Glossary of
Real Estate Terms

Your guide to common closing terms

Escrow Instructions

Escrow instructions include the escrow company’s name, contact information, and license number as well as specific information regarding the individual escrow account, including beginning and projected end dates and other details.

E

FHA Loans

An FHA loan is a mortgage provided by an FHA approved lender and backed by the Federal Housing Administration (FHA). These loans are designed for lower to moderate-income borrowers, requiring smaller down payments, and accepting lower credit scores than many conventional loans.

F

FIRPTA

The Foreign Investment in Real Property Tax Act requires US income tax on transactions by foreign persons selling real property in the US. Buyers purchasing property from foreign sellers are required to withhold 15% of the realized value of the purchase. Exceptions may include personal residences, 1031 exchanges, and cases where the IRS has issued a withholding certificate to the seller directly.

F

FinCEN

The Financial Crimes Enforcement Network or FinCEN is a unit of the US Treasury Department tasked with investigating financial crimes. FinCEN works with real estate professionals in order to avoid criminal activities in real estate transactions, including money laundering.

F

First American Title

First American Title is an American company that pioneered the field of title insurance protection and settlement services. Now serving more than 70 countries, First American streamlines transactions and protects property ownership rights for landowners worldwide.

F
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