Earnest Money
(See "Deposit") |
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Easement Rights
Under a certain set of circumstances, a right-of-way may be granted to a person or company authorizing access to or over private property. A familiar example of such "easement rights" would be the case of an electric company obtaining a right-of-way across private property. |
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Eminent domain
The term "Eminent Domain" refers to the right of a government to assume ownership of private property for purposes of public use in exchange for payment of its current fair value. |
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Encroachment
An "encroachment" is simply any obstruction, building, or portion of a building that intrudes beyond a legal boundary onto neighboring private or public property (it may also refer to a structure that extends beyond the established building line). |
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Encumbrance
Any legal right or interest that may negate a clear or undisputed title - such as zoning ordinances, easement rights, outstanding claims, defaulted mortgages, existing liens, unpaid charges, a pending legal action, taxes due, or restrictive covenants Ð has the potential to adversely affect the land's value. Such an "encumbrance" does not necessarily prevent the legal transfer of the property, so the buyer must ultimately decide whether or not he/she wishes to assume responsibility for eliminating it (A routine title search will usually reveal the existence of common encumbrances). |
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Equity
An owner's unencumbered interest in his/her property, representing the difference between the property's fair market value and the sum of the unpaid mortgage balance and any other outstanding liens or other debts against the property, is commonly referred to as "equity". Consequently, homeowner equity increases over time as the mortgage is paid down and (if) the property value increases. A homeowner is said to have 100% equity in a property that has had the mortgage paid off and has no other outstanding debts against it. |
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Escrow
Some financial transactions are processed by way of payment to a third party (called the "escrow agent"), who holds the funds until the occurrence of a planned date or event, after which the funds are released to the party receiving the payment. For example, FHA (Federal Housing Authority) mortgage transactions usually utilize an "escrow account" (which is in essence a trust fund provided by the lender for the borrower) that temporarily holds a portion of the borrower's regular mortgage payments. Anticipated yearly expenditures, such as mortgage insurance premiums, taxes, hazard insurance premiums, and special assessments, are then paid from this account. |
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Escrow Payment
A portion of the borrower's monthly mortgage payment may be held by the lender in an "escrow account" in order to pay for property taxes, hazard insurance, mortgage insurance, lease payments, or other scheduled expenses as they become due. In some states, the term "escrow payment" is synonymous with "impounds" or "reserves". |
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Exclusive Right to Sell (or Real Estate "Listing" Agreement)
A "listing agreement" is a written contract granting a licensed realtor the exclusive right to act as a property's sales agent for a specified time frame. Once a listing agreement has been signed, even in the event that the owner sells the property himself/herself, full commission must be paid to the realtor's broker. |
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