Your Online Legal Resource Center for Property Management

BACKFILL - Dirt used to support a structure or to fill in an excavated area.

BACK TITLE LETTER - A letter sent to an attorney by a title insurance company stating the condition of title as of a specified date; the lawyer begins his title examination as of that date (in states where this procedure is necessary); also a starter or back title certificate.

BACK-UP ORDER - An alternate offer to purchase property, made in case the primary offer falls through.

BACKWATER - Water in a stream which stops in its flow or runs back toward its source due to an obstruction (dam, etc).

BALLOON NOTE - A note requiring a series of periodic payments that do not fully pay the loan and a large principal (balloon) payment at the end of the term.

BALLOON PAYMENT - The final installment paid at the end of the term of a note; used only when preceding installments were not sufficient to pay off the note in full.

BANK - The elevated sides of a river or ditch; a financial institution

BANKRUPT - One who is declared unable to pay current debts by a court; proceedings may be initiated by the debtor or his/her creditors.

BANKRUPTCY - A procedure of federal law to seize the property of a debtor and divide it among his creditors.

BASE - The lowest visible, load-bearing portion of a structure.

BASE AND MERIDIAN - Imaginary lines used by surveyors to find and describe the location of public or private lands.

BASEBOARD - A flat board or molding which covers or laps the joint where the interior wall and floor meet.

BASEBOARD HEATING - A type of room heating using units along the perimeter of the area, either above or replacing the baseboards.

BASE MAP - A map showing relevant physical features and boundary lines on which more detailed information is later plotted.

BASEMENT - The lowest story of a building, usually below ground level.

BASE PROPERTY - The amount of land which must be owned by a cattle rancher before he/she may obtain a permit to use public grazing lands.

BASE RENT - The minimum rent due under a percentage lease which also requires payment of a percentage of gross income.

BASE TITLE - The product of a title investigation, usually covering a large area in expectation of future sales, for internal use by a title insurance company.

BASE YEAR - The year used as a starting point for calculating rent increases which are based on changes in the operating expenses of the owner.

BASIS - The original cost of a property, including expenses for capital improvements less depreciation taken or allowed. The final figure is called adjusted basis.

BASIS POINT - .01% yielded annually; a financial term describing changes in the market price of bonds, notes and other instruments.

BATT - Insulation strips between the vertical supports of a wall.

BATTURE LAND - The land between the water's edge and the bank of a river when the water level is below normal.

BAY - The open space between two walls or columns (rows of) forming a room-like area; an inlet along the shoreline; a protruding structure.

BAY WINDOW - A window in a small structure which protrudes from the main building.

BEAM - A horizontal or vertical load-bearing member of a structure.

BEARING WALL - A wall capable of supporting weight in addition to its own.

BEDROOM COMMUNITY - A residential area from which people commute to work.

BEFORE AND AFTER METHOD - An appraisal method for determining the award due to an owner when only part of his/her property is condemned; if the remaining land is worth less per square foot after condemnation, the owner is paid for the loss in value; this method is also used to determine changes in property value due to remodeling or modernization.

BELT HIGHWAY - See By-pass.

BENCH MARK - A mark used by surveyors which is permanently affixed to the ground to denote the height of that point in relation to sea level.

BENEFICIAL ESTATE - An estate in which legal ownership has not yet been transferred to the beneficiary or where the will requests a postponement of the title transfer.

BENEFICIAL INTEREST - The ownership of property through a right to legal title rather than through actual possession of title, as in a land contract; also equitable title, equitable ownership.

BENEFICIAL USE - A principle pertaining to the allocation of water rights which favors those who will use it in the best way.

BENEFICIARY - One who benefits (receives money, etc.) from the actions of another such as the creation of a trust; the lender involved in a note or deed of trust.

BENEFICIARY'S DEMAND - A written request by a beneficiary under a deed of trust (the lender) demanding the funds needed to pay off the note and transfer title to the new owner.

BENEFICIARY'S STATEMENT - A statement by the lender (beneficiary under deed of trust) containing the relevant information needed by one taking over an existing deed of trust (such as monthly payment, unpaid balance and interest rate).

BENEFIT OF THE BARGAIN - A doctrine by which a defrauded buyer may collect the difference between the actual and the falsified value of the property purchased, regardless of the actual loss suffered.

