Real Estate Insurance Terms - B

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BACKFILL - To replace ground removed by excavation for construction. Used to brace a structure (especially a foundation or footings).

BACK TITLE LETTER - In states where attorneys examine title for title insurance purposes, this letter is given by a title insurance company to an attorney, giving to said attorney the condition of title as of a certain date. The attorney then begins his examination as of that date. Also called a starter or back title certificate.

BACKUP OFFER - A secondary offer to buy property, used in case the first (primary) offer fails. A backup offer is especially useful when the primary offer contains difficult contingencies.

BACKWATER VALVE - A valve set in a lateral sewer line which automatically prevents sewage from flowing back to its source (a building).

BALLOON FRAMING - A type of framing for a two story building by which the studs extend from ground to roof, the second floor being supported by nailing the horizontal supports (joists) to the studs and by the use of ribbon or ledger board.

BALLOON NOTE - A note calling for periodic payments which are insufficient to fully amortize the face amount of the note prior to maturity, so that a principal sum known as a "balloon" is due at maturity.

BALTIMORE RULE - An appraisal method for setting a value on a corner lot. The lot is appraised an inside lot for its front footage on both streets. The two values are then added to find the value of the corner lot. For example: Lot 1 fronts 100' on street A and 100' on street B. The value of a 100' inside lot on street A is added to the value of a 100' inside lot on street B to find a value of Lot 1. Also called the Bernard rule.

BALUSTER - The supporting posts of a handrail in a staircase.

BALUSTRADE - A row of balusters supporting a handrail.

BANKRUPTCY - Proceedings under federal bankruptcy statutes to relieve a debtor (bankrupt) from insurmountable debt. The bankrupt's property is distributed by the court to the creditors as full satisfaction of debts, in accordance with certain priorities and exemptions. Voluntary bankruptcy is petitioned by the debtor; involuntary by the creditors.

BARGE-BOARD - A board (often carved or ornamented) which hangs from the projecting edge of a sloping roof. Also called a vergeboard.

BARGE COUPLE - Either of the two rafters supporting the part of a gable roof which extends beyond the supporting wall.

BARGE COURSE - Tiling on a gable roof projecting beyond the supporting wall.

BARREL - A unit of solid or liquid measure, varying with each trade. For example: A barrel of water is 31 ½ gallons, oil 42 gallons.

BASEBOARD - Generally, any board or molding covering an interior wall where it meets the floor.

BASEBOARD HEATING - A system of perimeter heating in which the baseboard is replaced by the hearing units. May also be panels rather than baseboard units.

BASE LINE - (1) A survey line used in the government survey to establish township lines. The base line runs East and West through a principal meridian (line running North and South). (2) A horizontal elevation line used as the centerline in a survey for a highway route.

BASEMENT -- Generally, the story of a building below ground level.

BASE MOLDING - Molding installed along the top of the baseboard.

BASE RENT - A specific amount used as a minimum rent in a lease which used a percentage or overage for additional rent.

BASE TITLE - The result of an examination of title for the internal use of a title insurance company. Usually covers a large area and is done in anticipation of future sales or subdividing of the area.

BASE YEAR - The year upon which a direct expense escalation of rent is based.

BASIS FOR DEPRECIATION - The value of property for purposes of depreciation. For example: A purchased asset-the basis is cost whether fully paid for or not. The method for determining the basis is different for gift, inheritance, etc.

BATHROOM - A room containing a toilet, sink and bathtub or bathtub/shower combination. In appraisal for federally insured mortgages, a toilet and sink (no bathtub or shower) equal a half- bathroom; a toilet, sink, and stall shower equal a three-quarter bathroom.

BATT - A strip of insulation fitting closely between the studs of a wall.

BATTEN - A narrow strip (usually of wood), used to cover seams between siding boards.

BATTER - The slope of a structure, such as a wall or bank; expressed in terms of the vertical rise per horizontal distance, such as 3 inches (vertical) per 10 feet (horizontal).

