Real Estate Glossary Terms Beginning With – B

Updated: November 22, 2021

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Terms Beginning With - B

Property Development & Investment Glossary, Terms & Definitions

Backup contract

A agreement to invest in property that takes effect if a previous deal fails to fulfil its obligations.

Bad debt allowance

An allowance used to lower the possible gross revenue; it is calculated based on the likelihood that some of the rental income would be uncollectible.

Balance sheet

A balance sheet is a financial summary that lists all resources, obligations, and equities, with the assets matching the liabilities and equity.

Balloon loan

A loan repayment plan during which the unpaid principal sum is due at a certain point in time.

Band of investment

An economic valuation that calculates the overall rate of interest by considering debt and credit rates.

Bank

A banking instrument that is permitted to offer a wide range of financial services.

Bankruptcy

When a person is unable to pay their debts, they seek help from the courts.

Base rent

The bare minimum of rent payments below a lease with a participation clause.

Base year

When applying the escalation clause, the year of the lease period is used as the standard. When compared to the base year, the production costs are either above or below the following year.

Basis

It is from this value that profits, loss, and depreciation are estimated for calculating taxes.

Basis point

A tiny fraction of a percentage.

Bay

Between a row of columns and the bearing wall, there is an unfinished region or space. This is often the minimum area that a building level can be divided into.

Bay depth

The measurement between the corridor wall and the actual window or wall.

Before-tax cash flow (BTCF)

Prior to paying income taxes, the cash flow accessible.

Before-tax cash flow multiplier

The equity split by the before-tax cash flow is the return technique.

Before-tax equity reversion (BTER)

The difference between the estimated sales price and any selling expenses, minus any outstanding mortgage amount at the point of transaction.

Beneficiary

A person who has received or will get benefits in the form of particular actions.

Benefit cost ratio

An different financing technique for calculating the ratio of benefit to cost, usually on a payback period basis.

Best efforts

An insurer of a restricted partnership's effort in raising equity for a deal.

Bid

The price that a person is willing to pay.

Bilateral contract

An agreement where both parties must fulfil their obligations.

Bill of sale

A written document that transfers actual title of the property from a sales perspective.

Binder

An advance payment deposit is a payment made to protect a piece of real estate under terms agreed.

Blanket mortgage

A loan that covers multiple pieces of real estate.

Blended rate mortgage

A rate of interest that applies to a refinanced mortgage and is calculated as the average of the past and present rates.

Blind pool

A company's business investment in which the property is not identified in advance but is purchased after the funds have been raised.

Blue sky laws

States enacted that safeguard the public from securities fraud.

BOMA

The Building Management teams Association is a non-profit organisation that represents building managements.

BOMA standard method

BOMA created a standard way to measure office building.

Book value

The initial cost of the property includes the amount of any modifications, less any tax deductions. This is the value that is recorded in the financial statements of the owner.

Boot

The similar asset that is added in a property trade to balance the transaction's value.

Breach of contract

A breach of a contract's terms that results in a default.

Break-even cash flow ratio

The actual total earnings as a percentage of overall operating costs including debt service.

Break-even point

The amount of money needed to cover all operational expenses as well as debt payments.

Bridge loan

Between the end of one loan and the start of another, a loan application is used.

Broker

A person who acts as a middleman between two parties. For the services provided, this person is paid a commission.

Broker-dealer

A person who is authorised to offer securities by the Director of Corporations.

Budget

A forecast of a property's costs and revenues over a given time period.

Building codes

Regional government entities set standards to ensure that limited security needs are fulfilled.

Building core

A multi-story structure's centre or artery portion that unifies functions and service needs for existing building occupants. Bathrooms, elevator banks, janitorial spaces, utility rooms and mechanical rooms, smoke shafts, and stairwells are examples of such areas.

Building module

A unit of depth and diameter that can be used to standardise a building's plan and facilitate the design and layout of office space. Many of the physical system's elements are constrained in size and shape by the module. Nonmodular buildings, on the other hand, can cause a slew of issues during the design phase.

Building permit

The consent that must be secured from the state governmental authority before building may begin.

Building shell

The completed outer layer and interiors are applied on the structure of the building.

Building skin

All of the materials used to create the building's outside casing.

Building standards

The building owner and architect have set particular construction standards in order to ensure a uniform element of design across the structure and to establish a cost foundation for setting up the charges and/or concessions.

Build-to-suit

An arrangement between a builder and a booking in which the developer bears responsibility for fitting up the leased space to the renter's specifications while adhering to building codes. When the space is finished, the tenant takes possession.

Bundle of rights

A concept that considers real estate interests to be a collection of land ownership.

Buy-back sales agreement

A clause in a sales contract in which the seller commits to buy the property again in the future.

Buydown

The deposit of new revenue in order to lower the interest rate on a loan.

Buyer's market

When there are more sellers than buyers in a property market, the buyer has the option to negotiate the best purchase rates and terms.

Buy-sell agreement

A contract between two parties in which one of them can buy the other's interest.

Bylaws

A system of rules by which a company or organisation conducts its operations or activities.

Glossary Index

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