Dictionary

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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.

Fee Simple Subject to a Condition Subsequent

An estate conveyed “provides that” or “if” it is used for a specific purpose. If it is no longer used for that purpose, it reverts to the original grantor or their heirs by their exercise of the right of reentry.

FHA Coinsured Mortgage

A mortgage (under FHA Section 244) for which the Federal Housing Administration (FHA) and the originating lender share the risk of loss in the event of the mortgagor’s default.

FHA Loans

A loan insured by the Federal Housing Administration and made by an approved lender in accordance with FHA regulations.

FHA Mortgage

A mortgage that is insured by the Federal Housing Administration (FHA). Also known as a government mortgage.

Fidelity Bond

A class of bonds that guarantees an employee’s honest discharge of duty.

Fiduciary

A person who occupies a position of special trust and confidence. For example, one handling or supervising the affairs or funds of another. Insurance producers are considered to be fiduciaries.

Fiduciary Relationship

A relationship of trust and confidence, as between trustee and beneficiary, attorney and client, or principal and agent.

Financial Responsibility Laws

State laws that require owners or operators of autos to provide evidence that they have the funds to pay for automobile losses for which they might become liable. Insurance is the usual method for providing this evidence to the state.