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

BAY- (1) The opening between two columns, walls, etc. which forms a room-like space. May be industrial space, parking space, barn space or other use. (2) A bending or curving of the shoreline so as to form a partially enclosed body of water.

BAY WINDOW - A window which projects in a curve out from a wall giving a bay-like effect to the interior.

BEACH - That portion of the shore between ordinary low and high water marks. Commonly used to describe any sandy area adjacent to a body of water.

BEAM - A vertical or horizontal member of a structure; be of wood, steel, concrete, or other strong material, and, unless decorative only, is a load-bearing part of the structure.

BEARING WALL - A wall which supports the weight of a part of a structure in addition to its own weight.

BED A TREE - Preparing a path (bed) on which a tree is to fall so that it will not be damaged.

BEDROCK - Solid rock beneath the soil, as distinguished from rocks or boulders.

BEDROOM COMMUNITY - An area primarily residential. The people living there commute to work.

BELT HIGHWAY - A limited access highway carrying traffic around an urban area, with entrances and exits to principal streets. Also called a by-pass.

BENCH MARK - Surveying mark made in some object which is permanently fixed in the ground, showing the height of that point in relation to sea level. Used in topographic surveys and tidal observation.

BENEFICIAL ESTATE - An estate, the right to possession of which has been postponed, such as a devise under a will. More commonly, an estate, the legal ownership of which has not yet vested, as under a land contract. An equitable estate.

BENEFICIAL INTEREST - The equitable, rather than legal ownership of property, such as under a land contract.

BENEFICIAL USE - The doctrine, applicable in some areas, pertains to water rights, giving priority to those who would use the water most beneficially.

BENEFICIARY - (1) One for whose benefit a trust is created. (2) In states in which deeds of trust are commonly used instead of mortgages, the lender (mortgagee) is called the beneficiary.

BENEFICIARY'S DEMAND - Written instructions by a beneficiary under a deed of trust stating and demanding the amount necessary for issuance of a reconveyance, whether a full or partial amount.

BENEFICIARY'S STATEMENT - A statement by a lender under a deed of trust, setting forth the pertinent information necessary to assume said deed of trust, such as the unpaid balance, monthly payment and interest rate.

BEQUEATH - To give personal property by will.

BEQUEST - Personal property left by will.

BERM - (1) A bench, ledge, or other resting place part way up a hill or slope. (2) A mound used to control drainage by diverting all or part of the flow.

BETTERMENT - An improvement to a structure which is not a repair, restoration, or enlargement. For example: the addition of aluminum siding over a frame wall; paving a street adjoining the structure; adding a fireplace or some similar improvement which increases the value of the property.

BI - A prefix meaning both "every two" or "twice in". Biannual, for example, is twice in one year. Biennial is once every two years.

BIANNUAL - Twice per year. Semiannual.

BID - (1) An offer, usually in competition with others, such as at auction. A builder may bid for the right to do construction (especially for a government contract). (2) Used in some states to describe an offer to purchase real estate.

BIENNIAL - Every two years.

BI-LEVEL - Two levels. Commonly refers to construction of a house. Also called "split" level.

BILL DISCOUNTED - A promissory note from which the interest deducted in advance.

BILL OF SALE - An instrument by which one transfers personal property.

BINDER - (1) A report issued by a title insurance company setting forth the condition of title to certain property as of a certain date, and also setting forth conditions which, if satisfied, will cause a policy of the insurance to be issued. Also called a commitment. (2) A policy of title insurance (used primarily by investors) calling for a reduced rate for a future policy if the property is sold within a specific period.

BLACK ACRE - Fictitious name used by legal writers to describe a specific property without a more complete description.

BLACKTOP - A black paving surface composed of a coal or asphalt material.

BLANKET MORTGAGE - (1) A mortgage covering more than one property of the mortgagor, such as a mortgage covering all the lots of a builder in a subdivision. (2) A mortgage covering all real property of the mortgagor, both present and future. When used in this meaning, it is also called a "general mortgage.

BLIGHTED AREA - A term once popular in urban renewal, referring to a run-down area.

