BALANCE
The assessment principle that confirms that the greatest value in a property will take place when the type and size of the improvements are proportional to each other as well as the land.
BALLOON PAYMENT
A large final payment of a mortgage loan that is significantly larger than the regular installment because the loan amount was not fully amortized. Some states restrict the use of balloon payments to loans involving consumers with irregular or seasonal incomes.
BARGAIN AND SALE DEED
Characteristically it is used in cases of title transfer. A grantor implies that they have or have had an interest in the property or other encumbrances. The grantor may add warranties to the deed at his or her discretion.
BASE LINE
An imaginary line serving as a basis, as for measurement, calculation, or location used by surveyors for reference in locating and describing land under the rectangular (government) survey system of legal description.
BASIS
The stated value of an asset used to resolve annual depreciation or cost recovery and gain or loss on when an asset is eventually sold.
BENCH MARK
A surveyor’s mark or point on a stationary object of previously determined position and elevation established for use in surveys.
BINDER OR "OFFER TO PURCHASE"
A preliminary agreement that is formed by the receipt of earnest money (an advance payment that confirms a contract between a buyer and seller) for the purchase of real property as evidence of the purchaser's good faith and intention to complete the transaction. A binder secures the right to purchase real estate upon agreed terms for a limited period of time. If the buyer changes his mind or fails to purchase, the earnest money is forfeited unless the binder clearly provides that it is to be refunded.
BLANKET LOAN
A blanket loan, or blanket mortgage, covers more than one parcel of real estate, providing for each parcel's partial release from the mortgage lien upon repayment of a definite portion of the debt.
BLOCKBUSTING
The illegal practice of inducing panic selling among white homeowners to sell their assets at inflated prices by making representations that minority groups of a particular race or national origin will move into the neighborhood, causing property values to decline.
BLUE-SKY LAWS
Common name for state and federal statutes regulating and supervising the sale of investment securities and offerings to protect citizen-investors from investing in fraudulent organizations.
BOOT
Money or property received in a like-kind exchange to make up any difference in value or equity between two properties.
BRANCH OFFICE
Another venue of business apart from the main office from which real estate business is conducted. A branch office is usually operated by a licensed real estate broker working on behalf of the broker.
BREACH OF CONTRACT
Breach of contract is a legal concept in which a binding agreement is not followed by one or more of the parties by non-performance or interference or violation of any terms or conditions in a contract without legal excuse. It may provoke a lawsuit, in which an aggrieved party pleads for a financial compensation for the loss brought about by the breach.
BROKER
An intermediary to plan and organize sales or negotiate contracts, purchases, or sales on behalf of others for a fee or commission.
BROKERAGE
The bringing together of parties interested in buying, selling, exchanging, or leasing real property for a commission or fee.
BUFFER ZONE
A strip of land that serves the purpose of keeping two or more other areas distant from one another (e.g., residential from commercial). They often result in large uninhabited regions (similar to nature parks).
BUILDING CODE
A decree that specifies minimum standards of how buildings should be constructed to ensure a level of safety in a jurisdiction.
BUILDING PERMIT The written governmental approval that must be obtained for the construction, substantial repairing of an existing structure or demolition of any building. Building permits are obtained prior to the start of construction and should comply the building codes and zoning ordinances.
BUNDLE OF LEGAL RIGHTS The concept of land ownership that includes ownership of all legal rights to the land--for example, when Real Property is purchased the bundle of rights; such as the right of occupancy, use and enjoyment, the right to sell in whole or in part, the right to control the use, the right to bequeath, the right to lease any or all of the rights, the right to the benefits derived by occupancy and use of the property, etc. actually are passed from the seller to the buyer.
BUYDOWN A mortgage financing technique used to reduce the monthly payments for the first few years of a loan. The borrower "buys down" the interest rate on a mortgage by paying discount points up front to buy down or lower the effective interest rate paid by the buyer, thus reducing the monthly payments for a set time. The seller may increase the sales price to cover the cost of the buydown.
BUYER-AGENCY AGREEMENT A principal-agent relationship in which the broker is the agent for the buyer and is financially obliged to the buyer. The broker represents the buyer under the law of agency.
