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Back fill
Back fill (sometimes a single word, backfill) refers to the soil used to solidify the foundation of a structure, such as a house. Whenever digging or excavation of any kind takes place on a parcel of property, as for the laying of pipes, wires, or cables, some of the support offered by the foundation is weakened. A common and effective solution to this weakening is the use of additional soil to fill in any spaces. The most effective back fill is non-expansive, meaning changes in pressure and temperature do not affect the volume it occupies, and thus its strength. Natural soils are expansive, but may still be useful as back fill for minor projects.
Back title letter
A back title letter is a letter provided by a title insurance company regarding a particular property to an attorney for examination of the title for insurance purposes. Title insurance protects property owners from claims of ownership of a property by persons claiming to have some title, or right to, the use of that property. A buyer of real estate may employ an attorney to examine the title insurance company´s black title letter to ensure that the title being conferred to the buyer upon purchase of the property in question is untainted by any other claims-in other words, that the title is "in the black."
Back-to-back escrow
Back-to-back escrow is a process, agreed to by the buyer and seller in a given real estate transaction, in which the sale of one property and the purchase of another are accomplished at the same time. Back-to-back escrow allows for a convenient and efficient series of transactions for a seller of a property whose purchase of another property depends on the funds received from the first transaction. A check is issued to the seller by the buyer (usually through his or her lending institution), and that money is immediately applied to the purchase of another property by the seller of the first.
Backup offer
A backup offer is a secondary bid for a property that the seller is willing to accept if an existing first offer fails to result in the sale of the property. Some real estate will have more than one buyer interested in purchasing it, and some buyers are willing to wait for a decision on their offer should the initial offer received by a seller fall through. A seller may want a backup offer in the event that the potential buyer who made the first offer either breaks a contract for purchase, fails to secure financing, or if a contract does not materialize at all.
Backwater valve
A backwater valve is a valve in a sewer line that acts to prevent sewage from flowing back into a house. Flooding can cause the sewage from sanitary lines to be forced back into a house, which is a health hazard, aesthetically unpleasant, and can require expensive, time-consuming repairs. Some locations have building codes that specifically require installation of backwater valves; most new home construction includes such valves. Regardless, installation of backwater valves is recommended to prevent potentially major problems in the event of a sewage backup. Valves are widely available, can be self- or professionally installed, and vary with respect to type, size, and cost.
Balance sheet
A balance sheet is a financial statement, usually in the form of a table, that reflects the assets, liabilities, and total net worth of an individual or entity. Assets include things of value that positively influence the financial worth of a person, such as real estate, personal property, cash, investments, and intangibles. Liabilities are debts and obligations owed by the person which decrease his or her net financial worth. Both assets and liabilities are depicted on a balance sheet, as well as the balance, or difference between positive and negative values. This balance is normally called the "net worth," and is a useful statistic for evaluation of a person´s financial standing, as by a lending institution.
Balloon loan
A balloon loan is a mortgage, the terms of which include required monthly installment payments that are not large enough to repay the loan by the end of the specified term. Therefore, when the final due date of the mortgage arrives, the full sum of the loan will not have been paid back, and thus the final payment (which may be quite large, depending on the term of the loan and the amount of each installment) is a lump sum in the amount of the balance of the remaining loan principal. Balloon loans generally carry lower interest rates than traditional loans, and may be desirable for buyers who anticipate increased income or resale of the property within the loan repayment period.
Balloon payment
A balloon payment is the final lump sum payment that is due by the buyer to the lender at the end of a balloon mortgage repayment period, and includes the entire outstanding balance of the loan not paid by that date. A balloon mortgage is attractive for its typically lower interest rate as compared to a traditional mortgage. However, some borrowers reach the end of a balloon mortgage term and are unable to pay the balance of the principal; if that is the case, options include taking a second mortgage, refinancing, or selling the home to recover its market value.
Balloon-frame construction
Balloon-frame construction is a type of framing, or erection of a frame for a structure, which is used in two-story homes. In balloon-frame construction, studs (a type of threaded fastener) extend from the ground to the ceiling of the second floor of the home. This is in contrast to platform framing, in which studs extend only the height of one floor, and are independent for the walls of each individual floor. Balloon framing has been deemed in violation of building codes in some localities, as it is considered a fire hazard. Today, platform framing is a more common approach to construction.
Balustrade
A balustrade is a railing on a porch or stairway that is held up by a set of posts. Each individual post is called a baluster. Balustrade railings may be used to determine the age of antiques or architecture, as the materials and style popularly used for balustrades have varied over time. Balustrades are functional, but may also be used as decorative accents for a home, as along a roofline. Balustrades may be constructed from a number of various materials, although the most popular styles are those made from wood or iron. Spacing of individual balusters also affects the overall look of a balustrade.
