Real Estate Glossary

This list is provided for reference only. Each state has it's own real estate laws, terms and regulations for Realtors. In Arizona, your Realtor and Title Company handle most real estate transaction activities that involve attorneys in many other states. However, you have the right to seek the advice of an attorney or other professional counsel in any real estate transaction.

Balloon Mortgage - A mortgage where the final payment is considerably larger than the preceding payments. Also see Amortized Mortgage - .

Balloon Payment - A lump sum payment for the unpaid balance of the loan.

Bankruptcy - A court action to restructure debt.

Basis - Original cost of property plus value of any improvements put on by the seller minus the depreciation taken by the seller.

Beneficiary - The lender named on the mortgage note. One entitled to the proceeds of property held in trust, also proceeds of wills, insurance policies, or trusts.

Bill of Sale - A written instrument given to pass title to personal property from a seller to a buyer.

Binder (Purchase) - See Agreement of Sale - .

Binder (Title Commitment) - A report issued by a title insurance company setting forth the condition of title and setting forth conditions under which the title company will issue a title insurance - policy.

Blanket Mortgage - One mortgage on a number of parcels of real property.

Blockbusting - The illegal practice of inducing panic selling in a neighborhood by making representations of the entry, or prospective entry, of members of a minority group. See Panic Peddling - and Fair Housing - .

Breach of Contract - Failure, without legal excuse, of one of the parties to a contract to perform according to the contract.

Bridge Financing - A form of interim loan, generally made between a short term loan and a long term loan, when the borrower needs to have more time before taking on long term financing.

British Thermal Unit (B.T.U.) - Unit of heat required to raise one pound of water one degree Fahrenheit.

Brokerage - For a commission or fee, bringing together parties interested in buying, selling, exchanging, or leasing real property.

Building Code - Government regulations specifying minimum construction standards.

Building Line - (Setback) A line fixed at a certain distance from the front and/or sides of a lot beyond which no structure can project. See Setback - .

Bundle of Rights - Ownership in real property implies a group of rights, such as the right of occupancy, use and enjoyment, the right to sell in whole or in part, the right to control the use, the right to bequeath, the right to lease any or all of the rights, the right to the benefits derived by occupancy and use of the property, etc.

Buydown - A cash payment, usually measured in points, to a lender in order to reduce the interest rate a borrower must pay. The seller may increase the sales price to cover the cost of the buydown. Consider the fact that the mortgage interest may be deductible from your income taxes. You could be better off getting a lower price and paying the higher interest rate. Consult your CPA.

Buyers Agent - See Buyers Broker

Buyers Broker - (Buyer's Agent) A licensee who represents only the buyer in a transaction, regardless of whether compensation is paid by the buyer or the listing broker through a commission split. Brokers who conduct their business by representing buyers only are Exclusive Buyers Broker - .