Foreclosures Glossary - Letter B

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back title letter

A notice from a title insurance company to a person who is searching and certifying that a  title search has been completed on the property.

back-end ratio

A calculation that compares a borrower’s total debt to the gross monthly income to assess the ability to carry a mortgage or loan.

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 board placed under or behind something to provide firmness or support.

backfill

The replacement of soil into a hole, crevice or against a structure to strengthen it.

backsplash

A surface or border, usually made of tile, which protects the wall behind a sink or stove.

backup offer

A secondary bid for a property that puts you next in line if the accepted offer falls through.

backwater valve

A backwater valve is a valve that is put on a sewer line in the basement to prevent sewer backflows.

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 on a given date.

ball cock

A self-regulating device to control the supply of water in a tank, cistern, or toilet by a float that is connected to a valve that opens or closes with a change in the water level.

ballcock assembly

A hollow float ball attached to the end of a long float arm, or float cup assembly which uses an open plastic cup directly on the valve assembly, to control flushing in the toilet tank.

balloon loan

A loan with small monthly payments for a period of time, with one final payment in full made at the end of the contract.

balloon payment

The final lump-sum payment that is made at the maturity date of a balloon mortgage and pays the loan in full.

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

An upright support, usually rounded or vase-shaped, which supports a balustrade.

balustrade

A rail and the row of balusters or posts that support it, as found on a stairway or gallery.

bankruptcy

A legal proceeding in which a person or business, who is unable to pay their debts, voluntarily assigns themselves into or is petitioned into bankruptcy by their creditors. This protects them from legal action by some of their creditors.

bargain sale

The sale of property for less than market value.

base loan amount

The amount upon which loan payments are based. Any other charges accrued will be added to the base loan amount.

baseboard

Any board or molding found at the bottom of an interior wall.

baseboard electric heat

Heaters that are controlled by thermostats located in each room that contains an electric baseboard heater.

basement

The substructure or foundation of a building, usually below ground level.

basis point

One one-hundredth of a 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 strip of wood used to fasten down the edges of a material on the outside of a house to cover joints in walls.

bay

An opening or recess in a wall between vertical elements, such as columns or pilasters.

bay window

A window that projects from the outer wall of a building and forms a recess within the building.

bearing wall

A wall in the lower story of a building that holds up the upper levels of a house and the roof. They carry the weight of the floors above.

before-tax income

Gross earnings before taxes are deducted.

beneficiary

a person or corporate entity that benefits from an insurance policy or will.

a person or entity that benefits from a promise, agreement, or contract.

bequest

An item or property given to a person or entity under the instructions of a will.

berm

A concrete ledge designed to prevent runoff water from accessing an area of the property or building.

betterment

A home improvement or addition to the property that increases its value.

building permit

An authorization from the local government office allowing new construction or renovation of an existing structure.

bi-level

A home that has two levels, where the main entrance is between the two levels.

bi-metal coil

A mechanical device in a home heating system that automatically responds to changes in temperature and activates switches to control the temperature.

bid out

The process that contractors use to estimate the cost of a house or project before it is completed.

bidding war

Multiple offers on a property for sale.

bilateral contract

A legal agreement where both parties promise to give something to each other, as in a transfer of property (the buyer promises to give the funds and the seller promises to transfer the property).

bill of sale

A document that provides evidence that the title to personal property (chattels) has been passed to the purchaser.

binder

a preliminary agreement between a buyer and a seller for the sale of a property; the deposit is lost if the purchaser does not complete the purchase.

a written commitment from an insurance company to insure a property.

biweekly mortgage

A mortgage that has scheduled payments every two weeks resulting in 26 payments per year. This increased payment schedule substantially reduces the interest payments and the life of the mortgage.

blanket insurance policy

An insurance policy that covers more than one person or property, such as areas owned in common. This type of policy does not cover dwellings or contents of dwellings.

blanket mortgage

A loan that is secured against more than one piece of property. Usually refers to commercial property.

blighted area

An unsightly area or community where the infrastructure and buildings have deteriorated.

blind nailing

A method of concealing a nail by driving in the finish nail or brad, counter sink it, and fill the top of the hole with plastic wood putty.

blockbusting

An illegal practice of persuading homeowners to sell their properties quickly by putting a fear of declining property values due to people of ethnic origins moving in.

blue-ribbon condition

A term used to refer to a house that appears as brand-new or in mint condition.

blue-sky laws

A law that protects the public from investing in or buying fraudulent securities or investment in high-risk companies without being informed of the risks.

blueprint

The construction plans for a home or structure that detail specifics about the building.

