Property Legal Terms (F)

FOC

An acronym for free of charge. Includes any goods or services provided gratis.

facade

The front face of a building

face rent

The quotes rent without taking out the effect of rent –free periods, rebates or incentives, if any.

facilities management

The management of owned and occupied corporate real estate and the services provided for the occupants

facility

They building or area constructed specifically to accommodate the occupiers' needs

fair market value

The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept.

fair rent

The market rent of a property

far (THA)

Plot ratio or the building to land ratio

fee simple

The greatest possible interest a person can have in real estate.

fee simple estate

An unconditional, unlimited estate of inheritance that represents the greatest estate and most extensive interest in land that can be enjoyed. It is of perpetual duration. When the real estate is in a condominium project, the unit owner is the exclusive owner only of the air space within his or her portion of the building (the unit) and is an owner in common with respect to the land and other common portions of the property.

final completion

The date following the defects liability period when a project is deemed complete and all final payments have been paid

financing costs

The rate of interest and other service charges needed to obtain a loan.

finder's fee

A fee paid to an unlicensed broker for an introduction.

firm commitment

A lender's agreement to make a loan to a specific borrower on a specific property.

first mortgage

The mortgage that is in first place among any loans recorded against a property. Usually refers to the date in which loans are recorded, but there are exceptions.

first refusal right

A right given by one party to another whereby the first party is obliged to give the second party a chance to acquire an asset before he offers it to anyone

fit-out

The physical components included in a facility constructed to enable the occupier to utilize the space

fit-out costs

Expenses incurred in fitting out premises prior to occupancy

fit-out period

Period wherein lessee may perform fit-out works

fittings

Items which are affixed to land or buildings and which are easily removed

fixed price contract

A building contract in which the total price is fixed at the outset usually subject only to changes due to subsequent variations in statutory undertakers' charges.

fixed-rate mortgage

A mortgage in which the interest rate does not change during the entire term of the loan.

fixed rent

A rent that cannot be changed during the entire period of a lease or, at the date when the lease is being valued, will be unaltered for such a length of time that no change in capital value would be attributed to the prospect of a different rent during the remainder of the lease

fixture

Personal property that becomes real property when attached in a permanent manner to real estate.

flat

A separate set of premises, normally all on the same floor, formingpart of the building,divided horizontally from some other part of the building, constructed or adapted for the purposes of a private dwelling and occupied wholly or mainly as a private dwelling

force majeure

An act of god (natural calamities), or an act of a man (war, riots) beyond the control of the parties to a control of the parties to a contract which make it impossible for one of the parties to fulfil the terms of that contract. Many contracts have a force majeure clauses.

free standing building

A standalone building which is not attached to any other building

flood insurance

Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas.

floor plan

An architectural sketch of various rooms, balconies, bathrooms, etc.

flowage easement

An easement by convention that allows water from lands at higher levels to flow into and through lands located at lower levels even though there may be no agreements to such effect

foreclosure

The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.

forefeit

The loss of a right, privilege, property, or money because of a crime, breach of obligation, or neglect of duty.

foreigner

Means an individual who is neither a citizen nor a resident, but is not an illegal foreigner

fraud

An act that is done with the intent of acquiring property or money by deceipt

free and clear

Property that is not encumbered

freehold

A term used in real estate, meaning land held in fee simple, as opposed to leasehold. Any interest in real property which is a life estate or of uncertain or undetermined duration (having no stated end), as distinguished from a leasehold which may have declining value toward the end of a long-term lease (such as the 99-year variety).

freehold Title Deed

This type of title grants the holder of this document the full right over the land. The holder has absolute authority over the land

fullhouse

A hundred per cent occupancy in a commercial or residential property or hotel

furniture and fixtures

Accounting term covering furniture and other items that are used in an office or home but not part of the property.

gearing

The use of borrowed money to generate a higher yield through investment in real estate.The relationship between a company's loan capital and its equity capital. This is usually expressed as the ratio of loan capital to net asset value