Income before taxes are deducted. Also known as Gross Income.
The person(s) designated to receive income or assets from a benefactor, trust, estate, or a deed of trust.
The transfer of personal property through a will.
An improvement that increases property value. This is different from repairs or replacements made that
simply maintain value.
Bill of Sale
A written document that transfers the title of personal property. It's a good idea to have all involved
parties sign the Bill of Sale in front of a Notary Public.
A preliminary agreement, secured by the payment of an earnest money deposit, under which a buyer offers
to purchase real estate.
Biweekly Payment Mortgage
A mortgage that requires payments to reduce the debt every two weeks (instead of the standard monthly
payment schedule). They are usually drafted from the borrower's bank account. The result is a substantial
reduction in interest paid by the borrower.
Blanket Insurance Policy
Any insurance policy that covers one or more broad classes of persons or property, without identifying
the specific subjects of insurance in the contract.
Mortgage in which one loan is secured for several properties.
Made in good faith without fraud or deceit.
A written instrument given by a corporation or government entity as evidence of a debt and also meaning
a guarantee of performance. A real estate bond is a written obligation usually secured by a mortgage or
a deed of trust.
A violation of any legal obligation.
A covered passage, open on two sides, connecting a house with a garage or other sections
of the house.
Mortgage financing that falls in between the termination of one loan and the beginning of another loan.
This allows the proceeds to be used for closing on a new house before the present home is sold. Also known
as Gap Loan or Swing Loan.
A person who, for a commission or a fee, brings parties together to assists in negotiating contracts between
An itemized list of expected income and expenses prepared on a weekly, monthly or annual basis.
A category of income or expense data that you can use in a budget. You can also define your own budget
categories and add them to some or all of the budgets you create. Housing, Food, and Utilities are examples
of Expense Categories. Salary is an example of an Income Category.
A type of amortizing mortgage which includes
the principal, interest and other costs such as taxes and homeowners insurance. This is referred to as
a PITI monthly payment.
A guarantee as to the quality of construction offered by a building contractor or developer.
See also Homeowners warranty.
Local regulations established by ordinance or law to regulate and set minimum construction standards for
buildings within a municipality to protect the public's safety and health. It may control design, construction,
and materials used in construction.
A physical review of property as construction progresses to ensure that each major component
— foundation, roofing, plumbing, electrical wiring, materials meets the building codes.
The authorization by a local government for the erection, alteration or remodeling of
improvements to a home within its jurisdiction.
A storage shed that is shaped like a barn.
A small, early-twentieth-century-style, one-story home noted for having an open or enclosed
front porch which extends across the front.
A contractual provision in which the seller agrees to repurchase the property at a specific
price upon the occurrence of a specified event within a certain period of time.
A mortgage financing technique in which the interest rate is reduced over the first few
years of a loan because the lender received an initial payment from the builder or seller to reduce the
rate, or in effect a discount, thus reducing the monthly payments for a fixed time period.
An account in which funds are held so they can be applied as part of the monthly mortgage payment as each
payment comes due during the period that an interest rate buydown plan is in effect.
A mortgage in which an initial lump sum payment is made by a party to reduce a borrower's monthly payments
during the first few years of a mortgage.
An agreement among stockholders, partners or co-owners where some will agree to buy out the interests
of others upon the happening of some event.
A real estate broker or salesperson who represents a prospective purchaser or tenant in a real estate
transaction exclusively and whose duties and obligations are to the buyer or tenant.
A buyer's market exists when real estate for sale exceeds the number of buyers seeking to purchase real
estate. In this case, a Buyer is in a better position as to price and terms because of this abundance.
1. The purchase of the entire holdings or interests of an owner or investor.
2. An arrangement by an owner of a
building agreeing to take on the liability for the remaining lease term of a tenant in a different building
which releases the tenant from the old lease obligation and permits him/her to negotiate a lease in the
The definitions of Real Estate
Definitions found on 10Realty.com are for general information only. All information is subject to change
and should be independently verified. 10Realty.com makes no representations or warranties of any nature
with regard to the information found on the pages therein. 10Realty.com assumes no responsibility for
any liabilities or losses claimed or incurred as a result of using this information. (Real Estate Terms,
Investment Terms, Banking Terms explained, definitions, legal definitions, legal terms and definitions)