Taunya Fagan Real Estate Glossary and Dictionary of Real Estate Terms Beginning With "E" - Mortgage Glossary and Real Estate Terminology - Building and Construction Terms

Earnest Money (Also "Earnest Money Deposit"):
Upon signing the agreement of sale, earnest money is a deposit given to the seller or seller's real estate sales professional by the potential buyer. An earnest money deposit indicates the buyer is serious about purchasing the property; it is an expression of good faith. If the sale goes through, the earnest money is applied against or toward the down payment. If the sale does not go through, the earnest money is forfeited or lost unless the binder or offer to purchase expressly provided in writing that the earnest money is refundable.

Earthquake Insurance:  
An insurance policy providing coverage against damage to a home from an earthquake or seismic activity.

Easement Rights:
A right, interest, or privilege given to persons other than an owner, granting access to or over a property. For instance, a utility easement allows public utilities like the gas, electric, or telephone company the right to place their lines or equipment across anothers' property.

Education Center:
Section of this website created to provide buying and selling tips. Go there now

Effective Age:
An appraiser's estimate of the physical condition of a building, or the age of a structure estimated by its condition rather than its actual or effective age.

Elevations:  
The exterior view of a home design showing a structure's position relative to the land's grade.

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 such as a building, portion of a building, or an obstruction, like a fence, that physically intrudes upon, overlaps or trespasses upon the property of another.

Encumbrance:
Any right or interest in land that affects or limits the fee simple title to a property, such as mortgages, leases, easements or restrictions.

End Loan:  
The conversion from a construction loan to permanent financing that a condominium buyer secures after completion of all units in a condo project.

English Tudor Style:  
An architectural design featuring exterior walls or exposed beams of brick or stone.

Envelope:
A continuous membrane edge seal that is created at a perimeter and at penetrations by folding the base sheet or ply over other plies above and securing it to the membrane's top.

Environmental Impact Statement:  
A government-mandated evaluation of every aspect and effect that a development will place on its proposed environment.

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:
The value of a homeowner's unencumbered interest in real estate. Equity is calculated by subtracting from the property's fair market value the total of the unpaid mortgage balance and any outstanding liens or other debts against the property. Equity increases as the mortgage balance declines or as the property value appreciates. When the mortgage and all other debts against the property are paid in full, the homeowner has 100% equity.

Equifax Credit Information Services: One of the Big Three credit-reporting bureaus operating in the U.S. Mailing address: P.O. Box 740249, Atlanta, Georgia, 30374.

Errors and Omissions Insurance:  
A policy paying for mistakes made by builders, contractors, architects, real estate agents, and any others.

Escrow:
Something of value, such as money or documents, put into the custody of a third party to be delivered upon the fulfillment of specified conditions. For example, a buyer places a down payment in escrow with an attorney to be disbursed when the transaction closes or a borrower places funds in escrow with a lender to pay taxes when they are due.

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. This extra money is held in your impound account (escrow account) to cover payment of things like property taxes and homeowner's insurance. The lender is responsible to pay them with your money instead of you.

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 Money (also "Escrow Payment"):
The funds held by a lender or service provider to pay taxes, mortgage insurance, hazard insurance, and other expenses as they become due.

Escrow Payment (also "Escrow Money"):
The funds held by a lender or service provider to pay hazard insurance, taxes, mortgage insurance and other expenses as they become due.

Estate: 
An individual's ownership interest in real property. The sum total of all real property and all personal property owned by an individual at death.

Eaves:
The horizontal, lower edge of a sloped roof.

Eave Vents:
Vent openings located in the soffit under the eaves of a structure allowing passage of air through the attic and out of the roof vents.

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 ("Executrix" feminine form):
A person named in a will to administer an estate. The court appoints an administrator in the event no executor is named.

Expansion Joint:
A joint designed to accept movement in the structure or components of a system because of thermal or stress-load variations in the system.

Experian:
One of the "Big Three" credit-reporting bureaus in the U.S. (Formerly known as TRW Information Systems & Services.) Mailing address: 505 City Parkway West, Orange, California, 92868.

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