Early occupancy

Early occupancy refers to the condition in which buyers of a parcel of real property can occupy the property before the official transaction is completed.  Early occupancy may arise when the buyer has sold a previous residence or terminated a previous lease prior to the date set for closing on a property, or when the seller is ready and willing to move away from the property prior to closing and the buyer would like to take advantage of the early availability.  Early occupancy typically entails a fee paid by the buyer to the seller for the term of occupancy before the sale is complete, a type of rental payment for the use of the property during that interim time.

Earnest money

Earnest money, also known as a deposit, is money that a buyer of real property gives to the property seller with an offer to purchase a property.  The money is offered as an insurance for the seller that the buyer intends to follow through with the purchase, usually pending certain conditions such as a successful home inspection.  In most instances, a deposit is non-refundable, meaning that if the buyer ultimately changes his or her mind and does not follow through with the property purchase, the seller is entitled to keep the money.

Earthquake insurance

Earthquake insurance is an insurance policy that provides coverage against potential damage to a home as a result of an earthquake.  Premiums are paid to the insurance company by the property owner and if damage is sustained by the property from the occurrence of an earthquake, the insured home owner is entitled to payment by the insurance company for damages to the extent specified in the insurance agreement.  Earthquake insurance is available through most insurance companies that offer home owner´s insurance policies, and are most popular in earthquake-prone states like California.

Easement

An easement is a right given to a third party to use a portion of a parcel of property for certain purposes, such as access to power lines or water mains.  An easement, also called an equitable servitude, is a limited property right on property that is owned by another.  An easement may be either public or private.  A public easement grants a right to the use of land to a group or to the public in general; it is commonly imposed for the purpose of access to a road or river.  A private easement is limited to specific individuals or entities, such as the right of a neighbor to access his own land adjacent to the land of the property owner granting the easement.

Eaves

Eaves are projecting overhangs at the lower edge of a roof.  Eaves may be a decorative element added to enhance the aesthetic appearance of a building, as is the case in many homes constructed in the craftsman style, which often feature wide with decorative brackets (structural supports).  Eaves are also practically useful, in that their positioning beyond a home´s roof edge allows them to assist rain and other water, such as that produced by melting precipitation, as well as some debris to flow off of a roof and fall onto the ground below, instead of the water or debris instead running down the exterior walls of a house.

Effective age

The effective age of a structure is its age as estimated by its physical condition, rather than its actual age.  Effective age adjusts the actual age of a building through an evaluation that takes into account how the building has been maintained and what effects the maintenance, or lack thereof, have had on the building.  For example, major renovations to a house could make its effective age younger than its actual age; disintegration and poor condition would make the effective age older than the actual age of the home.  The effective age is used by property appraisers to calculate a property´s depreciation.

Effective gross income

Effective gross income is the total income earned by an individual, including regular salary as well as income from any investments or other sources that are not his or her primary employment.  The effective gross income of an individual who is applying for a loan is what the lending institution considers when assessing the loan application of the potential borrower.  In the case of an owner of a rental property, the effective gross income is the sum of the total rental income, in addition to income generated from sources such as parking, storage, or laundry facilities.

Electric service panel

An electric service panel is a panel that transfers power from a utility line into a house to be distributed throughout the house by a system of fuses or circuit breakers.  As the main distribution source of a home´s electricity, the electrical service panel, usually located in a basement or some interior room of a home, is where local utilities hook up with individual circuits running through the house, allowing distribution of light, heat, and other energy through the home.  Panels are also the location for circuit breakers, which control energy distribution to specific sets of outlets, light fixtures, and appliances.

Elevations

Elevations are exterior views of a home design that show the position of the house relative to the grade of the land on which it is situated.  Elevations are presented by an architect or home builder in what is called an elevation sheet, or in a series of elevation sheets depicting the home from every angle.  Elevation sheets reveal how high a home stands above ground level and include depictions of the placement of doors, windows, and sometimes other architectural details, and the materials used for the construction of a homes exterior (siding, brick, stone, etc.).  Production builders commonly offer a particular pre-planned floor plan with a variety of elevations for uniqueness of a streetscape in a community. 

Ell

An ell is an extension or a wing of a house or other structure that is built at right angles to the main structure.  An ell is a part of a house that may be preplanned, set of at the ninety-degree angle to add an element of architectural uniqueness to the overall structure, or to enclose a courtyard or other exterior feature with an extra wall, or may be a result of a later addition to an existing home, angled out of necessity to accommodate restrictions on building on a particular parcel of property or space or shape limitations of the property.