Bankruptcy
Bankruptcy refers to a legal proceeding in which an debtor who is insolvent, meaning he or she is unable to repay his financial obligations, can obtain relief from payment of some of those obligations. Individuals typically declare one of two types of bankruptcy: Chapter 7, which calls for the sale of all of a debtor´s non-essential property and use of the proceeds to satisfy as much of the outstanding debt as possible (with the rest of the debt forgiven), or Chapter 13, which requires a debtor to repay his or her creditors, but allows the repayment period to extend over some court-approved period of time. Bankruptcies remain on a credit record for seven years, and can thus limit a person's ability to borrow money.
Bargain sale
A bargain sale is the sale of some parcel of property for a price that is less than market value. A bargain sale may occur for a variety of reasons. One major reason a seller may participate in a bargain sale of his or her property is that the seller needs to sell the property immediately, for personal or financial reasons, and does not have time to wait for an offer of market value or greater. Another instance when a bargain sale may occur is when the seller sells his or her land to a qualified charitable organization, which can lead to tax benefits to the seller.
Baseboard
A baseboard is any board or molding found at the bottom of an interior wall of a house, where the wall meets the floor. A baseboard is typically made of wood or vinyl, and can be simple and used merely for covering the intersection of wall and floor (usually called the "joint"), or could be decorative (such as crown molding) to enhance the aesthetic appearance of a home. Baseboards may be installed or replaced by a construction professional, but installation and replacement of old baseboards is also fairly easy to do oneself with the proper materials and guidance, available at most home improvement stores..
Baseboard electric heat
Baseboard electric heat refers to heating units installed in the floor of a home that can be controlled by a central thermostat. Baseboard electric heaters are placed in each room, fastened to the lower part of a wall near the floor. This type of heat is particularly fire-safe, and requires only very minimal maintenance (such as dusting). No filter is required, which makes baseboard electric heat generally more affordable than a furnace or an electric heat pump, both of which require filters that must be periodically changed. Baseboard electric heaters are widely available at home improvement stores and mass merchandisers, and can be self-installed or installed by a professional.
Basement
A basement is an area of some homes that is submerged below ground level. Homes that do not have basements are called "slab" homes, as they are constructed on a slab foundation; basements are especially rare and add significant expense to homes in the western and southwestern regions of the United States, where the soil is not suited to digging below the surface. Basements are often used to store water heaters and heating and cooling systems. They may be full (with a square footage equal to that of the home´s upper level or levels) or partial, and may be finished (ready for living, with completed walls, floors, and so on) or unfinished.
Basis Point
A basis point is a reference used in accounting, and is equivalent to one one-hundredth (1/100) of one percentage point. In other words, a basis point represents .01%. This very small number is convenient when measuring or referring to minimal differences, and is commonly used where changes are so small that a greater percentage measurement would render a change insignificant. Instances where a basis point is utilized include yields on fixed income securities, which do not frequently change very much. Basis points are the smallest amounts at which financial values are reported; anything smaller than 1/100th of a percentage point is rounded to the nearest basis point.
Bay
A bay is an opening between two columns or two walls in a house that forms an open space. Bays are often found in classical architecture-Greek or Roman, characterized by formality and elegance, or in Gothic architecture-defined by column details with open spaces. Bay windows are a popular home detail; bay windows are windows that are "bumped" out of a room in the bay space, offering additional space and plentiful lighting for the room off of which the bay extends. Bays exist in many new construction homes, and windows, if not already included, may be self-installed.
Bay window
A bay window is a window that is "bumped" out of a room in a bay space, projecting outward in a curve. Bay windows are commonly found in newly-constructed homes, and are a popular architectural feature that allows for additional space and increased natural light. Bay windows may be simply windows, or may contain a window seat below the bottom window ledge. Bay windows are a common characteristic in dining nooks, family rooms, dens or offices, and bedrooms. They may be professionally installed; self-installation is also possible by using kits available from most home improvement retailers.
Bearing wall
A bearing wall is a wall that supports its own weight, as well as the weight of other parts of a structure. Bearing walls are constructed so that they are able to help support the weight of upper floors and the roof of a building. Unlike non-bearing walls, which may be removed to alter the space allocation or aesthetic appearance of a home, bearing walls should never by removed without the advice and assistance of a professional contractor, as such removal could compromise the structural integrity of a home, making anything partially supported by the bearing wall unstable.
Before-tax income
Before-tax income refers to the total income a person realizes before any applicable taxes are deducted. Also called "gross income," before-tax income includes any money made by the taxpayer that is subject to taxation, including salary, commissions, benefits, and bonuses, as well as any interest earned on or returns received from investments. The total sum of all sources of money before taxes are paid on that money is the before-tax income; once taxes are paid (at a rate based on how much the income total is) the remaining sum is called the after-tax income, net income, or "take-home pay."
