Browse the list alphabetically for a specific term. The topical list groups terms by steps in the home buying process.
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back title letter
A letter that a title insurance company gives to an attorney who then examines the title for insurance purposes. |
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back-end ratio
A lender calculation that compares a borrower's total debt (principal, interest, property taxes, and insurance, plus other monthly debt payments) to gross monthly income. |
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back-to-back escrow
Arrangements that an owner makes to oversee the sale of one property and the purchase of another at the same time. |
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backerboard
A rigid board used beneath tile. |
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backfill
Soil used to solidify the foundation of a structure. |
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backsplash
The area behind and above a countertop, typically covered to prevent water from splashing onto the wallboard. |
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backup offer
A secondary bid for a property that the seller will accept if the first offer fails. |
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backwater valve
A valve in a sewer line that prevents sewage from flowing back into a house. |
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baffle
A device used as a heat shield to deflect the byproducts of combustion. |
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balance sheet
A statement that shows the assets, liabilities, and net worth of an individual. |
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ball cock
One type of inlet valve assembly inside a toilet tank that, when opened automatically, fills the tank with water. |
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ballcock assembly
The toilet tank mechanism that controls flushing. |
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balloon loan
A mortgage in which monthly installments are not large enough to repay the loan by the end of the term. As a result, the final payment due is the lump sum of the remaining principal. |
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balloon payment
The final lump-sum payment due at the end of a balloon mortgage. |
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balloon-frame construction
A type of framing used in two-story homes in which studs extend from the ground to the ceiling of the second floor. |
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baluster
Intermediate vertical support for a stair railing, often made from turned hardwood. |
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balustrade
Railing held up by a set of posts on a porch or stairway. |
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bankruptcy
A proceeding in which an insolvent debtor can obtain relief from payment of certain obligations. Bankruptcies remain on a credit record for seven to 10 years and can severely limit a person's ability to borrow. |
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bargain sale
The sale of a piece of property for less than market value. |
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base loan amount
The amount upon which loan payments are based. If the borrower finances his or her closing costs, those costs will be added to the base loan amount. |
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baseboard
Any board or molding found at the bottom of an interior wall. |
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baseboard electric heat
Heating units installed in the floor that can be controlled by a central thermostat. |
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basement
The area of a home below ground level. |
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basis point
A basis point is one one-hundredth of one percentage point. For example, the difference between a loan at 8.25 percent and a mortgage at 8.37 percent is 12 basis points. |
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batten
A narrow piece of material used on the outside of a house to cover joints in walls. |
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bay
The opening between two columns or walls that forms a space. |
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bay window
A window that projects outward in a curve. |
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bearing wall
A wall that supports its own weight in addition to other parts of a structure. |
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before-tax income
Total income before taxes are deducted. |
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beneficiary
The lender who makes a loan, also called a mortgagee. The person borrowing money is the mortgagor. |
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bequest
Personal property given to a person through a will. |
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berm
A built-up lip of concrete designed to prevent runoff water from entering the garage or driveway. |
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betterment
An improvement that increases a property's value as opposed to repairs that maintain the value. |
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betterment
An improvement that increases the property's value. |
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bi-level
A home that has two levels. Typically, a garage or storage area is situated in the lower level and the home in the upper section. Most bi-level structures were built after 1950. |
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bi-metal coil
Part of a mechanical thermostat. Consists of two different types of metal that expand and contract at two different rates with changes in room temperature. |
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bid out
The process that contractors use to estimate the cost of a house or project before it is completed. |
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bidding war
Offers from multiple buyers for a piece of property. Agents also sometimes compete to list a house for sale. |
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bilateral contract
A contract in which the parties involved give mutual promises. Also called a reciprocal contract. |
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bill of sale
A document that transfers ownership of personal property. |
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binder
A report issued by a title insurance company that details the condition of a home's title and provides guidelines for a title insurance policy. |
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binder
A preliminary agreement between buyer and seller. |
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biweekly mortgage
A mortgage that requires payments every two weeks and helps repay the loan over a shorter term. |
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blanket insurance policy
A policy that covers more than one person or piece of property. |
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blanket mortgage
A mortgage that covers more than one property owned by the same borrower. |
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blighted area
A neighborhood that has deteriorated. |
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blind nailing
Nails driven into a wall and concealed with putty. |
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blockbusting
The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry of a particular race into the neighborhood. |
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blue-ribbon condition
A house maintained close to its original condition. Also called mint condition. |
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blue-sky laws
Regulations on the sale of securities to prevent consumers from investing in fraudulent or high-risk companies without being informed of the risks. |
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blueprint
