Real Estate Glossary - Letter E

Early occupancy

A provision where buyer is given right to occupy a property even before the sale of the property is completed.

Earnest money

A sum of money given by an interested buyer as a sign of good faith together with a formal offer to buy the property; also known as deposit.

Easement

An authorized use of a portion of a property given to a third party .

Effective age

The estimated age of a structure based on its physical condition.

Effective date of value

The specific date when a property’s final value is applied.

Effective interest rate

The actual interest rate computed on a yearly basis that is being paid by a borrower to include up-front costs; usually a higher value than the nominal or named interest rate.

Ejectment

A legal action that removes a person from a property since he has no contractual right to stay there.

Employer-assisted housing

A special program in which employees can buy homes with the help of their employers and partner-lenders.

Encumber

To compromise a property’s title with a lien such as mortgage.

Encumbrance

Any lien, claim or liability attached to a property.

Enforceable

An action initiated by a court of law that compels either party to fulfill a certain contractual obligation.

Equal Credit Opportunity Act (ECOA)

A federal law that discourages discrimination of borrower’s on the basis of race, age, color, national origin or religion.

Equitable lien

A lien imposed by a court of equity that recognizes a lender’s interest in a borrower’s property.

Equity

The net value of a property determined by deducting all claims held against it from the property’s current market value.

Escalator mortgage

A type of mortgage in which the interest rate can change based on a specific money market at a certain period of time.

Escape Clause

A contractual provision allowing any of the parties involved to invalidate contract due to specified situations or events.

Estate

Encompasses all assets of an individual including real estate at the time of death.

Estate taxes

A government-imposed tax on the transfer of a property’s ownership from the deceased person to the legal heir/heirs.

Eviction

A legal procedure which effectively removes a tenant from a leased property due to inability to meet contractual obligations.

Evidence of title

Any legal document that serves as proof of property ownership.

Examination of Title

A legal inspection done to determine ownership history of a real property.

Exclusive agency listing

An agreement or contract between a real estate broker and owner that gives the broker exclusive right to sell a property under specific terms and conditions stated by the owner; broker receives a commission from the sale of the property.

Exclusive right to sell

A listings contract in which the owner can still sell the property to a buyer not referred or claimed by the authorized broker.

Executor

A person who is in charge of handling all probate proceedings as well as payment of debts and taxes and collection of property in an estate.

Existing mortgage

Any housing loan that has not been fully paid.