| Earnest Money |
The deposit money given to the seller or his agent by the
potential buyer upon the signing of the agreement of sale to show that he is
serious about buying the house. If the sale goes through, the earnest money is
applied against the down payment. If the sale does not go through, the earnest
money will be forfeited or lost unless the binder or offer to purchase
expressly provides that it is refundable. |
| |
|
| Easement Rights |
A right-of-way granted to a person or company authorizing
access to or over the owner's land. An electric company obtaining a
right-of-way across private property is a common example. |
| |
|
| Easement |
A right-of-way granted to a person or company authorizing
access to or over the owner's land. An electric company obtaining a
right-of-way across private property is a common example. |
| |
|
| Economic Obsolescence |
Loss of useful life and desirability of a property through
economic forces, such as change in zoning, changes in traffic flow, etc.,
rather than deterioration e.g., a sewer plant is built next door to the subject
property. |
| |
|
| Effective Interest Rate |
The cost of credit on a yearly basis expressed as a
percentage. Includes up-front costs paid to obtain the loan, and is, therefore,
usually a higher amount than the interest rate stipulated in the mortgage note.
Useful in comparing loan programs with different rates and points. |
| |
|
| 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. |
| |
|
| Emblements |
Annual crops produced by cultivation. They are deemed to be
personal property. |
| |
|
| Eminent Domain |
The right of a government to take private property for public
use upon payment of fair compensation to the owner. Eminent domain is the basis
for condemnation proceedings. |
| |
|
| Employer-Assisted Housing |
A special Fannie Mae housing initiative that offers several
different ways for employers to work with local lenders to develop plans to
assist their employees in purchasing homes. |
| |
|
| Encroachment |
An obstruction, building, or part of a building that intrudes
beyond a legal boundary onto neighboring private or public land, or a building
extending beyond the building line. |
| |
|
| Encumbrance |
A legal right or interest in land that affects a good or clear
title, and diminishes the land's value. It can take numerous forms, such as
zoning ordinances, easement rights, claims, mortgages, liens, charges, a
pending legal action, unpaid taxes, or restrictive covenants. An encumbrance
does not legally prevent transfer of the property to another. A title search is
all that is usually done to reveal the existence of such encumbrances, and it
is up to the buyer to determine whether he wants to purchase with the
encumbrance, or what can be done to remove it. |
| |
|
| Endorsement |
Writing one's name, either with or without additional words,
on a negotiable instrument, or on a paper attached to it. |
| |
|
| Endorser |
A person who signs a check or promissory note over to another
party. Contrast with co-signer. |
| |
|
| Equal Treatment/Different Impact |
It is possible to be guilty of discrimination even by treating
two individuals the same. If the results of the treatment are discriminatory,
or tend to exclude or otherwise harm members of a minority group, or have
discriminatory impact, they are against the law. For example, an apartment
house which rents only to doctors and lawyers, where there are few, if any,
minority doctors or lawyers in the area, may be a violation of the Fair Housing
Laws. |
| |
|
| Equal Credit Opportunity Act |
The 1974 federal law (Title VII of the Consumer Credit
Protection Act) which requires fairness and impartiality without discrimination
on the basis of race, color, religion, national origin, sex or marital status,
or receipt of income from public assistance programs in the extension of
credit, and good faith exercises of any right under the Consumer Credit
Protection Act (e.g. the creditor must state reasons for denial of credit).
|
| |
|
| Equity |
An owner's value in a property. Equity is calculated by adding
the increase in the property's value over time, down payment and the principal
paid on the mortgage and improvements, then subtracting all the liens, taxes
and loan amounts due. |
| |
|
| Escalation Clause |
A clause in a lease providing for an increased rent at a
future time due to increased costs to lessor, as in cost of living index, tax
increases, etc. |
| |
|
| Escheat |
The reversion of property to the state in the event the owner
thereof dies without leaving a will and has no heirs to whom the property may
pass by lawful descent. |
| |
|
| Escrow Payment |
That portion of a mortgagor's monthly payment held in trust by
the lender to pay for taxes mortgage insurance, hazard insurance, lease
payments, and other items as they become due, also know as "impounds"
in some states. |
| |
|
| Escrow Analysis |
The periodic examination of escrow accounts to determine if
current monthly deposits will provide sufficient funds to pay taxes, insurance,
and other bills when due. |
| |
|
| Escrow |
Can serve two purposes. 1)As a special third-party account set
up by the lender in which a portion of your monthly payment funds are held to
pay for taxes and insurance and other items. 2)Escrow is most commonly known as
a third party who carries out the instructions of both the buyer and seller to
handle the paperwork at the settlement of a real estate purchase. |
| |
|
| Escrow Account |
A separate account for accumulating the portion of your
monthly payments that will pay future taxes, insurance, fees, assessments and
so forth. Depending on your lender and the financing you select, an escrow
account may be required. |
| |
|
| Escrow Reimbursement |
An assumptions or wrap loan transactions, the buyer reimburses
the seller for the current balance of his escrow (or impounded) funds. |
| |
|
| Escrow Collections |
Funds collected by the loan servicer and set aside in an
escrow account to pay borrower expenses such as property taxes, mortgage
insurance, and hazard homeowners insurance. |
| |
|
| Escrow Disbursements |
The use of escrow funds to pay real estate taxes, homeowners
insurance, mortgage insurance, and other property expenses as they become due.
|
| |
|
| Escrow Instructions |
This discloses when the escrow should be closing and when
possession should take place, proration of property taxes, transfer taxes,
release of funds and the basics of satisfying the escrow demands. |
| |
|
| Escrow Agent |
A disinterested third party appointed to act as custodian for
documents and funds during the transfer from seller to buyer. |
| |
|
| 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. |
| |
|
| Estimate of Value |
An appraisal; the appraised value. |
| |
|
| Et Ux |
Abbreviation for "et uxor", meaning "and
wife". |
| |
|
| Eviction |
A legal proceeding by a landlord to recover possession of real
property from the tenant. |
| |
|
| Examination Of Title |
The report on the title of a property from the public records
or an abstract of the title. |
| |
|
| Exception |
As used in the conveyance of real estate, an exception is the
exclusion of some part of the property conveyed, with title of that excepted
part remaining with the grantor. For example, in most subdivision developments,
mineral rights are not conveyed to the purchaser of a lot, but remain the
property of the developer. |
| |
|
| Exclusive Agency |
A listing agreement which gives the listing agent the right to
sell the property for a specified time. The owner reserves the right to sell
the property himself without paying a commission to the agent. Brokers run the
risk of investing their time, effort, and money in a listing that, even if sold
through their marketing efforts, does not produce a commission. |
| |
|
| Exclusive Right to Sell |
A listing agreement which gives the listing agent the right to
sell the property for a specified time, with the right to collect a commission
if the property is sold by anyone, including the owner, during the listing
period. |
| |
|
| Exclusive Listing |
A written contract that gives a licensed real estate agent the
exclusive right to sell a property for a specified time, but reserving the
owner's right to sell the property alone without the payment of a commission.
|
| |
|
| Exclusive Agency Listing |
A written agreement giving the broker the right to market an
owner's property for a certain period of time, but also allowing the owner to
sell the property during that period without paying a commission. |
| |
|
| Executor/Executrix |
The man/woman appointed in a will to carry out the requests of
the will. |
| |
|
| Exposure |
The degree to which a property for sale is made noticeable to
potential buyers, through advertising, multiple listing services, etc. |