR) which contains additional charges made by the lender, such as points. The APR therefore will exceed the face rate.
    • Farm:

    • An area or group targeted by a sales agent who specializes in listing properties for sale. Such a licensee may repeatedly advertise within his farm and become expert in its characteristics. An agent engaged in such activities is said to be farming.
      A farm also is land on which livestock or crops are raised.
      • Fee:

      • The money paid to a person in exchange for the performance of a professional service. The compensation paid to a real estate agent is called a commission, not a fee, since it is usually a percentage of the sales price. However, the compensation paid to an attorney, even though it is a percentage of the awarded damages, is nonetheless called a fee. Real estate consultants earn fees, not commissions.
        • Fee Simple:

        • The maximum form of legal ownership to real property. Typically referred to as ownership of a “fee.” It is contrasted to lesser forms of ownership, such as leaseholds and life estates.
          • Fiduciary Relationship:

          • A person who acts in a position of trust or confidence for the benefit of another party, particularly with respect to property and money. An attorney and client are in a fiduciary relationship. A real estate licensee and client are also in a fiduciary relationship. A fiduciary cannot overreach, that is, take advantage of his client. The law requires full disclosure of all material facts as well as fair dealing on the part of a fiduciary.
            • Finance:

            • The rental of a certain amount of money, by a borrower from a lender, to be repaid with or without interest. A loan may be secured, that is, a valuable asset may be pledged by the debtor to insure repayment of the loan. Upon default by the debtor, the creditor presumably may obtain the unpaid balance by selling the security. Most loans in real estate transactions are secured by real estate. An unsecured loan is based on the general credit-worthiness of the debtor.
              • Fixture:

              • An item that is permanently affixed to land. In determining what is permanently affixed to land, courts consider the manner of the attachment, the intention of the parties involved in the attachment, and the adaptation of the item to the real estate. An item that is not a fixture is personal property; an item that is a fixture is part of the real property. Examples of fixtures in residences are built-in ranges and dishwashers. Examples of personal property in residences are clothes washers and dryers, furniture and potted plants. In the absence of an agreement to the contrary, ownership of fixtures transfers with the land at closing of a transaction.
                • Foreclosure:

                • The legal confiscation and sale of real property brought about by a secured creditor. The proceeds of the sale are taken to satisfy the unpaid portion of the debt. There are two basic forms of foreclosure, judicial and non-judicial. In the former, the sale is conducted under the auspices of the court following a trial and other legal proceedings. The debtor has a period of time, usually one year or more, during which to redeem the property from the purchaser at the judicial foreclosure sale. In a non-judicial foreclosure, the sale occurs privately by the trustee and the debtor has no period of time within which to redeem following a trustee's sale. Sometimes a deficiency judgment is possible following a judicial foreclosure; never following a non-judicial foreclosure.
                  • Forfeiture:

                  • A concept under which one's ownership rights in real property are terminated, or cut off completely, on the occurrence of some event, such as nonpayment of an amount due. "Equity abhors forfeiture" is an old legal maxim that means, generally speaking, a contract provision calling for forfeiture of a real property interest will not be enforced by a court. For example, under a land sale contract, a buyer promises to make payments for many years, following which the seller agrees to convey ownership by deed. After many years of regular payments, the buyer misses a payment, and the seller immediately declares a forfeiture, contending that the buyer's interest is cut off. The law will not cut off the buyer's interest, and will require the seller to go through foreclosure in which the buyer's equity will be recognized. Foreclosure is not a forfeiture because the owner's equity, if any, is protected.
                    • Fraud:

                      Synonym: Misrepresentation, Deceit
                    • Improper conduct, such as misrepresentation of a fact as true by someone who does not believe it to be true; misrepresentation of a fact as true by someone carelessly unaware of its falsity; concealment of a fact; assertion of a promise with no intention to perform it; or any other conduct calculated to mislead another. Damages, i.e., a money judgment, are available to compensate the victim of fraud. Generally, the amount of damages recoverable are "out-of-pocket" losses, i.e., the difference in value between assets which the victim gave and received in the transaction. Lost future profits also may be recoverable. In aggravated instances of fraud, the victim may be entitled to recover punitive or exemplary damages from the perpetrator. Some misrepresentations are not actionable. Allegations of fraud are easy to make and difficult to defend.
                      • Fraud:

                        Synonym: Misrepresentation, Deceit
                      • Improper conduct, such as misrepresentation of a fact as true by someone who does not believe it to be true; misrepresentation of a fact as true by someone carelessly unaware of its falsity; concealment of a fact; assertion of a promise with no intention to perform it; or any other conduct calculated to mislead another. Damages, i.e., a money judgment, are available to compensate the victim of fraud. Generally, the amount of damages recoverable are "out-of-pocket" losses, i.e., the difference in value between assets which the victim gave and received in the transaction. Lost future profits also may be recoverable. In aggravated instances of fraud, the victim may be entitled to recover punitive or exemplary damages from the perpetrator. Some misrepresentations are not actionable. Allegations of fraud are easy to make and difficult to defend.
                        • Frontage:

                        • The boundary of a parcel of real estate that adjoins a public right-of-way or body of water. Frontage is usually expressed in linear feet, as one hundred feet of water frontage. One foot of frontage is called a front foot, and values may be expressed in X dollars per front foot.
                          • FSBO - For Sale By Owner:

                          • Pronounced "fizzbo," it refers to a house that is being held for sale by its owner without the services of a licensed agent, usually to avoid paying a sales commission.
                            • Full Cash Value:

                            • A term used in property taxation to describe the value of real property for ad valorem tax purposes. Traditionally, full cash value is somewhat less than market value. For tax purposes, when property is sold, full cash value is market value, as evidenced by the sales price.
                              • Functional Obsolescence:

                              • In appraisal, the decline in the value of property due to changes in the style, design, technology, floor plan, and so on, of competing property.
                                • Future Value:

                                • Any possessory or ownership interest in real property that will vest (become perfected) at some future date. For example, the owners of the remainder interest following a life estate have future interests in the property that will vest, or become perfected, upon the death of the life tenant.

                                • Real Estate Terminology Definitions & Commonly Used Terms
                                  In Alphabetical Order

                                  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


                                  While great care has been undertaken to provide accurate explanations and definitions for real estate terms and words in our real estate terms dictionary glossary dirctory, no real estate vocabulary dictionary cannot be completely accurate in all jurisdictions. Any / all definitions are for general purposes only and should not be used for any legal purpose. By use of this dictionary glossary directory of real estate terms, you agree to hold United Country - Guardian Real Estate harmless for any responsibility for any liability, loss or risk that may be claimed or incurred as a consequence of using this information.