Eminent domain

Eminent domain, also called condemnation, is the right of the government to condemn private land for public use, such as the routing of a public highway, construction of railroads or utilities, or accommodation for public parkland or military use.  Historically, condemnation was used to take the land of private property owners for uses that were primarily related to the construction of railroads or utilities.  Specific modern condemnation laws vary among jurisdictions, but the government is usually required to pay the property owner an amount that is considered to be a fair market value as compensation for the taking of the property.

Employer-assisted housing

Employer-assisted housing programs are programs which help employees of a company purchase homes through special plans developed between employers and lending institutions.  Employer-assisted housing is thought to help employers attract new employees and retain current employees by providing affordable housing options within a close proximity to work.  In return for investing in employer-assisted housing by working with a lending institution, the employer benefits by frequently receiving tax incentives, which can be significant, to help offset the cost of implementing and running the program.

Empty nesters

Empty nesters is the term used to describe potential buyers of real property who have raised their families and want to move into a smaller home, or "downsize."  Empty nesters are usually older, frequently retired, and often have specific requirements in a new home, usually that it be smaller than their previous family home, easier to maintain (low or no maintenance, a lifestyle offered by many residential, retirement, and condominium communities in exchange for the payment of a monthly or annual maintenance fee), but still have options to accommodate visiting family and friends.

Encroachment

Encroachment is a situation in which fences or other structures extend beyond the legal bounds of one person´s real property onto the property of another, adjacent land owner.  Encroachments exist whenever property of one person is located on the legal property of another, but if a fence or part of a structure has been constructed for long enough, an encroachment may be unknown to the parties in question, particularly if the title to either or both of the properties has changed hands more than once.  Encroachments are usually most accurately determined through the conducting of a professional survey to determine the legal property boundaries of the respective parties.

Encumbrance

An encumbrance is a claim or lien on a parcel of real property which complicates the title process by preventing the ability of the seller of the property to transfer clear and complete title to the buyer.  An encumbrance is often an outstanding amount of money due on the property or a defect in ownership, so that the property cannot be transferred to a buyer in a real estate transaction until the issue is resolved.  An encumbrance is usually discovered by a title company when it does a title search prior to the closing on the property in question.  Some encumbrances, such as those associated with contested wills, may take a long time before final resolution.

End loan

An end loan is the conversion of a loan from a construction loan to permanent financing for the purchase price that a condominium buyer secures after all units in a project have been completed.  During the construction stage, a buyer of a condominium project draws funds from a construction loan to pay a portion of the total price of the project upon completion of discrete phases thereof.  Once construction is completed, and all labor, materials, and attendant costs have been paid for, the construction loan converts to permanent financing that covers the outstanding balance on the condominium project, repayable as a mortgage.

Endorser

An endorser is the person who signs over ownership of a property to another party.  In real estate transactions, the endorser is generally the seller of the property.  At closing, when financing has been secured, documents have been signed, and all obligations associated with the real estate transaction have been met by the responsible party, the endorser/seller signs legal ownership of the real property over to the buyer, who is also known as the endorsee.  In most cases, the right to possess and use the property in question is granted to the buyer of the property through endorsement by the endorsement, but legal title commonly remains with the lending institution that has issued a mortgage for the purchase price to the buyer.

English Tudor style

English Tudor style is a style of architectural design that features traditional stone or brick exterior walls and exposed beams.  The European Tudor style is frequently  characterized by ornamental half-timbering, in which an exposed timber framework is filled in with plaster or masonry, a roof with a steep pitch, and asymmetrical floor plans, reminiscent of stereotypical English cottage construction.  English Tudor style in the United States was common in the mid-1900s during a period called "Tudor revival," and homes built in the style are most frequently found in older cities, particularly in New England.

Environmental impact statement

An environmental impact statement is a government-mandated evaluation of all aspects and effects that a planned development will have on the environment of a proposed site.  An environmental impact statement, or EIS, usually consists of four main sections: an introduction that states the purpose of and need for the proposed action; a detailed description of the environment that will be affected by the proposed development; the range of alternatives that exist to the proposed action; and a concluding analysis that discusses the likely environmental impact of each of the potential alternatives.

Environmentally friendly home construction

Environmentally friendly home construction refers to a method of construction that utilizes in large part recycled materials.  Recycled, or "green," materials can be utilized in the construction process for everything from plastering to paints and finishes to flooring to insulation.  In addition to the obvious benefits to the environment of environmentally friendly home construction, home owners who chose to use environmentally friendly materials and practices in the construction of their home stand to gain tax benefits, which are offered in many places as incentives to protect the environment.  Tax incentives vary from jurisdiction to jurisdiction in what level of environmental friendliness is required and how much tax benefit is gleaned therefrom.

