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Real Estate Glossary

Letter E

EASee: Environmental Assessment.

Earnest MoneySee: Deposit (1).

EarningsMoney received for labor or personal services rather than a return on capital, although corporate income from all sources is described as "earnings".

Easement AppurtenantAn easement for the benefit or another parcel of land, such as the right to cross parcel A to reach parcel B. The easement will pass with the transfer of property to a new owner. See also: Dominant Tenement; Servient Tenement.

Easement By Condemnation1. Taking private property for public use through the government's power of eminent domain. 2. A declaration that a structure is unfit for occupancy and must be closed or demolished.

Easement By Express ReservationAn easement created in a deed when a landowner divides property, transferring the servient tenement, but retaining the dominant tenement.

Easement By GrantAn easement granted to another in a deed or other document.

Easement By ImplicationAn easement created by operation of law (not express grant or reservation) when land is divided, if there is a long standing, apparent use that is reasonably necessary for enjoyment of the dominant tenement. Compare: Implied Easement.

Easement By NecessityAn easement allowed by law as necessary for the full enjoyment of a parcel of real estate.

Easement By PrescriptionAn easement acquired by continuous, open, uninterrupted, exclusive, and adverse of the property for the period of time prescribed by state law.

Easement For Light And AirA view easement; considered a negative easement. In the case of negative easement, the dominant tenement can prevent the subservient tenement from doing something on the land because it could affect the dominant land.

Easement In GrossAn easement that is not created for the benefit of any land owned by the owner of the easement but that attaches personally to the easement owner.

Easement Of NecessityAn easement granted by a court when it is determined that said easement is absolutely necessary for the use and enjoyment of the land. Commonly given to landlocked parcels.

Easy Doc LoansSee: Low Doc Loans.

EATSee: Exchange Accommodation Titleholder.

EaveThe lowest sections of the roof, which project beyond the sidewalls.

EavesThe margin or lower part of a roof projecting beyond an exterior wall.

Ebb TideThe tide at its lowest, or the period from high to low.

Economic Age-Life Method Of DepreciationSee: Age-Life Method of Depreciation.

Economic BaseMain business or industry supporting and sustaining a community. A good economic base is critical for strong home values. Economic Duress Threatening to financially harm a person to coerce him into signing a contract.

Economic DepreciationSee: Economic Obsolescence.

Economic Development Administration (EDA)Part of the U.S. Department of Commerce. The EDA manages grant and loan programs aid economically depressed areas.

Economic LifeThe period of time over which an improved property will earn an income adequate to justify its continued existence.

Economic ObsolescenceThe impairment of desirability or useful life arising from factors external to the property, such as economic forces or environmental changes, that affect supply-demand relationships in the market. Loss in the use and value of a property arising from the factors of economic obsolescence is to be distinguished from loss in value from physical deterioration and functional obsolescence, both of which are inherent in the property.

Economic Recovery Act Of 1981 (ERTA)Laws designed to stimulate the economy, including stimulation of the real estate market. See: Accelerated Cost Recovery System.

Economic RentThe market rental value of a property at any given time, even though the actual rent may be different.

EconomicsThe study of the laws and theories pertaining to the creation and distribution of wealth, either of the private sector or of governments.

EDASee: Economic Development Administration.

EEM (Energy Efficient Mortgage)An FHA program that helps homebuyers save money on utility bills by enabling them to finance the cost of adding energy efficiency features to a new or existing home as part of the home purchase.

Effective DemandA qualifying term meaning the ability to pay as well as desire to buy.

Effective Gross IncomeSee: Adjusted Gross Income.

EfficiencyAn apartment consisting of one room, sectioned into areas for a kitchen, bedroom, etc.

Effluent(1) The flowing of a branch of a stream out from the main stream. (2) The flow of sewage, either from a storm sewer or sanitary sewer, after some stage of treatment.

EgressA term concerning a right to come and go across the land (public or private) of another. Usually part of the term ingress and egress

EISSee: Environmental Impact Statement.

