A [B] C D E F G H I J K L M N O P Q R S T U V W X Y & Z
Balance – The appraisal principle that states that the greatest value in a property will occur when the type and size of the improvements are proportional to each other as well as the land.
Balloon payment – A final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.
Bargain and sale deed – A deed that carries with it no warranties against liens or other encumbrances but that does imply that the grantor has the right to convey title. The grantor may add warranties to the deed at his or her discretion.
Base line – The main imaginary line running east and west and crossing a principal meridian at a definite point, used by surveyors for reference in locating and describing land under the rectangular (government) survey system of legal description.
Basis – The financial interest that the Internal Revenue Service attributes to an owner of an investment property for the purpose of determining annual depreciation and gain or loss on the sale of the asset. If a property was acquired by purchase, the owner’s basis is the cost of the property plus the value of any capital expenditures for improvements to the property, minus any depreciation allowable or actually taken. This new basis is called the adjusted basis.
Benchmark – A permanent reference mark or point established for use by surveyors in measuring differences in elevation.
Beneficiary
- The person for whom a trust operates or in whose behalf the income from a trust estate is drawn.
- A lender in a deed of trust loan transaction.
Bilateral contract – A contract where both parties promise to do something; one promise is given in exchange for another. See also contract.
Binder – An agreement that may accompany an earnest money deposit for the purchase of real property as evidence of the purchaser’s good faith and intent to complete the transaction.
Blanket loan – A mortgage covering more than one parcel of real estate, providing for each parcel’s partial release from the mortgage lien upon repayment of a definite portion of the debt.
Blockbusting – The illegal practice of inducing home owners to sell their properties by making representations regarding the entry or prospective entry of persons of a particular race or national origin into the neighborhood.
Blue-sky laws – Common name for those state and federal laws that regulate the registration and sale of investment securities.
Boot – Money or property given to make up any difference in value or equity between two properties in an exchange.
Branch office – A secondary place of business apart from the principal or main office from which real estate business is conducted. A branch office usually must be run by a licensed real estate broker working on behalf of the broker.
Breach of contract – Violation of any terms or conditions in a contract without legal excuse; for example, failure to make a payment when it is due.
Broker - One who acts as an intermediary on behalf of others for a fee or commission.
Brokerage - The bringing together of parties interested in making a real estate transaction.
Brownfields - Defunct, derelict, or abandoned commercial or industrial sites; many have toxic wastes.
Brownfields Legislation – Provides federal funding to states and localities to clean up brownfields sites.
Buffer zone – A strip of land, usually used as a park or designated for a similar use, separating land dedicated to one use from land dedicated to another use (e.g., residential from commercial).
Building code – An ordinance that specifies minimum standards of construction for buildings to protect public safety and health.
Building permit – Written governmental permission for the construction, alteration, or demolition of an improvement, showing compliance with building codes and zoning ordinances.
Bulk transfer – See Uniform Commercial Code.
Bundle of legal rights – The concept of land owner ship that includes ownership of all legal rights to the land–for example, possession, control within the law, and enjoyment.
Buydown – A financing technique used to reduce the monthly payments for the first few years of a loan. Funds in the form of discount points are given to the lender by the builder or seller to buy down or lower the effective interest rate paid by the buyer, thus reducing the monthly payments for a set time.
Buyer-agency agreement – A principal-agent relationship in which the broker is the agent for the buyer, with fiduciary responsibilities to the buyer. The broker represents the buyer under the law of agency.
Buyer’s agent – A residential real estate broker or salesperson who represents the prospective purchaser in a transaction. The buyer’s agent owes the buyer/principal the common-law or statutory agency duties.
Buyer’s broker – A residential real estate broker who represents prospective buyers exclusively. As the buyer’s agent, the broker owes the buyer/principal the common-law or statutory agency duties.
