Banker’s Rule

See the Banker’s Year entry.

Banker’s Year

The standard of using 360 days for prorations.

Bankruptcy

The formal court order that provides protection to debtors so as to allow them to reorganize their finances. U.S. bankruptcy laws provide many consumers with a method to reestablish their financial health, without being completely drained by creditors. There are primarily two types of personal bankruptcy options: chapter 13 and chapter 7. Chapter 13 essentially reorganizes the consumer’s debts, while the chapter 7 eliminates debts after liquidation of available assets. However, a bankruptcy will have a severe impact on the applicant’s financing efforts for a period of five to ten years.

Bannister

Hand rails for stairs.

Bargain and Sale Deed

A type of deed that offers the grantee no expressed guarantees against encumbrances, unless specifically stated. However, a covenant of seisin is normally assumed.

Bargain Sale

A transaction in which the property is sold for a less-than-market-value price.

Bargeboard

Bargeboards are decorated boards placed at the end of gables.

Barrel Tile

Curved (semi-tubular) roof tiles, usually made of clay, that is a common feature of Spanish Colonial homes.

Base Line

A real estate surveying term used with the rectangular survey system, base lines refer to identified lines running east-to-west across the nation, from which specific parcels of property are measured. Base lines are normally used in conjunction with range lines, principal meridians, township lines, townships and sections.

Base Molding

Construction term referring to trim-work placed along the bottom of a wall, effectively covering the wall-floor corner.

Base Rent

The minimum rent due under a lease agreement that requires additional assessments based on the property’s operating expenses. Triple-Net lease arrangements, for example, charges the tenant a base rent plus additional assessments for the tenant’s share of taxes, insurance premiums and operating expenses.

Base Stop Amount

With gross leases on commercial properties, which normally have a set total rent payment, the base stop amount is the limit up to which the landlord must pay for all expenses. If the landlord’s prorated expenses exceed this base stop amount, the tenant will then begin paying a prorated share of those expenses. If the gross lease does not specify a base amount or base stop, then the landlord will not have this option. For example, a tenant’s gross lease with her landlord indicates a base stop amount of $12 per square foot. If the landlord’s recoverable expenses hit $13 per square foot, the tenant must pay an extra $1/SF to cover her share of those expenses.

Base Year

The lease year against which the landlord may escalate the rent and charge additional expenses against the tenant.

Baseboard

See the Base Molding entry.

Basecoat

When plaster is used, the first coat of plaster is often used to set a base. The second coat is called a brown coat.

Basement

The building portion that is located below ground level.

Basis

The owner’s basis is the initial cost of the property. However, when calculating potential capital gain taxes, the property owner must apply the adjusted tax basis, which takes into account other capital improvements, purchase costs and depreciations taken.

Basis Point

A calculation of 1/100 of one percent. A point is calculated as one percent of a gross amount. A basis point is 1/100th of that point. For example, one basis point on a $100,000 loan is $10 (1/100 of one point).

Batt

A sheet of matted cloth or synthetic fiber. Insulation sometimes come in such sheets. See the Blanket Insulation entry.

Batten

Any strip of wood used to cover a joint. Most often, it is a narrow piece of board used to cover the vertical joints of plywood siding.

Batter Board

Horizontal boards used to mark a building’s layout prior to construction.

Battlement

A parapet with alternating indented and raised portions, they are common features of the stereotypic castle. In fact, they are a common feature castellated buildings. In medieval wartime periods, they allowed defenders to fire upon attackers with some shielding. Battlements are typically composed of stone or masonry.

Bay

The unfinished area or space between a row of columns and the bearing wall.

Bay Depth

The distance from the corridor wall to the real window or wall.

Bay Window

A type of window that projects from the side wall of a house or structure. Typical bay windows actually consists of three windows: the central one is parallel to the wall, while the side windows angle from the side of the central window to the wall. Bay windows can provide more light and ventilation than standard configurations, as well as add space to a room. Oriel and bow windows are other types of projecting windows. Technically, bay windows are ground- and first-floor windows, while oriel windows are on upper floors.