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Real Estate Glossary and Terms

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Realty Terms beginning with B

Backup Offer
Another offer or bid for a property to be considered by the property seller if the current offer falls through.

The financial status of an individual or firm that has been legally judged either to have debts that exceed assets or to be unable to pay bills. The individual or firm can declare bankruptcy voluntarily or be pressed by creditors to do so. The debtor's remaining property and assets are then administered for the creditors or distributed among them.

Bedroom Community
A suburb in which most residents live, but do not work. These people commute to the city to work.

Before-tax Income
A person's income or earnings before income taxes are paid.

An improvement, addition, or replacement of a property that increases the value.

Bidding War
A bidding war can occur when multiple buyers are interested in purchasing a single property. Competing offers will likely cause the price of the property to escalate resulting in larger profits for the seller.

Bill of Sale
Written proof in the form of a receipt or document that serves as confirmation for the transfer of title to personal property.

Biweekly Mortgage
A mortgage loan that requires payments every two weeks instead of one standard monthly payment. Each 26 biweekly payment is equal to one-half of the standard monthly payment. Making biweekly mortgage payments is advantageous to the buyer because it results in a substantial reduction in interest payments because the mortgage is paid off quicker.

Blanket Insurance
An insurance policy that covers common areas of a co-op, condominium, or neighborhood governed by a homeowner's association. This type of policy does not cover the actual structures or their contents. The policy only covers areas that are owned in common by the individual owners.

Blanket Mortgage
A mortgage that covers more than one property owned by the same buyer. BLENDED MORTGAGE - a mortgage that combines the amount owing on an existing mortgage with additional funds being advanced. The interest rate would be a combination of the rate on the old loan and the rate in effect at the time of the new financing.

Blighted Area
A neighborhood that is run-down and aesthetically pleasing.

Bona Fide
Characterized by good faith and lack of fraud or deceit. In real estate, a bona fide purchaser or seller has the legal right to give or receive the title.

To be approved and obtain a loan of money. 2. Sand, gravel, or other material used for grading.

The line that divides or acts as a legal border between adjacent properties.

Breach of Contract
A "breach of contract" refers to a failure to abide by or comply with the terms of a legal agreement without a legal excuse.

Bridge Financing
Interim financing to bridge the time gap between the closing date on the purchase of a new home and the closing date on the sale of the current home.

A person or firm who acts on behalf of another. For example, a mortgage broker works on behalf of a client to find the best mortgage rate possible for the client.

Building Codes
Provincial or locally adopted regulations that control the design, construction, repair, quality of building materials, use, and occupancy of any structure under its jurisdiction.

Building Inspector
A local civil servant who enforces the building code as determined by government standards. It is the building inspector's responsibility to ensure that construction and renovations are up to code.

Building Permit
A permit issued by a local government giving the authorization to construct a building or repair an existing structure.

Items that are permanently attached to a dwelling or building are considered "built-ins". Such items can include appliances, cupboards, shelving, etc.

Buy-down Mortgage
A type of mortgage loan where the lender charges below-market interest in exchange for discount points.

Buy-down or Buydown
The option of buying a lower mortgage rate. The borrower "buys down" the interest rate on a mortgage by paying discount points when the loan is first initiated. It can also be a mortgage where an initial lump-sum payment is made to temporarily reduce a borrower's monthly payments during the first few years of the mortgage.

Buyer Broker
An individual who is paid a commission from a buyer to find a property and to assist with the negotiations involved with closing the real estate transaction.