EjectmentMost commonly, a court action to recover real property, usually by eviction of a tenant. In some states, an action to enforce specific performance.

Electrical CurrentAny flow of electricity.

Electric HeatingAny heating system using electricity as its power source. May be a water or air system.

Electromagnetic Fields (EMFs)Invisible fields produced by electrically charged objects.

Eleemosynary CorporationA corporation created for a charitable purpose. There are tax advantages accorded to such corporations. The corporation may operate the same as a profit making corporation. Commonly called a nonprofit corporation.

Elevation(1) Height above sea level. (2) The exterior design of a structure, usually but not necessarily, viewed from the front. Called a horizontal elevation. (3) Height measured from any point, such as elevation from a floor. Called vertical elevation.

EluviationThe movement of soil materials, either in a downward or horizontal direction, caused by excessive water in the soil.

EmblementsGrowing crops that are produced annually through the tenant's own care and labor and that she or he is entitled to take away after the tenancy is ended. Emblements are regarded as personally property even prior to harvest, so if the landlord terminates the lease, the tenant may still reenter the land and remove such crops. If the tenant terminates the tenancy voluntarily, however, she or he generally is not entitled to the emblements.

EmolumentCompensation for personal services, such as salary, commission, or other compensation.

Emphytheutic LeaseA lease in perpetuity or for a long period, freely transferable by the lessee, upon the condition that the lessee improve the property and pay rent.

EmployeeSomeone who works under the direction and control of another. Compare: Independent Contractor.

Employee StatusThe status of one who works as a direct employee of an employer. An employer is obligated to withhold income taxes and Social Security taxes from the compensation of his or her employees.

Employer-Assisted HousingPrograms offered by employers to help their employees purchase a home. The Federal National Mortgage Association (Fannie Mae) offers advice to employers in setting up these programs.

Employment ContractA document evidencing formal employment between the employer and the employee or between the principal and the agent. In the real estate business, this generally takes the form of a listing or management agreement.

Employment LetterA letter from an employer stating the time a person has been employed and income from said employment.

Empowerment Zones And Enterprise Communities (EZ/EC)Targeted areas to be aided through tax incentives, grants and loans to improve economic conditions. The program was created by Title XIII of the Omnibus Budget Reconciliation Act of 1993 and expanded by the Taxpayer Relief Act of 1997.

Encumbered PropertyProperty with mortgages, liens, or other restrictions against it, which prevent or restrict its transfer.

Encumbrance, IncumbranceA claim, lien, charge, or liability attached to and binding real property. Any right to, or interest in, land which may exist in one other than the owner, but which will not prevent the transfer of fee title.

End LoanSee: Take Out Loan.

EndorsementThe act of writing one's name, either with or without additional words, on a negotiable instrument or on a paper attached to such instrument.

Endorsement (indorsement)The act of the holder of a note, bill, check, or other negotiable instrument, of transferring said instrument by signing the back of the instrument, with or without qualifications.

EndorserOne who transfers a check or mortgage note by signing (endorsing) the check or note rather than by a separate document (assignment). The transferee may receive greater rights by endorsement than by assignment.

English ArchitectureA general term, encompassing the styles of various English design, but which have common elements. The exterior being either of large stones, or exposed timbers with large stones or brick placed between the timbers, in a decorative manner. The roof is most often made of slate, and windows are hinged vertically.

Enterprise ZoneSee: Empowerment Zones and Enterprise Communities (EZ/EC).

Entire TenancySee: Tenancy by the Entirety.

EntitlementA veteran's eligibility for a home loan. Specific programs set out requirements to restore entitlement if the veteran has already used the benefit.

EntityA separate existence or being, most commonly referring to a corporation or other form of business, rather than an individual.

Entrance(1) The opening used to go into an enclosed area, such as a door, gate, etc. (2) To go upon land, such as to gain entrance to, the point of entrance not necessarily being through a door, gate, or other opening.

EntrepreneurA businessman, taking the risk of loss and gaining profit, rather than a salaried employee.