The plan for a home or other structure. |
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board and batten
A type of siding composed of vertical boards and batten slats that cover wall joints. |
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board foot
Measurement of lumber that is the equivalent of 144 cubic inches. |
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board of equalization
A state board charged with ensuring that local property taxes are assessed in a uniform manner. |
| B |
board-and-batten siding
Siding composed of 8- to 12-inch-wide wooden boards nailed vertically to create a barn-like exterior. |
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boilerplate
Form language used in deeds, mortgages, and other documents. Details can be added by individual parties. |
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bona fide
A legal term that refers to actions or persons that are honest and in good faith. |
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bond
An agreement that insures one party against loss by acts or defaults of another party. |
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bonus room
A room with no specifically designated function, unlike a living room, bedroom, or kitchen. |
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book value
The value of a property as a capital asset based on its cost plus any additions, minus depreciation. |
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boot
A piece of sheet metal that connects a heating or cooling duct and a vent. |
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boring test
An analysis of soil in which holes are bored into the ground and samples are removed. |
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borough
A section of a city that has authority over local matters. |
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borrow
Sand, gravel, or other material used for grading. |
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borrow pit
The hole at a site that has been excavated. |
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boulevard
A street lined with trees or constructed with a landscaped median. |
| B |
boundary
The dividing line between two adjacent properties. |
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braced framing
A construction method in two-story homes in which the frame is reinforced with posts and braces. |
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bracing
The technique used to reinforce a structure. |
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branch circuit
An electrical circuit with its own circuit breaker in the service panel. |
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breach of contract
The failure to perform provisions of a contract without a legal excuse. |
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breach of covenant
The failure to obey a legal agreement. |
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breach of warranty
A seller's inability to pass clear title to a buyer. |
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break-even point
The point in which the owner's rental income matches expenses and debt. |
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breezeway
A roofed passageway with open sides. |
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brick
Building material made from clay molded into oblong blocks and fired in a kiln. |
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brick veneer
A brick facade on a wall or fireplace. |
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bridge loan
A short-term loan for borrowers who need more time to find permanent financing. |
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broker
Anyone who acts as a go-between. A real estate broker is licensed to handle property transactions and operate a brokerage firm. A mortgage broker is an individual or firm that matches borrowers to lenders and loan programs for a fee. |
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brokerage
The act of bringing together two or more parties in exchange for a fee or commission. Real estate brokerages are firms or companies that are licensed to conduct real estate transactions. |
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broom clean
The ideal condition of a building when it is turned over to an owner or tenant. |
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brownstone
A vintage row house constructed of red sandstone. |
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buffer strip
A parcel of land that separates two or more properties. |
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buildability
The feasibility of constructing a home or other structure on a piece of land. Parcels for which a building permit cannot be obtained may be considered "unbuildable." |
| B |
builder upgrades
Extra features or better finishing materials offered by a builder. |
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building and loan association
An organization that raises money to helps its members purchase real estate or construct a building. |
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building code
A comprehensive set of laws that controls the construction or remodeling of a home or other structure. |
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building inspector
A city or county employee who enforces the building code and ensures that work is correctly performed. |
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building line or setback
Guidelines that limit how close an owner can build to the street or an adjacent property. |
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building moratorium
A halt on home construction to slow the rate of development. |
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building paper
A thick, water-resistant paper that serves as insulation. |
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building permit
A permit issued by a local government agency that allows the construction or renovation of a house. |
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building restrictions
Regulations that limit the manner in which property can be used. |
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built-ins
Appliances or other items that are framed into a home or permanently attached. |
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bulkhead
A retaining wall designed to hold back water from the ocean or other body of water. |
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bundle of rights
The various interests or rights an owner has in a property. |
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bungalow
A small one-story house or cottage. |
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butt
The way in which two boards meet so that the ends touch in a continuous line. |
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butterfly roof
A roof formed by two gables that dip in the middle to resemble a butterfly's wings. |
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buydown mortgage
A home loan in which the lender receives a premium as an inducement to reduce the interest rate during the early years of the mortgage. |
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buyer's agent
An agent representing a buyer in a home purchase, either as a single agent or as an exclusive buyer's broker. |
| B |
buyer's broker
A real estate broker who exclusively represents the buyer's interests in a transaction and whose commission is paid either by the buyer or through the seller or listing broker at closing. |
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buyer's market
A slow real estate market in which buyers have the advantage. |
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buyer's remorse
An emotion felt by first-time homebuyers after signing a sales contract or closing the purchase of a house. |
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bylaws
The rules and regulations that a homeowners association or corporation adopts to govern activities.
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