- Earnest money deposit
A deposit made by the potential home buyer to show that he or she is serious about buying the house.
- Easement
A right of way giving persons other than the owner access to or over a property.
- 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 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.
- 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.
- Enclave community
Smaller in scope than master-planned communities, enclave communities typically blend different price ranges of residential neighbourhoods with amenities such as public recreation areas and parks, neighbourhood schools and extensive landscaping. Recreation areas may include public swimming pools, tennis courts, and children's play grounds. Many offer large water features and gated access.
- Encroachment
A fixture, or structure, such as a wall or fence, which invades a portion of a property belonging to another. Solutions range from paying the rightful property owner for the use of the property to the court-ordered removal of the structure.
- 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)
An American 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.
- Equity
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.
- Escalator clause
The clause in a contract permitting adjustments of the payments.
- Escrow
A trust arrangement by which none or more parties deposit things of value with an authorized escrow agent in accordance with the terms of a real estate agreement.
- Escrow account
(1) A third party account that holds money safely while a sale is in progress.
(2) An account used to save monies required for the payment of an eventual debt. Often used by lenders to save for property taxes, hazard insurance, homeowner's dues, etc.
Escrow accounts are typically non-interest bearing for the contributors, but may pay interest to the entity holding the account (lenders, title companies, lawyers, etc.).
- 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.
- Estimate of value
An appraisal; the appraised value
- Eviction
The lawful expulsion of an occupant from real property.
- Examination of title
The report on the title of a property from the public records or an abstract of the title.
- Exclusive listing
A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time.
- Executor
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.
