Real Estate Terms Glossary

· Back fill Soil used to solidify the foundation of a structure.

· Back title letter A letter that a title insurance company gives to an attorney who then examines the title for insurance purposes.

· 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.

· Backwater valve A valve in a sewer line that prevents sewage from flowing back into a house.

· Balance sheet A statement that shows the assets, liabilities and net worth of an individual.

· 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.

· 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 The final lump sum payment due at the end of a balloon mortgage.

· Balustrade Railing held up by a set of posts on a porch or stairway.

· 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.

· Baseboard Any board or molding found at the bottom of an interior wall.

· Baseboard electric heat Heating units installed in the floor that can be controlled by a central thermostat.

· Basement The area of a home below ground level.

· 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.

· Bay The opening between two columns or walls that forms a space.

· Bay window A window that projects outward in a curve.

· Bearing wall A wall that supports its own weight in addition to other parts of a structure.

· Beneficiary The lender who makes a loan, also called a mortgagee. The person borrowing money is the mortgagor.

· Before-tax income Total income before taxes are deducted.

· 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 transfers ownership of personal property.

· Binder A report issued by a title insurance company that details the condition of a home's title. and provides guidelines for a title insurance policy.

· 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.

· Blind nailing Nails driven into a wall and concealed with putty.

· Blueprint

· Blue-ribbon condition A house maintained close to its original condition. Also called mint condition.

· 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-and-batten siding Siding is composed of 8- to 12-inch wide wooden boards nailed vertically to create a barn-like exterior.

· Board foot Measurement of lumber that is the equivalent of 144 cubic inches.

· 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.

· Boring test An analysis of soil in which holes are bored into the ground and samples are removed.

· Borough A section of a city that has authority over local matters.

· Borrow Sand, gravel or other material used for grading.

· Borrow pit The hole at a site that has been excavated.

· Boulevard A street lined with trees or constructed with a landscaped median.

· Boundary The dividing line between two adjacent properties.

· Braced framing A construction method in two-story homes in which the frame is reinforced with posts and braces.

· 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.

· Break-even point The point in which the owner's rental income matches expenses and debt.

· Breast height The height at which the diameter of a tree is measured: four feet, six inches above the ground.

· Breezeway A roofed passageway with open sides.

· Brick Building material made from clay molded into oblong blocks and fired in a kiln.

· Bridge loan A short-term loan for borrowers who need more time to find permanent financing.

· Brokerage The act of bringing together two or more parties in exchange for a fee or commission.

· Broker A person licensed by the state to deal in real estate.

· Broom clean The ideal condition of a building when it is turned over to an owner or tenant.

· Brownstone A vintage row house constructed of red sandstone.

· Buffer strip A parcel of land that separates two or more properties.

· 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 moratorium A halt on home construction to slow the rate of development.

· Building paper A thick, water-resistant paper that serves as insulation.

· Building permit A permit issued by a local government agency that allows the construction of home or renovation of a house.

· Builder upgrades Extra house features or better finishing materials that a builder offers.

· Building line or setback Guidelines that limit how close an owner can build to the street or an adjacent property.

· Building restrictions Regulations that limit the manner in which property can be used.

· Built-ins Appliances or other items that are framed into a home or permanently attached.

· Bulkhead A retaining wall designed to hold back water from the ocean or another body of water.

· Bundle of rights The various interests or rights an owner has in a property.

· Bungalow A small one-story house or cottage.

· Butterfly roof A roof formed by two gables that dip in the middle to resemble a butterfly's wings.

· 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.

· Bylaws The rules and regulations that a homeowners association or corporation adopts to govern activities.

Real Estate Terms Glossary - B