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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