BLIND AD - An add (usually in a newspaper or magazine) which does not identify the party placing the ad. Often used in an ad for a job, asking that a resume be sent to a post office box.

BLIND CORNER - A corner where building or vegetation (trees, shrubs, etc.) extends to the property line and so obstructs the vision of motorists to right angle traffic.

BLOCK - (1) In a city, a square or rectangular area enclosed by streets. (2) In some states, a part of a subdivision legal description, such as Lot 1, Block 1, Tract 1. (3) A pulley in a frame. (4) An auctioneer's platform.

BLUE LAWS - Actually, laws adopted in some New England colonies regarding religious and personal conduct. Later came to mean any laws regarding the conducting of business on Sunday. Do no confuse with Blue Sky Laws.

BLUEPRINT - A plan of a building in such detail as to enable workmen to construct it from the print. The name comes from the photographic process which produces the plan in white on a blue background.

BLUE SKY LAWS - Laws to regulate the sale of securities to avoid investment in fraudulent companies or high risk investments without disclosure of the risks to the investor.

BOARD AND BATTEN - A siding constructed of wide boards (usually one foot wide) placed ½ inch apart the seams are covered by 3 inch-wide battens.

BOARDFOOT - A unit of measurement for lumber. One boardfoot equals 144 cubic inches or 12" x 12" x 1".

BOARDING HOUSE - A house where one can rent a room and receive board (meals), the cost of which is included in the rent. Not common today.

BOARD OF ALDERMEN - The governing body of a municipal corporation. Equivalent to a city council.

BOLE -A tree trunk.

BONA FIDE - A legal term which refers to any actions, situations, or persons that are honest, in good faith and without fraud.

BONA FIDE PURCHASER - A purchaser in good faith, for valuable consideration, without notice or knowledge of adverse claims of others. Sometimes abbreviated to B.F.P.

BOND - (1) An insurance agreement by which on is insured against loss by acts or defaults of a third party. In construction, a performance bond insures that the builder will finish his project. The insured could be a lender, purchaser or other interested party. (2) A method of financing long term debt, issued by a government or private corporation, which bears interest and has priority over stock in terms of security.

BOOK VALUE - The value of a property as a capital asset (cost plus additions to value, less depreciation).

BORING TEST - Study of soil by boring holes and removing samples.

BOROUGH - A part of a city, having authority over certain local matters. The best known boroughs are the five boroughs of New York City.

BORROW -Material such as sand or gravel used for grading, which is brought from another location.

BORROW BANK - The place from which borrow material is taken.

BORROW PIT - The pit left after the removal of borrow material.

BOTEL - A name given to a hotel or motel adjacent to a marina catering to boat traveler.

BOTTOM LAND -- Low land along a river formed by alluvial deposits. Also low lying ground such as a valley or dale.

BOULEVARD - A wide street, usually having a median or promenade, and lined with trees.

BOUNDARY- A separation, natural or artificial, which marks the division of two contiguous properties.

BOUNDS - Boundaries.

BRACED FRAMING - Framing reinforced with posts and braces forming a frame more rigid than balloon framing.

BREACH OF CONTRACT -- Failure to perform a contract, in whole or part, without legal excuse.

BEACH OF COVENANT - The failure to do or to refrain from doing that which has covenanted,

BREACH OF WARRANTY - In real property, the failure of the seller to pass title as either expressed or implied (by law) in the conveyancing document.

BREATHER ROOF - A storage tank roof which rises and lowers depending on the level of the stored gas or liquid.

BREEZE WAY - (1) In construction of a house with no garage, a canopy which extends from the house over the driveway as a protection from the weather for an automobile and for those going between the house and the automobile. (2) A covering over a porch or patio, connecting two sections of a house or a house and garage. Open on two sides, allowing air circulation (breeze).

BRICK - A building material made from clay, which is molded and heated. The effect of the heat on the iron in the clay gives a red color. Addition of lime or magnesia produces a yellow color.

BRIDGE - A structure over a waterway, highway or other obstruction, to facilitate passage and for the benefit of travelers.

BRIDGE FINANCING - A form of interim loan, generally made between a short term loan and a permanent (long term) loan, when the borrowers needs to have more time before taking the long term financing.

