Glossary
B
BACK TITLE LETTER OR CERTIFICATE: (See "Starter.")
BALLOON PAYMENT: Installment note final payment that is greater than preceding payments and that pays the note in full.
BANKRUPTCY: A proceeding in U.S. District Court wherein assets of a debtor unable or unwilling to pay his debts are applied by an officer of the court in satisfaction of creditor claims.
BAR: (1) The attorneys at law, taken collectively in a municipality, county, state or the nation. (2) To defeat or to prevent.
BENEFICIARY: A person who is entitled to receive funds of property under the terms and provisions of a will or trust or insurance policy.
BENEVOLENT ASSOCIATION: Voluntary nonprofit organization organized for the benefit of its members.
BEQUEST: A gift of personal property in a will.
BILL OF SALE: The instrument by which title to personal property is transferred or conveyed.
BINDER: Memorandum of an agreement to issue insurance giving temporary coverage until such time as a formal policy is issued.
BLANKET MORTGAGE OR TRUST DEED: Mortgage or trust deed that covers more than one lot or parcel of real property: often covers an entire subdivision. As individual lots are sold, a partial release or reconveyance from the blanket mortgage is ordinarily obtained.
BONA FIDE PURCHASER: One who buys property in good faith, for fair value, and without notice of any adverse claim or right of third parties.
BOND: (1) A written promise to pay to the bearer or owner a stated sum of money at a specified time, with interest usually represented by interest coupons attached to the bond, which coupons may be clipped as they mature and presented for payment. Bonds are sometimes in the form of certificates of indebtedness. Bonds are often secured by real estate mortgages. (See "Promissory Note.") (2) A written commitment assuring the payment of a stipulated sum of money or the amount of damages in the event of an adverse happening. (3) A certificate of debt issued by a government or corporation guaranteeing payment to bearer of a specified sum of money, plus interest, on a specified future date.
BRANCH: As this term relates to First American Title Insurance Company offices, a direct or division office of First American Title Insurance Company, as opposed to an affiliate, agent, subsidiary or underwritten firm associated with the Company.
BROKER: One who acts as an agent for another in negotiating sales or purchases in return for a fee or commission.
BROKERAGE: A fee or commission paid to a broker.
BUILDING CODE: Laws specifying the type, kind, area and manner of construction of buildings, and prohibiting construction or repair of buildings in violation of such specifications. (Also, see "Zoning Ordinances.")
BUILDING LINE: Also called set-back line, a line inside the boundary lines of a piece of real estate beyond which no building may be constructed. Building lines may be established by municipal ordinances, restrictions, and subdivision plats.
BULK TRANSFER: Any transfer in bulk not in the ordinary course of the transferor's business of a major part of the materials, supplies, merchandise or other inventory of the business.
BUNDLE OF RIGHTS: Beneficial interests or rights an owner has in his property, including the rights of use and transfer, and the right to exclude others.
BY-LAWS: Rules adopted by the members of the board of directors of a corporation that govern the internal management of the corporation. Also called the corporate constitution.