Beneficiary
A beneficiary is a person or entity who receives money from a benefactor (the person who gives the money to the beneficiary). In real estate terms, the beneficiary is the lender who makes a loan (also commonly known as a "mortgagee," with the benefactor in these circumstances called the "mortgagor"). The beneficiary lending institution receives money from the borrower of a loan in installments as the loan is paid back over some period of time, with the precise terms of repayment specified in a contract between the beneficiary and the borrower of the loan.
Bequest
A bequest is any gift or transfer of personal property bestowed upon a person through another´s will. When the testator (that is, the person who wrote the will) dies, the allocation of his or her estate assets is in the form of a bequest of personal property to the person or persons specified in the will as recipients or beneficiaries. In strict legal terms, the word "bequest" only applies to transfers of personal property; real estate transfers or gifts, on the other hand, are referred to as "devises." Various types of bequests exist, including specific, general, residuary, and charitable bequests, among others.
Betterment
A betterment is an improvement to a parcel of real property that results in an increase in the property's value. This is not the same thing as repairs that are conducted in order to maintain a property´s value. A seller may make improvements or additions to a property prior to putting it on the market in an effort to increase the property´s market value. Betterment also is important in the home insurance context: insurance companies pay for specified damages to the extent that repairs to remedy such damages would cost; they do not pay for anything more that would constitute some betterment of the property.
Bidding war
A bidding war is the battle that results from offers for the purchase of a particular property that come from multiple potential buyers. If more htan one potential buyer is interested in a property, each buyer may offer a higher price that the next, operating something like at an auction to outbid the other candidates for purchase. A bidding war is most common for very rare and very desirable properties, and can result in a purchase price in excess of the seller´s original listing price for the property. In addition to buyers, agents also sometimes compete to list a unique or desirable house for sale.
Bilateral contract
A bilateral contract is a contract in which the parties involved give mutual promises to each other. Bilateral contracts are also called "reciprocal" contracts, because the parties to the contract reciprocate in kind with their promises. Bilateral contracts are the most common form of contract. They are different than unilateral contracts, in which one party makes a promise based on the actual performance of another party, with the contract not becoming legally binding upon the promisor until the other party has performed. A bilateral contract is valid and enforceable when promises are exchanged and the agreement is signed by the parties.
Bill of sale
A bill of sale is a document that officially and legally transfers ownership of personal property. A bill of sale usually specifies the names and contact information of the parties to the transfer, including designation of each as the buyer (transferee) or the seller (transferor), as well as a clear and detailed description of the property in question, the location of the property, and the agreed-upon price for the property transfer. A bill of sale must be signed by the seller (although the buyer´s seller is generally not required) and a witness, and notarized by a notary public.
Binder
A binder is a report issued by a title insurance company that states in detail the condition of the title to a particular parcel of real property. The binder for a given property will list any defects in the title, as well as provide guidelines for establishing a title insurance policy. The binder is an intermediate document; it is established during and pending closing on a parcel of real property until a permanent, legal title is issued to the person purchasing the property. Because the binder is used only until permanent title is issued, it is sometimes referred to as a "commitment," in reference to the buyer´s commitment to follow through with the purchase of the property if good title is shown.
Biweekly mortgage
A biweekly mortgage is a mortgage that requires installment payments to be made toward the loan every two weeks, rather than on the more common monthly basis. A biweekly mortgage helps a borrower to repay his or her loan over a shorter term. Biweekly mortgages are paid as half of a monthly mortgage payment every two weeks, and usually offer considerably lower interest rates than do traditional mortgages that are paid off in monthly installments. In addition, equity is built more rapidly with biweekly mortgages, which often leads to faster full ownership of a home. As an example, with a biweekly mortgage, a 30-year loan could be paid off in 15 years, with interest payments for the other 15 years eliminated.
Blanket insurance policy
A blanket insurance policy is an insurance policy that covers more than one person or more than piece of property. For example, a blanket insurance policy may cover an individual´s house and car together, or it may cover two or more homeowners of the same home. Most common in real estate situations is a blanket insurance policy that covers both a house and the personal property that is located in the house. A blanket policy may also cover both a primary residence, with attendant personal property, and a second home or personal property that is in storage away from one´s home. The insurance policy holder pays a single premium for coverage of all property included in the blanket policy.
Blanket mortgage
A blanket mortgage is a mortgage that covers more than one property owned by the same borrower or mortgagor. The borrower of the loan is issued a single loan by the lending institution, which is repaid in installments and requires interest payments just like a traditional mortgage. However, the mortgage amount is sufficient to cover multiple real estate parcels. For example, the mortgage be used to pay for both a primary home and a secondary residence; however, the borrower is able to condense his or her loan repayments into a single payment at each installment due date, making the repayment process more streamlined.
