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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. (see also Starter).

Balloon - (1) The final payment of a balloon note. (2) A landlocked parcel of land.

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.

Bankrupt - One who is adjudicated a bankrupt by a court having proper jurisdiction. The bankruptcy may be voluntary (petitioned by the bankrupt) or involuntary (petitioned by the creditors of the bankrupt).

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 the debts, in accordance with certain priorities and exemptions. Voluntary bankruptcy is petitioned by the debtor; involuntary by the creditors.

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.

Base Map - A map having background information, such as state, county, or city boundaries, upon which more detailed data is plotted.

Base property - Private property owned by a cattle owner required before a permit will be issued to allow the cattle to graze on public land.

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.

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. See Deed of Trust.

Binder - (1) Aa 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 title insurance to be issued. Also called a commitment. (see also preliminary title report). (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 specified period.

Blanket Mortgage or Trust Deed - A mortgage or trust deed that covers more than one lot or parcel of real property, and often an entire subdivision. As individual lots are sold, a partial reconveyance from the blanket mortgage is ordinarily obtained.

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.

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.

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) Aan insurance agreement by which one 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.

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

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

Bounds - Boundaries.

Branch - A subordinate or division office of ABC Company, as opposed to an affiliate, agent, subsidiary or underwritten firm associated with the Company.

Breach of Contract - Failure to perform a contract, in whole or part, without legal excuse.

Brokerage - The act of bringing together principals (buyer-seller; landlord-tenant; etc.) For a fee or commission, rather than acting as a principal.

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.

Building Contract - An agreement between an owner or lessee and a building contractor, setting forth terms relative to the construction of a proposed structure.

Buydown - A payment to the lender from the seller, buyer, third party, or some combination of these, causing the lender to reduce the interest rate during the early years of a loan. The buydown is usually for the first one to five years of the loan.

Buyer - The purchaser; one who buys real estate.

Buyer's market - Aa market condition favoring the buyer. In real estate, when more homes are for sale than thee are interested buyers.

Buy-sell offer - An offer by one owner of a business or real estate (a partner or other shareholder), or to sell the offeror's interest at the same price or 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 inters may be worth $12,000, but b is financially unable to buy a's interest (also worth $12,000).

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

By-pass - A road designed to avoid or pass by a high density area, such as a business section of a city, in order to ease traffic congestion. Also called a belt highway.

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