REAL ESTATE GLOSSARY
Today we will focus on the letter B. We will add more posts in the future with additional terminology that you may run across during a real estate transaction. If you would like to see our previous terminology, click here.
BACKUP OFFER/CONTRACT: A backup offer may be made by a buyer on a home that is already under contract to sell. If the secondary buyer and the seller agree to the terms, it becomes a backup contract and is enforceable. This generally takes place if a home seller wants a secondary option in case the first contract does not go through. Backup offers are extremely common when the housing market is thriving.
BANKRUPTCY: Bankruptcy is a legal remedy available to individuals who have qualified debt that exceeds their assets. There are various types of Bankruptcy such as Chapter 7 or 11. A person may seek relief from the courts in the form of a complete discharge of their debt or a court-supervised repayment plan.
BASIC RATE: When referring to title insurance, the basic rate is the rate charged to a consumer who does not qualify for a reduced rate.
BIDDING WAR: A bidding war generally happens in a “seller’s market” when there are not enough homes to choose from for the number of buyers who are shopping. In a bidding war there is competition between two or more viable buyers for one property. Sometimes this also occurs at a foreclosure auction. Ultimately, the bidding war drives up the selling price on the home to the advantage of the seller.
BOUNDARY LINE: A home's boundary is defined as the border between two adjacent properties. It is the spot where one owner’s property ends and another begins. Boundaries are generally established by professional surveyor who can accurately identify the exact location of the boundary between two properties.
BREACH OF CONTRACT: Breach happens when one party to a written or oral contract fails to fulfill their duties without a valid legal excuse. A breach of contract is common in real estate sales and leases when either the buyer or seller (or tenant or landlord) fail to uphold their contractual obligations.
BROKER: A real estate broker represents a party (buyer or seller) in a real estate transaction or may act as an intermediary between the parties. A party may work with the broker or with one of the broker's agents.
BROKERAGE: A real estate brokerage is a company/firm that facilitates a transaction between a buyer and a seller for a commission or fee. A real estate brokerage facilitates (brokers) a real estate transaction by working with a buyer and seller to help determine the price of a piece of real property, ensuring all documents are signed, and making sure all parties complete the sale.
BUYERS MARKET: A buyer's market happens when there are more homes available for sale than there are home buyers. This allows buyers to have negotiation power over sellers.
We hope these glossary terms are helpful to you as you buy or sell your next home. If you would like more information about how we help our clients, visit our website. If you are moving in or to North Texas, our Team would love to help you personally. If you are moving anywhere else in the United States, let us know and we can personally recommend a REALTOR to assist you wherever your move takes you.