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.
