A British Thermal Unit (BTU) measures the amount of heat required to raise the temperature of one pound of water by one degree Fahrenheit. It is a fundamental unit of measurement in heating and cooling systems and energy production.
An individual or firm licensed to arrange real estate transactions, matching property buyers and sellers or tenants and landlords, while earning a commission for services rendered.
A broker protection clause, often referred to as an extender clause, allows a real estate agent to earn a commission after the expiration of the listing contract if the agent introduced the buyer during the contract period.
A Broker's Opinion of Value (BOV) is an analysis provided by a real estate broker to help clients make informed decisions about the listing price or a suitable bid for a property. While similar to a comparative market analysis, it is not as in-depth as a licensed appraisal used for mortgage lending.
The term brokerage encompasses both the business operations of brokers and the commissions they earn through these services. Brokers act as intermediaries, facilitating transactions and charging fees for their expertise.
A description for the condition in which property should be left by the seller or previous tenant before it is handed over to the new buyer or tenant. It usually implies that the floors are to be cleared of trash and swept, leaving the premises tidy, but not necessarily scrubbed or thoroughly cleaned.
Brownfield sites are areas of land previously used for industrial purposes or certain commercial uses that may be contaminated by hazardous waste or pollution. Cleaning and redeveloping these sites is essential for community health and environmental sustainability.
Brownstone refers to a nineteenth-century style house typically characterized by its distinctive brownstone facade, 4 or 5 stories, and a stoop that leads up to the first floor. These houses commonly share side walls with adjacent houses, creating a row of similar structures often found in urban settings.
BTXE refers to toxic chemicals, specifically the aromatic hydrocarbons benzene, toluene, xylenes, and ethylbenzene, that are commonly associated with petroleum products and environmental contamination.
A bubble in real estate is a market situation where the prices of properties rise rapidly and excessively beyond reasonable valuations due to high demand, speculation, and investor behavior. Eventually, the bubble 'bursts,' leading to a sharp decline in prices.
An itemized list of expected income and expenses prepared weekly, monthly, or annually. A budget is crucial in managing finances efficiently and planning for future needs in real estate investments.
A Budget Mortgage is a mortgage structure which includes monthly payments for taxes and insurance, in addition to the standard interest and principal. This type of mortgage ensures that homeowners set aside the necessary funds for property tax and insurance premiums.
A buffer zone is a designated area used as a transitional space between two distinct land uses. This zone helps reduce the potential conflicts and impacts between differing land uses by providing a physical and sometimes functional separation.
Build to Suit is a contractual arrangement where a landowner agrees to construct a building based on the specifications of a tenant and then lease both the land and the completed building to the tenant. This allows tenants to customize space without the upfront capital expense of buying and developing land.
Builder Standard represents the lowest acceptable level of functional performance for construction features or appliances in a new or remodeled house, covering all essential aspects of home construction.
A builder warranty is a guarantee provided by the developer or building contractor covering the quality and integrity of the construction. It assures homebuyers that the property will be free from significant structural defects within a specified period.
Builders and Sponsors Profit and Risk Allowance (BSPRA) is an amount above the cost of apartments that is allowed to be included in the project cost for purposes of determining the loan amount in certain government-sponsored programs.
Building and Loan Associations, also known as Savings and Loan Associations, are financial institutions that specialize in offering savings accounts and originating residential mortgage loans.
A Building Capitalization Rate (Cap Rate) is a metric used in real estate to convert an income stream from a property into a lump sum value. It is a crucial tool for appraisers and investors to estimate the value of a property.
Building codes are regulations established by local governments that describe the minimum structural requirements for buildings, including foundation, roofing, plumbing, electrical, and other specifications intended to ensure safety and sanitation.
Building Efficiency Ratio signifies the proportion of a building's usable floor area as compared to its total area. It is a crucial metric used to determine the efficiency of a building’s design and its space utilization.
Building inspection is a crucial process involving a physical review of property as it proceeds under construction to ensure that each major component meets building codes. This includes inspection of foundations, plumbing, electrical wiring, roofing, and other materials. It also encompasses periodic inspection of existing public buildings for health and safety considerations.
A building line is a designated boundary at a specific distance from the lot's front and/or sides beyond which the construction of buildings is restricted. It ensures uniformity and compliance with zoning regulations.
A Building Loan Agreement, also known as a Construction Loan Agreement, is an agreement whereby a lender advances money to a property owner at specified stages of a building project, such as completion of the foundation, framing, and other significant milestones.
