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| RE/MAX
Valley Real Estate
Phone: (330) 629 - 9200 |
| - back-up offer
- An offer that is made on a home after the seller has already executed a bona fide purchase contract with another party. The back-up offer is written such that it can only become a binding contract if the initial contract is voided or rescinded. Language is usually injected into a back-up offer that allows the offerer to rescind the contract at any time without penalty and purchase another home.
- balance sheet
- A financial statement that shows assets, liabilities, and net worth as of a specific date.
- balloon mortgage
- A mortgage that has level monthly payments that will amortize it over a stated term (perhaps 30 years); but provides for a lump sum payment (all or part of the principal) to be due at the end of an earlier specified term (perhaps 5 years).
- balloon payment
- The final lump sum payment that is made at the maturity date of a balloon mortgage.
- bankrupt
- A person, firm, or corporation that, through a court proceeding, is relieved from the payment of all debts after the surrender of all assets to a court-appointed trustee.
- bankruptcy
- A proceeding in a federal court in which a debtor who owes more than his or her assets can relieve the debts by transferring his or her assets to a trustee.
More specifically, it is the legally declared inability of an individual or organizations to pay their creditors. Creditors may file a bankruptcy petition against a debtor in an effort to recoup a portion of what they are owed. In the majority of cases, however, bankruptcy is initiated by the debtor (the bankrupt individual or organization). A bankruptcy interrupts any real estate foreclosure process that may have been initiated. The foreclosing bank or lender cannot proceed with the foreclosure until the court allows the lender to continue with the foreclosure. With a Chapter 7 Bankruptcy (total liquidation), many types of debt can be eliminated completely. However, not everyone is eligible to file for Chapter 7 bankruptcy. For some people a Chapter 13 Bankruptcy is the best option. People often file for Chapter 13 bankruptcy protection in order to stop foreclosure on their homes. This form of bankruptcy often involves partial repayment of debts over a three- to five-year period. - basis
- See ► "cost basis".
- before-tax income
- Income, before taxes are deducted.
- beneficiary
- The person designated to receive the income from a trust, estate, or a deed of trust.
- better business bureau (BBB)
- BBB is an unbiased organization that sets and upholds high standards for fair and honest business behavior. Businesses that earn BBB membership contractually agree and adhere to the organization’s high standards of ethical business behavior. BBB provides objective advice, free business Reliability Reports and charity Wise Giving Reports, and educational information on topics affecting marketplace trust. To further promote trust, BBB also offers complaint and dispute resolution support for consumers and businesses when there is difference in viewpoints. The first BBB was founded in 1912. Today, 128 BBBs serve communities across the U.S. and Canada, evaluating and monitoring more than 3 million local and national businesses and charities.
- Visit ► .
- bequeath
- To transfer personal property through a will.
- betterment
- An improvement that increases property value as distinguished from repairs or replacements that simply maintain value.
- bill of sale
- A written document that transfers title to personal property (chattel) as opposed to a deed that formalizes the transfer of real property.
- bill of lading
- A contract and receipt used by professional movers for the transportation of your belongings.
- binder
- A preliminary agreement, secured by the payment of an earnest money deposit, under which a buyer offers to purchase real estate.
- biweekly payment mortgage
- A mortgage that requires payments to reduce the debt every two weeks (instead of the standard monthly payment schedule). The 26 (or possibly 27) biweekly payments are each equal to one-half of the monthly payment that would be required if the loan were a standard 30-year fixed-rate mortgage, and may be drawn from the borrower’s bank account. The result for the borrower is a substantial savings in interest.
- blanket insurance policy
- A single policy that covers more than one piece of property (or more than one person).
- blanket mortgage
- A mortgage that is secured by a cooperative project, as opposed to the share loans on individual units within the project.
- bona fide
- In good faith, without fraud.
- bond
- An interest-bearing certificate of debt with a maturity date. An obligation of a government or business corporation. A real estate bond is a written obligation usually secured by a mortgage or a deed of trust.
- borrower
- The party(s) in a loan agreement who receives money or other useful assets from a lender and promises to repay the lender in a specified time.
- breach
- A violation of any legal obligation.
- See ► default.
- bridge loan
- A form of second trust that is collateralized by the borrower's present home (which is usually for sale) in a manner that allows the proceeds to be used for closing on a new house before the present home is sold. Also known as "swing loan."
- broker
- A person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them.
- See ► mortgage broker and real estate broker.
- broker's price opinion (BPO)
- Often used by real estate agencies or home loan banks and brokers to estimate the value of a home - and since they are generally compiled by real estate brokers or sales agents, they usually will not be as in depth as a value estimate provided by a licensed appraiser. BPO's help lenders determine what a home would sell for versus an appraisal that will tell the investor what the value may be. The investor wants to know from a broker what they feel this home would sell for in a certain amount of time. Very often this is not the same value as the appraised value.
- budget
- A detailed plan of income and expenses expected over a certain period of time. A budget can provide guidelines for managing future investments and expenses.
- budget category
- A category of income or expense data that you can use in a budget. You can also define your own budget categories and add them to some or all of the budgets you create. "Rent" is an example of an expense category. "Salary" is a typical income category.
- building code
- Local regulations that control design, construction, and materials used in construction. Building codes are based on safety and health standards.
- building permit or construction permit
- A permit required in most jurisdictions for new construction, or adding onto pre-existing structures, and in some cases for major renovations. Generally, the new construction must be inspected during construction and after completion to ensure compliance with national, regional, and local building codes. Failure to obtain a permit can result in significant fines and penalties, and even demolition of unauthorized construction if it cannot be made to meet code.
- buyer's agent (aka buyers representative)
- A buyer’s agent is hired by prospective buyers to represent them in a real estate transaction. The buyer's rep works in the buyer's best interest throughout the transaction and owes fiduciary duties to the buyer. The buyer can pay the licensee directly through a negotiated fee, or the buyer's rep may be paid by the seller or through a commission split with the seller’s agent.
- Contrast with ► Seller's Agent, Dual Agent, Subagent, and Designated Agent.
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- buyers' market
- Simply put, a market in which the number of homes exceeds the number of buyers looking for homes. Since sellers are in competition with each other for the attention of the buyer, the result is an overall adjustment to lower prices for homes.
- See ► Law of Supply and Demand and Absorption Rate.
- buy-down mortgage
- A temporary buy-down is a mortgage on which an initial lump sum payment is made by any party to reduce a borrower’s monthly payments during the first few years of a mortgage. A permanent buy-down reduces the interest rate over the entire life of a mortgage. This type of mortgage is often offered by builders of new construction as an incentive to buy their home.
- bylaws
- Internal rules for how to conduct activities. In real estate they usually refer to condominium and homeowner associations.
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