The Following are real estate terms and topics: Starting With the Letter ( B)

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T [...]]]>

The Following are real estate terms and topics: Starting With the Letter ( B)

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

Are you confused and overwhelmed by the extensive terms and words used in real estate? Every person working in real estate or planning to buy or sell real estate can benefit from learning some of the terms….

Real Estate Terms B

Balance Sheet
A financial statement that shows assets, liabilities, and net worth as of a specific date. A balance sheet is often described as a snapshot of a company’s financial condition. Of the four basic financial statements, the balance sheet is the only statement, which applies to a single point in time.

Balloon mortgage
A mortgage that has level monthly payments that will amortize it over a stated term but that provides for a lump sum payment to be due at the end of an earlier specified term. The final payment is called a balloon payment because of its large size. Balloon payment mortgages are more common in commercial real estate than in residential real estate. A balloon payment mortgage may have a fixed or a floating interest rate.

Balloon payment
The final lump sum payment that is made at the maturity date of a balloon mortgage. Balloon payments are most commonly found in mortgages, but may be attached to auto and personal loans as well.

Bankruptcy
A proceeding in a federal court in which a debtor who owes more than his or her assets can relieve the debts by transferring his or her assets to a trustee. Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors.

Banking Year
The 360-day year (12 months of 30 days) that is often used for banking and other financial accounting.

Before-tax income
Income before taxes are deducted. Its allows you to see what the business would have earned if it did not have to pay taxes to the government.

Beneficiary
The person designated to receive the income from a trust, estate, or a deed of trust. The term can also be described as an “inheritance” used in the context for the party the property related thereto.

Bequeath
To transfer, give, or leave personal property through a will.

Betterment
An improvement that increases property value as distinguished from repairs or replacements that simply maintain value. When, for instance, some public improvement results in raising the value of a piece of private land, and the owner is thereby bettered through no merit of his own, he gains by the betterment.

Bill of sale
A written document that transfers title to personal property. It shows that the owner has full legal right, power and authority to sell said property, lawful.

Binder
A preliminary agreement, secured by the payment of an earnest money deposit, under which a buyer offers to purchase real estate. A binder secures the right to purchase real estate upon agreed terms for a limited period of time.

Bilateral Contract
An agreement in which both parties give consideration and promise to perform the actions specified in a contract.

Biweekly payment mortgage
A mortgage that requires payments to reduce the debt every two weeks (instead of the standard monthly payment schedule). The result for the borrower is a substantial savings in interest.

Blanket insurance policy
A single policy that covers more than one piece of property.

Blanket mortgage
The mortgage that is secured by a cooperative project, as opposed to the share loans on individual units within the project. It covers two or more pieces of real estate.

Bond
An interest-bearing certificate of debt with a maturity date. A real estate bond is a written obligation usually secured by a mortgage or a deed of trust. Mortgage bonds are backed by real estate or physical equipment that can be liquidated.

Breach
A violation of any legal obligation. Contracts are obligations that the law will enforce. The law provides remedies if an obligation is breached or recognizes the performance of an obligation as a duty.

Bridge loan
A form of second trust that is collateralized by the borrower’s present home in a manner that allows the proceeds to be used for closing on a new house before the present home is sold. A bridge loan is a type of short-term loan.

Broker
A person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them. Brokers may help arrange financing of the purchase through contacts with banks, savings and loans, and mortgage bankers. Brokers must be licensed by the state to buy or sell real estate.

Building code
Local regulations that control design, construction, and materials used in construction. Building codes are based on safety and health standards.

Buydown mortgage
A temporary buydown is a mortgage on which an initial lump sum payment is made by any party to reduce a borrower’s monthly payments during the first few years of a mortgage.

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