BENEFITS - An increase in the value of property, due to the condemnation of adjoining or neighboring land.

BEQUEATH - The act of giving property by will.

BERM - A continuous mound of earth used as the shoulder of a road, as a support for pipes, the sides of drainage ditch, etc.; a terrace on a long slope; a long narrow mound of earth in front of an industrial park used to camouflage its existence.

BETTERMENT - An improvement to property or structure other than a repair which increases the value of the property.

B HORIZON - The layer of soil beneath the upper layer, the content of which is also affected by water seepage.

BI - A prefix which means "twice in" or "every two" as in biannual.

BID - An offer to purchase (as in an auction) or to perform services (as with construction); usually made in competition with others.

BIENNIAL - Something which occurs every two years; lasts for two years.

BILATERAL (RECIPROCAL) CONTRACT - A contract in which all parties pledge to perform certain actions/services for each other (failure to perform is considered breach of contract).

BI-LEVEL - A split 2-level house (structure).

BILL OF SALE - A written document used as evidence of the transfer of title from one person to another of personal property.

BINDER - A receipt for deposit left with the seller by the prospective buyer as evidence of intention to purchase the property (if it contains terms and is signed by the seller, it is a contract); a temporary insurance policy; a commitment to issue title insurance.

BIRD DOGGING - Getting the first lead on a potential investor, home buyer, loan customer, etc., which is turned over to an authorized salesperson to make the pitch.

BLACK ACRE - Refers to a fictitious name describing a property when it's description is incomplete or vague.

BLANKET MORTGAGE - A mortgage encompassing several separate pieces of real property owned by one mortgagor, such as all the lots in a subdivision owned by a developer.

BLIGHTED AREA - A run-down area in which property values are declining.

BLIND AD - An advertisement that does not reveal who placed it (may not be legal for licensed brokers).

BLIND CORNER - A corner with vegetation (shrubs, etc.) or structures that block the motorist's view of traffic traveling at right angles.

BLIND POOL - The offering of investment opportunities in unspecified property, depending on the general partner to locate and assemble the investment package.

BLOCK - A brick; a rectangular area bordered by streets; part of the legal description of lots in a subdivision; an enclosed pulley.

BLOCK BUSTING - An illegal method of inducing sales (often below market value) by telling residents of an area that people of a different race, religion, ancestry, etc., are moving in which will cause a decline in property values.

BLUE LAWS - Laws regulating moral conduct; in some New England and Southern states the hours during which business may be conducted are regulated.

BLUEPRINT - A photographic print of a master plan for a house, subdivision, shopping center, etc., reproduced on paper with a blue background.

BLUE SKY LAWS - State laws requiring the registration of securities and disclosure of all relevant information to the state securities commissioner; they protect inexperienced investors from fraud.

BOARDFOOT - A unit of lumber measurement equaling 12"x12"x1".

BOARDING HOUSE - Lodging where meal service is provided and included in the rental charge.

BOARD OF EQUALIZATION - The state body responsible for consistency in assessing real property for taxes.

BONA FIDE PURCHASER - One who buys property in good faith for a fair price without knowledge of other claims against it.

BOND - An agreement by an insurance firm which protects the insured against loss or default on a contract by another; an interest bearing, negotiable instrument issued by private companies or the government (federal or local) which are secured by the assets of that body and used to finance long-term debt.

BONUS CLAUSE - A statement in a contract which entitles one to additional compensation if services are performed before a specified date.

BOOK VALUE - The estimated market price of a property based on cost plus capital expenditures for improvements, minus depreciation.

BOOT - Additional money, property or mortgage relief given to compensate for the difference in value when two properties are exchanged.

BORING TEST - A method of collecting soil samples by drilling into the earth, used to study the weight-bearing capacity of subterranean soil.

BOROUGH - A division of a city with some authority over local affairs; an incorporated township; a division of the state of Alaska.

BORROW PIT - A depression in the ground left after the removal of landfill material.

BOTTOM LAND - Low lying land in a valley, near a waterway (such as a river or creek) or between areas of high ground; land subject to flooding.

BOULEVARD - A wide major street, frequently having a tree-lined center divider.

BOUNDARY - The legally defined perimeter (physical outer limits) of a piece of land.

