REAL ESTATE DICTIONARY - E
Earnest Money
The earnest money is 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 deposit
will be forfeited to the seller unless the purchase
contract expressly provides conditions for its return
to the buyer.
Easement
A right-of-way created by grant, reservation, agreement,
prescription or necessary implication which one has
in land owned by another.
Economic Obsolescence
Impairment of desirability or useful life arising from
economic forces, such as changes in optimum land use,
legislative enactments which restrict or impair property
rights and changes in supply-demand relationships. Loss
in the use and value of property arising from the factors
of economic obsolescence is to be distinguished from
loss in value from physical deterioration and functional
obsolescence.
Eminent Domain
A government right to acquire private property for public
use by condemnation and the payment of just compensation.
Encroachment
Unauthorized intrusion of a building or improvement
such as a wall, fence, etc. onto another's land.
Encumbrance
A legal right or interest in land that affects a good
or clear title and may diminish 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 the
transfer of real property. It is up to the buyer to
determine whether to purchase with the encumbrance.
Equity
The market value of the property less the homeowner's
unpaid mortgage balance and any outstanding liens or
other debts against the property.
Escheat
Reversion of property to the State by reason of failure
to find persons legally entitled to hold or lack of
heirs. The State must try to find heirs.
Escrow
The deposit of instruments and/or funds into the care
of a neutral third party with instructions to carry
out the provisions of an agreement or contract once
all instruments and/or funds have been deposited. Many
closings are handled by escrow agents. In this situation,
the seller deposits the deed and the buyer deposits
the funds necessary with the escrow agent. Once all
requirements of the purchase contract are in the control
of the escrow agent, the money and deed are distributed
accordingly.
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 known as "impounds"
in some states.
Escrow Reimbursement
The buyer reimburses the seller for the current balance
of his escrow (or impounded) funds.
Estate at Will
Possession of property at the discretion of the owner.
Estate for Years
Tenant has rights in real property for a designated
number of years.
Estimated Closing Costs Statement
The statement which lists the financial settlement between
buyer and seller and the costs each must pay. A separate
statement for buyer and seller is sometimes prepared.
Estoppels
An impediment to a law of action, whereby one is forbidden
to contradict or deny one's own previous statement or
act.
Exclusive Agency
Listing agreement in which only the listing office may
sell the property and earn the commission. If the owner
sells the house, the listing office would not receive
any commission.
Exclusive Right-to-Sell
Listing agreement under which the owner promises to
pay a commission if the property is sold during the
listing period by anyone, even the owner.
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