Blighted area
An area that is considered blighted is a neighborhood that has in some dramatic way deteriorated from its former state. Blighted areas are those that experience a decline through an increase in problems such as pollution, crime, and other negative factors that cause property values in the blighted area to decline. An area that has become blighted is often a target for the use of eminent domain, which involves the purchase by the government of property in the area from the property owners in an effort to revitalize and improve the area and to dedicate it to some public use.
Blind nailing
Blind nailing refers to the process by which nails are driven into a wall and then concealed with putty. Blind nailing is commonly utilized in the laying of hardwood floors, when visible nails are considered a detriment to the aesthetics of the completed product. Nails are driven into the floor, penetrating beneath the sub-floor, and angled into the tongue, or protrusion, or a floor plank. When the next plank in the floor is set in place, it will cover the nail head from the previous plank. Blind-nailed nail heads are ultimately concealed so that they hide beneath a baseboard.
Blue sky laws
Blue sky laws are regulations regarding the sale of securities, or the legal rights given to a creditor by a borrower, to prevent consumers from investing in fraudulent or high-risk companies without first being informed of the risks. Every state has a blue sky law, although the specifics of what is required vary from state to state. All blue sky laws require that offerings and sales of securities, such as stocks, be registered with the state for public record, and provide for the ability of consumers who have in some way been victims of fraud due to violations of the applicable blue sky law to bring a lawsuit.
Blue-ribbon condition
Blue-ribbon condition is the condition of a house that has been maintained as close as possible to its original condition. Blue-ribbon condition is also referred to as "mint condition." The term "blue ribbon" is a reference to the awarding of a blue ribbon in some competitions to the top entrant. For a house to be considered in blue-ribbon condition, it should have no visible defects and no hidden problems with mechanical, electrical, plumbing, structural, or other systems. Evaluation of condition, however, is subjective; depending on one´s standards, the condition of a home may or may not be considered "blue-ribbon."
Blueprint
A blueprint is a plan, often a highly technical drawing, that sets forth the design of a home or other architectural structure, or of an engineering product. The term "blueprint" refers to the traditional printing of plans in blue ink. In modern times, a blueprint is more commonly digital, created by Computer-Aided Design (CAD) and transferred to hard copies by printing the computer image. Blueprints offer detail about the design to aid in construction, such as specific measurements of size and distance, and are used by home builders as they work to transfer the design of a house from its plan on paper into the actual, physical structure.
Board foot
A board foot is a measurement of lumber used to describe a board or a plank of wood. A board foot is the equivalent of 144 cubic inches: 12 inches wide by 12 inches long by 1 inch thick. The board foot measurement is most often applied to bare, untreated lumber, before any planing (any alteration that affects the planes of a piece of lumber, such as sawing or angling to create an edge in the lumber for molding), drying, or other adjustments occur that may change the total volume of the lumber. The board foot is a special unit of lumber measurement used primarily in the United States and Canada.
Board of Equalization
A board of equalization is a state entity that is responsible for ensuring that local property taxes are assessed in a uniform, consistent manner. Membership of a state board of equalization varies from state to state. In general, a board of equalization is charged with hearing legal disputes between taxpayers regarding their property taxes and the state department of revenue. Boards of equalization meet on a regular basis, usually annually, and review property valuations that are submitted to them by the county tax assessor of each county in the state to ensure that taxes are equalized among properties.
Board-and-batten siding
Board-and-batten siding is siding that is composed of 8- to 12-inch wide wooden boards, which are nailed vertically to create a barn-like exterior on a structure. In board-and-batten siding, wide boards are installed and spaced by narrower boards, called battens, that are used to conceal the joins of the siding. Sometimes, boards are installed overlapping battens to create an architecturally unique, deep-channel effect (referred to as reverse board-and-batten). Sizes vary for the width of both boards and battens; common combinations include one-foot wide boards with 1/2-inch wide battens, or 10-inch wide boards with 3-inch wide battens.
Boilerplate
Boilerplate is the term used to describe form language that is used in deeds, mortgages, and other documents. Boilerplate language makes it easier and faster to produce such common documents because the main language is already included in the document, with only details needing to be added by specific parties. Boilerplate language is formulaic and often inconsequential; it is usually preprinted on a document template, with the document to be molded to the needs of a particular person when applied to their specific situation. Boilerplate language commonly found in fine print on contracts and other agreements, and while frequently trivial, should be read and understood by all parties.
Bona fide
The term bona fide is a legal term that refers to above-board, honest actions or to persons who are honest and who act in good faith. The term implies genuineness, sincerity, authenticity, and lack of fraud or deceit. "Bona fide" comes from the Latin, in which language it literally translates as "in good faith." In real estate, it is common to encounter the phrase "bona fide offer," meaning that the potential purchaser of a property has made an offer with no hidden agenda, that is above-board, honest, and fair to the best of his or her knowledge of the true value of the property.