BREACH OF CONTRACT - Failure to fulfill any of the terms and/or conditions specified in a contract without a legal excuse.

BREACH OF COVENANT - Violation of a written agreement, usually in reference to established conditions or restrictions.

BREACH OF WARRANTY - Occurs when the physical conditions of the land or the condition of title are not as stated in the contract of sale.

BREAK-EVEN POINT - The income level (of a business or investment) where expenses have barely been covered; no profit or loss has been realized.

BREAST-HEIGHT - 41/2 feet above the ground; the level at which the diameter of a tree is measured; abbr. D.B.H. (diameter breast height).

BREEZEWAY - A roofed connection between a house and garage, which is screened rather than walled-in to allow a breeze to blow through; diminishes the risk of fire spreading from garage to house.

BRICK - A block of clay which has been molded and baked, used with cement to build.

BRIDGE LOAN - A short-term mortgage given on one property in order to purchase another without contingencies; funds from the sale of the first property must be used to pay off the loan; may also be converted to a second mortgage on the property purchased.

BRIDLE PATH - A small road (usually unpaved) used for horseback riding usually established by easement in the original conditions, covenants and restrictions of a subdivided property to cover all the parcels.

BROKERAGE - The business of acting on behalf of another (principal) for a fee or commission; the fee itself.

BROKER, REAL ESTATE - The state licensed individual, who after passing an examination, is charged with the responsibility of overseeing the actions of licensed real estate associates within his/her own business.

BROOM CLEAN - A term which states that a building has been swept clean; describes the physical condition of a structure when turned over to the new buyer (or tenant).

BUFFER ZONE - A piece of land separating two other pieces which are being used differently (such as industrial land near a residential area).

BUILDING - Any enclosed, permanent structure for the purpose of sheltering animals, goods or people.

BUILDING AND LOAN ASSOCIATION - A financial institution which uses savings deposits collected from members to finance the purchase and improvement of real estate.

BUILDING CODE - The set of laws regulating the design and construction of buildings (which includes building materials, repairs, remodeling, intended uses of the structure, etc.).

BUILDING CONTRACT - A legally binding written agreement which establishes the terms and conditions (such as price and completion date) under which a structure is to be built.

BUILDING LINE (SETBACK LINE) - A boundary set by zoning law, beyond which further construction is prohibited; prevents construction too close to the street and other neighboring buildings; creates uniformity and enhances value.

BUILDING PAPER - A waterproof, fiber reinforced paper used as thermal insulation and a vapor barrier in construction of floors, walls, or roofs.

BUILDING PERMIT - Permission to build or make improvements, granted in writing by local government.

BUILDING RESIDUAL TECHNIQUE - A method of appraising income property (land with a building that is rented out) which separates the amount of net income earned by the structure from the value of the land, to determine the value of the whole property; can be used in figuring accrued depreciation.

BUILDING RESTRICTIONS - Limitations on construction relating to size and type of structure imposed by government zoning acts or private parties (when stated in the deed by a former owner or when land is leased).

BUILD TO SUIT - A leasing arrangement whereby the lessor builds or makes improvements to fit the specifications of the tenant in return for a lease commitment (usually long term).

BUILT-INS - Fixtures, appliances, such as stove, dishwasher, etc., and furnishings (shelves and cabinets) which are permanently attached to a building and are included in the property when sold.

BULK ZONING - See area zoning.

BUNDLE OF RIGHTS - The group of rights that pass with ownership of property; includes the right to assign, transfer, sell, encumber, use, enjoy, etc.

BUSINESS CYCLE - Recurring fluctuations in prosperity; the pattern of increases and decreases in economic activity.

BUSINESS OPPORTUNITY - A business for sale which may include real estate.

BUTT JOINT - A square connection or joint formed when two boards (members) intersect at right angles.

BUYER'S MARKET - A condition in which there are more properties up for sale than there are potential buyers, hence, terms of purchase are more favorable for buyers.

BUY-SELL AGREEMENT - An agreement between business partners that one party will buy and another will sell and interest in the business at a specified price in the event of a specified occurrence.

BY-LAWS - The rules adopted by an association or corporation governing its general organization and management.

BY-PASS - A highway that passes around the outer perimeter of a city or town to avoid heavy traffic flow in the central business area.