| Earnest Money - A sum paid by a prospective purchaser of real estate as evidence of good faith; usually paid to the broker at the time an offer is made. |
| Easement - A right to use the lands owned by another person for a special purpose, such as a right-of-way to go across the property of another. |
| Easement by Condemnation - An easement created in favor of a government agency or public authority that has exercised the power of eminent domain. |
| Easement by Dedication - An easement, usually for the benefit of the public, that may be created under a number of express and implied circumstances. |
| Easement by Express Grant or Reservation - An easement that is expressly granted or expressly reserved by the grantor in a deed. |
| Easement by Implication - An easement that is implied from prior circumstances. There is nothing in writing that expressly creates the easement. |
| Easement by Necessity - An easement that is impliedly created when a grantor of property landlocks the grantee. |
| Easement by Prescription - An easement that is created by operation of law because of the long-continued, adverse use by the party claiming the easement. |
| Easement in Gross - A general category of easements that refers to all easements that are for the personal benefit of a specified individual rather than for the benefit of a parcel of land. Distinguish from Appurtenant Easement. |
| Economic Life - The period over which an improvement on real property may be profitably utilized or the period over which the improvement will yield a return on the investment in the property. |
| Economic Obsolescence - Impairment of desirability or useful life arising from economic forces, such as changes in optimum land use, legislative enactments that restrict or impair property rights, and changes in supply-demand relationships. |
| Effective Age - In appraisal, the age assigned to a property at a given point in time based on its condition. The effective age may be more or less than the "actual" age. |
| Effective Gross lncome - In an operating budget for an income-producing property, the gross (rnaximurn possible) income less projected vacancy and rent collection losses. |
| Ejectment - A form of legal action taken by a landlord to regain the possession of real property. |
| Emblements - Things that grow on the land and require annual planting and cultivation. |
| Eminent Domain - The superior right of property subsisting in every sovereign state to take private property for public use upon the payment of a compensation. This power is often conferred upon public service corporations that perform quasi-public functions, such as providing public utilities. In every case, the owner whose property is taken must be fairly compensated. |
| Encroachment - A building, part of a building, or other improvement that intrudes or trespasses upon the property of another. |
| Encumbrance - Any right to, or interest in, land, which diminishes the value of the estate although it does not prevent conveyance of the estate by the owner thereof. For instance, mortgages, unpaid taxes, and judgments are encumbrances known as "liens." Restrictive covenants restricting the use of lands to certain purposes and easements are encumbrances although they are not liens. |
| Endorsement: Insurance Policy - Language in a property insurance policy that adds perils to be covered by insurance. |
| Equal Credit Opportunity Act - The federal law that prohibits lenders from discriminating in the extension of credit on the basis of age, race, color, religion, national origin, sex, or marital status. |
| Equitable Conversion - An equitable doctrine stating that, as soon as a valid sales contract has been entered into by a seller and buyer, the buyer is treated as having "equitable title" to the land (and therefore owner of the land for certain purposes), and the seller as having bare "legal title" with her/his main interest being the payment of the purchase money by the buyer. |
| Equitable Title - The interest in real property that is held by (a) the grantor (borrower) under a deed of trust, (b) the buyer under a valid "interim" real estate sales contract pending closing, and (c) the buyer under an installment land contract. See also Equitable Conversion. Distinguish from Legal Title. (Note: The owner of real estate that is not encumbered by a deed of trust and is not the subject of a real estate sales contract holds both legal and equitable title to her/his property.) |
| Equity - (a) The financial interest or value an owner has in real estate over and above the debts against it; (b) A system of jurisprudence or a body of doctrines and rules developed in England and followed in the United States, serving to supplement and remedy the limitations and the inflexibility of the common law. |
| Equity of Redemption - The right of an original owner who has mortgaged her/his property by mortgage or deed of trust to reclaim and recover her/his title to real property, even after the mortgage debt is past due, by paying to the obligee the principal of the debt, accrued interest, and costs incurred up to the time of redemption. Also called Right of Redemption. See also Statutory Redemption Period. |
| Erosion - The wearing away of land through natural causes, such as running water or winds. |
