EARNEST MONEY DEPOSIT:A cash deposit made to a home seller to secure an offer to buy the property. This amount is often forfeited if the buyer decides to withdraw his offer.
Earnest Money Deposit::Down payment made by a purchaser of real estate as evidence of good faith; a deposit or partial payment.
EASEMENT:The right of a non-owner of property to exert control over a portion or all of the property. For example, power companies often own an easement over residential properties for access to their power lines.
Easement::A right or interest in the use of the land of another which entitles the holder to some use, privilege or benefit, such as to place pole lines, pipe lines or roads thereon.
EAVE:The part of the roof that extends beyond the exterior wall.
ECONOMIC DEPRECIATION:The decline in property value caused by external forces, such as neighborhood blight or adverse development.
ECONOMIC LIFE:The amount of time which any income-producing property is able to provide benefits to its owner.
EFFECTIVE AGE:The subjective, estimated age of a property based on its condition, rather than the actual time since it was built. Excessive wear and tear can cause a property's effective age to be greater than its actual age.
Effective Demand::A qualifying term meaning the ability to pay as well as desire to buy.
EMINENT DOMAIN:The legal process whereby a government can take ownership of a piece of property in order to convert it to public use. Often, the property owner is paid fair-market value for the property.
Eminent Domain::The right of a government to take privately owned property for public purposes under condemnation proceedings upon payment of its reasonable value. See Condemnation.
ENCROACHMENT:A building or other improvement on one property which invades another property or restricts its usage.
Encroachment::The presence of an improvement such as a building, a wall, a fence or other fixture which overlaps onto the property of an adjoining owner.
ENCUMBRANCE:A claim against a property. Examples are mortgages, liens and easements.
Encumbrance::A right or claim upon real property (land) held by one other than the property owner. Encumbrances are divided into two classes, as follows: ,
a) Liens (mortgages, deeds of trust, mechanics' liens, local taxes, assessments, judgments, attachments, etc.)
b) Encumbrances other than liens which are limitations on the ownership of the land (such as conditions, restrictions, reservations, easements, etc.).
Endorsement::Addition to or modification of a title insurance policy which expands or changes coverage of the policy, fulfilling specific requirements of the insured.
ENERGY EFFICIENCY RATIO:An efficiency rating system for air conditioning units that corresponds to the number of BTU's output per watt of electricity used.
EQUAL CREDIT OPPORTUNITY ACT (ECOA):U.S. federal law requiring that lenders afford people equal chance of getting credit without discrimination based on race, religion, age, sex etc
EQUITY:The difference between the fair market value of a property and that amount an owner owes on any mortgages or loans secured by the property.
EQUITY BUILDUP:The natural increase in the amount of equity an owner has in a property, accumulated through market appreciation and debt repayment.
Equity::(1) A legal doctrine based on fairness, rather than strict interpretation of the letter of the law. (2) The market value of real property, less the amount of existing liens. (3) Any ownership investment (stocks, real estate, etc.) as opposed to investing as a lender (bonds, mortgages, etc.).
ERRORS AND OMISSIONS INSURANCE:An insurance policy taken out by appraisers to cover their liability for any mistakes made during the appraisal process.
Escheat::The reversion of property to the state when an owner dies leaving no legal heirs, devisees or claimants.
ESCROW:An amount retained by a third party in a trust to meet a future obligation. Often used in the payment of annual taxes or insurance for real property.
ESCROW ACCOUNT:An account setup by a mortgage servicing company to hold funds with which to pay expenses such as homeowners insurance and property taxes. An extra amount is paid with regular principal and interest payments that goes into the escrow account each month.
ESCROW ANALYSIS:An analysis performed by the lender usually once each year to see that the amount of money going into the escrow account each month is correct for the forecasted expenses.
ESCROW DISBURSEMENTS:The payout of funds from an escrow account to pay property expenses such as taxes and insurance.
Escrow::An independent third party, such as First American Title, who acts as the agent for buyer and seller, or for borrower and lender, carrying out instructions of both and disbursing documents and funds. Escrow closes and the transfer of property or document is completed upon fulfillment of certain conditions specified in the written instructions, whereupon the necessary deeds and other instruments are recorded.
ESTATE:The total of all property and assets owned by an individual.
Estate::(1) The interest or nature of the interest which one has in property, such as a life estate, the estate of a decreased, real estate, etc. (2) A large house with substantial grounds surrounding it, giving the connotation of belonging to a wealthy person.
EXAMINATION OF TITLE:The report on the title of a property from the public records or an abstract of the title.
EXCLUSIVE LISTING:An agreement between the owner of a property and a real estate agent giving the agent exclusive right to sell the property.
Execution::An order directing a sheriff, constable, marshal or court-appointed commissioner to enforce a money judgment against the property of a debtor. This officer, if necessary, may sell the property to satisfy the judgment.
EXECUTOR:The person named in a will to administer the estate.
Executor::A person appointed in a will and affirmed by the probate court to cause a distribution of the decedent's estate in accordance with the will. (The one who makes the will is called a "testator.") If a woman is appointed, she is referred to as the "executrix."
