Word | Definition |
Back-to-back escrow | Arrangements that an owner makes to oversee the sale of one property and the purchase of another at the same time. |
Backup offer | A secondary bid for a property that the seller will accept if the first offer fails. |
Balance sheet | A statement that shows the assets, liabilities and net worth of an individual. |
Balloon loan | A mortgage in which monthly installments are not large enough to repay the loan by the end of the term. As a result, the final payment due is the lump sum of the remaining principal. |
Balloon Payment | A final installment payment in most cases much larger than the preceding payments on a promissory note.
|
Balloon-frame construction | A type of framing used in two-story homes in which studs extend from the ground to the ceiling of the second floor. |
Bankruptcy | A proceeding in which an insolvent debtor can obtain relief from payment of certain obligations. Bankruptcies remain on a credit record for seven years and can severely limit a person's ability to borrow. |
Bargain sale | The sale of a piece of property for less than market value. |
Basis Point | A basis point is one one-hundredth of one percentage point. For example, the difference between a loan at 8.25 percent and a mortgage at 8.37 percent is 12 basis points. |
Before-tax income | Total income before taxes are deducted. |
Beneficiary | In a deed of trust the lender is designated as the beneficiary. He obtains the benefit of the security.
|
Beneficiary Statement | The statement or report from the lender setting forth the terms and conditions of the loan already of record, such as amounts still owed, interest rate, monthly payment, etc.
|
Beneficiary’s Demand | The payment required by the beneficiary under the note or deed of trust before authorizing a reconveyance, the lien on title to property created by a deed of trust.
|
Bequest | Personal property given to a person through a will. |
Betterment | An improvement that increases a property's value as opposed to repairs that maintain the value. |
Bidding war | Offers from multiple buyers for a piece of property. Agents also sometimes compete to list a house for sale. |
Bilateral contract | A contract in which the parties involved give mutual promises. Also called "reciprocal" contracts. |
Bill of sale | A document that attests to the transfer of or transfer of ownership of personal property.
|
Binder | A memorandum of agreement to issue insurance giving temporary coverage until a formal policy is issued.
|
Biweekly mortgage | A mortgage that requires payments every two weeks and helps repay the loan over a shorter term. |
Blanket insurance policy | A policy that covers more than one person or piece of property. |
Blanket mortgage | A mortgage that covers more than one property owned by the same borrower. |
Blighted area | A neighborhood that has deteriorated. |
Blue sky laws | Regulations on the sale of securities to prevent consumers from investing in fraudulent or high-risk companies without being informed of the risks. |
Board of Equalization | A state board charged with ensuring that local property taxes are assessed in a uniform manner. |
Boilerplate | Form language used in deeds, mortgages and other documents. Details can be added by individual parties. |
Bona fide | A legal term that refers to actions or persons that are honest and in good faith. |
Bond | An agreement that insures one party against loss by acts or defaults of another party. |
Book value | The value of a property as a capital asset based on its cost plus any additions, minus depreciation. |
Borough | A section of a city that has authority over local matters. |
Boulevard | A street lined with trees or constructed with a landscaped median. |
Boundary | The dividing line between two adjacent properties. |
Breach of contract | The failure to perform provisions of a contract without a legal excuse. |
Breach of covenant | The failure to obey a legal agreement. |
Breach of warranty | A seller's inability to pass clear title to a buyer. |
Breezeway | A roofed passageway with open sides. |
Bridge loan | A short-term loan for borrowers who need more time to find permanent financing. |
Broker | A person licensed by the state to deal in real estate. |
Brokerage | The act of bringing together two or more parties in exchange for a fee or commission. |
Broom clean | The ideal condition of a building when it is turned over to an owner or tenant. |
Builder upgrades | Extra house features or better finishing materials that a builder offers. |
Building and loan association | An organization that raises money to helps its members purchase real estate or construct a building. |
Building code | A comprehensive set of laws that controls the construction or remodeling of a home or other structure. |
Building inspector | A city or county employee who enforces the building code and ensures that work is correctly performed. |
Building line or setback | Guidelines that limit how close an owner can build to the street or an adjacent property. |
Building moratorium | A halt on home construction to slow the rate of development. |
Building permit | A permit issued by a local government agency that allows the construction of home or renovation of a house. |
Building restrictions | Regulations that limit the manner in which property can be used. |
Bundle of rights | The various interests or rights an owner has in a property. |
Bungalow | A small one-story house or cottage. |
Buy-down mortgage | A home loan in which the lender receives a premium as an inducement to reduce the interest rate during the early years of the mortgage. |
Buyer broker | A real estate broker who exclusively represents the buyer's interests in a transaction and whose commission is paid by the buyer rather than the seller. |
Buyer's market | A slow real estate market in which buyers have the advantage. |
Buyer's remorse | An emotion felt by first-time homebuyers after signing a sales contract or closing the purchase of a house. |
by-law | A rule adopted for the internal government of a corporation.
|
Bylaws | The rules and regulations that a homeowners association or corporation adopts to govern activities. |