Bond
A bond is an agreement that insures one party to a contract against potential loss resulting from the acts or defaults of another party to the contract. In real estate situations, a bond is a sum of money, such as an earnest money payment, paid to a seller of property by a buyer that provides the seller with insurance against the possibility that the buyer will not follow through with the purchase agreement. A bond may also be used to insure a landowner against possible damages incurred to a rental property by his or her tenants during their rental of that property (also referred to as a security deposit).
Book value
The book value of a parcel of real property is the value of the property as a capital asset, based on its market cost plus any additions or improvements made to the property, and minus any depreciation. For example, a home´s book value would be the market price of a home of similar size, similarly situated, adding to that value any improvements or additions made to the home that would increase its value, and subtracting depreciation due to age or condition. Book value is a useful value for comparing different properties, and is the value used by accountants when preparing balance sheets, or records of a person´s or entity´s assets and liabilities.
Boring test
A boring test is an analysis conducted on the soil of a property, in which holes are bored into the ground and samples are removed. A boring test on the soil of a parcel of property may be conducted for a variety of purposes, including to test for septic suitability (to ensure that the soil can efficiently and completely accommodate septic discharge), basement suitability (to determine the depth of groundwater on a property), and land application (used by municipalities and counties to determine if a given property is suitable to accommodate wastewater treatment and other facilities).
Borough
A borough is a section of a city that is a separate administrative division from the city as a whole, and that has authority over local matters. Different states use the term to apply to different local areas. Perhaps the most famous United States boroughs are the five that are located in New York City; these include Brooklyn, The Bronx, Manhattan, Queens, and Staten Island, each of which has its own local government. The word "borough" not only refers to different administrative divisions in various ways in the United States, but is used in different ways in other nations.
Borrow
Borrow is any material, such as sand or gravel, that is used for grading. Grading is the addition of materials to a parcel of property in order to change its shape or incline, such as to level out a piece of land or to create a slope. The type of borrow used in a grading project will affect the cost of the grading, and also plays a role in the stability of the land upon completion of the grading process. Depending upon the material used as borrow, the environmental conditions of the particular parcel of land, and the way in which the land is used, borrow may need to be replaced or added to periodically to ensure continued uniformity of the desired grading.
Borrow pit
A borrow pit is a hole at a construction site that has been excavated. The pit is created by virtue of excavation from the land of material used as borrow, such as sand or gravel. Borrow pits are commonly found near major construction projects, including housing developments, highways, or bridges, and may remain pits indefinitely-that is, there is no guarantee that the excavated material will ever be returned or replaced in the pit. Borrow pits are sometimes filled with groundwater and may then be utilized as recreational areas or wildlife habitats, or may be used for waste disposal or as landfills.
Boulevard
Boulevard is the term used to describe a wide street which is lined with trees or that is constructed with a landscaped median. Boulevards are usually roads that have multiple lanes in either direction, and are characterized by aesthetically attractive features of scenery and landscaping. The word boulevard stems from a French word, boloard. In France, boulevards are the roads that encircle a city center. In modern times in the United States, the term has begun to be applied more broadly; today, it is not uncommon to find "boulevard" as the descriptor of a road that is neither wide nor divided or landscaped.
Boundary
A boundary is the dividing line between two adjacent parcels of real property. Legal boundaries of real property are usually determined through a professional land survey, and are usually recorded in a county office for public record purposes. Many homeowners are unaware of where the boundary of their property is located, and property disputes between owners of adjacent parcels or land are not uncommon, particularly in the case of a landowner desiring to construct a fence or other structure on a piece of property that his or her neighbor claims is beyond the legal property boundary.
Braced framing
Braced framing is a construction method used in two-story homes in which the frame of the house is reinforced with posts and braces. Posts are the vertical supports that hold up the second level of a two-story structure; braces are pieces of material, usually wood, that are used to form a triangular shape and stiffen a structure. In a braced frame, a vertical truss, or non-movable structure that consists of straight and thin components which are inter-connected at the joints into units of a triangular shape, provides added rigidity to resist lateral forces on the structure.
Breach of contract
Breach of contract is the legal description for the failure of a party to perform certain provisions of a contract without a legal excuse. Various types of breaches exist. An immaterial breach is a minor issue. A material breach is more serious, and entitles the other party to the contract to either demand performance or to recover any damages stemming from the breach. A fundamental breach goes to the very heart of a contract, allowing the innocent party to terminate the terms of the contract and sue for damages. Anticipatory breach is an indication by one party that he or she will not perform under the terms of the contract at a future time when performance is required.
Breach of covenant
Breach of covenant is the legal term for the failure of a party to a contract to obey a legal agreement. A covenant may be express (spelled out in detailed terms in a written agreement) or implied (as by law, with a writing not necessary to make the covenant enforceable), and sets out what a party may or may not do with respect to the subject matter of the contract. Examples of covenants in the context of real property include paying rent, not cutting down trees, or not conveying title. Breach occurs when a party goes against the terms of the covenant; the other party who is aggrieved by the breach is usually entitled to recover damages.
