Real Estate Glossary B [Part 4]


Continued from…

:point_right: Real Estate Glossary B [Part 3]

Business day

A weekday, excluding Saturdays, Sundays, and holidays; a typical working day. The word business day is used over the terms banking day or working day due to recognized tradition and practice.

Some regulations demand notification within five business days, such as when a renter fails to pay rent; other laws apply to calendar days. A disagreement may emerge if a contract fails to specify whether the notice must be given within business days or calendar days, while the typical understanding is that it must be given within calendar days unless otherwise indicated.

Business energy property tax credit

A tax credit to encourage companies to invest in or buy solar water heating, solar space heating, solar thermal electric, solar thermal process heat, photovoltaics, geothermal electric, fuel cells, solar hybrid lighting, direct-use geothermal, or microturbines. Fuel cells and microturbines built in 2006 and 2007, as well as hybrid solar lighting systems constructed on or after January 1, 2006, are now eligible for the credit under the Energy Policy Act of 2005. The tax credits range between 10% and 30%.

Business interruption insurance

Insurance that compensates losses suffered as a result of a business owner’s incapacity to do business while a building is being repaired after a fire or other covered disaster.

Business life insurance

A commercial entity purchases life insurance on the life of one of its employees. It is frequently purchased by partnerships to protect surviving partners from loss caused by a partner’s death, or by corporations to pay them for loss caused by the death of a key employee. Key employee insurance is another name for it.

Business opportunity

Any form of business that is up for purchase. The selling or leasing of an existing business, enterprise, or opportunity’s business and goodwill, including the sale of all or nearly all of a corporation’s assets or shares, or the assets of a partnership or sole proprietorship.

A real estate broker’s license is usually necessary to sell a business that has real property as an asset. However, because a broker may be unaware of many of the unique issues that arise when selling a business, consulting with an experienced business counselor or attorney may be beneficial. Both the seller and the buyer should be informed of how the bulk transfer regulations apply to the sale of a firm. They should also be aware that any contract involving the sale of products valued at $500 or more must be in writing to be enforceable under the Uniform Commercial Code.

Business Park

A subdivision or development intended for office, warehouse, or similar purposes. It is an offshoot of industrial parks and is also known as an office park.

Business risk

Risk resulting from the prospect of making poor business judgments or misjudging the economic implications of activities.

The uncertainty about whether or not a business venture will make money.

Butt edge

The shingle tabs’ bottom border.


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Butt hinge

One leaf is attached to the door’s edge, while the other is attached to the door’s jamb.

Butt joint

The point at which the ends of two timbers meet, as well as where drywall sheets meet on the 4 foot edge.

Buy down

A subsidy (typically paid by a builder or developer) used to lower monthly mortgage payments.

Buy-back agreement

A clause in a sales contract that states that if a specific event occurs, such as the buyer being moved out of the region, the seller (and, in certain situations, the broker) will buy back the property within a given time frame, generally for the original selling price.

Buy-back sales agreement

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


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Buy-sell agreement

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

  1. A contract between partners or shareholders in which one party sells and another buys a company stake at a certain price if a predetermined event occurs. This type of buy-sell agreement is used in closely held firms and partnerships to cover the risk of a key participant’s death or disability. To guarantee that money are available to complete the buyout, life insurance is typically employed.

  2. When a building is finished, an interim and permanent lender engage into an arrangement for the sale and assignment of a mortgage to the permanent lender. On the assumption that the mortgagor would have a contractual right to require that the permanent lender acquire the mortgage, the mortgagor is frequently a party to this arrangement.

Buy/rent threshold

The point at which changing market conditions make it clear that money is being spent less on owner-occupied housing and more on rental housing (or vice versa).


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

A type of financing that lowers the monthly payment for a house buyer during the first few years. In certain buydown schemes, a residential developer, builder, or seller would pay a lender a subsidy (in the form of points) to “buy down,” or reduce, the effective interest rate paid by the homebuyer, lowering monthly payments for their buyers for a fixed period of time while diminishing their own profit.

The interest supplement may be constant for the duration of the buydown, or it may be graded, with the subsidy amount decreasing each year. Buydowns are expensive: for example, a three-year buydown with some lenders may pay 2. 7 points for each one-percentage-point decline in interest.

Buyer agency agreement

A real estate brokerage contract between a buyer and a real estate agent. The broker is paid if he or she successfully locates a property for the buyer to purchase.

Buyer’s advocate

A service that helps people find a home that fits their needs.

Buyer’s agent

A person who locates and negotiates a property purchase on behalf of a potential buyer for a fee.

Buyer’s broker

In a statutory or fiduciary position, a broker represents the buyer. Some buyer’s brokers use single agency, which means they only represent buyers or sellers in the same transaction. Buyer brokers that represent just buyers and direct prospective sellers to other brokers are known as exclusive buyer brokers. The buyer, or the seller or listing broker, pays the broker at closing, if all parties agree.

Because buyer representation is now widely accepted, the listing company is likely to have a buyer-client interested in one of its listings. Many businesses decide whether to continue representing both customers under a consensual dual agency arrangement or to practice single agency by directing one of the parties to another brokerage.

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.

  1. A scenario in which the supply of available properties for sale outnumbers the demand. As a result, in order to attract purchasers, sellers are sometimes obliged to cut their prices and occasionally aid with financing (through purchase-money mortgages).

  2. A price drop as a result of an overstock.

The state that exists when, under competitive conditions, supply and demand pressures are such that market prices are relatively low, giving the buyer an advantage. Prices are falling as a result of an oversupply.

Buyers advocate

A property consultant who works exclusively for the buyer, sourcing suitable properties and representing the buyer throughout the purchasing process.

Buying commission

The fee you pay an agent to assist you in acquiring a specific style of building

By operation of law

Property rights are defined by some affirmative rule or change, by which someone may gain or lose rights without any action on his behalf. For example, the law of dower allows a wife to gain a one-third life interest in her husband’s real estate.

Byfold doors

Doors that open in a smaller area than typical swing doors because they are hinged in the centre. Closet doors are frequently made of this material.


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

A condominium owners’ association or corporation’s regulations, rules, or laws governing the condominium’s management and functioning. The procedure of selection of the board of directors, as well as the duties and obligations of the corporate members, are all covered by the bylaws. These self-imposed guidelines are considered private law. A corporate resolution relates to a single act of the company, but a bylaw is a permanent norm that must be followed on all future occasions. Bylaws for condominiums are created by the developer and are susceptible to modification once the owners’ association takes possession. As stated in the original condominium declaration, the bylaws may be amended.

Bypass doors

Closet doors are sliding doors that move past each other.