BRIDGING - Floor joist bracing, usually of wood or metal.

BRIDLE PATH (ROAD) - Technically a private road designated as a bridle road without specific use. More modernly, a road designated for equestrian use.

BRITISH THERMAL UNIT (B.T.U.) - Unit of heat required to raise one pound of water one degree Fahrenheit. Used to express the capacity of heating and cooling systems.

BROKER, REAL ESTATE - One who is licensed by the state to carry on the business of dealing in real estate. A broker may receive a commission for his or her part in bringing together a buyer and seller, landlord and tenant or parties to an exchange.

BROOM CLEAN - A term used to describe the condition of the building, delivered to a buyer or tenant. As the term indicated, the floors are swept and free of debris.

BUFFER STRIP (BUFFER ZONE) - A parcel of land separating two other parcels or areas, such as a strip of land between an industrial and residential meeting.

BUILDING - A structure built to shelter people, animals or goods. May be a residence, business or meeting place, such as a church.

BUILDING AND LOAN ASSOCIATION - An organization for the purpose of accumulating a fund by subscription and savings of its members, to assist them with loans for building or purchasing real estate.

BUILDING CODE -A comprehensive set of laws which control the construction of buildings, including design, materials used, construction, use, repair, remodeling and other similar factors.

BUILDING CONTRACT - A contract setting forth the terms under which construction is to be undertaken. Price may be set or based on the builder's cost plus a profit.

BUILDING LINE -A line beyond which there can be no construction. Set by law, the purpose of such a line is to keep buildings from being built too close to the street, both for safety and aesthetic reasons.

BUILDING PAPER - An insulation. A waterproof, heavy paper used in the construction of a roof or wall.

BUILDING PERMIT - A permit given by a local government to construct a building or make improvements.

BUILDING RESIDUAL TECHNIQUE - An appraisal method by which building and land are appraised separately, based on potential income. Used to determine if the building is adequate for the land value.

BUILDING RESTRICTIONS - Prohibition by a governmental body (zoning restriction or a private party (a former owner) against construction of certain structures on a property.

BUILT TO SUIT - A method of leasing property whereby the lessor builds to suit the tenant (according to the tenant's specifications). The cost of construction is figured into the rental amount of the lease, which is usually for a long term.

BUILT IN'S - Commonly stoves, ovens, dishwashers, and other appliances framed into the building construction and not movable.

BULKHEAD - (1) A partition in a ship. (2) A retaining wall to hold back water and thereby extend the shoreline.

BULKHEAD LINE - A line established in navigable waters beyond which no solid fill can be used. The Army Corps of Engineers establishes the bulkhead line and also the pier line, beyond which no pier can be constructed.

BULK SALE - A transfer in bulk, not in the ordinary course of business, of all or substantially all of the inventory and fixtures of a business.

BUS - A copper bar through which electrical current flows.

BUTTERFLY ROOF - A roof formed by two gable roofs concave to a center ridge. The roof resembles the shape of a butterfly's wings.

BUTT JOINT - The meeting end to end (butting) of two members to form a connection (joint).

BUTTRESS - A support for a wall. A prop. If the buttress projects from the wall and supports by lateral pressure, it is called a "flying buttress".

BUYER'S MARKET - A market condition favoring the buyer. In real estate when more homes are for sale than there are interested buyers.

BUY-SELL OFFER - An offer by one owner of a business or real estate to buy out the interest of another owner of the same business or real estate (a partner or other shareholder), or to sell the offeror's interest at the same price of proportionate price if unequal ownership. Example: A and B each own a ½ interest in Lot 1. A offers to buy B's interest for $10,000, or to sell A's interest to B for $10,000. Theoretically very fair, since B has the option to buy or sell. However, B's interest may be worth $12,000, but B is financially unable to buy A's interest (also worth $12,000).

BX CABLE - The main conduits coming into a home. Electrical wiring run through metal conduits.

BY-LAWS - Rules and regulations, adopted by an association or corporation, which govern its activities.