Before
Tax Income
Income before taxes are deducted. Also known as
Gross Income.
Beneficiary
The person(s) designated to receive income or assets
from a benefactor, trust, estate, or a deed of trust.
Bequeath
The transfer of personal property through a will.
Betterment
An improvement that increases property value. This
is different from repairs or replacements made that
simply maintain value.
Bill of Sale
A written document that transfers the title of personal
property. It's a good idea to have all involved
parties sign the Bill of Sale in front of a Notary
Public.
Binder
A preliminary agreement, secured by the payment
of an earnest money deposit, under which a buyer
offers to purchase real estate.
Biweekly Payment Mortgage
A mortgage that requires payments to reduce the
debt every two weeks (instead of the standard monthly
payment schedule). They are usually drafted from
the borrower's bank account. The result is a substantial
reduction in interest paid by the borrower.
Blanket Insurance
Policy
Any insurance policy that covers one or more broad
classes of persons or property, without identifying
the specific subjects of insurance in the contract.
Blanket Mortgage
Mortgage in which one loan is secured for several
properties.
Bona Fide
Made in good faith without fraud or deceit.
Bond
A written instrument given by a corporation or government
entity as evidence of a debt and also meaning a
guarantee of performance. A real estate bond is
a written obligation usually secured by a mortgage
or a deed of trust.
Breach
A violation of any legal obligation.
Breezeway
A covered passage, open on two sides,
connecting a house with a garage or other sections
of the house.
Bridge
Loan
Mortgage financing that falls in between the termination
of one loan and the beginning of another loan. This
allows the proceeds to be used for closing on a
new house before the present home is sold. Also
known as Gap Loan or Swing Loan.
Broker
A person who, for a commission or a fee, brings
parties together to assists in negotiating contracts
between them.
Budget
An itemized list of expected income and expenses
prepared on a weekly, monthly or annual basis.
Budget
Category
A category of income or expense data that you can
use in a budget. You can also define your own budget
categories and add them to some or all of the budgets
you create. Housing, Food, and Utilities are examples
of Expense Categories. Salary is an example of an
Income Category.
Budget
Mortgage
A
type of amortizing mortgage which includes the principal,
interest and other costs such as taxes and homeowners
insurance. This is referred to as a PITI monthly
payment.
Builder
Warranty
A guarantee as to the quality of
construction offered by a building contractor or
developer. See also Homeowners warranty.
Building
Codes
Local regulations established by ordinance or law
to regulate and set minimum construction standards
for buildings within a municipality to protect the
public's safety and health. It may control design,
construction, and materials used in construction.
Building
Inspection
A physical review of property as
construction progresses to ensure that each major
component — foundation, roofing, plumbing,
electrical wiring, materials meets the building
codes.
Building
Permit
The authorization by a local government
for the erection, alteration or remodeling of improvements
to a home within its jurisdiction.
Bully
Barn
A storage shed that is shaped like
a barn.
Bungalow
A small, early-twentieth-century-style,
one-story home noted for having an open or enclosed
front porch which extends across the front.
Buy-back
Agreement
A contractual provision in which
the seller agrees to repurchase the property at
a specific price upon the occurrence of a specified
event within a certain period of time.
Buydown
A mortgage financing technique in
which the interest rate is reduced over the first
few years of a loan because the lender received
an initial payment from the builder or seller to
reduce the rate, or in effect a discount, thus reducing
the monthly payments for a fixed time period.
Buydown
Account
An account in which funds are held so they can be
applied as part of the monthly mortgage payment
as each payment comes due during the period that
an interest rate buydown plan is in effect.
Buydown Mortgage
A mortgage in which an initial lump sum payment
is made by a party to reduce a borrower's monthly
payments during the first few years of a mortgage.
Buy-Sell
Agreement
An agreement among stockholders, partners or co-owners
where some will agree to buy out the interests of
others upon the happening of some event.
Buyer's
Agent
A real estate broker or salesperson who represents
a prospective purchaser or tenant in a real estate
transaction exclusively and whose duties and obligations
are to the buyer or tenant.
Buyer's
Market
A buyer's market exists when real estate for sale
exceeds the number of buyers seeking to purchase
real estate. In this case, a Buyer is in a better
position as to price and terms because of this abundance.
Buyout
1. The purchase of the entire holdings or interests
of an owner or investor.
2. An
arrangement by an owner of a building agreeing to
take on the liability for the remaining lease term
of a tenant in a different building which releases
the tenant from the old lease obligation and permits
him/her to negotiate a lease in the owner's building.
The
definitions of Real Estate Definitions found on
10Realty.com are for general information only. All
information is subject to change and should be independently
verified. 10Realty.com makes no representations
or warranties of any nature with regard to the information
found on the pages therein. 10Realty.com assumes
no responsibility for any liabilities or losses
claimed or incurred as a result of using this information.
(Real Estate Terms, Investment Terms, Banking Terms
explained, definitions, legal definitions, legal
terms and definitions)