EnvironmentSurroundings. As an appraisal term, the characteristics of the area around a property which bear on the value of the property.

Environmental Assessment (EA)A preliminary environmental analysis used to determine whether a more detailed environmental impact statement will be necessary.

Environmental DeficiencyDeficiency of the area surrounding a property, (environment), which decreases its value, such as poorly designed streets and traffic patterns, a high crime rate, no major sewer lines, etc.

Environmental HazardA situation that exists with potential for harm to persons or property from conditions that exist outside or within a property. See: Internal Environmental Hazard, External Environmental Hazard.

Environmental Impact Statement (EIS)A report of the probable effect of a development on the surrounding area (environment). The report is prepared by an independent company to federal, state, or local guide lines.

Environmental LienA lien to secure payment for removal of contaminants. Example: Superfund money is used for cleanup. The lien is then filed as well as a lawsuit to recover the money from the responsible parties.

Environmental ObsolescenceSee: Economic Obsolescence.

Environmental Property AssessmentSee: Environmental Site Assessment.

Environmental Protection Agency (EPA)The federal agency concerned with the protection of our resources of land, water, and air.

Environmental Site AssessmentA physical inspection of a site (land and improvements) to determine if environmental problems exist. (See: Phase 1 Environmental Site Assessment; Phase 2 Environmental Site Assessment; Phase 3 Environmental Site Assessment).

E & O InsuranceSee: Errors And Omission Insurance.

EPASee: Environmental Protection Agency.

EPRA (Environmental Property Assessment)See: Environmental Site Assessment.

Equal Credit Opportunity ActFederal law granting women certain independent status, and preventing lenders from considering such negative credit aspects as the possibility of a woman having children and dropping out of the labor market.

Equal Dignity RuleA term used most often in contracts involving real property. The rule is that if a matter requires a writing, agency agreements concerning the matter must also be written. For example: Since a contract to sell real estate must be in writing, the agency (listing) agreement to sell real estate must be in writing.

EqualizationThe raising or lowering of assessed values for tax purposes in a particular county or taxing district to make them equal to assessments in other counties or districts.

Equal ProtectionRequirement under the fifth and fourteenth amendments to the U.S. Constitution, all citizens are entitled to equal protection of the laws; no law may arbitrarily discriminate between different groups, or be applied to groups in a discriminatory manner.

EquatorThe imaginary circle separating the Northern and Southern Hemispheres of the Earth, and used as the starting point for measurements of latitude, its own latitude being zero degrees.

EquipmentAs an industrial term, everything necessary to produce a product, such as land, improvements, machinery, etc.

Equitable ConversionA legal fiction applied to a land contract which treats the vendee's (buyer's) interest as a real property interest even though the seller holds legal title, and the seller's interest as a security interest (personal property). This enables the buyer to act as the "owner" of the property without having "legal" title.

Equitable LienA lien enforceable in a court of equity, based on evidence of an intent between debtor and creditor to create a lien on specific property of the debtor, but a failure to legally create said lien.

Equitable Mortgage(1) A lien against real property (mortgage) which is enforceable in a court of equity, but does not legally constitute a mortgage. (2) A deed given as security for a debt will be held to be a mortgage rather than a transfer of title. Also called a constructive mortgage.

Equitable OwnershipOwnership by one who does not have legal title, such as a vendee under a land contract or, technically, a trustor under a deed of trust (legal title being in the trustee). Also called equitable title.

Equitable RemedyA judgment granted to a plaintiff that is something other than an award of money (damages), for example, an injunction, quiet title, rescission, and specific performance. Compare: Legal Remedy.

Equitable Right Of RedemptionSee: Equity of Redemption.

Equitable TitleThe interest held by a vehicle under a contract for deed or an installment contract; the equitable right to obtain absolute ownership of property when legal title is held in another's name.

Equity Build-UpThe reduction of principal on a mortgage or deed of trust by periodic payments, which increases (builds-up) the difference (equity) between the property value and amount of the lien.

Equity Capitalization RateSee: Cash-On-Cash.

