Glossary of terms used on this site
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| Term | Definition |
|---|---|
| Back fill |
Soil used to solidify the foundation of a structure. |
| Back title letter |
A letter that a title insurance company gives to an attorney who then examines the title for insurance purposes. |
| 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. |
| 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. |
| Balance sheet |
A statement that shows the assets, liabilities and net worth of an individual. |
| 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. |
| Balustrade |
Railing held up by a set of posts on a porch or stairway. |
| Bankruptcy |
A proceeding in which an insolvent debtor can obtain relief from payment of certain obligations. Bankruptcies remain on a credit record for seven 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. |
| 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. |
| 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. |
| 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. |
| 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. |
| Betterment |
An improvement that increases a property's value as opposed to repairs that maintain the value. |
| 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 "reciprocal" contracts. |
| 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. |
| 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. |
| 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. |
| Blue-ribbon condition |
A house maintained close to its original condition. Also called mint condition. |
| Board foot |
Measurement of lumber that is the equivalent of 144 cubic inches. |
| Board of Equalization |
A state board charged with ensuring that local property taxes are assessed in a uniform manner. |
| Board-and-batten siding |
Siding is 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. |
| Bond |
An agreement that insures one party against loss by acts or defaults of another party. |
| Book value |
The value of a property as a capital asset based on its cost plus any additions, minus depreciation. |
| 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. |
| Boulevard |
A street lined with trees or constructed with a landscaped median. |
| Boundary |
he 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. |
| Breach of contract |
The failure to perform provisions of a contractwithout a legal excuse. |
| Breach of covenant |
The failure to obey a legal agreement. |
| Breach of warranty |
A seller's inability to pass clear title to a buyer. |
