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 contractwithout 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.