BALLOON PAYMENT
A large final payment of a mortgage loan that is significantly larger than the regular installment because the loan amount was not fully amortized. Some states restrict the use of balloon payments to loans involving consumers with irregular or seasonal incomes.
BARGAIN AND SALE DEED
Characteristically it is used in cases of title transfer. A grantor implies that they have or have had an interest in the property or other encumbrances. The grantor may add warranties to the deed at his or her discretion.
BASE LINE
An imaginary line serving as a basis, as for measurement, calculation, or location used by surveyors for reference in locating and describing land under the rectangular (government) survey system of legal description.
BASIS
The stated value of an asset used to resolve annual depreciation or cost recovery and gain or loss on when an asset is eventually sold.
BENCH MARK
A surveyor’s mark or point on a stationary object of previously determined position and elevation established for use in surveys.
BINDER OR "OFFER TO PURCHASE"
A preliminary agreement that is formed by the receipt of earnest money (an advance payment that confirms a contract between a buyer and seller) for the purchase of real property as evidence of the purchaser's good faith and intention to complete the transaction. A binder secures the right to purchase real estate upon agreed terms for a limited period of time. If the buyer changes his mind or fails to purchase, the earnest money is forfeited unless the binder clearly provides that it is to be refunded.
BLANKET LOAN
A blanket loan, or blanket mortgage, covers more than one parcel of real estate, providing for each parcel's partial release from the mortgage lien upon repayment of a definite portion of the debt.
BLOCKBUSTING
The illegal practice of inducing panic selling among white homeowners to sell their assets at inflated prices by making representations that minority groups of a particular race or national origin will move into the neighborhood, causing property values to decline.
BLUE-SKY LAWS
Common name for state and federal statutes regulating and supervising the sale of investment securities and offerings to protect citizen-investors from investing in fraudulent organizations.
BOOT
Money or property received in a like-kind exchange to make up any difference in value or equity between two properties.
BRANCH OFFICE
Another venue of business apart from the main office from which real estate business is conducted. A branch office is usually operated by a licensed real estate broker working on behalf of the broker.
BREACH OF CONTRACT
Breach of contract is a legal concept in which a binding agreement is not followed by one or more of the parties by non-performance or interference or violation of any terms or conditions in a contract without legal excuse. It may provoke a lawsuit, in which an aggrieved party pleads for a financial compensation for the loss brought about by the breach.
BROKER
An intermediary to plan and organize sales or negotiate contracts, purchases, or sales on behalf of others for a fee or commission.
BROKERAGE
The bringing together of parties interested in buying, selling, exchanging, or leasing real property for a commission or fee.
BUFFER ZONE
A strip of land that serves the purpose of keeping two or more other areas distant from one another (e.g., residential from commercial). They often result in large uninhabited regions (similar to nature parks).
BUILDING CODE
A decree that specifies minimum standards of how buildings should be constructed to ensure a level of safety in a jurisdiction.
BUILDING PERMIT The written governmental approval that must be obtained for the construction, substantial repairing of an existing structure or demolition of any building. Building permits are obtained prior to the start of construction and should comply the building codes and zoning ordinances.
BUNDLE OF LEGAL RIGHTS The concept of land ownership that includes ownership of all legal rights to the land--for example, when Real Property is purchased the bundle of rights; such as the right of occupancy, use and enjoyment, the right to sell in whole or in part, the right to control the use, the right to bequeath, the right to lease any or all of the rights, the right to the benefits derived by occupancy and use of the property, etc. actually are passed from the seller to the buyer.
BUYDOWN A mortgage financing technique used to reduce the monthly payments for the first few years of a loan. The borrower "buys down" the interest rate on a mortgage by paying discount points up front to buy down or lower the effective interest rate paid by the buyer, thus reducing the monthly payments for a set time. The seller may increase the sales price to cover the cost of the buydown.
BUYER-AGENCY AGREEMENT A principal-agent relationship in which the broker is the agent for the buyer and is financially obliged to the buyer. The broker represents the buyer under the law of agency.