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Backup Offer - An offer to purchase a parcel of real estate on which there already exists a valid sales contract. Acceptance of a backup offer by a seller must be made contingent upon failure by the purchaser under the first contract to honor that contract; otherwise, the seller may have serious legal problems.

Balloon Payment Loan - A loan payment plan that does not amortize principal or that only partially amortizes principal so that at the end of the loan period a large "balloon' principal payment will be due.

Banker's Year - A 360-day year utilized in one method of proration.

Basis - For income tax purposes, the original cost (purchase price) of a property.

Bench Marks - Identification symbols on stone, metal, or other durable matter permanently fixed in the ground from which differences of elevation are measured.

Beneficiary - A person for whose benefit property or funds are placed in trust or the recipient of funds frorn an insurance fund or annuity contract. A beneficiary of a trust is frequently called a cestui que trust in North Carolina (Pronounced "set'; ke trust.") The lender under a deed of trust. See Mortgagee.

Bilateral Contract - A contract under which each party promises to perform a specified act in exchange for the other party's promise to perform a specified act. The exchange of promises forms the basis for the contract and binds both parties. Most contracts, including most real estate contracts, are bilateral contracts.

Bill of Sale - A written instrument that evidences the transfer of right, title, and interest in personal property from one person to another.

Binder - An agreement, usually temporary, executed by a buyer and/or seller, normally in connection with the deposit of earnest money toward the purchase of real estate; generally intended only to temporarily "bind" the signatories until a formal contract can be drawn; not commonly used in real estate transactions in North Carolina. In insurance, a binder is a temporary agreement given to one having an insurable interest; and who desires insurance subject to the same conditions that will apply if, as, and when a policy is issued.

Blanket Mortgage - A single mortgage that covers more than one piece of real estate.

Blighted Area - A declining area in which real property values are seriously affected by destructive economic forces, such as encroaching inharmonious property usages and/or rapidly deteriorating buildings.

Blockbusting - Persuading or trying to persuade persons to sell or move out by creating or exploiting fears of racial change in a neighborhood. An illegal practice under the Federal Fair Housing Act of 1968 and the State Fair Housing Act. Also known as panic peddling.

Bona fide - Made in good faith; good, valid, without fraud.

Bond - Any obligation under seal. A real estate bond is a written obligation, usually issued on security of a mortgage or deed of trust.

Breach - The breaking of a law, or failure of a duty, either by omission or commission; the failure to perform, without legal excuse, any promise that forms a part or the whole of a contract.

Brokerage - The field of the real estate business which involves the bringing together of parties for the purpose of selling, renting, or exchanging property.

Broker, Real Estate - Any person, partnership, association, or corporation who, for a compensation or valuable consideration, sells or offers for sale, buys or offers to buy, or negotiates the purchase or sale or exchange of real estate, or who leases or offers to lease, or rents or offers to rent, any real estate or the improvements thereon for others. See also Salesman, Real Estate.

Budget Mortgage - Any mortgage where the monthly payments are set up to include not only principal and interest, but also deposits to an escrow (reserve or impound) account that is maintained by the lender and used to pay property taxes and insurance charges when they become due. Most single-family residence mortgages are "budget" mortgages.

Building Code - Regulations established by local governments setting forth the structural requirements for building.

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

Buydown Mortgage - Any mortgage where the seller has paid a sum of money to the lender to either temporarily or permanently "buy down" the interest rate and/or monthly payments for the buyer-borrower. Often used by developers when selling new residential properties. Top of Page ©2000 athomecharlotte.com. All Rights Reserved.