Glossary

All | # 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
There are 51 names in this directory beginning with the letter B.
Backup Contract
A contract to buy real estate that becomes effective if a prior contract fails to be consummated.
Bad Debt/Vacancy Factor
A percentage de_ducted from a property's potential gross income to determine the effective gross income, esti_mating the income that will probably be lost because of vacancies and tenants who don't pay.
Balance
see Principal Balance
Balance, Principle of
An appraisal principle which holds that the maximum value of real es_tate is achieved when the agents in production (labor, coordination, capital, and land) are in proper balance with each other.
Balloon Payment
A date when the entire remaining principle balance is due.
Bankruptcy
The financial inability to pay one's debts when due causes the debtor to seek relief through court action.
Bankruptcy Discharge
The release of a bankrupt party from the obligation to repay debts that were or might have been proved in a bankruptcy proceeding.
Base Line
In the rectangular survey system, a main east-west line from which township lines are established. Each principal meridian has one base line associated with it.
Basis
A figure used in calculating a gain on the sale of real estate for federal income tax pur_poses. Also called cost basis.
Basis Point
One 100th of 1%.
Basis, Adjusted
The owner's initial basis in the property, plus capital expenditures for improve_ments, and minus any allowable depreciation or cost recovery deductions.
Basis, Initial
The amount of the owner's origi_nal investment in the property; what it cost to acquire the property, which may include clos_ing costs and certain other expenses, as well as the purchase price.
Bench Mark
A surveyor's mark at a known point of elevation on a stationary object, used as a reference point in calculating other eleva_tions in a surveyed area; often a metal disk set into cement or rock.
Beneficiary
The person who receives or is to receive the benefits resulting from certain acts.
Bequeath
To transfer personal property to an_other by will.
Bequest
Personal property (including money) that is transferred by will.
Bilateral Contract
A contract under which each party promises performance.
Bill of Sale
A written instrument given to pass title of personal property.
Binder
1. An agreement to consider an earnest money deposit as evidence of the potential buyer's good faith when he or she makes an offer to buy a piece of real estate. 2. An instru_ment providing immediate insurance coverage until the regular policy is issued. 3. Any pay_ment or preliminary written statement intended to make an agreement legally binding until a formal contract has been drawn up.
Blanket Mortgage
A single mortgage, which attaches to more than one property.
Blighted Area
An area where the real prop_erty has declined in value significantly.
Blind Ad
A property advertisement placed by a real estate licensee that does not mention his or her licensed status.
Block
In a subdivision, a group of lots sur_rounded by streets or unimproved land.
Blockbusting
Attempting to induce owners to list or sell their homes by predicting that members of another race or ethnic group, or people suffering from some disability, will be moving into the neighborhood; this violates anti-dis_crimination laws. Also called panic selling.
Blue Sky Laws
Laws that regulate the promo_tion and sale of securities in order to protect the public from fraud.
Board of Directors
The body responsible for governing a corporation on behalf of the stock_holders, which oversees the corporate manage_ment.
Bona Fide
Good faith; genuine; not fraudulent
Bond
1. A written obligation, usually interest-bearing, to pay a certain sum at a specified time. 2. Money put up as a surety, protecting some_one against failure to perform, negligent per_formance, or fraud.
Bond, Completion
A bond posted by a con_tractor to guarantee that a project will be com_pleted satisfactorily and free of liens. Also called a performance bond.
Bond, Fidelity
A bond to cover losses result_ing from the dishonesty of an employee.
Bonus
An extra payment, over and above what is strictly due.
Boot
A term used in connection with tax-free exchanges, when the properties exchanged are not equal in value, to refer to whatever is given (cash, services, etc.) to make up the difference in value; for example, in an exchange of real property, if one party gives the other cash in addition to real property, the cash is boot.
Boundary
The perimeter or border of a parcel of land; the dividing line between one piece of property and another.
Breach
Violation of an obligation, duty, or law; especially an unexcused failure to perform a contractual obligation.
Breach of Contract
A violation of the terms of a legal agreement, default.
Bridge Loan
A short-term loan used until permanent financing can be arranged.
Broker
An individual who acts as an intermediary between two or more parties for the purpose of negotiating a transaction agreeable to all of the parties. In lending, the broker arranges and negotiates loan amounts, interest rates and loan terms between borrowers and lenders. Depending on the type of loan, the state wherein the transaction is occurring and contractual arrangements, the broker may represent the borrower, the lender or not have a fiduciary responsibility to either. (See definition of "fi
Broker, Designated
A corporate officer or gen_eral partner who is authorized to act as the bro_ker for a licensed corporation or partnership.
Broker, Fee
A real estate broker who allows another person to use his or her license to oper_ate a brokerage, in violation of the license law.
Broker, Real Estate
One who is licensed to rep_resent members of the public in real estate trans_actions for compensation.
Brokerage
A real estate broker's business.
Building Codes
Regulations that set minimum standards for construction methods and mate_rials.
Building Permit
Permission granted by a local government or agency to build a specific structure at a specific site.
Building Restrictions
Rules concerning build_ing size, placement, or type; they may be pub_lic restrictions (in a zoning ordinance, for example) or private restrictions (CC&Rs, for example).
Bulk Transfer
The sale of all or a substantial part of the merchandise, equipment, or other inventory of a business, not in the ordinary course of business.
Bulk Transfer Law
A law requiring a seller who negotiates a bulk transfer (usually in connec_tion with the sale of the business itself) to fur_nish the buyer with a list of creditors and a schedule of the property being sold, and to no_tify creditors of the impending transfer.
Bundle of Rights
The rights inherent in own_ership of property, including the right to use, lease, enjoy, encumber, will, sell, or do nothing with the property.
Business Opportunity
A business that is for sale.
Buy Down
A payment of discounts points in exchange for a lower rate of interest. It has the effect of providing the lender with a greater yield today in exchange for a lower yield in the future. (See definition of "discount points" below.).
Buyer Representation Agreement
A contract in which a real estate broker agrees to try to locate suitable property for the other party (the buyer) in exchange for a commission.
Bylaws
The rules and regulations that govern the operations of a corporation, or of a unit own_ers' association in a condominium.