Glossary of Real Estate Terms "E"

Like many other industries, the real estate industry has its own unique language and vocabulary. Without some knowledge of this specialized language, you may find yourself a bit confused if you become involved in a real estate transaction.

Whether entering the real estate market for the first time or if you have invested before, this handy reference will provide an understanding of basic real estate words and phrases.


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E

Earnest Money – A deposit of funds by the purchaser on a piece of real estate as evidence of good faith until the transaction closes. Usually given at the time a purchase agreement is written.

Easement – A right to use all or part of the land owned by another for specific purpose. An easement may, for example, entitle its holder to install and maintain sewer or utility lines or be granted for ingress and egress to another parcel of land.

Eminent Domain – The right of a government to take privately owned property for public purposes under condemnation proceedings subject to payment for its fair market value.

Encroachment – Any building, improvement or structure located on one property (such as a wall, fence or driveway) that intrudes upon the property of another.

Encumbrance – Any interest, right, lien or liability attached to a parcel of land (such as unpaid taxes or an unsatisfied mortgage) that constitutes or represents a burden or charge upon the property.

Equity – The market value of real property, less the amount of existing liens.

Escheat – The reversion of property to the state when an owner dies leaving no legal heirs, devises or claimants.

Escrow - A method of closing a real estate transaction in which all required documents and funds are placed with a third party for processing and disbursement – often services performed by title companies, attorneys or third party closing companies.

Estoppel – A legal restraint that stops or prevents a person from contradicting or reneging on his previous position or previous assertions or commitments.

Examination – The study of the recorded instruments and muniments incident to a chain of title to determine their effect and condition in order to reach a conclusion as to the status of the title to a piece of property and determine the current ownership, requirements and exceptions to be set forth in a commitment for title insurance.

Exception – A provision in a title insurance binder or policy that excludes liability for a specific title defect or an outstanding lien or encumbrance.

Execute – To sign a legal instrument. A deed is said to be executed when it is signed, sealed, witnessed and delivered.




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