Earnest Money: A deposit made by
a buyer towards the downpayment to show good faith.
This money is often held by the broker or an escrow
agent.
Easement The right granted to another
person to use a portion of land for some specific
reason.
Eminent Domain: The right of the
Government or public utility to acquire property for
necessary public use by condemnation, with proper
compensation given to the owner.
Encroachment: A building, part of
a building, or an obstruction, like a fence or a wall,
that intrudes upon the property of another.
Encumbrance: A legal right or interest
in a property that affects good or clear title, and
reduces the value of the property. An encumbrance
can take many forms such as, pending legal action,
easement rights, claims, mortgages, unpaid taxes,
zoning trouble, or restrictive covenants. An encumbrance
will not prevent the transfer of the property. Typically,
during the mortgage process a title search will be
done on the property to insure good and clean title.
If the search shows encumbrances, it is up to the
buyer to make the choice to continue with the purchase.
Equity: Equity is the value of a
property minus the loans and liens against the property.
Typically it is expressed as a percentage of the total
value.
Equity Sharing: Joint ownership of a property
between the owner/occupant and the owner/investor,
that results in tax advantages for both for both parties.
When the property is sold, the joint owners split
profits based on the percentage of ownership.
Escrow Definition #1: A neutral third
party that handles all funds in a real estate deal.
The buyer deposits money into escrow, the lender put
the loan amount into the escrow, and then when all
conditions are met, the escrowed funds are dispersed
as agreed prior to the opening of the account.
Escrow Definition #2: A third party
agent who holds funds or other consideration for one
party until such time as he receives instructions
to disperse the money. This is often used to hold
money while waiting on delivery of some product.
Escheat: The reversion of a property to the
state in the event that the owner dies without leaving
a will and without any heirs.
Executor: A person named in a will
to carry out its provision for the disposition of
the estate.
