Real Estate Terms

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• Early occupancy The condition in which buyers can occupy the property before the sale is completed.
• Earnest money Money a buyer gives with an offer to purchase a property. Also called a deposit.
• Earthquake insurance A policy that provides coverage against damage to a home from an earthquake.
• Easement A right given to a third party to use a portion of the property for certain purposes, such as power lines or water mains.
• Eaves The projecting overhang at the lower edge of a roof.
• Effective age The age of a structure estimated by its condition rather than its actual age.
• Effective gross income Additional income that a lender considers when assessing the loan application of a potential borrower.
• Electric service panel A panel that transfers power from the utility line into a house to be distributed through fuses or circuit breakers.
• Elevations The exterior view of a home design that shows the position of the house relative to the grade of the land.
• Ell An extension or wing of a house that is at right angles to the main structure.
• Eminent domain The government’s right to condemn private land for public use, such as the routing of a public highway.
• Employer-assisted housing Programs which help employees purchase homes through special plans developed with lenders.
• Empty nesters Potential buyers who have raised their families and want to move into a smaller home.
• Encroachment Fences or other structures that extend into the property of another owner.
• Encumbrance A claim or lien on a property which complicates the title process.
• End loan The conversion from a construction loan to permanent financing a condominium buyer secures after all units in a project have been completed.
• Endorser A person who signs over ownership of property to another party.
• English Tudor style An architectural design that features stone or brick exterior walls and exposed beams.
• Environmental impact statement A government-mandated evaluation of all aspects and effects a development will have on the environment of a proposed site.
• Environmentally friendly home construction A method of construction that utilizes recycled materials.
• Equal Credit Opportunity Act. A h3 law that prohibits a lender or other creditor from refusing to grant credit based on the applicant’s sex, marital status, race, religion, national origin or age. The law also prohibits a creditor from refusing to grant credit because the applicant receives public assistance.
• Equifax Equifax Credit Information Services, Inc., is one of the “Big Three” credit-reporting bureaus that operate nationwide. Address: P.O. Box 740249, Atlanta, GA 30374.
• Equity A determination of the value of a property after existing liens are deducted.
• Errors and omissions insurance A policy that pays for any mistakes a builder or architect makes in a project.
• Escrow A neutral third party holds the documents and money involved in a real estate transaction and ensures that all conditions of a sale are met.. Escrow also refers to a special account that a lender establishes to hold monthly installments from the borrower to cover property taxes and insurance.
• Escrow account An account that a lender or mortgage servicer establishes to hold funds for the payment of expenses such as homeowners insurance and property taxes. Also known as an impound account.
• Escrow agent A neutral third party who ensures that all conditions of a real estate transaction are met.
• Escrow analysis A lender’s periodic examination of an escrow account to determine if the lender is withholding enough funds from a borrower’s monthly mortgage payment to pay for expenses such as property taxes and insurance.
• Escrow closing Escrow closes when all conditions of a real estate transaction are met and the title of the property is transferred to the buyer.
• Escrow company Firms that act as neutral third parties to ensure that all conditions that the buyer, seller and lender establish in a real estate transaction are met.
• Escrow payment Funds that a mortgage servicer withdraws from a borrower’s escrow account to pay property taxes and insurance.
• Estate The total assets of a person, including real property, at the time of death.
• Eviction A legal procedure to remove a tenant for reasons including failure to pay rent.
• Examination of title An inspection by a title company of public records and other documents to determine the chain of ownership of a property.
• Excavation The process of clearing trees, removing topsoil and grading land before the foundation is laid.
• Exclusive listing A contract that gives an agent the exclusive right to market a property for a specific period of time.
• Executor A person appointed to carry out the instructions in a will. If there is no will, a probate court will appoint an executor.
• Exhaust fan Ventilating devices that remove water vapor, undesired smells or smoke.
• Experian Experian, formerly known as TRW Information Systems & Services, is one of the “Big Three” credit-reporting bureaus.. Address: 505 City Parkway West, Orange, CA 92868.