Real Estate Terms
Back-Up Offer: An offer to purchase a property that is subject to the termination of another prior offer to purchase the same property.
Balloon Payment: A lump sum principal payment due at the end of some mortgages or other long-term loans.
Bankruptcy: Protection from paying back debts against creditors.
Bill Of Sale: A document transferring ownership of property.
Binder: Sometimes known as an offer to purchase or an earnest money receipt. A binder is the acknowledgment of a deposit along with a brief written agreement to enter into a contract for the sale of real estate.
Bi-weekly Mortgage Payment: Making mortgage payments twice per month.
Borrower: A person or persons that receive funds from a lender by way of a loan and is obligated to repay the loan.
Blighted Area: An area that has become undesirable.
Bona Fide Offer: A sincere offer and agreement to perform.
Breach of Contract: Failing to perform as previously agreed upon in a contract.
Bridge Financing: A way of obtaining funds to purchase a new home prior to the sale of an existing home.
Broker: Anyone licensed by the state to engage in the sale of real property and receive compensatation.
Building Code: Construction standards and regulations
Building Permit: Permission given by a local governing body for construction.
Built-in: Furniture that is permanently affixed to a property.
Bundle of Rights: A theory whereby property rights are equivalent to a bundle of sticks and are separate of each other.
Buy Down: Permanent - prepaid interest that brings the note rate on the loan down to a lower, permanent rate. Temporary - prepaid interest that lowers the note rate temporarily on the loan, allowing the buyer to more readily qualify and to increase payments as income grows.
Buyer-Agency: The agreement between a buyer and agent whereby the agent represents the buyer in a real estate transaction
Buyer's Market: A real estate market whereby there is a large supply of homes and a small demand of buyers.
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