Real Estate Vocabulary: Section B

Vocabulary terms and definitions related to real estate starting with the letter 'B', covering contracts, legal terms, and construction methods.

Backup Offer

An offer made and accepted, after another offer has been accepted, that is contingent on the failure of the first contract.

Bad Title

Title with defects making it unmarketable.

Bait and Switch

A deceptive sales technique involving advertising a particular product, service, or rate, then persuading the consumer to accept something else; illegal under most state consumer protection laws.

Balance (Four Factors of Production)

The right mix of capital, entrepreneurship/management, labor, and land resulting in the best return on investment (C-E-L-L).

Balance Sheet

A financial statement listing assets, liabilities, and ownership equity at a specific moment in time, such as a property management report.

Balloon Framing

A framing technique where long vertical studs are installed in a continuous piece from the foundation to the roofline.

Balloon Payment

A lump-sum payment made at the end of a loan term to pay off the remaining balance of principal and interest not covered by prior payments.

Bankruptcy (Chapter 7)

Sometimes called straight bankruptcy, it is a liquidation proceeding that cancels some debt and provides relief for creditors.

Bankruptcy (Chapter 13)

A reorganization proceeding filed by individuals wanting to pay off debts over a period of $3$ to $5\text{ years}$.

Bargain and Sale Deed

A type of deed implying the grantor owns the property and has the right to convey it, but contains no warranties.

Base Rent

The minimum amount of rent indicated in a lease.

Base Year

The period, typically the first year of a lease, used as a reference point for actual operating expenses against which subsequent increases are compared and passed to the tenant.

Baseline

The principle east-west line (parallel) upon which all rectangular surveys in a defined area are based.

Basic Sector

The segment of a local economy consisting of businesses and industries that bring income in by selling goods or services to consumers outside the community.

Basis Point

One hundredth of one percent (\frac{1}{100} \times 1\text{%}), used to express differences in interest rates.

Beam

A long piece of timber or metal installed horizontally to span an opening and support a roof or floor.

Benchmark

A bronze disk precisely identified by government survey teams and permanently placed.

Beneficiary

One who receives a benefit; specifically the lender in a trust deed.

Bilateral Contract

A contract where both parties make a binding promise to each other.

Bill of Sale

A document used to transfer ownership of personal property.

Binder

A non-binding document outlining the terms of a buyer's offer; serves as a blueprint for a purchase agreement.

Biweekly Payment Plan

A fixed-rate mortgage set up like a standard $30\text{-year}$ conventional loan, but with payments made every two weeks instead of monthly.

Blanket Mortgage

A mortgage loan covering more than one parcel of real estate, commonly used for subdivision developments.

Blind Advertisement

A real estate advertisement that does not include the broker's name or business name; prohibited in most states.

Blockbusting

The illegal practice of inducing owners to sell by suggesting the racial or ethnic composition of a neighborhood is changing; also known as Panic Selling or Panic Peddling.

Blue Sky Laws

State laws regulating the sale of securities to protect consumers from fraud.

Blueprint

A detailed diagram used to evaluate design, determine feasibility, and guide construction.

Boilerplate

Standardized language used in contracts for efficiency and completeness.

Book Value

The value of an asset as indicated in financial records, which may differ from its market value.

Boot

Extra, non-like-kind property included in a like-kind exchange to compensate for pricing disparities.

Bounds

Refers to boundaries; used in the metes and bounds method of land description.

Boycott

A concerted refusal by two or more people to deal with a specific person or company.

Breach

Violation of an obligation, duty, or law.

Breach of Contract

An unexcused failure to perform according to contract terms.

Breach of Trust

Failure by someone entrusted with care or property to discharge duties; can be due to negligence, carelessness, or malice.

Breakdown Method

Estimating physical depreciation by calculating individual items of depreciation and deducting the sum from the reproduction or replacement cost.

Bridge Mortgage

A loan occurring between the termination of one mortgage and the commencement of another; repaid once the next mortgage is taken.

British Thermal Unit (BTU)

The amount of heat needed to raise the temperature of $1\text{ pound}$ of water by $1^\text{o}F$.

Broker

A real estate licensee with years of experience, advanced training, and a passed broker exam.

Broker Price Opinion (BPO)

An estimated property value determined by a licensee, often for a lender in non-federally related transactions.

Broker Protection Clause

A provision entitling a broker to commission if the property sells after the agency agreement expires; also called Carryover Provision or Extender Clause.

Brokerage

A firm with licensees retained by consumers to negotiate the purchase, sale, or lease of real property.

Broker-Dealer

A person or organization trading securities for their own account or for customers.

Brownfield

A former industrial or commercial site affected by real or perceived environmental contamination.

Budget Mortgage

A mortgage where payments include principal, interest, and $\frac{1}{12}$ of the annual property taxes and hazard insurance premiums.

Buffer Zone

A means of using space to separate two adjoining districts with incompatible uses.

Building Code

Regulations governing design and construction standards, requiring specific methods and materials.

Building Department

The agency responsible for issuing building permits and ensuring compliance with codes and professional licensing.

Building Efficiency

The ratio of usable square footage to rentable square footage.

Building Inspection

A process where local officials ensure compliance with state and local building codes.

Building Permit

An official document allowing a construction or remodeling project to proceed.

Bump Clause

A provision allowing a seller to keep a property on the market while the current buyer's purchase is contingent on selling their own property.

Bundle of Rights

All real property rights conferred with ownership: possession, quiet enjoyment, disposition, exclusion, and control (also called Bundle of Sticks).

Buyer Agency Agreement

An employment contract granting a broker the right to represent a buyer and specifying compensation terms.

Buyer's Agent

A real estate licensee representing the interests of the buyer.

Buyer's Choice

An auction type for multiple parcels where the winning bidder selects the parcels they want.

Buyer's Market

A housing market condition with many homes for sale but few buyers.

Buyer's Premium

A compensation structure where the winning bidder pays a percentage of the high bid to the auctioneer in addition to the bid amount.

Bylaws

Homeowners association rules governing activities, elections, voting, and board meeting frequency.