Glossary - B

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Balance sheet: A financial statement the shows assets, liabilities, and net worth as of a specific date. created when one person, the principal, delegates to another, the agent, the right to act on his/her behalf in business transactions and to excuse some degree of disaction while so acting.

Balloon mortgage: A mortgage that has level monthly payments that will amortize it over a stated term but that provides for a lump sum payment to be due at the end of an earlier specified term.

Balloon payment: The final lump sum payment that is made at the maturity date of a balloon mortgage.

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.

Bill of sale: A written document that transfers title to personal property.

Biweekly payment mortgage: A mortgage that requires payments to reduce the debt every two weeks (instead of the standard monthly payments 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).

Blind ad: An advertisement that does not include the name, phone number, or address of the person placing the ad.

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.

Breach of contract: Violation of any of the terms or conditions of a contract without legal excuse; default; nonperformance.

Brokerage: The aspect of the real estate business that is concerned with bringing together the parties and completing a real estate transaction.

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 time. A budget can provide guidelines for managing future investments and expenses.

Building code: Local regulations that control design, construction, and materials used in construction. Building codes are based on safety and health standards.

Building permit: A written governmental permission for the construction of a new building or other improvement, the demolition or substantial repair of an existing structure, or the installment of factory-built housing.