Definitions (E)

Real Estate Glossary - Meanings, Terms, & Acronyms

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

EARNEST MONEY DEPOSIT

The money given to the seller at the time the offer is made as a sign of the buyer’s good faith.

E-MAIL
Electronic or Internet-based communication.

ELECTRONIC FUNDS TRANSFER (EFT)

The Debt Collection Improvement Act of 1996 (DCIA) required the use of electronic funds transfer (EFT) for most Federal payments by 1999. The law itself defines the term "electronic funds transfer” as an instruction to a "financial institution" to credit or debit an "account." These are also referred to as electronic payments.

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.

ENCROACHMENT

An improvement that intrudes illegally on another's property.

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

END OF DRAW

For a home equity line of credit, end of draw is the point at which the draw period ends and the borrower can no longer access the funds. Most line of credit plans have a 10- or 15-year draw period. Depending on the original contract, the borrower may be required to repay the outstanding balance with fully amortized monthly payments that include principal and interest or a single balloon payment .

END OF TERM
For a balloon home equity line of credit or a balloon home equity loan, end of term is the point at which the outstanding balance becomes due in full .

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.

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.

EQUITY LOAN
A loan based on the borrower's equity in his or her home.

EQUITABLE TITLE/OWNERSHIP

Ownership by one who does not have legal title, such as a vendee under a land contract.

ESCHEAT
Process that reverts property to the state when a deceased owner has no apparent heirs, or when a party does not make claim to monies held in escrow.

ESCROW

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.

ESCROW PAYMENT
That portion of a mortgagor's monthly payments held by a lender or servicer to pay taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also called impounds or reserves in some states.

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.

ESTOPPEL
A rule of law which precludes a person from alleging or denying certain facts resulting from their previous conduct or admissions.

EXCHANGE
Transfer of one property for another.

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.

EXCHANGE/SERVICE ACCOUNT

A brokerage expense account that accrues charges for marketing.

EXCLUSIONS
Fixtures or personal property that are excluded from the contract or offer to purchase.
Expired (listing): A property listing that has expired per the terms of the listing agreement.
Fax rider: A document that treats facsimile transmission as the same legal effect as the original document.

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.