balance sheet
A financial statement that shows assets, liabilities, and net worth as of a specific
date. |
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. |
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. |
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. |
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 they are usually drafted
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). |
blended mortgage
A combination of two mortgages, one with a higher interest rate than the other,
to create a new mortgage with an interest rate somewhere between the two original
rates. |
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. |
breach
A violation of any legal obligation. |
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. |
broker
A person who, for a commission or a fee, brings parties together and assists in
negotiating contracts between them. |
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. |
bundle of rights
The real property rights which arise by reason of the ownership of the physical
real estate. Some rights included are: the right to enter and use, to lease, to
sell, to give it away, and to refrain from doing any of these things. |
buydown account
An account in which funds are held so that they can be applied as part of the
monthly mortgage payment as each payment comes due during the period that an interest
rate buydown plan is in effect. |
buydown mortgage
A temporary buydown 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 buydown reduces the interest rate over the entire life
of a mortgage. |
buyer agency agreement
Establishes a formal and exclusive relationship between the potential buyer and
the broker and its representatives.
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