B Terms

Question 1

back-end ratio

Answer 1

The ratio of gross income to loan payments (PITI) plus long-term installment debt payments. Used to qualify buyers.

Question 2

bailment

Answer 2

Giving possession of personal property to another, but retaining title; for example, storing goods in a warehouse, renting a trailer, giving existing mortgages to a lender as security for a loan.

Question 3

balance sheet

Answer 3

A financial statement showing assets and liabilities. The balance sheet shows net worth.

Question 4

balloon payment

Answer 4

A final installment of an unamortized loan that exceeds the previous payments.

Question 5

bill of sale

Answer 5

A written agreement transferring title to personal property.

Question 6

bilateral contract

Answer 6

A mutual exchange of promises whereby each promise is consideration for the other promise.

Question 7

betterment

Answer 7

An actual improvement (not a repair) to real estate.

Question 8

bequest

Answer 8

Personal property that is given by will.

Question 9

bequeath

Answer 9

To give personal property by will.

Question 10

beneficiary statement

Answer 10

A statement of a lender of the balance due on a loan.

Question 11

beneficiary deed

Answer 11

A deed that does not take effect until death of grantor (allowed in several states).

Question 12

banker’s interest

Answer 12

Interest based on a 30- day month and a 360-day year.

Question 13

beneficiary

Answer 13

The person receiving payments under a deed of trust; similar to a mortgagee.

Question 14

benchmark

Answer 14

A marker placed by a government surveyor showing elevation above sea level, and used by surveyors as a reference point.

Question 15

bearing wall

Answer 15

A wall with a footing under it that bears the load of the structure.

Question 16

bearer paper

Answer 16

A negotiable instrument made out to cash or bearer that can be transferred without endorsement.

Question 17

beam

Answer 17

A horizontal structural member giving support to a structure.

Question 18

bankruptcy

Answer 18

A legal procedure to eliminate unsecured debts. To eliminate secured debts, the security must be surrendered.

Question 19

batten

Answer 19

Wood strips used to cover joints; used in board-and-batten siding.

Question 20

basis

Answer 20

Cost plus improvements less depreciation. Used to determine profit for tax purposes on sale.

Question 21

baseboard

Answer 21

A molding placed against the wall on the floor around a room.

Question 22

base line

Answer 22

The principal east and west surveyor lines established by government survey.

Question 23

bargain and sale deed

Answer 23

A deed for consideration that uses the terms bargain and sale. It contains no warranties other than an implied interest by the grantor.

Question 24

binder

Answer 24

Insurance coverage given by an agent before the issuance of a policy or payment of a premium.

Question 25

building line

Answer 25

The setback from the lot line.

Question 26

buffer zone

Answer 26

An area separating different land uses, often a green area.

Question 27

budget mortgage

Answer 27

A loan by which the borrower pays one-twelfth of the estimated property tax and insurance payment with each monthly payment.

Question 28

Btu (British thermal unit)

Answer 28

The unit of heat needed to raise one pound of water one degree Fahrenheit. The Btu is used to rate the capacity of heating and air- conditioning units.

Question 29

brownfields

Answer 29

Areas where soil has been contaminated by chemical discharges.

Question 30

blanket mortgage

Answer 30

A mortgage covering more than one property.

Question 31

broker's net income

Answer 31

An income figure that does not consider a vacancy factor, collection costs, or management expenses.

Question 32

broker

Answer 32

A licensed agent employed by a principal for real estate transactions. Only a broker can employ a salesperson.

Question 33

breach

Answer 33

The breaking of a law or contract.

Question 34

boot

Answer 34

Money, personal property, or debt relief given to even off a trade. Boot is taxable to the person receiving it.

Question 35

book value

Answer 35

Cost plus improvements less depreciation taken; the value assigned an asset for bookkeeping purposes.

Question 36

blended mortgage rate

Answer 36

A refinance rate that is less than the current market rate but more than the old rate.

Question 37

board foot

Answer 37

A unit of lumber measurement equal to 144 cubic inches (1' x1’ x 1").

Question 38

blockbusting

Answer 38

The act of inducing panic selling for gain by exploiting the fear of loss in value because minority members are moving into an area. Blockbusting is illegal under the Civil Rights Act of 1968. blue-sky laws Security registration requirements to protect consumers against investments in fraudulent schemes.

Question 39

blind pool

Answer 39

A syndicate in which the property to be purchased will be selected after the money has been raised.

Question 40

blind advertising

Answer 40

An advertisement that fails to indicate that the advertiser is a real estate agent.

Question 41

building permit

Answer 41

Construction permit issued by local building inspector office.

Question 42

bylaws

Answer 42

The rules of how a corporation will be governed; sets forth the authority of its officers.

Question 43

buyers' market

Answer 43

A market condition characterized by more sellers than buyers, so buyers have a more commanding position.

Question 44

bulk sales act

Answer 44

A part of the Uniform Commercial Code; requires recording and publication of sales not in the course of normal business. It applies to the sale of stock in trade when a business is sold. If the act is not complied with, the sale is void as to the vendor's creditors, who can then treat the stock as if the vendor still owned it.

Question 45

buyer's agent

Answer 45

An agent representing the buyer rather than the seller.

Question 46

buyer agency

Answer 46

Agency where agent is the buyer's representative rather than the seller's agent.

Question 47

buy down

Answer 47

A financing technique in which a seller makes a purchase more attractive by paying a lender points to lower the effective interest rate on a mortgage.

Question 48

business opportunity

Answer 48

A business including stock, fixtures, and goodwill.

Question 49

bulk zoning

Answer 49

Zoning for density with height,setback, and open space requirements.

Question 50

bundle of rights

Answer 50

All rights incidental to ownership, such as rights to lease, use, encumber, sell, exclude, and so forth.