Real Estate Glossary - Letter B

Back up Offer

A secondary bid that is only accepted by the seller if the first real estate purchase contract does not close.

Balance

The remaining amount on a loan after deducting all payments that have been made from the total amount that includes the interest and the principal.

Balloon Mortgage

A home loan where installment payments made over a specified period of time are too small; in effect last payment due is lump sum amount of remaining balance .

Balloon Payment

The final payment of a loan which is significantly more considerable than the other installment payments; usually applicable in a balloon mortgage.

Bankruptcy

A proceeding where a person declares his inability to settle a financial debt and where relief from obligations is sought and granted by a special court.

Bargain Sale

The sale of a real property for less than current market value.

Bedroom community

A neighborhood or suburban area where employment opportunities are small but provide plenty of housing; where workers from major cities reside.

Bequeath

The giving or leaving of a property’s ownership through a will after a person’ death.

Bid

The highest amount a buyer offers a seller to pay for a property at a given time.

Bilateral contract

A contract where promises are exchanged by both parties; also known as reciprocal contract.

Bill of Sale

A legal document that transfer title of a property from seller to buyer.

Biweekly mortgage

A mortgage payment with two weeks interval; shortens loan payment terms and lowers total interest paid.

Blanket mortgage

A loan where several properties are involved but are owned by the same borrower.

Bond

An agreement where one party assures another party of performance.

Book value

The present value of a property as capital where all debts and liabilities are deducted and accumulated appreciation are added for accounting purposes.

Breach of Contract

An unjustifiable violation of any of the terms and conditions in a legal contract.

Broker

A state-licensed individual that is authorized to by a seller of a property to act on his/her behalf.

Brokerage

The business where two parties, such as buyer/lessor and seller/lessee, are brought together by brokers for a fee or commission.

Budget

A specific amount of money allocated for a particular purpose.

Building inspector

A local or state employee who is responsible for inspecting buildings and/or building sites to check if they comply with building codes.

Built-ins

Any appliances or extra items not included in the original house but are no longer detachable.

Buy-back agreement

A specific provision in a purchase contract where seller agrees to repurchase a property when certain conditions in the contract are not met.

Buy-down mortgage

A home financing technique where the lender receives an initial payment from the seller to induce a reduction on the interest rate.

Buy-sell agreement

A business agreement between partners or shareholders that obliges one to buy and the other to sell in events specified in the agreement.

Buyer broker

A real estate broker who represents a buyer exclusively in all transactions.

Buyer’s remorse

A feeling of guilt or regret experienced by first-time buyers after closing or signing the purchase contract.