Dictionary
B
- bad debt allowance
An estimate of the amount of rent that may become uncollectible from the tenants of occupied units (also known as collection loss allowance).
- balance due on completion
The amount of money the purchaser will be required to pay to the vendor to complete the purchase, after all adjustments have been made.
- balance sheet
A financial statement listing Assets, Liabilities, and Owner's Equity at a specific point in time. Also known as a Statement of Financial Position or Statement of Assets and Liabilities.
- balloon payment
Any payment of principal over and above the regular payment.
- blanket mortgage
A single mortgage registered against two or more individual parcels of real property.
- blended payments
See constant payment loan or payment.
- bonus
The portion of the face value of a mortgage loan which exceeds the funds actually received by the borrower and which is intended as additional compensation for the lender.
- book value
The original cost of a noncurrent asset less all depreciation claimed to date.
- book value (of a mortgage)
The original face value of the mortgage less the amount of principal repayment, or the mortgage amount outstanding at a particular point in time. At origination, the book value and face value are the same.
- borrower qualification
The process of determining the maximum amount that can be lent to a potential borrower, given his or her income and the Lending Value of the property to be purchased.
- borrowing
Incurring an obligation to repay a debt in order to invest or consume more than one currently owns.
- breach of contract
Failure, without legal excuse, to perform any promise which forms the whole or part of a contract.
- break even point
The square footage of floor space (or number of units) which must be rented in order for revenues to exactly equal expenses.
- brokerage
A licensee (often corporate) on behalf of which other licensees must provide real estate services.
- brokerage fee
A fee charged by a mortgage broker for arranging a loan.
- builders' lien
A claim registered against the title to land by a contractor, supplier of materials or workman with respect to work done or materials supplied to improve that land.
- building scheme
Refers to a scheme of development which comes into existence where defined land is laid out in parcels and intended to be sold to different purchasers or leased or subleased to different tenants each of whom enters into a restrictive covenant with the common vendor or landlord agreeing that his particular parcel should be subject to certain restrictions as to use.