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early occupancy
The condition in which buyers
can occupy the property before the sale is
completed. |
earnest money
Money a buyer gives with an
offer to purchase a property. Also called a deposit. |
earthquake insurance
A policy that provides coverage
against damage to a home from an earthquake. |
easement
A right given to a third party
to use a portion of the property for certain
purposes, such as power lines or water mains. |
eaves
The projecting overhang at the
lower edge of a roof. |
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effective age
The age of a structure
estimated by its condition rather than its actual
age. |
effective gross income
Additional income that a lender
considers when assessing the loan application of a
potential borrower. |
efflorescence
White, powdery substance on
concrete, stucco, or other masonry caused by
water-soluble salts leaching to the surface. |
electric service panel
A panel that transfers power
from the utility line into a house to be distributed
through fuses or circuit breakers. |
electronic transfer
The process of having a
mortgage payment automatically deducted from a
borrower's checking or savings account. Many lenders
offer this service. |
elevations
The exterior view of a home
design that shows the position of the house relative
to the grade of the land. |
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ell
An extension or wing of a house
that is at right angles to the main structure. |
eminent domain
The government's right to
condemn private land for public use, such as the
routing of a public highway. |
employer-assisted
housing
Programs which help employees
purchase homes through special plans developed with
lenders. |
empty nesters
Potential buyers who have
raised their families and want to move into a
smaller home. |
encroachment
Fences or other structures that
extend into the property of another owner. |
encumbrance
A claim or lien on a property
which complicates the title process. |
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encumbrance
Any right or interest in
property interfering with its use or transfer. |
end loan
The conversion from a
construction loan to permanent financing a
condominium buyer secures after all units in a
project have been completed. |
endorser
A person who signs over
ownership of property to another party. |
English Tudor style
An architectural design that
features stone or brick exterior walls and exposed
beams. |
environmental impact
statement
A government-mandated
evaluation of all aspects and effects a development
will have on the environment of a proposed site. |
environmentally friendly
home construction
A method of construction that
utilizes recycled materials. |
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Equal Credit Opportunity Act
(ECOA)
Federal law that prohibits a
lender or other creditor from refusing to grant
credit based on the applicant's sex, marital status,
race, religion, national origin, or age, or because
the applicant receives public assistance. |
equalization
A mass appraisal or reappraisal
of all property within a jurisdiction for the
purpose of equalizing values to assure that each
taxpayer is bearing a fair share of the tax load. |
Equifax
Equifax Credit Information
Services, Inc., is one of the "Big Three"
credit-reporting bureaus that operate nationwide.
Address: P.O. Box 740249, Atlanta, GA 30374. URL:
http://www.equifax.com. Phone: (800) 685-1111. |
equity
A determination of the value of
a property after existing liens are deducted. |
errors and omissions
insurance
A policy that pays for mistakes
made by a builder or architect. |
escheat
A situation in which the
ownership of property reverts to the state when the
owner dies without leaving a will. |
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escrow
A neutral third party holds
documents and money for a real estate transaction
and ensures that all conditions of a sale are met.
Also refers to a special account that a lender uses
to hold a borrower's monthly payments on property
taxes and insurance. |
escrow account
An account that a lender or
mortgage servicer establishes to hold funds for the
payment of expenses such as homeowners insurance and
property taxes. Also known as an impound account. |
escrow agent
A neutral third party who
ensures that all conditions of a real estate
transaction are met. |
escrow analysis
A lender's periodic examination
of an escrow account to determine if the lender is
withholding enough funds from a borrower's monthly
mortgage payment to pay for expenses such as
property taxes and insurance. |
escrow closing
Escrow closes when all
conditions of a real estate transaction are met and
the title of the property is transferred to the
buyer. |
escrow company
A firm that acts as a neutral
third party to ensure that all conditions
established by the buyer, seller, and lender in a
real estate transaction are met. |
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escrow payment
Funds that a mortgage servicer
withdraws from a borrower's escrow account to pay
property taxes and insurance. |
estate
The total assets of a person,
including real property, at the time of death. |
estimated closing costs
An estimate of expenses
incidental to the sale of real estate, including
loan, title, and appraisal fees. These costs are in
addition to the price of the property, and are
prepaid at closing. Some are one-time expenses and
some are recurring. |
estimated hazard
insurance
An estimate of hazard
insurance, also known as homeowner's insurance or
fire insurance, to cover physical risks such as fire
and wind damage. Lenders usually require coverage at
least equal to the replacement value of the home. |
estimated property taxes
An estimate of property taxes
to be paid semiannually, or monthly if the lender
requires. The amount is based on local tax rates and
assessed property value, which is based on the most
recent sale price plus assessment updates (subject
to local policies). |
estimated taxes and
insurance
A calculation of monthly
estimated taxes and insurance, used by a lender to
evaluate a borrower's effective monthly housing
expense. |
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estoppel
Agency situation in which one
party incorrectly states that another person is the
agent, and a third person relies on that
representation. |
European style
A cabinetry term referring to a
style of cabinet without a face frame. Also known as
box cabinets. |
evaporator
A system of coils in a
refrigeration (or air conditioning) system that,
when filled with cold refrigerant, cools the air
around it. On a refrigerator, the evaporator is the
coil inside the unit; an air conditioner's
evaporator is inside the plenum on the furnace or
air-handler. |
eviction
A legal procedure to remove a
tenant for reasons including failure to pay rent. |
examination of title
An inspection by a title
company of public records and other documents to
determine the chain of ownership of a property. |
excavation
The process of clearing trees,
removing topsoil and grading land before a
foundation is laid. |
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exceptional depreciation
A term used to describe damages
to a building that are not the result of normal wear
and tear. |
exclusive agency
An agreement to employ a
particular broker. If another broker makes the sale,
both are entitled to commissions. |
exclusive buyer's agent
(EBA)
An agent, company, or franchise
working exclusively for buyers as a fiduciary agent.
EBAs do not represent sellers or list properties. |
exclusive listing
A contract that gives an agent
the exclusive right to market a property for a
specific period of time. |
executed contract
A contract in which all parties
have fulfilled their promises. |
executor
A person appointed to carry out
the instructions in a will. If no executor is named
in the will, a probate court will appoint an
executor. |
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exemption
The removal of property from
the tax base. An exemption may be partial or
complete. |
exfiltration
Air leakage from a building's
interior to the environment. |
exhaust fan
Ventilating devices that remove
water vapor, undesired smells, or smoke. |
Experian
Experian, formerly known as TRW
Information Systems & Services, is one of the "Big
Three" credit-reporting bureaus. Address: 505 City
Parkway West, Orange, CA 92868. Phone: (800)
392-1122. |
express agreement
An contract in which the
parties express their intentions in words. |