A building lot is a parcel of land designated for building purposes, typically within a defined community, subdivision, or urban development plan. These lots are often equipped with the necessary infrastructure and utilities such as water, electricity, and sewer systems.
The Building Owners and Managers Association (BOMA) is a professional association that provides support, education, and advocacy for practitioners who own and manage buildings, particularly office spaces.
A building permit is an official authorization granted by a local government entity that allows for the construction, expansion, modification, or renovation of a building or structure. This legal requirement ensures that construction complies with building codes, zoning laws, and safety standards.
The Building Residual Technique is an appraisal method where the income attributed to land is subtracted from the net operating income to determine the income generated by the building, which is then capitalized into the building's value.
Building restrictions are provisions in building codes that affect the orientation, size, and appearance of a building, implemented to ensure safety, aesthetics, and sometimes cultural coherence of structures within a particular area.
The building/land ratio is a real estate metric that compares the value of improvements (like buildings) on a piece of land to the value of the land itself. This ratio helps investors and appraisers assess the value and utility of a property.
The buildup rate is a method to develop a capitalization rate by adding the individual components contributing to the risk and return of an investment. It offers a systematic approach to evaluate the total return expected for real estate investments.
Built-ins refer to appliances, machinery, and other equipment that are constructed as part of a building rather than being freestanding and movable. These items are typically considered real property upon the sale of real estate.
A bulk sale involves the sale of multiple real estate assets together, often including a mix of high-performing and underperforming properties. This strategy can accelerate property disposal and manage complex portfolios effectively.
A bullet loan is a type of loan in which the whole principal amount is paid back at the end of the loan term rather than through periodic payments. These loans typically have a short to medium-term duration, usually between 5 to 10 years, and can pose significant risk if the borrower cannot refinance or repay the loan principal as per the agreement.
The Bundle of Rights Theory posits that property ownership entails a collection of distinct rights, including the rights of occupancy, use, and enjoyment, as well as the ability to sell, bequeath, give, or lease these rights.
A bungalow is an early-twentieth-century-style, one-story house that often features an open or enclosed front porch. It’s known for its simple, practical design, and is usually free-standing.
The Bureau of Land Management (BLM) is an agency within the U.S. Department of the Interior responsible for administering public lands, particularly national forests and other undeveloped lands. The BLM oversees various land management activities, including grazing, mining, and recreational use.
A Burned-Out Tax Shelter refers to a real estate investment that was once advantageous for providing large income tax deductions but has lost its tax-sheltering benefits over time due to the reduction and eventual nil in depreciation deductions and the decrease in interest deductions as mortgage payments increasingly cover the principal.
A business day is a standard day for conducting business and excludes weekends and public holidays. Business days are crucial for determining deadlines in contracts and other formal agreements.
The intangible value inherent in a business apart from its tangible assets, which encompass buildings, land, and fixtures, and also the overall value of a business in its entirety, consisting of all its parts, both tangible and intangible.
A Buy-Back Agreement is a contractual provision where the seller commits to repurchasing the property at a predetermined price upon the occurrence of a stipulated event within a specific timeframe.
A buy-sell agreement is a legally binding pact among partners or stockholders under which some agree to buy the interests of others upon a triggering event, such as death, disability, or retirement.
Buy-Up refers to the payment of points, or a rebate, to the borrower for taking a loan with an above-market interest rate. Commonly referred to as 'negative points,' this payment helps offset fees and other settlement costs associated with the loan.
A Buyer's Agency Agreement is a contract that establishes the relationship between a potential buyer and a Buyer's Broker, where the broker represents the buyer's interests in real estate transactions.
A buyer's broker, also known as a buyer's agent, is a real estate professional hired by a prospective purchaser to locate an acceptable property for purchase and negotiate with the seller in the purchaser’s best interest.
A buyer's market is a real estate market condition characterized by a surplus of available properties leading to more power for buyers to negotiate lower prices. Often, it is the result of economic downturns, overbuilding, or local population decreases.
A buyout occurs when the owner of a new building acquires the remaining lease term of a tenant from a different building, thereby freeing the tenant from their old lease obligations and allowing them to negotiate a new lease.
Bylaws are a set of rules established by a condominium or homeowners' association to govern the management and affairs of the complex or neighborhood. These rules often define regulations concerning the usage of individual units, common areas, and the responsibilities of the homeowners and the association itself.
Soil boring tests are crucial procedures in the field of geotechnical engineering to determine the subsurface soil and rock conditions, commonly conducted before construction projects.
Special benefits in real estate refer to the specific advantages or privileges that accrue to a property, which can enhance its value and desirability. These benefits can stem from various sources including legal, physical, and economic factors.
