Real Estate & Investing Dictionary
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Early Occupancy
Occupation of the property, by the buyer, before the sale is completed.

Earnest Money
Down payment made by a purchaser of real estate as evidence of good faith.

Earnest Money Contract
A contract in which the seller agrees to sell and the buyer agrees to buy.

Earnest Money Deposit
A deposit made by the potential home buyer to show that he or she is serious about buying the house.

A right of way giving persons other than the owner access to or over a property.

A right that may be exercised by the public or individuals on, over, or through the property of others.

Rights given, to another party, to use a portion of a property that belongs to someone else, for certain reasons, such as power lines or walkways.

Economic Base Analysis
Appraisal method of deriving property values where the current and future economic conditions are measured in a particular area.

Economic Rent
The amount of rent a property commands in the open market.

Economic Value
Worth of property based on the relevant economic factors.

Economies of Scale
Situation by which the average per square foot cost of construction declines as building size and volume expands.

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.

Effective Gross Income
The difference between the total gross income and the vacancy allowance.

Effective Gross Income
Additional income considered by a lender in assessing a loan application of a potential borrower.

Effective Interest
The interest rate the borrower actually pays as opposed to the nominal interest rate. The effective interest rate is made higher than the nominal rate by addition of points or discounting a loan.

Effective Interest Rate
Real rate of interest on a loan which is the coupon rate divided by the net proceeds of the loan.

Effective Opening
Smallest diameter of piping at the point of discharge.

Steps taken to remove someone, who does not have a contractual basis to be there, from the real property.

Electric Heating
Electric heat is provided by use of a high-temperature wire, which is resistant to electrical flow with more heat being produced by more electric current being fed into the heating element, creating more resistance and more heat.

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.

Employer-assisted Housing
Program to help employees purchase homes through special plans developed with lenders.

An improvement that intrudes illegally on another’s property.

A building, part of a building, or obstruction that intrudes upon the property of another.

Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.

Claim or lien or interest in a property that complicates the title process, interfering with its use or transfer. Restrictive covenants.

End Loan
Conversion of a construction loan to a permanent mortgage, on a multi-unit project, after all units have been completed.

Entry and Possession
A method of foreclosure used in some states in which the lender, who already owns the property, reenters it and takes possession away from the borrower, either peacefully or by court order.

Environmentally Friendly Construction
Use of recycled material in construction.

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.

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.

The excess of fair market value over the outstanding loan balance.

The value of a property after existing liens (mortgages, etc.) are deducted.

Equity Cushion
The amount of equity required before a lender will make a loan

Equity in Property
Amount by which the appraised value of property exceeds the debt balance. If property has a fair market value of $400,000 while the mortgage balance is $50,000, the owner's equity in the property is $350,000.

Equity Loan
Junior (subordinate) loan based on a percentage of the equity.

Equity Mortgage
Equity Mortgage

Equity Participation
Lender has an equity interest in the property that is the subject of the loan. This is in addition to principal and interest payments on the mortgage. The lender shares in the increase in market price of the property as well as any net income generated.

Equity Rate of Return
Return before taxes on the capital invested in real estate property.

Equity Right of Redemption
A right of the owner to avert foreclosure by paying the debt, interest, and costs.

Equity Skimmer
A scam artist who assumes a loan and collects money up front, and possibly rents, then refuses to pay the payments on the assumed loan while keeping the cash paid up front.

Escape Clause
A clause added to the contract that allows either party the option of exiting the contract. Both parties are no longer bound by any contractual obligations.

Escape Clause
Provision in a contract that allows one or more of the parties to cancel all or part of the contract if certain events or situations do or do not happen.

The reversion of property to the state when an owner dies with no will and no known heirs.

A deposit held ready for some use, such as to pay taxes and insurance on a mortgaged property.

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.

Espel Certificate
An instrument executed by the mortgagor setting forth the status of and the balance due on the mortgage as of the date of the execution of the certificate.

Espel Letter
A letter certifying the exact balance of a mortgage or other loan at a given time.

Total assets of a person at the time of death, including real estate and personal.

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.

The degree, quantity, nature and extent of interest (ownership) that a person has in real property.

Estate by the Entireties
Ownership by husband and wife with the right of survivorship.

Estimated Annual Income
The estimated total gross amount of income one will receive in a year’s time.

Estimated Closing Costs
An estimate of the expenses incidental to the sale of real estate, including loan, title, and appraisal fees. These costs exist in addition to the price of the property and are paid at closing. Some are one-time expenses and some are recurring.

Estimated Property Taxes
An estimate of property taxes to be paid. Amount is based on local tax rates and assessed property value (based on most recent sale price plus assessment updates).

Et Al
And others.

Et Ux
And wife.

The legal procedure to have a tenant forcibly removed from a dwelling.

The lawful expulsion of an occupant from real property.

Evidence of Title
Document, such as a deed, which demonstrates property ownership.

Examination of Title
The report on the title of a property from the public records or an abstract of the title.

The exchange or trade of business property you own for another trade or business property that is like it. No taxes are due in such an exchange under a given set of circumstances.

Exclusive Listing
A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time.

Exclusive Right to Sell
An agreement to give, for a specified period, only one broker the right to sell. If a sale during the term of the agreement is made by the owner or by any other broker, the broker holding the exclusive right is entitled to compensation.

Exculpatory Clause
A clause in a contract relieving one of the parties of personal responsibility or liability.

Execution Sale
The sale of property by a sheriff pursuant to a court order.

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.

The costs of maintenance, repairs, and rental costs that are deducted from a property’s gross income.

Extending the Loan Term
Giving the borrower more time to repay a loan.

Extension Agreement
An agreement that extends the life of a mortgage.

Extension Clause
A clause contained within some lease option contracts that provides for the terms under which the contract may be extended.
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