REAL ESTATE DICTIONARY - B
Balloon Loan
Mortgage in which the remaining principal balance becomes
fully due and payable at a predetermined time. Most
of the time, balloon loans have level payments until
the note becomes due and payable.
Balloon Payment
The final payment of a mortgage which is larger than
the regular payment; it usually extinguishes the debt.
Bankruptcies
A court action to restructure debt.
Basis
Original cost of property plus value of any improvements
put on by the seller minus the depreciation taken by
the seller.
Beneficiary
The lender named on the mortgage note. One entitled
to the proceeds of property held in trust; also proceeds
of wills, insurance policies, or trusts.
Bill of Sale
Written agreement transferring personal property from
one person to another.
Binder
Preliminary agreement of sale, usually accompanied by
earnest money (term also used with property insurance).
Blanket Mortgage
A mortgage covering more than one property of the mortgage.
Bond
A debt instrument in the capital markets. The US government,
corporations and municipalities use bonds to raise money.
Bonds can also be backed by real estate loans and the
payments from mortgages.
Bridge Financing
A form of an interim loan, generally made between a
short term loan and a long term loan when the borrower
needs additional time before obtaining permanent financing.
Broker
A person that represents another for a fee in real estate
transactions. Real Estate brokers help consumers locate
suitable real estate and are paid a fee for their services.
Building Code
Government regulations specifying minimum construction
standards.
Building Line or Setback
Distances from the ends and/or sides of the lot beyond
which construction may not extend. The building line
may be established by a filed plat of subdivision, by
restrictive covenants in deeds or leased, by building
codes, or by zoning ordinances.
Buy down
An interest rate buy down is the temporary reduction
of the note rate and resulting monthly payments a borrower
pays to the lender. The shortfall between the rate on
the note and initial payment made by the borrower is
usually paid by a third party such as a seller or builder.
Buyer's Broker
Agent who takes the buyer as a client, and is obligated
to represent their interest above all others, and owes
specific fiduciary duties to the buyer.
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