Equity Dividend RateSee: Cash-On-Cash.

Equity Line Of CreditA combination of a line of credit and equity loan. A maximum loan amount is established based on credit and equity. A mortgage (deed of trust) is recorded against the potential borrower's property for said maximum loan amount. The potential borrower has the right to borrow, as needed, up to the amount of the mortgage.

Equity LoanA loan based upon the equity in a property. The credit of the borrower is not a major factor. See also: Personal Property Loan.

Equity Of RedemptionProperly, the right to pay off the lien of a mortgage which is in default by payment of the principal, interest, and costs which are due. Often confused with the redemption period after the foreclosure sale, which is a right established by statute.

Equity ParticipationSee: Participation.

Equity PurchaserOne who purchases the equity of another in real property, either assuming or taking subject to existing mortgages or deeds of trust.

Equity SharingA method of borrowing by giving the lender an ownership interest in the property. When the property is sold, the lender receives a portion of the profit in addition to repayment.

Equity SkimmingA scam where a "buyer" approaches a homeowner who is behind on his/her mortgage payments. The owner moves out of the property based on the promise to bring the mortgage current and give the owner money when the property is sold. After getting a deed from the homeowner, the con artist rents out the property until the foreclosure is final. Also known as milking.

Equity Stake MortgageSee: Shared Appreciation Mortgage.

ErosionThe gradual wearing away of land by water, wind, and general weather conditions; the diminishing of property caused by the elements.

Errors And Omissions InsuranceInsurance coverage for real estate agents against claims for innocent and negligent misrepresentations.

Errors And Omissions Insurance (E&O)Professional liability insurance that protects real estate professionals from mistakes or negligence.

ESASee Environmental Site Assessment

Escalation ClauseA clause in a lease providing for an increased rental at a future time. May be accomplished by several types of clauses, such as (1) Fixed increase - A clause which calls for a definite, periodic rental increase. (2) Cost of living - A clause which ties the rent to a government cost of living index, with periodic adjustments as the index changes. (3) Direct expense - The rent is adjusted according to changes in the expenses of the property paid by the lessor, such as tax increases, increased maintenance costs, etc.

Escalator ClauseSee: Escalation Clause.

EscarpmentA cliff.

EscheatThe reversion of property to the state in the event that its owner dies without leaving a will and has no heirs to whom the property may pass by lawful descent.

Escrow ClosingA closing by a disinterested third party, often an escrow agent.

Escrow CollectionsSee: Impound Account.

Escrow InstructionsInstructions which are signed by both buyer and seller, and which enable an escrow agent to carry out the proce- dures necessary to transfer real property, a business, or other assignable interest.

Escrow OfficerAn escrow agent. In some states, one who has, through experience and education, gained a certain degree of expertise in escrow matters.

Estate At SufferanceSee: Tenant at Sufferance.

Estate At WillSee: Tenant at Will.

Estate For LifeSee: Life Estate.

Estate For YearsAn interest for a certain, exact period of time in property leased for a specified consideration.

Estate In LandThe degree, quantity, nature, and extent of interest that a persona has in real property.

Estate In RemainderSee: Remainder.

Estate In ReversionSee: Reversion.

Estate In SeveraltyAn estate owned by one person.

Estate Of InheritanceAn estate which may descend to heirs. For example: A fee estate is an estate of inheritance, whereas a life estate is not.

Estate TaxA tax against the property of a deceased, based on the value of the estate.

EstoppelThe prevention of one from asserting a legal right because of prior actions inconsistent with the assertion.

Estoppel CertificateA legal instrument executed by a mortgagor showing the amount of the unpaid balance due on a mortgage and stating that the mortgagor has no defenses or offsets against the mortgagee at the time of execution of the certificate.

EstoversLegally allowed necessities, such as the right of a tenant to use timber on leased property to support a minimum need for fuel or repairs.

Et AlLatin, meaning “and others”.

Et ConAnd husband.

EthicalConduct conforming to professional standards.