Equal Credit Opportunity Act

The Equal Credit Opportunity Act (or ECOA) is a federal law that prohibits a lending institution or any other creditor from refusing to grant credit to an applicant for a loan based on the applicant's sex, marital status, race, religion, national origin, or age. The law also prohibits a creditor from refusing to grant credit because the loan applicant receives public assistance from the government.  The ECOA does not guarantee credit to the loan applicant, but does prohibit lenders and creditors from using discriminatory measures to deny a loan.  Lenders who are found to be in violation of the ECOA are subject to sanctions, or penalties, imposed by the government.

Equifax

Equifax, the full name of which is Equifax Credit Information Services, Inc., is a credit reporting company, also called a consumer reporting agency, credit bureau, or credit repository.  It is one of the "Big Three" credit-reporting bureaus operating in the United States.  Equifax gathers financial and credit information from various sources about individuals who have applied for credit.  This information is then collated, referenced, updated, and stored by the company, and is submitted to lending institutions to assist in the evaluation of a potential borrower´s loan application.

Equity

Equity is a determination of the value of a parcel of real property after existing liens are deducted.  A home owner´s equity is the amount of value of his or her home and property to him or her, calculated by the assessed market value of the property (or what it would sell for to a willing buyer on the real estate market at a particular time) diminished by the amount the owner still owes on his or her mortgage, as well as any other liens or debts associated with the property (such as for additions, repairs, or maintenance).  Equity in a property can be and frequently is used to secure additional financing with the amount of the home owned by the home owner as collateral.

Errors and omissions insurance

Errors and omissions insurance is an insurance policy that pays for any mistakes a builder or architect makes in a construction project.  A property owner who engages a builder and/or architect may choose to invest in errors and omissions insurance, paying a premium to an insurance company to ensure that, should a mistake be made during the course of construction that cannot be remedied by direct agreement with the architect or builder, the mistake can be corrected with some or all of the cost of correction coming from the insurance company, to an extent and within the limitations specified in the insurance agreement. 

Escrow

Escrow is the situation in the real estate context in which a neutral third party holds the documents and money involved in the real estate transaction and ensures that all conditions of a sale and purchase, as specified in a purchase agreement between the parties and any other applicable documents, are met. Escrow also refers to a special account that is established by a lending institution, which is intended to hold monthly installments from the borrower of a mortgage loan to cover property taxes and insurance on the purchased property; this ensures that taxes and insurance are paid in the event that the borrower/home buyer encounters a situation that would otherwise make it necessary for him or her to default on payment.

Escrow account

An escrow account is an account set up by a lending institution or mortgage servicer that provides a mortgage loan to a borrower for purposes of purchasing a parcel or real property.  The escrow account is established in order to hold funds for the payment of expenses such as homeowners insurance and property taxes. An escrow account ensures that taxes and insurance are paid in the event that the borrower/home buyer encounters a situation that would otherwise make it necessary for him or her to default on payment. Escrow accounts are also referred to as impound accounts.

Escrow agent

An escrow agent is a neutral third party who ensures that all conditions of a real estate transaction are met.  The escrow agent in a real estate transaction holds all documents and money that are involved in the real estate transaction and ensures that all conditions specified in a purchase agreement between the buyer and seller of a parcel of real property and any requirements found in any other applicable documents are met.  When specified conditions are met, an escrow agent has the responsibility to deliver title to the real estate to the proper recipient.

Escrow analysis

Escrow analysis refers to the periodic examination by a lending institution of a specific  escrow account to determine if the lender is withholding sufficient funds from a borrower's monthly mortgage payment to pay for necessary expenses, such as property taxes and homeowner´s insurance.  If the analysis reveals that not enough money is being withheld to cover the required insurance and tax payments, an adjustment may be ordered for greater funds to be withheld from each mortgage payment.  Modifications to an escrow agreement must be acknowledged and signed by the borrower to be effective.

Escrow closing

Escrow closing refers to the time when all conditions of a real estate transaction are met and the title of the property is officially transferred to the buyer.  When escrow closes, all conditions in a contract for the transfer of real estate have been met, such as the payment by the buyer of the property to the seller, and the escrow agent will complete final documentation of the completion of all conditions and deliver title to the proper recipient.  The time for an escrow closing is usually determined by and among the parties involved in the real estate transaction at the opening of escrow, and commonly occurs at the end of a calendar month.

