B Terms Flashcards
back-end ratio
The ratio of gross income to loan payments (PITI) plus long-term installment debt payments. Used to qualify buyers.
bailment
Giving possession of personal property to another, but retaining title; for example, storing goods in a warehouse, renting a trailer, giving existing mortgages to a lender as security for a loan.
balance sheet
A financial statement showing assets and liabilities. The balance sheet shows net worth.
balloon payment
A final installment of an unamortized loan that exceeds the previous payments.
bill of sale
A written agreement transferring title to personal property.
bilateral contract
A mutual exchange of promises whereby each promise is consideration for the other promise.
betterment
An actual improvement (not a repair) to real estate.
bequest
Personal property that is given by will.
bequeath
To give personal property by will.
beneficiary statement
A statement of a lender of the balance due on a loan.
beneficiary deed
A deed that does not take effect until death of grantor (allowed in several states).
banker’s interest
Interest based on a 30- day month and a 360-day year.
beneficiary
The person receiving payments under a deed of trust; similar to a mortgagee.
benchmark
A marker placed by a government surveyor showing elevation above sea level, and used by surveyors as a reference point.
bearing wall
A wall with a footing under it that bears the load of the structure.
bearer paper
A negotiable instrument made out to cash or bearer that can be transferred without endorsement.
beam
A horizontal structural member giving support to a structure.
bankruptcy
A legal procedure to eliminate unsecured debts. To eliminate secured debts, the security must be surrendered.
batten
Wood strips used to cover joints; used in board-and-batten siding.
basis
Cost plus improvements less depreciation. Used to determine profit for tax purposes on sale.
baseboard
A molding placed against the wall on the floor around a room.
base line
The principal east and west surveyor lines established by government survey.
bargain and sale deed
A deed for consideration that uses the terms bargain and sale. It contains no warranties other than an implied interest by the grantor.
binder
Insurance coverage given by an agent before the issuance of a policy or payment of a premium.
building line
The setback from the lot line.
buffer zone
An area separating different land uses, often a green area.
budget mortgage
A loan by which the borrower pays one-twelfth of the estimated property tax and insurance payment with each monthly payment.
Btu (British thermal unit)
The unit of heat needed to raise one pound of water one degree Fahrenheit. The Btu is used to rate the capacity of heating and air- conditioning units.
brownfields
Areas where soil has been contaminated by chemical discharges.
blanket mortgage
A mortgage covering more than one property.
broker’s net income
An income figure that does not consider a vacancy factor, collection costs, or management expenses.
broker
A licensed agent employed by a principal for real estate transactions. Only a broker can employ a salesperson.
breach
The breaking of a law or contract.
boot
Money, personal property, or debt relief given to even off a trade. Boot is taxable to the person receiving it.
book value
Cost plus improvements less depreciation taken; the value assigned an asset for bookkeeping purposes.
blended mortgage rate
A refinance rate that is less than the current market rate but more than the old rate.
board foot
A unit of lumber measurement equal to 144 cubic inches (1’ x1’ x 1”).
blockbusting
The act of inducing panic selling for gain by exploiting the fear of loss in value because minority members are moving into an area. Blockbusting is illegal under the Civil Rights Act of 1968. blue-sky laws Security registration requirements to protect consumers against investments in fraudulent schemes.
blind pool
A syndicate in which the property to be purchased will be selected after the money has been raised.
blind advertising
An advertisement that fails to indicate that the advertiser is a real estate agent.
building permit
Construction permit issued by local building inspector office.
bylaws
The rules of how a corporation will be governed; sets forth the authority of its officers.
buyers’ market
A market condition characterized by more sellers than buyers, so buyers have a more commanding position.
bulk sales act
A part of the Uniform Commercial Code; requires recording and publication of sales not in the course of normal business. It applies to the sale of stock in trade when a business is sold. If the act is not complied with, the sale is void as to the vendor’s creditors, who can then treat the stock as if the vendor still owned it.
buyer’s agent
An agent representing the buyer rather than the seller.
buyer agency
Agency where agent is the buyer’s representative rather than the seller’s agent.
buy down
A financing technique in which a seller makes a purchase more attractive by paying a lender points to lower the effective interest rate on a mortgage.
business opportunity
A business including stock, fixtures, and goodwill.
bulk zoning
Zoning for density with height,setback, and open space requirements.
bundle of rights
All rights incidental to ownership, such as rights to lease, use, encumber, sell, exclude, and so forth.
