A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

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 or over land owned by another.

Eminent Domain
A government right to acquire private property for public use by condemnation and the payment of just compensation. (See "Condemnation" in this Glossary)

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.

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, or the Mortgagee (Lender) returns to Mortgagor (Borrower) the unused portion of the Mortgagor's Escrow account at such time as the Mortgagor pays off the Mortgage.

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.

Estoppel
An impediment to an action, whereby one is forbidden to contradict or deny one's own previous statement or act.

Exclusive Agency
Listing agreement by which the listing Real Estate Broker will receive a commission upon the sale of the real estate, whether it is sold by the listing Real Estate Broker, another Real Estate Broker, or the owner.  If another Real Estate Broker sells the real estate  with permission of the listing Real Estate Broker, they share the commission based upon the listing Real Estate Broker's Formula.