Breach of warranty
Breach of warranty is the legal term that describes the inability of a seller of real property to pass clear title to the property to a buyer. Title may be impaired if, for example, there are debts outstanding on the property, or if another unrelated party has a legal claim to some portion of the property. A promise that a buyer´s title to a parcel of real estate will be clear and defensible as against all other claims of ownership is known as a warranty deed. When a breach of warranty occurs, the buyer has a number of remedies available in such a situation for the recovery of any damages incurred as a result of the breach.
Break-even point
A break-even point is the point at which a property owner's rental income matches his or her expenses and debt related to the rental property. In other words, the break-even point is the dollar value at which the amount of money coming in to the owner of a rental property from the rent paid by his or her tenants balances out the costs of maintenance and upkeep related to the rental property, as well as any debts owed on the ownership of the rental property (such as an outstanding mortgage). Any income that surpasses the break-even point is a profit to the property owner.
Breast height
Breast height refers to the height at which the diameter of a tree is measured. Breast height is standardized at four feet, six inches (or approximately 1.3 meters) above the level of the ground on which the tree is located. This value is accurate for measuring tree diameter in the United States, although it varies somewhat among other countries. Breast height is a convention that was commonly used in, and is still most regularly applied in, the forestry industry. The measurement is also applied in the field of construction and land surveying.
Breezeway
A breezeway is a roofed passageway with open sides. A breezeway commonly connects two structures, such as two individual buildings, or a house and a garage. Breezeways provide a semi-sheltered passage between structures. While functional, breezeways are in many instances constructed for aesthetic reasons, to add architectural uniqueness to a home or other building. Breezeway construction can be costly if the breezeway is elevated, as between upper levels of two structures, as such elevation requires additional architectural support for the passageway.
Brick
Brick is a common and versatile building material made from clay that is molded into oblong blocks and fired in a kiln (or sun-dried in some countries where the weather conditions are appropriate). Brick is an artificial type of stone, and has been in use as a sturdy construction material worldwide for thousands of years. Brick is usually mass-produced, with clay being placed in rectangular molds and subject to high pressure to compact it and make it sturdy for building (a hydraulic press is generally employed for this purpose). Bricks are usually approximately twice as long as they are high and wide.
Bridge loan
A bridge loan is a short-term loan for borrowers who, for reasons including poor credit history of outstanding debts, need more time than is traditionally available to find permanent financing, as for the purchase of real property. Bridge loans provide immediate cash flow, so they allow the borrower to meet existing financial obligations at once. Because of the convenience to the borrower and the high risk to the lender of such loans, interest rates associated with bridge loans are typically very high, and such loans are backed by collateral, which may be real estate or some type of valuable personal property.
Broker
A broker is a person who is licensed by a state to deal in real estate. Real estate brokers must have a thorough understanding of the real estate market, both in general and in their specific geographical area of practice, and must be able to utilize that knowledge to assist clients in the purchase and sale of real property. Brokers also must be familiar with real estate law, including zoning ordinances and property tax structures. They frequently assist parties to a real estate transaction with negotiations for the purchase of a property and provide information about financing for the buyer of a property.
Brokerage
Brokerage refers to the act of bringing together two or more parties in exchange for a fee or commission. In the real estate context, brokerage is the matching of a willing buyer and a willing seller to facilitate the transaction of a particular parcel of real property. A real estate broker is said to "broker" a transaction, and in exchange, he or she receives a commission-usually some percentage of the ultimate sales price of the property, which is deducted from the amount paid to the seller upon completion of the transaction. The commission is specified in the brokerage contract, and is split between the brokers representing the buyer and seller respectively.
Broom clean
Broom clean is the phrase that refers to the ideal condition of a building when it is turned over to an owner or a tenant. The words "broom clean" are commonly found in contracts entered into between owners or tenants of a particular building and the contractor responsible for overseeing the construction of that building. When the contractor and all subcontractors have finished all construction work and the owner or tenant is prepared to move in, the workers must remove all construction materials, debris, and so on to leave the structure broom clean for the owner or tenant.
Brownstone
A brownstone is a vintage row house that is constructed of red sandstone. "Brownstone" literally refers to the construction material, a sandstone that was once used regularly for home construction, although it was ultimately replaced with hardier construction materials that did not suffer as much wear and deterioration from natural elements, such as wind and precipitation. Brownstone row houses are most commonly found in older neighborhoods in large metropolitan areas; the vintage homes remain popular in older communities in cities like New York and Chicago. Brownstones that were previously deteriorated have in many places been restored and revitalized to accommodate another generation of residents.
