BALLOON PAYMENT
A single, large (balloon) payment made at a maturity of a partially amortized mortgage to
pay off the debt in full.
BARGAIN and SALE DEED
A type of deed in which title is transferred and a limited number of warranties are made
respecting title or to use of the property.
BASE LINE
An Imaginary line running east and west and crossing a principal meridian at a definite point;
used by surveyors for reference in locating and describing land under the government
survey system.
BASIC (PRIMARY) INDUSTRY
A business that attracts outside money into the area.
BEFORE-TAX CASH FLOW (BTCF; CASH THROWOFF; GROSS SPENDABLE
INCOME)
The resulting amount when annual debt service is subtracted from net operating income.
BIENNIUM (BIENNIAL)
A period of two years.
BILATERAL CONTRACT
An agreement wherein both parties are legally obligated to each other to perform.
BINDER
A memorandum given subject to the writing of a formal contract for sale, usually
acknowledging receipt of a portion of a down payment for the purchase of real property.
BLANKET MORTGAGE
One mortgage covering two or more parcels.
BLIND AD
An advertisement of a principal's property providing only a telephone number, a post
office box, and/or an address without the licensed name of the brokerage firm.
BLOCKBUSTING
The illegal practice of inducing homeowners to sell their property by making
misrepresentations regarding the entry or prospective entry of a minority persons in order
to cause a turnover of properties in the neighborhood; discriminatory acts against sellers.
BONA FIDE
Without deceit or fraud; genuine or in good faith.
BORROWER (DEBTOR)
The mortgagor; one who gives a mortgage as a security for debt.
BRANCH OFFICE
A business or location other than the real estate broker's principal place of business.
BREACH
Failure to do or perform what has been promised.
BROKER
Generally, a special agent who acts as an intermediary between two parties and negotiates
contracts between them.
BROKER-SALESPERSON
An individual who is qualified to be issued a broker's license but who operates as a
salesperson in the employ of another.
BUFFER ZONE
A strip of land separating one land use from another.
BUILDING CODE
A government ordinance regulating construction practices and materials.
BUSINESS BROKERAGE
The sale, purchase, or lease of businesses that provide goods and/or services.
BUSINESS TRUST (SYNDICATE)
A group of people who associate with each other for the purpose of purchasing shares or
units at a specified amount per unit, with the money raised to be used to purchase the real
property, often for subdividing and re-sale.
BUYDOWN
A financing technique in which points are paid by the lender to the seller or builder that
lowers (buys down) the effective interest rate paid by the borrower/buyer, thus reducing
the amount of the monthly payment for a set period of time.
BUYER?S MARKET
The supply of available properties exceeds the demand.