board and batten

A type of siding that consists of vertical wide boards or plywood sheets that are covered by narrow strips of wood (battens) over joints or cracks.

board foot

A unit of cubic measure used for lumber that is equal to one foot square by one inch thick.

board of equalization

A government agency that ensures uniform property tax assessments.

board-and-batten siding

A type of siding that consists of vertical wide boards or plywood sheets that are covered by narrow strips of wood (battens) over joints or cracks.

boilerplate

A standard clause or provision used in deeds, mortgages, and other documents which appears in all similar contracts.

bona fide

A legal term that refers to actions made in good faith, at fair market value, and without deceit or fraud.

bond

1. An interest bearing certificate, representing a debt that is issued with a maturity due date.

2. A bond that is secured by a mortgage or deed of trust.

bonus room

A room in a house which could be used for many different purposes. Sometimes placed over a garage or in an attic.

book value

The value of a property based on its cost plus any additions, minus depreciation. Not necessarily identical to the amount that it could bring in on the open market.

boot

A piece of sheet metal that connects a heating or cooling duct and a vent.

boring test

An examination of the load bearing capabilities of soil by boring holes into the ground and removing samples.

borough

A town or a section of a city which has a municipal corporation and certain rights over local matters such as self-government.

borrow

to obtain a loan

sand, gravel or other material used for grading.

borrow pit

The hole from which the topsoil, gravel or other material has been removed for use in a grading or construction project.

boulevard

A city street, often lined with trees or landscaping.

boundary

The dividing line, edge or limit of a property.

braced framing

A construction technique which uses posts and cross-bracing for reinforcement.

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

Failure to meet ones obligation in a contract without a legal excuse.

breach of covenant

Continuing failure to meet the legal obligations in a contract or property deed.

breach of warranty

A seller’s inability to pass clear title of a property to the buyer, as by a defect in title.

break-even point

The point at which the return on investment is equal to the amount invested, as in the point where expenses meet income or savings.

breezeway

A roofed, open-sided passageway, usually between a house and a garage.

brick

A rectangular block of clay that is baked by the sun or in a kiln until it is hard which is used for building or paving.

brick veneer

A decorative facing, with the appearance of brick, on a wall or fireplace.

bridge loan

A short-term loan to bridge the gap between the purchase of a new home and the sale of the current home when the purchase closes before the equity from the sale of the current home is available.

broker

An intermediary who charges a percentage of the contract price as a fee to bring together mortgage lenders and borrowers; or real estate agents with vendors.

brokerage

The business or office of a broker.

broom clean

An ideal condition of a building or property when it is turned over to an owner or a tenant.

brownstone

A building with a façade of brownish-red sandstone.

buffer strip

A parcel of land designed to separate one zoning area from another, such as a residential neighborhood from an industrial area.

buildability

The feasibility of constructing a home or other structure on a piece of land.

builder upgrades

Extra features or materials offered by a builder for an extra charge.

building and loan association

A financial institution that helps its members finance real estate or construction of a building.

building code

A comprehensive set of regulations established by a municipality to control construction standards for building or remodeling of structures.

building inspector

A local government employee who enforces the building code and ensures that the construction or renovation work is done properly.

building line or setback

The minimum distance that a building may be from the property line, street or an adjacent property.

building moratorium

A temporary or permanent halt on construction of a home or building.

building paper

A heavy paper used in walls or roofs to prevent moisture-related problems.

building restrictions

Regulations that appear in building codes or title documents which limit the manner in which a property can be renovated or built upon.

built-ins

Appliances or cabinets that are permanently attached to a building.

bulkhead

A retaining wall that acts as a protective barrier from a body of water.

bundle of rights

The legal rights that an owner has regarding a property.

bungalow

A small single story house or cottage.

butt

To join by fastening ends together without overlapping.

butterfly roof

A roof formed by two gables that dip in the middle to resemble a butterfly wings.

buydown mortgage

A home loan where the purchaser makes an initial lump sum payment to the lender in exchange for a discounted interest rate which gradually increases over one to three years.

buyers agent

A person with a state/provincial license who represents a buyer or a seller in a real-estate transaction in exchange for a commission from the transaction.

buyers broker

A person who represents a buyer of a property. The broker earns a commission at closing, for assisting in the negotiation of the sale.

buyers market

When sellers significantly outnumber buyers, giving the advantage to the buyers and driving the prices down.

buyers remorse

Emotional anxiety that a buyer feels after closing on a property or after signing a sales contract.

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 buyers brokers only. Call (800) 500-3569 for information and referrals.

bylaws

The rules and regulations governing an organization such as the homeowners association.