we are relearning our ABCs, to start from the very beginning see our previous post. We are moving ahead in the alphabet to:
Balloon Payment A repayment of a loan or bond, usually but not necessarily the final repayment, which is larger in amount than the preceding or earlier installments.This kind of arrangement is referred to as “ballooning” a loan.
Bank Guarantee (performance guarantee)
A secured promissory note provided by a financial institution on behalf of a contractor or party as a guarantee of their performance, often used in lieu of retention.
Bare ShellBare Shell comprises of a base building with provision for basic flooring, all exterior windows, roofing works, common areas, lift lobbies, toilets, service and passenger lifts and any other shell works related to the building.
Base Rent The minimum rent for a commercial property without taking into account any add-ons like percentage of sales/profit that make up the total lease package.
Base Rent Abatement During any period of reconstruction or repair after a major casualty, if the lessee’s ability to conduct business in the demised premises is materially hindered or impaired, the base rent and any maintenance charges due from the lessee will be abated during the period in which the demised premises is unusable.
Base YearThe year which forms the base for all future calculations of rents or values.
Bearer Instruments Commercial instruments like bonds, cheques, etc. that give the person having it (bearer) the right to encash it.
Benami OwnershipIn Benami Ownership, the title of the property is in one party’s name and the real ownership is in another party’s name.
Beneficial Interest An interest in property held by a beneficiary who is not necessarily the owner of the legal interest, e.g. where a legal estate is owned by a trustee (trustees) under a trust entitling the beneficiary to the financial rewards available after meeting all due obligations.
Beneficial Owner
1) A person enjoying or entitled to property for his own benefit, not, for instance, as a trustee who holds the legal estate in land for the benefit of another. The owner of the legal estate is usually the beneficial owner, but if the legal estate is vested in trustees, the beneficial owner has only an equitable interest. He is then known as the beneficiary or cestui que trust.
2) The person who is the real owner of a security and thereby entitled to all consequential benefits, as distinct from a nominee who holds securities on behalf of another.
Beneficiary Someone who receives property or other assets in a will or someone for whose benefit a trust is set up.
BequestProperty that is given to someone by a will.
Best Rent The highest rent which can reasonably be expected by a landlord in the circumstances of a particular case.
Bhumidar A Bhumidar is of the class of a tenure-holder under the Delhi Land Reforms Act, 1954. He has the right to use land for any purpose connected with agriculture, farming, pisciculture or poultry. He has no right to use the land for industrial purposes other than those connected directly with the aforesaid activities, unless the land lies within the declared industrial belt.
Big-Box Store Large stand-alone store specialising in specific merchandise.These are often located in suburban or rural areas, often in proximity to freeway cloverleaf interchanges, as opposed to downtown shopping districts. Also known as superstore, megastore or super centre.
Binding Obligations The rights and duties agreed upon and described in an agreement executed between two parties that are binding upon the parties to the agreement (e.g. landlord and tenant or vendor and purchaser).
Bonafide Legal term meaning actions or individuals that are honest and in good faith.
Bond A deed by which one agrees to indemnify another person against losses suffered on account of acts of omission or commission by the former. Also means a debt security.
Book ValueThe value which is ascribed to a property shown in the accounts as a capital asset but is not necessarily current market value, since it may be based on actual cost (less depreciation, if any) or on an earlier valuation after acquisition.
Breach of Contract An act or omission, contrary to one or more provisions in a contract and therefore giving the aggrieved party the right to enforce specific performance to rescind the contract and/or to claim damages.The remedy available depends upon the nature of the breach.
Breach of Warranty Failure to comply with a contractual undertaking, e.g. the failure of a vendor to pass title or give vacant possession when such has been warranted. Such a breach entitles the innocent party to damages, although the breach of a warranty in an insurance contract entitles the insurer to treat the contract as discharged.
Break ClauseA clause in a lease which gives the landlord and/or the tenant the right, in specified circumstances, to terminate the lease before its normal expiry dace. It usually defines the length of the notice to be given and may be subjected to contractual or statutory financial provisions.
Break-Up ValueThe value of a specific property e.g. an estate of land and building, based on the assumption that it is sold in parts in such a manner so as to achieve the best possible price.
Brick and Mortar Stores Brick and mortar stores refer to recall shops that are located in a building as opposed to an online shopping destination, door-to- door sales, kiosks or other similar sites not housed within an enclosed structure.
Bridge Financing A loan which allows the borrower to cide over some immediate requirement while he awaits a more permanent or long-term solution to his financial needs.
BrokerageThe fee charge paid to a broker to act as an intermediary between the buyer/ lessee and the seller/ lessor. The activity of a broker in bringing together two parties in a transaction. Also referred to as Brokerage Commission.
Brownfield A land that was previously used for industrial purposes or certain commercial uses, which may be contaminated by low concentrations of hazardous waste or pollution. It has the potential to be reused once it is cleaned up.
Built-to-SuitA property custom-built to suit the specifications of the long-term lessee.
Building Completion Date The date provided by a landlord by which a building is made operational in all aspects including all onsite and offsite works (described in detail in the agreement), obtaining the necessary approvals including Occupation Certificate for the demised premises to be occupied.
Building Life Cycle A concept composed of four stages forming a continuous loop: design/refurbishment, construction, management and review.
Building Permit A permission granted by a bonafide authority to a builder granting permission to construct a proposed building.
Built-Ins Utilitarian items like cupboards, bathroom fittings, stoves, ovens, etc., that are built into the building so as to make them immovable.
Built-up Area (BUA)
1) Includes the carpet area and the space covered by the thickness of the inner and outer walls of the shell.
2) An area of urban development,
also referred to as a Developed Area.
Business Park An integrated development whereby businesses are provided with common infrastructure, facilities and services.This results in lower costs and therefore greater competitiveness for individual businesses.
Source: various
Tags: A-Z, ABC, Dictionary, guide, lexicon, quick reference, real estate, redgirraffe
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