Property Legal Terms

backfill

to refill ground that had been dug up for construction or development purposes.

backup offer

Secondary offer made to protect one's interests in case the first offer fails.

bai-anu-yard-chai-akarn (THA)

Building permit

bai-anu-yard-kor-sang (THA)

construction permit

balance sheet

A report showing the financial position or condition of a business at a given date. Also called Statement of Financial Position or Statement of Financial Condition

balcony

An area with a wall or bars around it that is joined to the outside wall of building on an upper level

balloon mortgage

A mortgage loan that requires the remaining principal balance be paid at a specific point in time. For example, a loan may be amortized as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid.

balloon payment

The final lump sum payment that is due at the termination of a balloon mortgage.

bankruptcy

By filing in federal bankruptcy court, an individual or individuals can restructure or relieve themselves of debts and liabilities. Bankruptcies are of various types, but the most common for an individual seem to be a "No Asset" bankruptcy which relieves the borrower of most types of debts. A borrower cannot usually qualify for an "A" paper loan for a period of two years after the bankruptcy has been discharged and requires the re-establishment of an ability to repay debt.

bare shell

property that is delivered to buyer without decoration.

base rent

The minimum rent for a commercial property without taking into account any add-ons like percentage of sales/profit that make up the total lease package

bearer instruments

Commercial instrument like bonds, checks,etc.. that give the person having it (bearer) the right to encash it.

beneficiary

Someone who receives property or offer assets in a will. Someone for whose benefit a trust is set up

bequeath

To give property by the way of the will

bequest

Property that is given to someone by a will

best rent

The highest rent which can reasonably be expected by a landlord in the circumstances of a particular case.

betterment

Any improvement to a property

bid

An offer to buy or construct or build something where more than one party is (usually) interested.

bill of quantities (BoQ)

A schedule of all labor and material items required to construct a facility that is priced on an itemized basis.

bill of sale

A written document that transfers title to personal property. For example, when selling an automobile to acquire funds which will be used as a source of down payment or for closing costs, the lender will usually require the bill of sale (in addition to other items) to help document this source of funds.

binding obligations

The rights and duties agreed upon and described in an agreement executed between two parties that are binding upon the parties to an agreement (eg. Landlord and tenant or vendor and purchaser)

biweekly mortgage

A mortgage in which you make payments every two weeks instead of once a month. The basic result is that instead of making twelve monthly payments during the year, you make thirteen. The extra payment reduces the principal, substantially reducing the time it takes to pay off a thirty year mortgage.

Note: there are independent companies that encourage you to set up bi-weekly payment schedules with them on your thirty year mortgage. They charge a set-up fee and a transfer fee for every payment. Your funds are deposited into a trust account from which your monthly payment is then made, and the excess funds then remain in the trust account until enough has accrued to make the additional payment which will then be paid to reduce your principle. You could save money by doing the same thing yourself, plus you have to have faith that once you transfer money to them that they will actually transfer your funds to your lender.

board resolution

A legally binding document executed by the board member of the corporate which authorizes certain acts or decisions to be carried out by the company. A board resolution can form part

bona fide

Legal term meaning actions, or individuals that are honest and in good faith.

bond market

Usually refers to the daily buying and selling of thirty year treasury bonds. Lenders follow this market intensely because as the yields of bonds go up and down, fixed rate mortgages do approximately the same thing. The same factors that affect the Treasury Bond market also affect mortgage rates at the same time. That is why rates change daily, and in a volatile market can and do change during the day as well.

book value

The value wich is ascribed to a property shown I nthe accounts as a capital asset but is not necessarily current market value, since it may be basedon actual cost

boundary

The line or structure separating two contiguous properties states or countries

breach of contract

An act or omission, contrary to one or more provisions in a contract and therefore giving the aggrieved party a right to enforce specific performance, to rescind the contract and/or to claim damages, the remedy available depending upon the nature of the breach.

breach of covenant

Failure to adhere to the terms of promise

breach of warranty

Failure to comply with a constructual undertaking e.g., the failure of a vendor to pass title or give vacant possession when such has been warranted. Such a breach normally entitles the innocent party to damages, although the breach of a warranty in an insurance contract by the insured normally entitles the insurer to treat the contract discharge.

