Balloon Payment – The final installment payment on a note which is greater than the preceding installment payments and pays the note in full.

Bankruptcy – A condition of financial insolvency in which a person’s liabilities exceed his assets, and he is unable to pay his debts.

Basis – Original cost of property plus value of any improvement put on by the seller and minus the depreciation taken by him.

Beneficiary – A person who receives and benefits from the gifts or acts of another; one who receives the proceeds from a will, insurance policy, or trust; the lender in a deed of trust.

Biannual – Happening twice each year; semi-annual.

Bilateral Contract – A contract in which both parties have reciprocal obligations toward each other.

Blanket Mortgage – One mortgage covering two or more specific parcels of realty.

Boot – The payment to satisfy the difference in equities in an exchange, which may be in cash, personal property, note, financing, or anything of agreed upon value.

Breach of Contract – Violation of any of the terms or conditions of a contract; default; non-performance.

Broker – A licensed person who negotiates the purchase and sale of real estate of another.

Bundle of Rights – Ownership concept in real estate which embraces the rights of possession, use, enjoyment, and disposition.

Bureau Of Conveyances – The Hawaii state office which houses all legal documents relative to title to both land court and regular system property recorded since 1848; located in Honolulu.

Buy-down – The one-time, nonrefundable prepayment of a portion of the interest of a loan to subsidize reduced monthly payments.