Federal H ome Loan Mortgage Corporation (FIILMC) A Federal agency which buys mortgages in the secondary money market from commercial banks and federally insured savings and loan associations; Freddie Mac.’

Federal Housing Administration (FHA) - An agency of the Federal Government which insures certain real estate loans.

Federal National Mortgage Association (FNMA) - An agency formerly of the Federal Government that buys and sells mortgages in the secondary money market. Fannie Mae.’

Fee Conditional - An estate granted absolutely hut only so long as a specified event occurs Or does not occur.

Fee Simple - An estate in real property, by which the owner has the greatest power over the title which it is possible to have, being an absolute estate; an estate of inheritance belonging to the owner, that he may dispose of, trade, or will, as he chooses.

FeeTail - An estate which is inheritable by particular lineal heirs. Upon lack of such heirs the estate reverts back to the grantor or his heirs.

Fiduciary - A person in a position of great trust and confidence, as the relationship between principal and broker.

Finders Fee - A fee paid to a person for the services of putting together the two parties in a real estate transaction.

First Refusal, Right Of- A right, usually given by an owner to a lessee, which gives the lessee the first chance to buy the property if the owner decides to sell. The owner must have a legitimate offer which the lessee can then match or refuse.

FIRPTA Federal Investment in Real Property Tax Act. An amount withheld from the sale of Hawaii property when the seller is a foreigner.

Fiscal Year A year, used for tax, corporate and accounting purposes which begins on a date other than January I.

Fixture - An article of personal property which has been installed in or attached to land or a building thereon, in such a manner, that it is now considered to he a part of the real estate.

Foreclosure - Procedure whereby property pledged as security for a debt is sold to pay the debt in event of default in payments or terms.

Forfeiture - Loss of money or anything of value, due to failure to perform: a right expressly given in an installment contract whereby the seller terminates the contract for non-payment, and retains all of the payments previously made by the buyer.

Fraud - The intentional and successful employment of deception in order to cheat or deceive another person and to thereby gain some dishonest advantage.

Freehold - An estate in real property for an indefinite and uncertain time, such as a fee simple or a life estate.

Front Foot - Property measurement by the front foot on its street line or waterfront line with each front foot extending the depth of the lot

Functional Obsolescence - See Obsolescence.