Real Estate Glossary
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Back fill - Soil used to solidify the foundation of a structure.
Back-to-back closings - 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 - The final lump sum payment due at the end of a balloon mortgage.
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.
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.
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.
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.
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.
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.
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.
Break-even point - The point in which the owner's rental income matches expenses and debt.
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.
BrokerÆs Agent - When an agent brings a buyer to a property, they in effect act as a brokerÆs agent under the listing agent unless they have been retained by the buyer as a buyerÆs broker.
Broom clean - The ideal condition of a building when it is turned over to an owner or tenant.
Buffer strip - A parcel of land that separates two or more properties.
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 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 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.
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.
BuyerÆs 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.