break clause

A clause in the lease which gives the landlord and/or the tenant a right, in specified circumstance, to terminate the lease before its normal expiry date. It usually defines the length of the notice to be given and may be subjected to contractual or statutory financial provisions.

break-up value

The value of a specific property, e.g. an estate of land and building, based on the assumption that it is lotted and sold in parts, in such a manner as to achieve the best possible price.

bridge financing

A loan which is generally given to allow the borrower to tide over some immediate requirement while he awaits a more permanent or long-term solution to his financial needs.

bridge loan

Not used much anymore, bridge loans are obtained by those who have not yet sold their previous property, but must close on a purchase property. The bridge loan becomes the source of their funds for the down payment. One reason for their fall from favour is that there are more and more second mortgage lenders now that will lend at a high loan to value. In addition, sellers often prefer to accept offers from buyers who have already sold their property.

broker/ dealer

Broker has several meanings in different situations. Most Realtors are "agents" who work under a "broker." Some agents are brokers as well, either working form themselves or under another broker. In the mortgage industry, broker usually refers to a company or individual that does not lend the money for the loans themselves, but broker loans to larger lenders or investors. (See the Home Loan Library that discusses the different types of lenders). As a normal definition, a broker is anyone who acts as an agent, bringing two parties together for any type of transaction and earns a fee for doing so.

brokerage

1. Commission paid to the broker
2. The activity of a broker in bringing together two parties in transaction

brokerage commission

The amount paid consideration to a broker

buffer strip (buffer zone)

Portion or strip of land between two areas

build to suit

A property custom built to suit the specifications of the long-term lease

builder

One who build buildings

builder bond

A bond issued by a builder to ensure the completion of a building (see bank guarantee)

building

A mandmade structure where people live, meet or carry out business. Example: house, office, mall, temple, etc.

building application (BA)

An application to the local authority relating to the detailed designed and construction of a proposed building.

building code

A list of laws, conventions and practices that govern the construction and maintenance of real estate assets.

building completion date

The date provided by the landlord by which date the building is made operational in all aspects including all onsite and offsite works ( described in detail in the agreement), obtaining the necessary approvals including Occupation Certificate, for the demised promises to be occupied

building contract

A contract between an owner or occupier of the land and a building contractor, setting forth the terms under which construction is to be undertaken. A contract will normally include details of work to be carried out, basis of remuneration, time-scale, penalties, if any,for failure to comply with terms of the contract.

building contractor

A builder who enters into a contract under which he becomes obligated to carry out building or engineering works of a nature, extent and specification described in the contract and usually within a prescribed period.

building insurance replacement cost

The estimated construction costs of a replacement building. It is to be covered by insurance policy against losses due to structural damage caused by fire only and does not include any consequential loss and liabilities to third parties

building line

The line on a street or area beyond which no construction can take place. Its purpose is to ensure that buildings are not built too closed to each other or to the street.

building permit

A permit granted by the construction or building authority to construct a building

building restrictions

Restraints placed on the absolute right of a property owner from building whatever he wants.

built-ins

Utilinarian items like cupboards, bathtubs, stoves.ovens, etc., that are built into the building so as to make them immovable

buttress

Something that provides support to a wall

buyer's market

In the property market, a condition of supply and demand in which those seeking to purchase are in a relatively strong negotiating position because of a degree of oversupply

buydown

Usually refers to a fixed rate mortgage where the interest rate is "bought down" for a temporary period, usually one to three years. After that time and for the remainder of the term, the borrower's payment is calculated at the note rate. In order to buy down the initial rate for the temporary payment, a lump sum is paid and held in an account used to supplement the borrower's monthly payment. These funds usually come from the seller (or some other source) as a financial incentive to induce someone to buy their property. A "lender funded buydown" is when the lender pays the initial lump sum. They can accomplish this because the note rate on the loan (after the buydown adjustments) will be higher than the current market rate. One reason for doing this is because the borrower may get to "qualify" at the start rate and can qualify for a higher loan amount. Another reason is that a borrower may expect his earnings to go up substantially in the near future, but wants a lower payment right now.

by-laws

Internal rules that govern the activities of a company association or society