EthicsWith regard to professions, a code of professional standards, containing aspects of fairness and duty to the profession and the general public.

Et UxAnd wife.

Et Ux / Et UxorLatin, meaning “and wife”.

Et VirLatin, meaning “and husband”.

EvaluationDetermining the usefulness or utility of property without specifying an estimate of value.

Evidence Of TitleA proof of ownership of property, which is commonly a certificate of title, a title insurance policy, an abstract of title with lawyer's opinion, or a Torrens registration certificate.

Exact InterestInterest based on a 365-day year, rather than a 30-day month (360- day year).

ExcavateTo dig and then remove, leaving a pit or hollow. Used to describe the removal of earth in construction; or coal, copper, etc., in mining.

Excavation(1) A pit or other opening which remains after the removal of dirt, minerals, etc., from the surface of the Earth. (2) The process of digging and removal of dirt, minerals, etc., from land.

Exception(1) Specific items set forth in an insurance policy which are not covered by said policy. (2) Any item specifically excluded.

Excess CondemnationTaking, by right of eminent domain, more property than actually necessary for the intended purpose. This happens frequently, the excess property being sold at auction after completion of the project.

Excess IncomeSee: Excess Rent.

Excessive CondemnationSee: Excess Condemnation.

Excess RentRental income (usually under a lease) which exceeds the fair rental value of the property.

ExchangeA transaction in which all of part of the consideration for the purchase of real property is the transfer of like-kind property. Ex. real estate for real estate.

Exchange Accommodation TitleholderOne who takes title to property to meet the requirements of IRS section 1031 and Treasury Revenue Ruling 2003-37 to facilitate a build to suit exchange or a reverse exchange.

Exchange AgreementInstrument (contract) used in an exchange. See also: Exchange.

Exchange PeriodThe time allowed between the sale of relinquished property and the purchase of replacement property in order to qualify for the tax advantage under IRS section 1031. In a reverse exchange it is the time between the purchase of the replacement property and the sale of the relinquished property.

ExchangorThe party seeking the tax advantage under IRS section 1031. The taxpayer.

Exclusionary ZoningZoning law that effectively prevents certain groups from living in a community.

Exclusive AgencyListing agreement between a broker and seller that provides the broker the exclusive right to represent the seller in the sale of the seller's property and the broker will be compensated if he or any other person or entity (excluding the seller) produces a purchaser in accordance with the listing agreement.

Exclusive Agency AgreementSee: Agency Agreement.

Exclusive Agency ListingA listing or agreement protecting the listing broker's commission against the sale of the property by another agent but not against the sale by the principal. The term is not universal, as some areas use the term, nonexclusive listing, to describe this agreement.

Exclusive-Agency ListingA listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property on the owner's stated terms for a commission. The owner, however, reserves the right to sell without paying anyone a commission by selling to a prospect who has not been introduced or claimed by the broker.

Exclusive JurisdictionWhen there is only one court in which a particular type of case can be filed, that court has exclusive jurisdiction. Compare: Concurrent Jurisdiction

Exclusive Right To SellSee: Exclusive Listing.

Exclusive-Right-To-Sell ListingA listing contract under which the owner appoints a real estate broker as his or her exclusive agent for a designated period of time to sell the property on the owner's stated terms and agrees to pay the broker a commission when the property is sold, whether by the broker, the owner, or another broker.

ExculpatoryHolding free from or limiting guilt or liability.

ExecuteTo complete; to fulfill a purpose, such as to execute an instrument, meaning to sign, seal (modernly, to notarize), and deliver.

Executed ContractA contract in which all parties have fulfilled their promises and thus performed the contract.

Executed SaleOne which is final and completed.

ExecutionThe signing and delivery of an instrument. Also, a legal order directing an official to enforce a judgment against the property of a debtor.

Execution SaleSale of real property under a writ of execution by a court. A judicial mortgage foreclosure sale is in this category.

Executor/executrixPerson named in a will to carry out its provisions, including disbursement of land.

