Dictionary
F
- face value of a loan
The loan amount which must be repaid at a stated rate of interest according to the contract terms.
- fee simple
The legal term for the maximum interest in land available to a person, or the maximum of legal ownership. Equivalent in many ways, for practical purposes, to absolute ownership.
- fiduciary
A person who holds a position of trust with respect to someone else and is obliged, by virtue of the relationship of trust, to act solely in the other person's benefit.
- final payment
The last instalment that is made on a fully amortized loan. It is usually smaller than the preceding periodic payments.
- financial statement
A numerical presentation of particular aspects of a business. Common financial statements include the Balance Sheet and the Income Statement.
- first-year half-rate rule
In the year an asset is purchased, only one-half the maximum allowable CCA may be claimed.
- fiscal year
Any period of twelve consecutive months chosen by a business as its accounting period.
- fixed expenses
Those costs which will be incurred irrespective of the extent to which a property is occupied.
- fixture
A chattel attached to real property; anything which has become so attached to the land as to form, in law, part of the land.
- floor price
The minimum price that a vendor is willing to accept for a property. Compare to Ceiling Price.
- foreclosure
A legal action taken by a mortgagee to obtain possession of a property, by reason of the mortgagor's default in payment of the principal and/or interest of the mortgage debt.
- frustration
A legal doctrine that provides that where the existence of a specific thing is necessary for performance of the contract, the duty to perform is discharged if the thing, for reasons beyond anyone's control, is no longer in existence at the time for performance.
- fully amortized mortgage
Loan which is repaid completely by a series of payments over the full duration of the amortization period.
- functional depreciation
The loss in value caused by outmoded or inadequate design (e.g., small closets in a residential property) which may be curable or incurable. See Curable Depreciation and Incurable Depreciation. Compare to Physical Depreciation.
- future value
Any lump sum which is payable or will have been accumulated some time from now.