Philippine Real Estate Glossary

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Backfill
The replacement of excavated earth in a a hole or against a structure.

Balance Sheet
A financial statement that shows assets, liabilities, and net worth as of a specific date.

Balloon Payment
The final lump sum payment that is made at the maturity date of a balloon mortgage.

Bankrupt
A person, firm, or corporation that, through a court proceeding, is relieved from the payment of all debts after the surrender of all assets to a court-appointed trustee.

Bankruptcy
A proceeding in a federal court in which a debtor who owes more than his or her assets can relieve the debts by transferring his or her assets to a trustee.

Base and Meridan
Imaginary lines used by surveyors to find and describe the location or private or public land.

Before-Tax Income
Income before taxes are deducted.

Bench Marks
A payment by a borrower of more than the scheduled principal amount due in order to reduce the remaining balance on the loan.

Beneficiary
The person designated to receive the income from a trust, estate, or a deed of trust.

Bequeath
To transfer personal property through a will.

Bequest
That which is given by the terms of a will.

Betterment
An improvement that increases property value as distinguished from repairs or replacements that simply maintain value.

Bill of Sale
A written document that transfers title to personal property.

Binder
A preliminary agreement, secured by the payment of an earnest money deposit, under which a buyer offers to purchase real estate.

Biweekly Mortgages
Your lender will probably tell you that a biweekly mortgage is structured just like a traditional fixed-rate, level-payment, fully amortizing mortgage. However, you make your payments every 14 days instead of once a month. The monthly payment is split in half, resulting in the same total monthly mortgage, but the resulting 26 and sometimes 27 biweekly payments a year translate into 13 monthly payments, or one extra monthly payment per year. Borrowers can qualify for a 30-year monthly payment amount, but get a loan that pays off in approximately 22 years at current interest rates. At higher rates, the actual term declines. If you are looking to build up equity in your home faster without the higher mortgage payments that come with a shorter-term mortgage, you may want to consider the biweekly mortgage. Payments can be deducted from your bank account and scheduled to coincide with your payroll deposits to simplify budgeting. Lenders may charge an initial set-up fee to automatically debit your checking account.

Biweekly Payment Mortgage
A mortgage that requires payments to reduce the debt every two weeks (instead of the standard monthly payment schedule). The 26 (or possibly 27) biweekly payments are each equal to one-half of the monthly payment that would be required if the loan were a standard 30-year fixed-rate mortgage, and they are usually drafted from the borrower's bank account. The result for the borrower is a substantial savings in interest.

Blanket Insurance Policy
A single policy that covers more than one piece of property (or more than one person).

Blanket Mortgage
The mortgage that is secured by a cooperative project, as opposed to the share loans on individual units within the project.

Blighted Area
A declining area in which real property values are seriously affected by destructive economic forces such as encroaching inharmonious property usages, infiltration of lower social and economic classes of inhabitants and/or rapidly depreciating buildings.

Bona fide
In good faith, without fraud.

Bond
An interest-bearing certificate of debt with a maturity date. An obligation of a government or business corporation. A real estate bond is a written obligation usually secured by a mortgage or a deed of trust.

Breach
A violation of any legal obligation.

Break Even Point
The amount of rent or the occupancy level to pay operating expenses and debt service.

Bridge Loan
A form of second trust that is collateralized by the borrower's present home (which is usually for sale) in a manner that allows the proceeds to be used for closing on a new house before the present home is sold. Also known as "swing loan."

Broker
A person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them.

Budget
A detailed plan of income and expenses expected over a certain period of time. A budget can provide guidelines for managing future investments and expenses.

Budget Category
A category of income or expense data that you can use in a budget. You can also define your own budget categories and add them to some or all of the budgets you create. "Rent" is an example of an expense category. "Salary" is a typical income category.

Building Code
Local regulations that control design, construction, and materials used in construction. Building codes are based on safety and health standards.

Building Line
A line set by law as a certain distance from a street line in front of which an owner cannot build on his lot. Called a setback line.

Buydown Account
An account in which funds are held so that they can be applied as part of the monthly mortgage payment as each payment comes due during the period that an interest rate buydown plan is in effect.

Buydown Mortgage
A temporary buydown is a mortgage on which an initial lump sum payment is made by any party to reduce a borrower's monthly payments during the first few years of a mortgage. A permanent buydown reduces the interest rate over the entire life of a mortgage.

Buyers Equity
The difference between the contract price and the loanable amount.

Buyers Full Down Payment
Is the buyers equity plus the miscellaneous expenses such as title transfer, mortgage registration, fire insurance, mortgage redemption insurance, etc.

Buyers Market
A condition obtaining in an area at a certain time when there are many properties for sale while there are few buyers, in which case price tends to go down. Suppply is more than demand.