Escrow company

An escrow company is a firm that acts as the neutral third parties required for escrow, to ensure that all conditions established with respect to a real estate transaction by and among the buyer of real property, the seller of real property, and the lending institution that provides the buyer with financing for the purchase are met.  Escrow companies, through individual escrow agents assigned to specific transactions, organize most of the paperwork involved in a real estate transaction, facilitate communication among the parties, and ensure the satisfaction of conditions set out by each of the parties to the transaction.

Escrow payment

An escrow payment is the funds that a mortgage servicer withdraws from a borrower's escrow account in order to pay applicable property taxes and homeowners´ insurance on the property.  Escrow payments are money that is automatically withdrawn to ensure that taxes and insurance are paid, rather than relying on sufficient and timely payment to be made directly by the borrower.  Escrow payments are regularly evaluated by the lending institution through an escrow analysis, a periodic examination by a lending institution of a specific  escrow account to determine if the lender is withholding sufficient funds from a borrower's monthly mortgage payment to pay for necessary expenses

Estate

The term estate is a designation used to refer to the total assets of a person, including real and personal property, at the time of his or her death.  Upon a person´s death, his or her estate is probated, the legal term for distribution of the assets owned by the person at the time of death, either according to his or her will or, if no will exists, according to intestate succession (the legal plan for estate distribution in the absence of a will).  Real property in an estate may be disposed of either by directly granting the property to a specified recipient, or may be sold on the market, with the proceeds from the sale being credited back to the estate and distributed appropriately.

Eviction

Eviction refers to a legal procedure to remove a tenant from a rental property for any of a number reasons that constitute violation of specifically defined rental terms and conditions.  Common reasons for eviction of a tenant include his or her failure to pay rent in the amount due or on a timely basis or mistreatment of a property (such as damage to the physical property or excessive noise).  Depending on jurisdiction, eviction may either be without cause (at the will of the landlord) or for "just cause" (violation of specific conditions to which the tenant agreed, explicitly or impliedly, at the beginning of the tenancy).  Eviction typically requires some form of adequate notice to the tenant.

Examination of title

Examination of title refers to an inspection by a title company of available public records and other documents to determine the chain of ownership of a parcel of real property.  Examination of title reveals any defects in title, which may act as a bar to the passage of title from a seller of real property to a buyer.  If an examination of title indicates that there is no cloud on the title to the property in question (in other words, that the title to the property is clear of any encumbrances), the transaction can proceed with title passing fully and without complications from the seller to the buyer.

Excavation

Excavation is the process of clearing trees, removing topsoil, and grading land before the foundation of a structure, such as a home, is laid.  Excavation may be conducted by the builder of a house, or in more complicated scenarios where the amount of excavation required is great or the type of excavation required is unusual, by a professional excavation company.  Costs of excavation also vary depending on what the excavation involves; simple excavation jobs that require minimal clearing and grading are less expensive than complicated jobs that require excessive clearing or removal or highly involved grading.

Exclusive listing

An exclusive listing is an agreement, by written contract between a real estate agent and a seller of a parcel of real property, that gives the agent the exclusive right to market the property for a specific period of time established in the contract.  During the established time for exclusive listing, the seller of the property is prohibited from using any other agent to list the home or put up signs regarding the availability of the property.  The benefit of such an arrangement to the real estate agent is that he or she gets his or her commission, a percentage of the purchase price, regardless of what agent finds a purchaser for the property.

Executor

An executor is a person appointed to carry out the instructions specified in the will of a deceased individual.  An executor may be specified in the will, or may be appointed by a court.  If there is no will, and the estate of the deceased is to be probated according to intestate distribution, a probate court will appoint an executor to oversee the distribution of the estate.  An executor has a fiduciary duty to the estate, and must ensure that the estate is distributed according to the law, including making payments to creditors of the estate.

Exhaust fan

An exhaust fan is a ventilating devices that remove water vapor, undesired smells, or smoke from a home.  Exhaust fans are commonly installed in bathrooms that contain bathtubs or showers in order to prevent or alleviate moisture-related problems, such as mold and mildew.  Exhaust fans are easy to install and are inexpensive.  They are operated by a switch, like a switch used to operate a light, and often located next to the light switch.  Exhaust fans also are useful in any moisture-prone area, such as a laundry room, kitchen, basement, or workshop.

Experian

Experian, formerly known as TRW Information Systems & Services, is a credit reporting company, also called a consumer reporting agency, credit bureau, or credit repository.  It is one of the "Big Three" credit-reporting bureaus operating in the United States.  Equifax gathers financial and credit information from various sources about individuals who have applied for credit.  This information is then collated, referenced, updated, and stored by the company, and is submitted to lending institutions to assist in the evaluation of a potential borrower´s loan application.