Buffer strip
A buffer strip is a parcel of land that separates two or more properties. A buffer strip may be a strip of grass, other vegetation, or non-vegetative material that separates neighboring parcels of real estate. It may be an area composed of grass or other vegetation that is used to separate fields where different agricultural crops are grown. The term also refers to vegetative strips of land designed to protect one side of the strip from erosion, for example where adjacent parcels of land accommodate waterways such as rivers or lakes and land uses that could be damaged or impaired by water runoff.
Builder upgrades
Builder upgrades are extra features or higher-quality finishing materials that a builder offers on a newly constructed house. Upgrades may cost an additional amount on top of the basic home price, or may be offered for free as part of a marketing deal to entice homebuyers to select a particular builder. Popular upgrades include decorative doors and windows, brick instead of siding on a home exterior, crown moldings and decorative paneling, higher-quality decorative lighting, higher-quality flooring materials or carpeting, insulation, basements, and exterior landscaping. Builder upgrades offer home purchasers the opportunity to make their house unique and personalized, and can potentially increase the value of a home considerably.
Building and loan association
A building and loan association is an organization that raises money which it uses to help the members of the association purchase real estate or construct a building. A building and loan association accumulates a fund, or a pooled "pot" of money, by collecting savings of its individual members and paid subscriptions. The money is then distributed to association members who are in need of funds in the necessary amount to assist members in the purchase of real property or in the construction of a structure on a property. Building and loan associations are also commonly known as "savings and loan associations."
Building code
A building code is a comprehensive set of laws that controls any construction or remodeling of a home or other structure within the jurisdiction to which the particular code applies. Every one of the 50 states has a unique state building code; in addition, most individual counties and cities have their own building code regulations. Building codes encompass a broad spread of regulations with which buildings must comply, including laws relating to structure, plumbing, mechanical issues, electrical issues, fire and safety issues, and accessibility (public places must be accessible to the handicapped, pursuant to the federal Americans with Disabilities Act, or ADA).
Building inspector
A building inspector is an employee of a city or county who bears the responsibility for enforcing an applicable building code, and who ensures that all work related to construction of a building is performed safely and correctly, in line with the stated building code provisions. Building inspectors at more local levels of government may be employed specifically as inspectors dealing with discrete issues-for example, as plumbing inspectors, mechanical inspectors, or structural inspectors. Building inspectors are certified pursuant to the specific requirements of the city or county in which they practice, but in most instances are required to take courses in the subject and to complete on-the-job training.
Building line or setback
Building lines, also regularly referred to as "setbacks," are guidelines set out in a building code by a city or county, or sometimes by a specific community´s homeowners´ association, that limit how close to a street or to an adjacent property a home owner can build a structure on his or her property. Building lines or setbacks may be imposed as regulations for safety purposes, as in situations where home lots are adjacent to a busy thoroughfare, or for aesthetic reasons, as is often the case when setbacks of some minimum distance between houses are required by neighborhood homeowners´ associations.
Building moratorium
A building moratorium is a halt on home construction in a particular geographical area in order to slow the rate of development in that area. When development occurs too rapidly, a number of problems can result, such as inability to accommodate the growing population with adequate school facilities, water resources, or waste management services; increased noise and pollution; and increased traffic congestion. A building moratorium forbids new home construction in areas experiencing these or similar problems in an effort to give the area time to adjust to an increased population and its attendant demands before adding to it. Building moratoriums may be permanent, or may be lifted at some point to allow development to continue.
Building paper
Building paper is a thick, water-resistant paper that serves as insulation for a home. Building paper is often used in conjunction with stucco walls, which can become ruined and structurally unsound when they encounter problems with excessive moisture. Building paper serves to absorb water and prevent it from coming in contact with structural support materials, such as wood or board, to keep the support materials dry. In addition, the ability of building paper to insulate a home from moisture protects against water-related problems such as mildew and mold. Building codes at all levels of government and throughout the country require building paper, and many recommend at least two layers for new home construction.
Building permit
A building permit is a permit that is issued by a local government agency, which allows for the construction of a new home or for the renovation of an existing house. Many minor projects do not require the filing for and granting of a building permit, but the requirements vary from city to city and so should be ascertained prior to undertaking any potentially major home improvement. Additions, alterations, and any brand-new construction will require the person building or making the addition or alteration to an existing structure to apply for a permit and then wait to receive approval from the overseeing agency before proceeding with a project.
Building restrictions
Building restrictions are regulations that limit the manner in which a property can be used. Building restrictions are often a result of a given area´s zoning ordinances; for example, a business may not be allowed to be operated in an area of a city or county that is zoned for exclusively residential structures. In addition, building restrictions may prevent a certain type of material used in construction or may limit the height to which a structure may be constructed. The stated goal behind building restrictions is to protect people from having to be in close proximity to a property use that is not compatible with that of a given area.
