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"Back Leg" Reverse Exchange - The Exchange Accommodation Titleholder (EAT) acquires and holds title to the replacement property and "parks" this replacement property for up to 180 days, which allows the taxpayer to find and transfer the relinquished property to a third party buyer. The taxpayer can "use" (lease) the property that is parked with the Exchange Accommodation Titleholder.

Back title letter (also called “back title certificate” or “starter”) - When titles previously have been examined up to a certain date by reliable examiners, title companies sometimes give subsequent examiners of such titles a letter that sets forth the condition of the title at the time of the previous examination and authorizes them to begin their subsequent examination with the terminal date of the previous examination.

Balloon note - A promissory note with amortization payments scheduled for a long term, usually 30 years, but maturing in a shorter term, often five to seven years. It requires a substantial final balloon payment for the remaining principal.

Bankruptcy - A federal court proceeding under the U.S. bankruptcy laws where an insolvent debtor either has its estate liquidated and its debts discharged or is allowed to reorganize its affairs under the protection of the bankruptcy court.

Base Line - (1) A survey line used in the government survey to establish township lines.  The baseline runs East and West through a principal meridian (line running North and South).  (2) A horizontal elevation line used as the centerline in a survey for a highway route.

Base title (also called a “basic title”) - Title to an area or tract out of which parts are subsequently conveyed or from which a subdivision or development is made.

Basis - The starting point for determining gain or loss in any transaction. In general, basis is the cost of the taxpayer's property.

Basis in the Replacement Property - The basis of the taxpayer's relinquished property with appropriate adjustments.

Benchmark - Surveying mark made in some object which is permanently fixed in the ground, showing the height of that point in relation to sea level.  Used in topographic surveys and tidal observations.

Beneficiary (of a trust) - A person designated to receive benefits from a trust estate.

Blanket Easement - an easement that grants the right to locate or change for example a pipeline anywhere on a tract in the future, as long as the land that it covers is locatable. When an easement lies within a certain tract, but is not locatable due to a general or vague description, it is commonly referred to as a blanket easement. These general descriptions often mean that the easement could lie anywhere within the subject property.

Blanket Mortgage - (1) A mortgage covering more than one property of the mortgagor, such as a mortgage covering all the lots of a builder in the subdivision.  (2)  A mortgage covering all real property of the mortgagor, both present and future.  When used in this meaning, it is also called a "general mortgage".

Bond - (1) A surety insurance agreement under which one party agrees to pay, within stated limits, financial loss caused to another by specified acts or defaults of a third party. (2) An interest-bearing security evidencing a long-term debt, issued by a government or corporation, and sometimes secured by a lien on property.

Boot - All property given or received in an exchange which is not like kind. In an exchange of real property, any consideration received other than real property is non-like kind and is considered boot. (See also cash boot and mortgage boot.)

Breach of contract - Failure to perform a contract, in whole or in part without legal excuse.

Breach of covenant - The failure to do or to refrain from doing that which was covenanted.

Breach of Warranty - In real property, the failure of the seller to pass title as either expressed or implied (by law) in the conveyancing document.

Bridge Financing - A form of an interim loan, generally made between a short term loan and and a permanent (long term) loan, when the borrower needs to have more time before taking the long term financing.

Building codes - Local or state laws that control accepted building and construction practices.

Building lines (also called “setback lines”) - Lines fixed at a specified distance from the front or sides of a lot or at a certain distance from a road or street. No building on the lot may project outside the area defined by the building lines.

Build-To-Suit (Construction) Exchange - A build-to-suit (or construction) exchange allows improvements or repairs to be made on a replacement property before it is transferred to the taxpayer.

Bureau of Land Management — The branch of government in charge of surveying and managing public lands.

Buyer - The person who wants to acquire the exchanger's property.