Earnest Money- The earnest money is the deposit money given to the seller or his agent by the potential buyer upon the signing of the agreement of sale to show that he is serious about buying the house. If the sale goes through, the earnest money is applied against the down payment. If the sale does not go through, the earnest money deposit will be forfeited to the seller unless the purchase contract expressly provides conditions for its return to the buyer.
Easement- A right-of-way created by grant, reservation, agreement, prescription or necessary implication which one has in land owned by another.
Economic Obsolescence- Impairment of desirability or useful life arising from economic forces, such as changes in optimum land use, legislative enactments which restrict or impair property rights and changes in supply-demand relationships. Loss in the use and value of property arising from the factors of economic obsolescence is to be distinguished from loss in value from physical deterioration and functional obsolescence.
Eminent Domain- A government right to acquire private property for public use by condemnation and the payment of just compensation.
Encroachment- Unauthorized intrusion of a building or improvement such as a wall, fence, etc. onto another's land.
Encumbrance- A legal right or interest in land that affects a good or clear title and may diminish the land's value. It can take numerous forms, such as zoning ordinances, easement rights, claims, mortgages, liens, charges, a pending legal action, unpaid taxes, or restrictive covenants. An encumbrance does not legally prevent the transfer of real property. It is up to the buyer to determine whether to purchase with the encumbrance.
Equity- The market value of the property less the homeowner's unpaid mortgage balance and any outstanding liens or other debts against the property.
Escheat- Reversion of property to the State by reason of failure to find persons legally entitled to hold or lack of heirs. The State must try to find heirs.
Escrow- The deposit of instruments and/or funds into the care of a neutral third party with instructions to carry out the provisions of an agreement or contract once all instruments and/or funds have been deposited. Many closings are handled by escrow agents. In this situation, the seller deposits the deed and the buyer deposits the funds necessary with the escrow agent. Once all requirements of the purchase contract are in the control of the escrow agent, the money and deed are distributed accordingly.
Escrow Payment- That portion of a mortgagor's monthly payment held in trust by the lender to pay for taxes, mortgage insurance, hazard insurance, lease payments and other items as they become due. Also known as "impounds" in some states.
Escrow Reimbursement- The buyer reimburses the seller for the current balance of his escrow (or impounded) funds.
Estate at Will- Possession of property at the discretion of the owner.
Estate for Years- Tenant has rights in real property for a designated number of years.
Estimated Closing Costs Statement- The statement which lists the financial settlement between buyer and seller and the costs each must pay. A separate statement for buyer and seller is sometimes prepared.
Estoppels- An impediment to a law of action, whereby one is forbidden to contradict or deny one's own previous statement or act.
Exclusive Agency- Listing agreement in which only the listing office may sell the property and earn the commission. If the owner sells the house, the listing office would not receive any commission.
Exclusive Right-to-Sell- Listing agreement under which the owner promises to pay a commission if the property is sold during the listing period by anyone, even the owner.
