Glossary
B
Balloon Mortgage Payment
A large payment during the term of a mortgage, often at the end.
Beneficiary
The person who receives or is to receive the benefits resulting from certain acts.
Bequeath
To give or hand down by will; to leave by will.
Bequest
That which is given by the terms of a will.
Bill of Sale
A written instrument given to pass title of personal property from vendor to vendee.
Binder
An agreement to cover the down payment for the purchase of real estate as evidence of good faith on the part of the purchaser.
Blanket Mortgage
A mortgage covering more than one property. A blanket mortgage is often used for subdivision financing.
Blockbusting
The practice of inducing homeowners in a particular neighborhood to sell their homes quickly, often at below market prices, by creating the fear that the entry of a minority group or groups into the neighborhood will cause a precipitous decline in property values.
Bona Fide
In good faith, without fraud.
Bond
The evidence of a personal debt which is secured by a mortgage or other lien on real estate.
Building Code
Regulations established by state or local governments stating fully the structural, mechanical, and electrical 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.
Building Loan Agreement
An agreement whereby the lender advances money to an owner primarily in the erection of buildings. Such funds are commonly advanced in installments as the structure is completed.
Building Permit
Written governmental permission for the construction, renovation or substantial repair of a building.
C
Cancellation Clause
A provision in a lease or other contract which confers upon one or more of all of the parties to the lease the right to terminate the party’s or parties’ obligations thereunder upon the occurrence of the condition or contingency set forth in the said clause.
Capital Appreciation
The person who receives or is to receive the benefits resulting from certain acts.
Capital Asset
Any asset of a permanent nature used for the production of income.
Capital Gain
Income that results from the sale of an asset not in the usual course of business. (Capital gains may be taxed at a lower rate than ordinary income.)
Capital Improvement
Any structure erected as a permanent improvement to real estate, usually extending the useful life and value of a property. (The replacement of a roof would be considered a capital improvement.)
Capital Loss
A loss from the sale of an asset not in the usual course of business.
Caveat Emptor
Let the buyer beware. The buyer must examine the goods or property and buy at the buyer’s own risk.
Cease and Desist List
Upon the establishment of a cease and desist zone by the Secretary, a list of homeowners who have filed owner’s statements expressing their wish not to be solicited by real estate brokers or salespersons. Soliciting of listed homeowners by licensees is prohibited. Violators of such prohibition are subject to licensure suspension or revocation.
Cease and Desist Zone
A rule adopted by the Secretary of State which prohibits the direct solicitation of homeowners whose names and addresses appear on a cease and desist list maintained by the Secretary. Such rule may be adopted upon the Secretary’s determination that some homeowners within a defined Geographic area have been subject to intense and repeated solicitation by real estate brokers and salespersons.
Certificate of Occupancy (CO)
A document issued by a governmental authority that a building is ready and fit for occupancy.
Chain of Title
A history of conveyances and incumbrances affecting a title from the time the original patent was granted, or as far back as records are available.
Chattel
Personal property, such as household goods.
Client
The one by whom a broker is employed.
Closing Date
The date upon which the property is conveyed by the seller to the buyer.
Cloud on the Title
An outstanding claim or incumbrance which, if valid, would affect or impair the owner’s title.
Collateral
Additional security pledged for the payment of an obligation.
Color of Title
That which appears to be good title, but which is not title in fact.
Commingling
To mingle or mix, for example, a client’s funds in the broker’s personal or general account.
Commission
A sum due a real estate broker for services in that capacity.
Commitment
A pledge or a promise or affirmation agreement.
Completion Bond
A bond used to guarantee that a proposed subdivision development will be completed.
Condemnation
Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain.
Conditional Sales Contract
A contract for the sale of property stating that delivery is to be made to the buyer, title to remain vested in the seller until the conditions of the contract have been fulfilled.
Consideration
Anything given to induce another to enter into a contract such as money or personal services.
Constructive Notice
Information or knowledge of a fact imputed by law to a person because the person could have discovered the fact by proper diligence and inquiry (e.g. via public records).
Contingency
A provision in a contract that requires the occurrence of a specific event before the contract can be completed.
Contract
An agreement between competent parties to do or not to do certain things which is legally enforceable, whereby each party acquires a right.
Conversion
Change from one character or use to another.
Conveyance
The transfer of the title of land from one to another. The means or medium by which title of real estate is transferred.
Covenants
Agreements written into deeds and other instruments promising performance or nonperformance of certain acts, or stipulating certain uses or nonuses of the property.
Cul-de-sac
A blind alley: a street with only one inlet/outlet.
Current Value
The value usually sought to be estimated in an appraisal.
