Earnest Money Deposit
A deposit made by a potential homebuyer to show that they are serious about purchasing the property. Usually held in trust by the Listing Agent and applied to the purchase price. May be forfeited in the event the Buyer fails to complete the purchase. |
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Easement
A right by some form of agreement which allows the agreed upon activity. For example, a public utility may hold easements on land allowing them to access or otherwise use the land in the performance of their business. |
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Eminent Domain
A right of the government to obtain private property in order to use it for public purposes. They accomplish this by a decree of condemnation and hopefully by just compensation. |
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Encroachment
Construction of a structure that illegally intrudes onto another party’s property. |
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Encumbrance
A lien against the legal owners of a property affecting its use or sale. |
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Equal Credit Opportunity Act (ECOA) -
U.S. Federal law that eliminates discrimination on the basis of age, sex, and race when applying for a loan. |
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Equity
The difference between the market value of a property and the amount owed. |
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Equity Loan
A loan that is secured against the equity in a property. |
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Erosion
The wearing away of the earth’s surface by the action of water and wind. |
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Escheat
The reversion to the state (as the ultimate owner of property) in the absence of legal heirs. |
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Escrow (Agent)
Can refer to both the act and the neutral third party agent who carries out the act. It is the holding of the documents and monies relating to the sale of a property until a determination has been made that all conditions have been met and satisfied. At that point a closing occurs. |
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Escrow Account
An account that a borrower can hold with a lender once a purchase transaction is closed. This requires borrowers to pay more than the principal and interest each month. The overage is put into escrow, which the lender uses to pay items like property taxes and homeowner’s insurance when they are due. This eliminates the actual number of payments that a homeowner has to worry about, but not the amount that has to actually be paid. |
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Escrow Closing
The completion of the |
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Escrow Fee
These costs cover the preparation and transmission of all home purchased-related documents and funds. Escrow fees range from several hundred to over a thousand dollars, based on the purchase price of your home. Not all states require funds to be put into escrow accounts for closing. |
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Estate
The legally defined interest which one holds in a property. |
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Estate Tax
A tax on the estate of the deceased person. |
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ET AL:
Shortening of Latin et alibi “and others”. |
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ET CON:
Latin for “and husband”. |
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ET UX:
Latin for “and wife”. |
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Eviction
The legal forced removal of real property occupants for unlawful actions carried out by those occupants. |
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Evidence of Title
Deed that demonstrates ownership. |
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Exclusive Listing
A contract between a seller and a broker wherein commission and promised activities are agreed upon relating to the sale of the property. |
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Exculpatory Clause
A provision in a mortgage that allows the borrower to surrender the property and relieves them of liability. |
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Executor
A person appointed by a testator to carry out the terms of a will. |
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