E

Earnest Money
A deposit paid up front as part of a purchase price, to demonstrate good faith on the part of the buyer.

Easement
A right of way giving to persons other than the owner to access to or over a property.

Effective Age
An appraiser's estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.

Effective Interest Rate
The cost of credit on a yearly basis expressed as a percentage. Includes upfront costs paid to obtain the loan, and is, therefore, usually a higher amount than the interest rate stipulated in the mortgage note. Useful in comparing loan programs with different rates and points.

Eminent Domain
The right of a government to take private property for public use upon payment of fair compensation to the owner. Eminent domain is the basis for condemnation proceedings.

Encroachment
An improvement that physically intrudes or trespasses on another's property.

Encumbrance
Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, deeds, or restrictions.

Endorser
A person who signs a check or promissory note over to another party. Contrast with co-signer.

Equity
Ownership interest in an asset. Also, a security which is based on an ownership interest.

Equity Loan
A loan based on the borrower's equity in his or her home. Prior to closing; also, an account held by the lender into which a homeowner pays money for taxes and insurance.

Escrow
A process in which a neutral third party holds documents, money, or other property until agreed upon conditions are fulfilled.

Escrow Account
The account in which a loan servicer holds the borrower's escrow payments prior to paying property expenses, such as property taxes or homeowners insurance.

Escrow Analysis
The periodic examination of escrow accounts to determine if current monthly deposits will provide sufficient funds to pay taxes, insurance, and other bills when due.

Escrow Collections
Funds collected by the loan servicer and set aside in an escrow account to pay borrower expenses such as property taxes, mortgage insurance, and hazard homeowners insurance.

Escrow Disbursements
The use of escrow funds to pay real estate taxes, homeowners insurance, mortgage insurance, and other property expenses as they become due.

Escrow Payment
The portion of a borrower’s monthly payment that is set aside by the lender in an escrow account to pay the taxes, hazard insurance, mortgage insurance, ground rents, and other special items as they come due.

Estate
The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.

Estate Planning
Arranging to make sure your assets pass in an orderly and efficient manner to those who you want to have them after your death.

Estate Taxes
Taxes levied by federal and state governments on the transfer of your assets after you die.

Eviction
A legal proceeding by a landlord to recover possession of real property from the tenant.

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, but reserving the owner's right to sell the property alone without the payment of a commission.

Executor
A person named in a will to oversee the distribution of an estate, as directed in the will.