Executor's DeedA deed issued by the executor of an estate. (See: Executor).

Executory ContractA contract under which something remains to be done by one of more of the parties.

Executory SaleA sale not fully completed, such as (at least in theory) a land contract sale. See also: Executed Sale.

ExecutrixA female executor.

Exemplary DamagesDamages to punish (make an example of) the offender. This is done when the wrong is deliberate or grossly negligent and compensatory damages do not appear to be sufficient.

ExemptionProvision holding that a law or rule does not apply to a particular person, entity, or group (e.g., a company with a property tax exemption does not have to pay property taxes).

Exit(1) The leaving or departing, usually of a person. (2) The place through which one leaves, as a door, gate, etc.

Expansible HouseA house specifically designed for later additions or expansion.

Expansion JointAny connection of two members which allows for movement of the members when effected by pressure toward or away from the connecting area (joint). A joint in a bridge, building, or similar structure, allowing for expansion or contraction of the parts of the structure from temperature changes.

Expense RatiosFormulas to determine a potential borrower's ability to repay a mortgage loan. The ratios are (1) the monthly amount to repay all mortgage loans on the property divided by the borrower's gross monthly income and (2) the borrower's total monthly expenses divided by the gross monthly income.

ExpensesThe short-term costs that are deducted from an investment property's income, such as minor repairs, regular maintenance, and renting costs.

Expenses Of SaleThe costs which are attributed to the sale of real estate. They would include commission, loan points, title and escrow fees, documentary transfer tax, etc.

Expense StopA clause limiting the expense of one of the parties and shifting the burden to the other party at an agreed upon amount. Used primarily in leases.

Expert TestimonyTestimony by one acknowledged to have special training and knowledge in a particular subject. Only testimony on the subject in which the witness is "expert" is considered expert testimony.

Expert WitnessOne acknowledged to have special training and knowledge of a particular subject, and testifying on that subject.

Exposure(1) The degree to which a property for sale, lease, etc., is made noticeable (exposed) to potential buyers, tenants, etc., through advertising, multiple listing groups, etc. (2) The direction in which a property faces. For example: Does a store depending on walk-in trade face the sun in the morning when people walk in the sun to get warm (eastern exposure), or face the sun in the afternoon when people walk in the shade to keep cool (western exposure).

ExpressClear and definite; set forth, as opposed to implied.

Express ContractContract that has been put into words, either spoken or written.

Expressed AgencyAgency relationship based on an expressed agreement, either written or oral.

Expressed ContractAn oral or written contract in which the parties state their terms and express their intentions in words.

Express WarrantyA warranty given by words of the seller rather than by law or circumstances.

Expressway (freeway)A highway (usually divided) with control of access and with major streets crossing it at a different grade level. Distinguished from "toll roads" in that no fee is charged to those using the expressway.

ExpropriationA taking, as under eminent domain. The word has come to be used in connection with a foreign location, such as a foreign government taking an American industry located in the foreign country. The word is used instead of eminent domain in Louisiana.

Extended CoverageWith reference to insurance, coverage beyond the normal (standard) policy.

ExtensionA continuing under the same conditions, as opposed to a renewal, which implies new terms or conditions.

Extension ClauseListing agreement clause providing for a specified time after a listing expires when a broker is still entitled to a commission if the property is sold to someone the broker dealt with during the listing term. Also called: Carryover Clause, Safety Clause.

Extension Of MortgageSee: Extension.

ExteriorThe outside surface of any structure.

Exterior FinishThe outside covering of a structure, such as wood, brick, stucco, etc.

Exterior WallThe outer vertical surface of a structure, which encloses the entire structure, and the dimensions of which are used to find the gross area of the enclosure for appraisal purposes.

External Environmental HazardConcerns that exist outside the boundaries of a property, which can have a significant impact on its value.

External ObsolescenceSee: Economic Obsolescence.

Extraordinary Property LossAn accounting procedure which includes the depreciated value of property from unanticipated damage not insured

EZ/ECSee: Empowerment Zones and Enterprise Communities.