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The loss of money, property, rights, or privileges due to a breach of legal obligation.

Formal Will

A written instrument disposing of property on the death of the maker. The testator must be of legal age and sound mind, and not subject to undue influence. The document must be signed and witnessed; also known as a witnessed will.


A misstatement of a material fact made with intent to deceive or made with reckless disregard of the truth, and that actually does deceive.


An intentional misrepresentation or false statement intended to deceive the insurer and induce it to part with something of value or to surrender a legal right. May void a policy.

Freddie Mac

A corporation established to purchase primarily conventional mortgage loans in the secondary mortgage market. Chartered as the Federal Home Loan Mortgage Corporation (FHLMC).

Freehold Estate

An estate in land in which ownership is for an indeterminate length of time, in contrast to a leasehold estate.

Fuedal System

A system of ownership usually associates with pre-colonial Egland in which the king or other sovereign was the source of all rights. The right to possess real property was granted by the sovereign to an individual as a life estate only. On the death of the individual, the title passed back to the sovereign, not to the decedent’s heirs.

Fully Amortized ARM

An adjustable-rate mortgage (ARM) with a monthly payment that is sufficient to amortize the remaining balance, at the interest accrual rate, over the amortization term.

Functional Obsolescence

A loss of value to improved real property due to inadequate, outmoded, or inappropriate improvements.

Future Interest

A person’s present right to an interest in real property that will not result in possession or enjoyment until some time in the future, such as a reservation or right of reentry.