Term

Definition

BUILDING CODE

Regulations that ensure the safety and material compliance of new construction within a municipality. Building codes are localized to ensure they are adequate to meet the risk of common hazards.

BUILDING LINE OR SETBACK

The statutory distance between buildings and the property line, imposed by municipalities, home associations, or other agreements.

BULT-INS

Specific items of personal property which are installed in a real estate improvement such that they become part of the building. Built-in microwave ovens and dishwashers are common examples.

BUNGALOW

A one-story, home-style dating from the early twentieth century. Often characterized by a low-pitched roof.

BUY DOWN

Extra money paid in a lump sum to reduce the interest rate of a fixed rate mortgage for a period of time. The extra money may be paid by the borrower, in order to have a lower payment at the beginning of the mortgage. Or paid by the seller, or lender, as incentive to buy the property or take on the mortgage.

BX CABLE

Electrical cable shrouded in a galvanized steel outer cover.

CALL OPTION

A clause in a mortgage which allows the lender to demand payment of the outstanding balance at a specific time.

CAP

Associated with Adjustable Rate Mortgages. A limit on how high monthly payments or how much interest rates may change within a certain time period or the life of the mortgage.

CAPE COD COLONIAL

A single-story house style made popular in New England. Often characterized by a steep roof with gables.

CAPITAL

Accumulated goods and money which is most often used to generate additional income.

CAPITAL EXPENDITURE

An outlay of funds designed to improve the income-producing capabilities of an asset or to extend its economic life.

CASH-OUT REFINANCE

Refinancing a mortgage at a higher amount than the current balance in order to transform a portion of the equity into cash.

CAULKING

A pliable material used to seal cracks or openings such as around windows.

CAVEAT EMPTOR

Literally translated: ''Let the buyer beware.'' A common business tenet whereby the buyer is responsible for verifying any and all claims by the seller of property.

CERTIFICATE OF DEPOSIT

A document showing that the bearer has a certain amount of money, at a particular amount interest, on deposit with a financial institution.