REAL ESTATE GLOSSARY

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Balloon Mortgage:	Balloon mortgage loans are short-term fixed-rate loans with fixed monthly payments for a set number of years followed by one large final balloon payment ("the balloon") for all of the remainder of the principal. Typically, the balloon payment may be due at the end of 5, 7, or 10 years. Borrowers with balloon loans may have the right to refinance the loan when the balloon payment is due, but the right to refinance is not guaranteed.

Balloon Payment:	A large final payment due at the end of a loan, typically a home or car loan, to pay off the amount your monthly payments didn't cover.

Bankruptcy:	A proceeding in a federal court to relieve certain debts of a person or a business unable to pay its debts.

Bearer:	The legal owner of a piece of property.

Bequest:	A gift of personal property by will.

Bill of Sale:	A written instrument given to pass title to personal property.

Blanket Mortgage:	A mortgage that covers more than one parcel of real estate.

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; panic peddling. See Fair Housing.

Bona Fide:	In good faith.

Bond:	(1) A written agreement purchased from a bonding company that guarantees a person will properly carry out a specific act, such as managing funds, showing up in court, providing good title to a piece of real estate or completing a construction project. If the person who purchased the bond fails at his or her task, the bonding company will pay the aggrieved party an amount up to the value of the bond. (2) An interest-bearing document issued by a government or company as evidence of a debt. A bond provides pre-determined payments at a set date to the bond holder. Bonds may be "registered" bonds, which provide payment to the bond holder whose name is recorded with the issuer and appears on the bond certificate, or "bearer" bonds, which provide payments to whomever holds the bond in-hand. Mortgage interest rates are closely related to long term bond interest rates.

Bonus to Selling Agent:	Also known as BTSA. This is the compensation, above and beyond the sales commission, offered to the real estate agent who brings the buyer to the transaction. A BTSA is used to provide an extra incentive for real estate agents to show a particular listing. Often the bonus is tied to closing within a certain time period or the property selling for a certain price. A buyer's agent should not consider the BTSA a factor in any negotiations between buyer and seller. Realistically, most BTSA's tend to disappear during initial negotiations, even though they should never be considered as negotiable after they have been offered. Any bonus to selling agent should be contained in a written agreement between the seller and listing broker. The BTSA is technically offered by the listing broker, not the seller, and thus should not be a subject of negotiation.

Borrower (Mortgagor):	An individual who applies for and receives funds in the form of a loan and is obligated to repay the loan in full under the terms of the loan.

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

Broker:	1) An independent business person who sets real estate office policies, hires employees, determines their compensation, and supervises their activities. 2) An individual who brings buyers and sellers together and assists in negotiating contracts for a client. 3) In the case of a mortgage this is a third party person or organization who matches a lender to a buyer based on their qualifications.

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

BTSA:	See bonus to selling agent.

Building Line:	A line fixed at a certain distance from the front and/or sides of a lot beyond which no structure can project. See set back.

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.

Buy Down:	A cash payment, usually measured in points, to a lender in order to reduce the interest rate a borrower must pay.

Buyer's Market:	Market conditions that favor buyers. With more sellers than buyers in the market, sellers may be forced to make substantial price concessions.

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