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Real Property Glossary -B-
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Back title letterA letter that a title insurance company gives to an attorney who then examines the title for insurance purposes.
Back-end ratio
A calculation used by lenders to compare a borrower's total debt to their gross
monthly income.
An arrangement by a property owner to oversee the sale of one property and the purchase of another at the same time.
Backfill
Soil used to solidify the foundation of a structure.
Backsplash
The area behind and above a countertop. Widely used in kitchens as these assist
in preventing water from splashing onto the wallboard.
A secondary bid for a property that the seller may accept if the first offer fails.
Baffle
A device used as a heat shield to deflect the byproducts of combustion.
Balance sheet
A statement providing the assets, liabilities and net worth of an individual.
A type of inlet valve assembly inside a toilet tank that, when opened automatically, fills the tank with water.
Ball cock assembly
The toilet tank mechanism that controls flushing.
A mortgage loan where the monthly payments are not large enough to repay the loan by the end of the term resulting in a lump sum due on the final payment date.
Balloon payment
The final lump sum payment due at the end of a balloon mortgage.
Balloon-frame construction
Framing used in two-story homes where studs extend from the ground to the
ceiling of the second floor.
Baluster
Intermediate vertical support for a stair railing.
Railing held up by a set of posts on a porch or stairway.
Bankruptcy
A proceeding where an insolvent debtor (person or corporation) can obtain relief
from payment of certain obligations.
The sale of property for less than market value.
Base loan amount
The loan amount upon which payments are based. If the borrower chooses to
finance closing costs or other fees these costs will be added to the base loan
amount and payments adjusted to reflect the larger loan balance.
Baseboard
A board or molding found at the bottom of an interior wall.
Baseboard electric heat
Heating units installed in the floor controlled by a central thermostat.
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 home loan at 5.25 percent and one at 5.37 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.
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.
Total income before any taxes are deducted.
Bequest
Personal property given to a person through a will.
An improvement that increases property value as opposed to repairs that maintain the value.
Bi-level
A home with two (2) levels.
Bi-metal coil
Part of a mechanical thermostat - consisting of two (2) different types of
metal which expand and contract at two different rates according to changes in
room temperature.
The process that contractors use to estimate the cost of construction.
Bidding war
Offers from multiple buyers for a piece of property.
Bill of sale
A legal document transferring ownership of personal property.
A report detailing the condition of a property's title. Usually issued by a title insurance company to provide guidelines for issuing a title insurance policy.
Binder
A preliminary agreement between buyer and seller.
A mortgage that requires payments every two weeks and helps repay the loan over a shorter term.
Blanket insurance policy
An insurance policy covering more than one person or piece of property.
Blanket mortgage
A mortgage that covers more than one property owned by the same borrower. (very
rare)
Blighted area
A neighborhood that has deteriorated.
Nails driven into a wall and concealed with putty.
Blockbusting
The illegal practice of inducing homeowners to sell their properties by making
representations regarding the entry of a particular race into the neighborhood.
A house maintained close to its original condition. Also called mint condition.
Blueprint
A very detailed plan for a home or other property structure.
Board of equalization
A state board responsible for ensuring local property taxes are assessed in a
uniform manner.
A legal term referring to actions or persons that are honest and in good faith.
Bond
An instrument that insures one party against loss by acts or defaults of another
party.
A room with no specifically designated function - unlike a living room, bedroom, or kitchen.
Book value
The value of a property based on its cost plus any additions, minus
depreciation.
A piece of sheet metal that connects a heating or cooling duct and a vent.
Boring test
An analysis of soil where holes are bored into the ground and samples removed.
A section of a city that has authority over local matters.
Borrow
Sand, gravel, or other material used for grading.
The hole at a construction site that has been excavated.
Boulevard
A street lined with trees or constructed with a landscaped median.
The dividing line between two adjacent properties.
Braced framing
A construction method in two-story homes where the frame is reinforced with
posts & braces.
The technique used to reinforce a structure.
Branch circuit
An electrical circuit with its own circuit breaker in the service panel.
The failure to perform provisions of a contract without a legal excuse.
Breach of covenant
The failure to obey a legal agreement.
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.
A roofed passageway with open sides.
Brick
Building material made from clay molded into oblong blocks and fired in a kiln.
A brick facade on a wall or fireplace.
Bridge loan
A short-term loan for borrowers who need more time to find permanent financing.
Anyone who acts as a go-between between a buyer and seller. For example, a real estate broker is licensed to handle property transactions and negotiate between a buyer and seller. A mortgage broker acts as a go-between with the lender and the borrower.
Brokerage
The act of bringing together two or more parties in exchange for a fee or
commission. Common brokerage companies include real estate brokerage and
mortgage brokers.
The ideal condition of a building when it is turned over to a new owner or tenant.
Brownstone
A vintage row house constructed of red sandstone.
A parcel of land that separates two or more properties.
Buildability
The feasibility of constructing a home or other structure on a piece of land.
Extra features or higher quality finishing materials offered by home builders.
Building and loan association
An organization that raises money to helps its members purchase real estate or
construct a building.
A set of laws controlling the construction or remodeling of property within a defined area.
Building inspector
A government employee who is responsible for enforcing the local building codes
and ensuring the work is correctly performed by the builder.
Guidelines that limit how close an owner can build to the street or an adjacent property.
Building moratorium
A halt on home construction to slow the rate of development.
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.
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.
A retaining wall designed to hold back water from the ocean or other body of water.
Bundle of rights
The various interests or rights an owner has in a property.
A small one-story house or cottage.
Butt
The way in which two boards meet so that the ends touch in a continuous line.
A roof formed by two gables that dip in the middle to resemble the wings of a butterfly.
Buydown mortgage
A home loan program where the lender receives a premium as an enticement to
reduce the interest rate during the early years of the mortgage.
An agent representing a buyer in a home purchase, either as a single agent or as an exclusive buyer's broker.
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.
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
Rules and regulations that a homeowners association or corporation adopts to
govern activities.
