Bankruptcy:
The financial inability to pay debts. The debtor seeks relief through legal proceedings.

Binder:
A preliminary agreement, frequently secured by the payment of earnest money, between a buyer and seller that serves as an offer to purchase real estate. The agreement secures the right to purchase real estate upon agreed terms for a specific period of time. The earnest money is usually forfeited if the buyer's situation changes or is unable to purchase, unless the agreement specifically provides that the money is to be refunded. Also known as an Offer to Purchase.

Broker:
An individual who, for a fee or commission, brings together parties and facilitates business negotiation between them. See also Mortgage Broker and Real Estate Broker.

Builder Registration:
Builder requirement that buyers and their sales professional register with the builder before or in the early stage of the new home selection process.

Buydown Your Mortgage:
Paying additional points to your lender at closing in exchange for a reduced rate of interest. The reduced rate may last for the entire or a portion of the loan life.

Buyer Representation:
Describes the relationship between the sales professional performing real estate services for a buyer. The sales professional places the interests of the buyer above all others in the transaction.

Buyer Representation Agreement:
Formal contract signed by the buyer and sales professional which details the sales professional agreement to represent the buyer.

Buyer's Market:
Market economy to the buyer's advantage. There is a greater supply of homes than there are buyers to purchase them.

Definitions are intended to be informational only. Please be advised that real estate practices vary from state to state and market to market. The information contained herein does not constitute legal advice. It is recommended that you consult with a qualified real estate attorney who can advise you specifically with respect to the requirements in your market.