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Hud and Mary
Wilson
(909) 229-8093
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Big Bear Lake Real Estate Definitions
B
BALLOON PAYMENT: An installment payment on a promissory note -usually the final one for discharging the debt - which is significantly larger than the other installment payments provided under the terms of the promissory note.
BASIS: (1) Cost Basis. The dollar amount assigned to property at the time of acquisition under provisions of the Internal Revenue Code for the purpose of determining gain, loss and depreciation in calculating the income tax to be paid upon the sale or exchange of the property. (2) Adjusted Cost Basis. The cost basis after the application of certain additions for improvements, etc., and deductions for depreciation, etc.
BINDER: An agreement to consider a down payment for the purchase of real estate as evidence of good faith on the part of the purchaser. Also, a notation of coverage on an insurance policy, issued by an agent, and given to the insured prior to issuing of the policy.
BUYER´S MARKET: The condition which exists when a buyer is in a more commanding position as to price and terms because real property offered for sale is in plentiful supply in relation to demand.
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