Built-ins
Built-ins are appliances or other items, such as bookshelves and other furnishings, that are framed into a home at construction or permanently attached. Built-ins may be kitchen or laundry appliances, set into the walls and not removable as free-standing appliances are. Built-ins may also include bookshelves that are recessed directly into a home´s wall, entertainment niches in a wall that can accommodate a television or other media items, desks built into a den as an extension of a wall, or even beds, built to protrude out from a bedroom wall but not separable or removable. Because of the additional work required to construct built-ins, homes that include the features are commonly more expensive.
Bulkhead
A bulkhead is a retaining wall that is designed to hold back water from an ocean or another body of water, protecting homes and other structures constructed adjacent to or nearby the body of water. A bulkhead line is a wall that extends the length of a shoreline, to protect the adjacent dry land and any structures built thereon from potential flooding. Bulkheads are also constructed as protective barriers in mining operations. The term is derived from the word used in reference to the water-tight barriers that divide the separate compartments of a ship.
Bundle of rights
The phrase "bundle of rights" refers to the set, or "bundle," of various interests or rights that a property owner has in his or her property. The interests and rights are separable, and not one single right of ownership. For example, a bundle of rights in real property may include some or all of the following with respect to the specific property: the right to occupy and use the property, the right to sell all or part of the property, the right to bequeath (or give away) some or all of the property, and the right to transfer the property for specified periods of time pursuant to a contract (as in a rental situation).
Bungalow
A bungalow is a small, one-story house or cottage. The term derives from the Hindi word "bangla," which referred in India to small, single-story, thatched-roof huts. Today, a bungalow may not be as simple as what the word once referred to; many bungalows in the United States in modern times are quite large and include a variety of modern amenities. Bungalows have a measure of convenience, in that there are no stairs to navigate; however, bungalows can actually be more expensive for the same square footage than equal-sized two-story homes, since a larger roof size and larger foundation, associated with a larger lot size, are necessary.
Butterfly roof
A butterfly roof is a roof that is formed by two gables, or triangular juncture where sloping walls meet to form the roof´s peak, that dip in the middle to resemble a butterfly's wings. The butterfly roof design is a fairly modern development, which architectural originality and aesthetic uniqueness to a home´s exterior. In addition, a butterfly roof is a particularly useful design in areas of the world where severe drought is a threat, as the roof´s shape allows rain to be captured in the center part of the roof and then utilized by the homeowner during dry periods by draining the water from the roof. Interiors of homes with butterfly roofs offer soaring ceilings and provide for an airy, open feel.
Buy-down mortgage
A buy-down mortgage is a home loan in which the lending institution receives a premium from the borrower that works as an inducement to reduce the interest rate applicable to the loan during the early years of the mortgage. At the time the loan is issued, the borrower pays a large sum of money to the lender, and in return receives a lower interest rate on the initial installment payments on the loan. There are two types of buy-down mortgages: a temporary buy-down mortgage, which lowers the borrower´s interest rate only for the first few years of the loan, and a permanent buy-down mortgage, in which the lower interest rate applies to every payment for the life of the loan.
Buyer broker
A buyer broker is a real estate broker who exclusively represents the interests of the buyer in a real estate transaction, and whose commission is paid for by the buyer rather than by the seller. A buyer´s broker represents only the interests of the buyer, and thus is particularly useful to purchasers involved in high-cost or somehow risky real estate transactions. Some buyer´s broker have a credential that grants upon them the designation of Accredited Buyer´s Representative (ABR); this accreditation indicates that the broker has been trained specifically in dealing with purchasers of real estate and in representing buyers´ best interests.
Buyer's market
A buyer´s market is the phrase used to describe a slow real estate market in which buyers have the advantage. When the real estate market is said to be "slow," that means that homes in a specific area or market-wide are available in excess compared to the number of buyers looking for homes. Therefore, sellers of real property must compete for buyers, resulting in decreased prices for real estate and added benefits associated with real estate purchases as seller´s struggle to make their particular offering the most attractive property to potential buyers. A buyer´s market is also commonly called a "soft" market.
Buyer's remorse
Buyer´s remorse describes an emotion that may be felt by first-time homebuyers after they have completed the signing of a sales contract or finished closing the purchase of a house. Buyer´s remorse is, in simple terms, regret-either because the buyer is concerned with the idea of ownership of real property in general, dissatisfied with the ultimately agreed-upon and paid price for the specific property, or unhappy in some way with the property, perhaps considering whether a longer search period would have resulted in a purchase more affordable, more suitable to the buyer´s specific needs and wants, and so on.
Bylaws
Bylaws are the rules and regulations that are imposed by a community homeowners´ association or by a corporation upon its members to govern member actions. In the real estate context, bylaws are commonly adopted by homeowners´ associations to dictate what community homeowners may or may not do and the procedures that must be followed with any action related to a property in the community. Bylaws also cover the election of the governing board and the responsibilities of members of the board, as well as specifying how community rules and regulations are to be implemented and enforced, and what action is to be taken should anyone subject to those rules fail to follow them |
