GLOSSARY OF REAL ESTATE TERMS

BALLOON LOAN
A loan characterized by (1) periodic payments (usually monthly) that, except for the final payment, are uniform; and (2) a payment amount that leaves a substantial outstanding balance at the end of the loan term, which amount comprises the final payment. A typical balloon loan scenario is monthly interest-only payments and repayment of the entire principal at maturity. Compare amortized loan.

BARGAIN & SALE DEED
A written instrument used to transfer all of the right, title and interest of the grantor in and to a parcel of real property to the grantee. A bargain and sale deed does not include any warranties (promises), but ownership of the property by the grantor is implied by particular granting clause language. A bargain and sale deed will convey after-acquired title. Compare quitclaim deed and warranty deed.

BASIS
The original amount paid for property, plus capital expenditures for improvements, minus depreciation. Basis is the means by which the Internal Revenue Service determines taxable gains, losses and annual depreciation.

BEQUEST
A gift of personal property made by will. Compare devise.

BILL OF SALE
A written instrument by which one person transfers all right, title and interest in personal property to another.

BONA FIDE PURCHASER
One who purchases property in good faith for fair value and without notice of any adverse claim or right to the property by a third party.