Home Page - Kelowna Real Estate

FACADE:
An exterior wall of a building or house.

FACE LIFT:
Slang term for cosmetic changes to the appearance of a property which may improve the selling price.

FACE RATE OF INTEREST:
The rate of interest chargeable on a loan as set out in the loan document.

FACE VALUE:
The value of an item as set out in the instrument creating it or representing it.

FAIR MARKET VALUE:
The value of an item as established by a consideration of how much an independent buyer would pay to an independent seller in a completely free transaction for the item.

FAMILY RESIDENCE:
A legal designation of the property in which a married couple or a family ordinarily resides. Both spouses are deemed to have a legal interest in the family residence even if only one spouse is on title.

FARM MORTGAGE:
A mortgage secured against agricultural land.

FARMLAND:
A category of land for zoning or other legal purposes, denoting property used for agricultural purposes.

FEE APPRAISER:
A person who estimates the value of a property for a fee.

FEE SIMPLE:
The best title to property available, representing the absolute ownership of a parcel of land.

FEE SIMPLE DETERMINABLE:
An estate in land where the owner's title to a property in fee simple is dependent on the occurrence (or non-occurrence) of a particular event. Usually represented by the inclusion of "As long as" in the deed.

FEE SIMPLE SUBJECT TO A CONDITION SUBSEQUENT:
An estate in land where the owner's title in fee simple may be terminated by the former owner or her heir's upon the occurrence of a particular event. The termination must be carried out by the former owner and is not automatic upon the occurrence of the event.

FEE SIMPLE SUBJECT TO AN EXECUTORY LIMITATION:
An estate in land where the owner's title in fee simple may be terminated by the occurrence or non-occurrence of a particular event, at which time title passes to a named third party.

FEE TAIL:
An archaic form, an estate in land where title to the property was limited to the owner and his descendants with no power to transfer. Usually created by a transfer to the person "and the heirs of his body".

FEES:
1) The money required at the outset by a lender from the borrower or held back from the mortgage advance.
2) The amounts charged by a professional for services rendered.

FIDUCIARY:
A person charged by law and equity with a higher duty of care for another person. A person who, as a result of a relationship with another person, is required by law to place the other person's interests equal to or ahead of his own in all dealings involving that other person. The relationship is often created when the other person approaches the fiduciary to use the fiduciary's special skills and knowledge, for a fee, to benefit the other person. Real estate agents, lawyers, trustees, investment brokers etc. are often fiduciaries.

FIDUCIARY RELATIONSHIP:
A relationship of trust and confidence between two people in which one person (the fiduciary) holds much more power, knowledge or skill than the other and is, therefore, held by the law to a higher standard of conduct.

FIFTEEN-YEAR MORTGAGE:
A loan with payments amortized over a fifteen-year period, rather than the usual twenty-five-year amortization period.

FILTERING DOWN PROCESS:
The gradual decline in the value of a property, whether due to market forces, changes in desirability of neighbourhood or deterioration of condition of the home, such that a property once owned by a high-income family might eventually be owned by a low-income family.

FINAL VALUE ESTIMATE:
The product of a real estate appraiser's completed work, an assessment of the value of a property based on all factors and taking into consideration the different evaluation methods available.

FINANCE CHARGE:
The total cost, in dollars, of a loan or mortgage over its life, including appraisal/application/commitment fees, financing insurance, interest paid over the life of the loan

FINANCIAL INSTITUTION:
A generic term for banks, trust companies, credit unions, and perhaps other investment companies that deal with money, hold money, invest money and lend money.

FINANCIAL RISK:
An assessment of the possibility that a given investment or loan will fail to bring a return and may result in a loss of the original investment or loan.

FINANCIAL STATEMENT:
A document which sets out the assets, income, expenses and debts of a person or company to allow a third person to assess that person or corporation's financial health (i.e. when considering lending money to that person or corporation).

FINANCING:
The manner in which a proposed purchaser intends to make up the difference between cash on hand and the purchase price.

FINANCING STATEMENT:
A form of lien filed by a lender or creditor and registered against the personal property (all or specific items) of a debtor. Generally f