Board of Realtors to Bracket

 

Board of Realtors

Local and regional organization of Realtors. These boards usually maintain a multiple listing service that combines and makes widely available the listed properties of all member agencies.

Boarder

A person renting a room, but normally not a full apartment unit.

Bog

A land feature found in cold, temperate climates with lots of moisture, although a few bogs can be found in the tropic. Bogs are formed by the presence of acidic or rain-fed ground water. As wetlands, they are important parts of the natural environment. The four main types of bogs are valley bogs, raised bogs, blanket bogs and quaking (schwingmoor) bogs.

Boiler

Modern boilers contain an arrangement of tubes and pipes, connected to a furnace, and are used to heat water to create steam, hot water or a heating vapor.

Boiler Insurance

Insurance that covers heating, hot water and air-conditioning equipment. Standard building insurance policies usually require separate coverage for these equipment.

BOMA

See the Building Owners and Managers Association entry.

Bond

A debt instrument or type of security that guarantees payment of the face value of the bond, plus interest, to the purchaser. The U.S. Treasury issues government T-Bonds and T-Bills, whose market price directly affects the interest rates of most residential loans. Corporations also issue bonds to borrow money from the public, instead of selling stock shares.

Bonus To Selling Agent

Extra compensation or reward (in addition to the standard real estate sales commission) that is offered and given to the agent who provides the buyer. Some listing agents and property sellers offer this added incentive to bring more prospective buyers to the subject property.

Book Value

The net tax basis value of a property. To determine the tax basis value, capital improvements made are added to the original purchase price. Any depreciation taken is then subtracted from that amount. When the property is sold, the capital gains tax is calculated as the new sales price minus the tax basis.

Boot

This refers to the dissimilar property that is included to balance the value of a real estate exchange transaction. For example, in an exchange of property, if someone receives cash to offset the difference in value between the two exchanged properties, that cash is boot. The boot’s value is taxable against the party receiving it.

Boring Test

Environmental analysis that entails drilling into the ground to retrieve soil samples at various levels.

Borough

A municipal section that has some control over local matters and regulations. Compare this to a ward, which is primarily a legislative division that elects representatives to a city council or board. New York City is perhaps the city most known for having boroughs.

Borrow

Soil, gravel, sand or any other material used for grading land, during the initial land development process.

Borrow Pit

The excavation hole from which soil, dirt or other material have been removed.

Borrower

The person or corporation using another party’s money or property. The borrower has a legal obligation to repay the loan’s principal, interest and all applicable fees and charges, as stated on the loan promissory note. See also the Mortgagor entry.

Borrower Certification & Authorization Form

An application document certifying that the borrower has applied for a loan and authorizes the lender or its representatives to verify the application data provided by the applicant.

Bottom Fishing

An investment strategy in which speculators shop for significantly under-priced properties, especially foreclosure, tax sale and other distressed properties.

Bottom Plate

The lowest horizontal member of a wall or partition that is placed on the subflooring. It is usually the horizontal board to which the bottom of studs are attached.

Boulevard

Technically, it is a wide street or avenue that is lined by trees or contains a landscaped area along the sides or on the median.

Bounds

With the metes and bounds system of surveying, bounds refer to the direction of the described measurements. Bounds are normally described as turns in angular descriptions with degrees (360 degrees per circle), minutes (60 minutes per degree) and seconds (60 seconds per minute).

Bow Tie Loan

In the commercial property arena, this is a mortgage loan whose required monthly payments are well below the interest-only rate. The payments are not enough to cover the interest due on the property, which effectively lowers the borrower’s short-term debt servicing. However, this creates negative amortization.

Bow Window

A projecting window that is rounded (rather than angled), usually made of curved glass. Compare with Bay Window and Oriel Window entries.

Box Home

A type of kit home, which comes in a steel box that becomes part of the finished house.

B-Paper

Loans, bonds and other debt instruments that are considered somewhat riskier than A-paper, but still good quality. B-paper loans typically involve borrowers with minor credit problems. In the residential loan industry, conforming loans are considered A-paper, while non-conforming loans are considered sub-prime, B-paper or C-paper. Very high-risk loans, such as hard-money loans and financing for borrowers currently in bankruptcy or foreclosure are considered D-paper.

B-Pieces

In the commercial mortgage arena, B-pieces refer to the class of commercial mortgage-backed securities (CMBS) that are rated by institutional investors as grade BB (and lower) or below investment grade (BIG).

Braced Framing

A method of building construction common with residential property, in which braces and posts are used to support the building’s frame.

Bracket

A metal, wood or stone element that is used to bear a projected weight. Unlike a cantilever, it is usually attached to the wall or outer beam or stud. Brackets are often used to support balconies and oriel windows.