Glossary E   A B C D    F G H I J K L M

Earnest Money - A sum of cash paid to a seller by a buyer prior to the closing to show that the buyer is serious about buying the house. The earnest money is deducted from the purchase price at closing and is not an additional cost. Sometimes referred to as a binder deposit.

Easement - A right of way giving persons, other than the owner, access to or over a property.

Effective Age - An appraiser�s opinion of the physical condition of a structure. The actual age of a building may be longer or shorter than its effective age.

Effective Gross Income - Normal annual income, which may include overtime and bonuses, that is regular, consistent and guaranteed. A person�s salary is usually the prime source, but other income may qualify if it is significant, documented and stable.

Encroachment - A property improvement or obstruction that physically intrudes upon the property of another.

Encumbrance - Anything that affects the title to a property such as a mortgage, judgement, or easement.

Equity - An owner's financial position in a property. Equity is the difference between the property's value and the amount that is owed on mortgages.

Escrow - Funds paid by one party to another to hold until a specific date when the funds are released to a designated individual. Generally, an escrow account refers to the funds a mortgagor pays to the lender along with their monthly principal and interest payments for the payment of real estates taxes and hazard insurance. This is also referred to as impounds. The money is held by the lender to make payments when they are due.

Examination of Title - The report on the title of a property from the public records. Not as thorough as a full title search.

Exclusive Listing - A written contract that gives a licensed real estate agent the exclusive right to sell property for a specific time, but reserving the owner�s right to sell the property without the payment of a commission.

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