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Real Estate Glossary - E
Earnest Money Deposit
A deposit made by the potential home buyer to show that
he or she is serious about buying the house.
Easement
A right of way giving persons other than the owner
access to or over a property.
Effective Age
An appraiser’s estimate of the physical condition of a
building. The actual age of a building may be shorter or
longer than its effective age.
Eminent Domain
The right of a government to take private property for
public use upon payment of its fair market value.
Eminent domain is the basis for condemnation
proceedings.
Encroachment
An improvement that intrudes illegally on another’s
property.
Encumbrance
Anything that affects or limits the fee simple title to
a property, such as mortgages, leases, easements, or
restrictions.
Equal Credit Opportunity Act (ECOA)
A federal law that requires lenders and other creditors
to make credit equally available without discrimination
based on race, color, religion, national origin, age,
sex, marital status, or receipt of income from public
assistance programs.
Equity
A homeowner's financial interest in a property. Equity
is the difference between the fair market value of the
property and the amount still owed on its mortgage and
other liens.
Escrow
An item of value, money, or documents deposited with a
third party to be delivered upon the fulfillment of a
condition. For example, the earnest money deposit is put
into escrow until delivered to the seller when the
transaction is closed.
Escrow Account
Once you close your purchase transaction, you may have
an escrow account or impound account with your lender.
This means the amount you pay each month includes an
amount above what would be required if you were only
paying your principal and interest. The extra money is
held in your impound account (escrow account) for the
payment of items like property taxes and homeowner’s
insurance when they come due. The lender pays them with
your money instead of you paying them yourself.
Escrow Analysis
Once each year your lender will perform an "escrow
analysis" to make sure they are collecting the correct
amount of money for the anticipated expenditures.
Escrow Disbursements
The use of escrow funds to pay real estate taxes, hazard
insurance, mortgage insurance, and other property
expenses as they become due.
Estate
The ownership interest of an individual in real
property. The sum total of all the real property and
personal property owned by an individual at time of
death.
Eviction
The lawful expulsion of an occupant from real property.
Examination of Title
The report on the title of a property from the public
records or an abstract of the title.
Exclusive Listing
A written contract that gives a licensed real estate
agent the exclusive right to sell a property for a
specified time.
Executor
A person named in a will to administer an estate. The
court will appoint an administrator if no executor is
named. "Executrix" is the feminine form. |
