Earnest Money
A portion of the down payment delivered with a purchase offer by
the purchaser of real estate to the seller or an escrow agency by
the purchaser of real estate with a purchase offer as evidence of
good faith. Also known as a deposit.
Easement
The right to use the land of another for a specific purpose. Easements
may be temporary or permanent.
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 the government or a public utility to acquire property
for necessary public use by condemnation, with proper compensation
to the owner.
Encroachment
A building, a part of a building, or an obstruction (e.g.. a fence
or a wall) that physically intrudes upon or overlaps into the property
of another.
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 requiring lenders and other creditors to make credit
equally available without discrimination based on race, color, religion,
national origin, sex, age, marital status, receipt of income from
public assistance programs or past exercising of rights under the
Consumer Credit Protection Act.
Equity
The ownership interest; i.e. portion of a property's value over
and above the liens against it.
Equity Sharing
Joint ownership of a property between the owner/occupant and the
owner/investor, that results in tax advantages for both parties.
Upon sale of the property the joint owners split profits based on
the percentage they own.
Escheat
The reversion of property to the state in the event that the owner
dies without leaving a will and has no legal heirs.
Escrow
A procedure whereby a disinterested third party handles legal documents
and funds on behalf of a seller and buyer.
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.
Exclusive Listing
A written contract that gives a licensed real estate agent the exclusive
right to sell a property for a specified time.
Executor(male)/ Executrix (female)
A person named in a will to carry out its provisions for the disposition
of the estate.
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