Construction Terminology

Construction Terms


Financial Statement
A document which sets out the assets, income, expenses and debts of a person or company to allow a third person to
assess that person or corporation's financial health (i.e. when considering lending money to that person or corporation).

Firm Offer
An offer to purchase delivered to the potential Vendor by a potential Purchaser who will not negotiate any changes to the
offer.
First Lien
The registered legal claim which stands first in line to enjoy the proceeds of a sale of the property. Liens generally are
ordered according to time or registration but various statutes allow some liens (realty taxes) to jump to the head of the line.

First Refusal
The ability to make an offer for a property before the owner puts it up for sale on the open market

Flip
The rapid turnover of a piece of property by one person who buys it for a certain price then sells it soon thereafter for
more.

Flood Insurance
A policy of insurance that specifically covers damage due to flood waters, required in designated flood areas.

Free And Clear
A description of title to property which is unencumbered and subject to no competing claims.

Fema
FEMA stands for Federal Emergency Management Agency. FEMA is a government agency responsible for managing and
providing aid in the event of a disaster in a certain part of the country.

First Lien
The registered legal claim which stands first in line to enjoy the proceeds of a sale of the property. Liens generally are
ordered according to time or registration but various statutes allow some liens (realty taxes) to jump to the head of the line.

Flood Insurance
A policy of insurance that specifically covers damage due to flood waters, required in designated flood areas.

Foreclose
The act of a bank or lending institution calling for the early payment in full of a loan. This process is usually brought about
when payments are not made on a loan resulting in default.

Framing Inspection
A framing inspection is an inspection performed by a building official to check for any discrepancies in the framing work
completed.

Free and Clear
A description of title to property which is unencumbered and subject to no competing claims.
Category Construction Glossary
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