Exception

A provision in a title insurance binder or policy that excludes liability for a specific title defect or an outstanding lien or encumbrance.

Execute

To sign a legal instrument. A deed is said to be executed when it is signed, sealed, witnessed and delivered.

Fair Market Value

The highest price that a willing buyer would pay, and the lowest price a willing seller would accept.

Fannie Mae (FNMA)

Federal National Mortgage Association. A private corporation dealing in the purchase of first mortgages.

Fee Simple Deed

The absolute ownership of a parcel of land. The highest degree of ownership that a person can have in real estate, which gives the owner unqualified ownership and full power of disposition.

FHA (Federal Housing Administration)

A federal agency that insures first mortgages, enabling lenders to lend a very high percentage of the sale price.

Fixed Rate Mortgage

A mortgage having a rate of interest that remains the same for the life of the mortgage.

Fixtures

Personal property that is attached to real property and is legally treated as real property while it is so attached. Examples: medicine cabinets, window blinds and chandeliers.

Foreclosure

A legal proceeding in which real estate secured by a mortgage or deed of trust is sold to satisfy the underlying debt.

Forgery

The fraudulent signing of another's name to an instrument such as a deed, mortgage or check.

Freddie Mac (FHLMC)

Federal Home Loan Mortgage Corporation. A federal agency that purchases both conventional and federally insured first mortgages from members of the Federal Reserve System and the Federal Home Loan Bank System.

Ginnie Mae (GNMA)

Government National Mortgage Association. A federal association working with the FHA that offers special assistance in obtaining mortgages and purchases mortgages in the secondary market.

Grant

To bestow or confer, with or without compensation, a gift such as land or money by one having control or authority over the gift.

Grantee

One to whom a grant is made.

Grantor

One who makes a grant.

Hazard Insurance

Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending upon the policy. Buyer often adds liability insurance and extended coverage for personal property.

Hereditaments

Any and all kinds of estates, interest and rights in real estate that can be inherited.

Home Owner's Association

An association of people who own homes in a given area, formed for the purpose of improving or maintaining the quality of the area. An association formed by the builder of condominiums or planned developments, and required by statute in some states. The builder's participation as well as the duties of the association are controlled by statute.

Homeowners Insurance

Real estate insurance protecting against loss caused by fire, some natural causes, vandalism, etc., depending on the terms of the policy. Also includes coverage such as personal liability and theft away from home.

Homestead

A statutory protection from execution or the establishment of title by occupation of real property in accordance with the laws of various states or the Federal Government.