| Escheat - The reverting of property to the state when there are no persons legally entitled to hold title or when heirs capable of inheriting the property are lacking. |
| Escrow - An arrangement by which one deposits a thing of value with a third person (called an escrow agent) who will make delivery to another person when specified conditions are fulfilled. For instance, a contract, deed, bond, or other written instrument may be deposited with a third person, by whom it is to be delivered to the grantee or promisee upon the performance of some act. |
| Escrow Account - (a) With regard to real estate brokerage, a special demand account maintained by a broker at an insured bank or savings and loan association for the purpose of holding trust funds on behalf of her/his principal or other parties to a transaction (see also Trust Account); (b) With regard to mortgage lending, a special account maintained by the lender to cover the payment of property taxes and insurance on the mortgaged property. |
| Estate - The degree, quantum, nature, and extent of interest that one has in real property. An estate in real property is either a freehold or a nonfreehold estate. |
| Estate for Life - See Life Estate. |
| Estate for Years - A less than freehold (nonfreehold) estate created by the leasing of property for any fixed, definite period of time, whether such period be one week, one month, one year, ten years, or any other definite period of time. Also called a tenancy for years. |
| Estate from Year to Year - A less than freehold (nonfreehold) estate created by the leasing of property for an indefinite period of time. Such estates, which are also called estates from period to period or periodic tenancies, maybe from year to year, month to month, week to week, etc., depending on the period of time for which rent is regularly paid. Such an estate may also be created when a tenant for years holds over and pays rent for an additional term and the rent is accepted by the lessor-owner. |
| Estate at Sufferance - A less than freehold (nonfreehold) estate created when a tenant who has lawful possession of a property holds over without the consent of the owner; the lowest estate in property. Also called a tenancy at sufferance. |
| Estate at Will - A less than freehold (nonfreehold) estate created when a tenant occupies land with the consent of the owner, but without any agreement for a definite rental period or for the regular payment of rent. Also called a tenancy at will. |
| Estovers - The right of a tenant to take wood from the landlord's property to use as fuel or to make necessary property repairs. |
| Ethics - The principles of conduct established for its members by a profession or professional organization. |
| Et ux - Abbreviation for et uxor, rneaning "and wife." |
| Eviction - The process instituted to oust a person from possession of real estate. Also the ousting or deprivation of one from the possession of lands or tenements. See also Constructive Eviction. |
| Excise Tax on Real Property Transfers - A tax imposed on the transfer of real property. The present tax rate is fifty cents for each $500 of consideration or part thereof paid for the real estate, but assumptions of existing loans do not count as new consideration for purposes of computing the tax. Also called revenue stamps. |
| Exclusion Insurance Policy - Language in a property insurance policy that eliminates certain perils or fact situations from coverage under the policy. |
| Exclusive Agency Listing Contract - A contract in which a property owner appoints one real estate broker as the sole agent for the sale of a property for a designated period of time. Under such contract the owner, herself/himself, may sell the property without a obligation to pay the agent a commission. |
| Exclusive Right to Sell Listing Contract - A contract between property owner and broker giving the broker the exclusive right to sell the property for a designated period of time. In such a contract, the owner binds himself /herself to pay a full commission to the broker even though the owner, herself/himself, sells the property. The broker has not only an "exclusive agency" to sell the property, but he/she also has an "exclusive right to sell," which gives the broker a right to collect her/his commission no matter who sells the property during the term of his/her agreement. |
| Execute - (a) To perform or carry out a contract; (b) To sign an instrument such as contract or deed. |
| Executed Contract - A contract that has been fully performed by the parties. (Distinguish from executory contract.) |
| Execution - A judicial writ or process issued by the court to the sheriff directing him/her to sell property to satisfy a judgment debt. |
| Executor - A man appointed by the maker of a will to carry out the execution of the terms of the will. |
| Executor's Deed - A deed given by a deceased person's executor. |
| Executory Contract - A contract that has not yet been fully performed by the parties. |
| Executrix - A woman appointed by the maker of a will to carry out the execution of the terms of the will. |
| Express Easement - See Easement by Express Grant or Reservation. |
| Extender Clause - See Override Clause. |
