B |
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back title letter A
letter that a title insurance company gives to an attorney who then examines the
title for insurance purposes. |
back-end ratio A
lender calculation that compares a borrower's total debt (principal, interest,
property taxes, and insurance, plus other monthly debt payments) to gross
monthly income. |
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. |
backerboard A rigid
board used beneath tile. |
backfill Soil used to
solidify the foundation of a structure. |
B |
backsplash The
area behind and above a countertop, typically covered to prevent water from
splashing onto the wallboard. |
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. |
baffle A device used
as a heat shield to deflect the byproducts of combustion. |
balance sheet A
statement that shows the assets, liabilities, and net worth of an
individual. |
ball cock One type of
inlet valve assembly inside a toilet tank that, when opened automatically, fills
the tank with water. |
B |
ballcock assembly The toilet tank mechanism that controls flushing. |
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. |
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. |
baluster Intermediate
vertical support for a stair railing, often made from turned
hardwood. |
balustrade Railing
held up by a set of posts on a porch or stairway. |
B |
bankruptcy A
proceeding in which an insolvent debtor can obtain relief from payment of
certain obligations. Bankruptcies remain on a credit record for seven to 10
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. |
base loan amount The
amount upon which loan payments are based. If the borrower finances his or her
closing costs, those costs will be added to the base loan
amount. |
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. |
B |
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. |
batten A narrow piece
of material used on the outside of a house to cover joints in
walls. |
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. |
before-tax income Total income before taxes are deducted. |
B |
beneficiary The
lender who makes a loan, also called a mortgagee. The person borrowing money is
the mortgagor. |
bequest Personal
property given to a person through a will. |
berm A built-up lip
of concrete designed to prevent runoff water from entering the garage or
driveway. |
betterment An
improvement that increases a property's value as opposed to repairs that
maintain the value. |
betterment An
improvement that increases the property's value. |
bi-level A home that
has two levels. Typically, a garage or storage area is situated in the lower
level and the home in the upper section. Most bi-level structures were built
after 1950. |
B |
bi-metal coil Part of a mechanical thermostat. Consists of two different types of
metal that expand and contract at two different rates with changes in room
temperature. |
bid out The process
that contractors use to estimate the cost of a house or project before it is
completed. |
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 a
reciprocal contract. |
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. |
B |
binder A
preliminary agreement between buyer and seller. |
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. |
B |
blockbusting The
illegal practice of inducing homeowners to sell their properties by making
representations regarding the entry of a particular race into the
neighborhood. |
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. |
blueprint The plan
for a home or other structure. |
board and batten A
type of siding composed of vertical boards and batten slats that cover wall
joints. |
board foot Measurement of lumber that is the equivalent of 144 cubic
inches. |
B |
board of equalization A state board charged with ensuring that local property taxes are
assessed in a uniform manner. |
board-and-batten siding Siding composed of 8- to 12-inch-wide wooden boards nailed
vertically to create a barn-like exterior. |
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. |
bonus room A room
with no specifically designated function, unlike a living room, bedroom, or
kitchen. |
B |
book value The
value of a property as a capital asset based on its cost plus any additions,
minus depreciation. |
boot A piece of sheet
metal that connects a heating or cooling duct and a vent. |
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. |
B |
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. |
bracing The technique
used to reinforce a structure. |
branch circuit An
electrical circuit with its own circuit breaker in the service
panel. |
breach of contract The failure to perform provisions of a contract without a legal
excuse. |
B |
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. |
breezeway A roofed
passageway with open sides. |
brick Building
material made from clay molded into oblong blocks and fired in a
kiln. |
brick veneer A brick
facade on a wall or fireplace. |
B |
bridge loan A
short-term loan for borrowers who need more time to find permanent
financing. |
broker Anyone who
acts as a go-between. A real estate broker is licensed to handle property
transactions and operate a brokerage firm. A mortgage broker is an individual or
firm that matches borrowers to lenders and loan programs for a
fee. |
brokerage The act of
bringing together two or more parties in exchange for a fee or commission. Real
estate brokerages are firms or companies that are licensed to conduct real
estate transactions. |
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. |
B |
buildability The
feasibility of constructing a home or other structure on a piece of land.
Parcels for which a building permit cannot be obtained may be considered
"unbuildable." |
builder upgrades Extra features or better finishing materials offered by a
builder. |
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 line or setback Guidelines that limit how close an owner can build to the street or
an adjacent property. |
B |
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 or
renovation of a house. |
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 other body of
water. |
B |
bundle of rights The various interests or rights an owner has in a
property. |
bungalow A small
one-story house or cottage. |
butt The way in which
two boards meet so that the ends touch in a continuous line. |
butterfly roof A roof
formed by two gables that dip in the middle to resemble a butterfly's
wings. |
buydown 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's agent An
agent representing a buyer in a home purchase, either as a single agent or as an
exclusive buyer's broker. |
B |
buyer's broker A
real estate broker who exclusively represents the buyer's interests in a
transaction and whose commission is paid either by the buyer or through the
seller or listing broker at closing. |
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. |
Buyers Resource Real Estate National buyer's brokerage company with offices in 13 states. Call
(800) 359-4092 for information and referrals. |
Buyers' Home Finding Network National referral service for buyer's brokers only. Call (800)
500-3569 for information and referrals. |
bylaws The rules and
regulations that a homeowners association or corporation adopts to govern
activities.
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