Property Legal Terms (E)

earnest money

A sum deposited, before an agreement is binding in law, by one of the parties with the other as an indication of his good faith and his intention to honor the terms of the agreement, e.g., a pre-contract deposit.

earnest money deposit

A deposit made by the potential home buyer to show that he or she is serious about buying the house.

easement

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

economical housing

A relatively cheap apartment catering to families or individuals with lower incomes, in which the price is dominated or guided by the government

effective age

The estimation of the age of a building based on its condition, and not chronological age. Obviously, better maintained buildings will have a lower effective age than others

effective rental

Rental paid by a tenant after taking into account incentives offered in the leasing of space

effective age

An appraiser's estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.

egress

The action of leaving or exiting a property. Also means the right to use another person's land or property.

elevation

The view of the frontal façade of the building, or the height ofa place above the sea.

eminent domain

The right of a government to take private property for public use upon payment of its fair market value. Eminent domain is the basis for condemnation proceedings.

encroachment

An improvement that intrudes illegally on another's property.

encumbrance

Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.

entire agreement

An agreement that includes the attached exhibits/ annexures and constitutes the entire agreement between the landlord and the tenant with respect to demised premises

entity

A separate identity, as of a company or body corporate

environment

The area surrounding a property

equity

A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.

escrow

An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed.

escrow account

Once you close your purchase transaction, you may have an escrow account or impound account with your lender. This means the amount you pay each month includes an amount above what would be required if you were only paying your principal and interest. The extra money is held in your impound account (escrow account) for the payment of items like property taxes and homeowner's insurance when they come due. The lender pays them with your money instead of you paying them yourself.

escrow analysis

Once each year your lender will perform an "escrow analysis" to make sure they are collecting the correct amount of money for the anticipated expenditures.

escrow disbursements

The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.

estate

The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.

estate agent

One who acts for, and usually advises, a principal in respect of transactions involving real estate, e.g. sales purchases, lettings, etc.

eviction

The lawful expulsion of an occupant from real property.

examination of title

The report on the title of a property from the public records or an abstract of the title.

excess rent

Rents which are greater than the fair rental value of property

exclusive agency agreement

An agreement that prohibits a principal from appointing more than one agent. An agreement that gives an agent exclusive rights to deal on behalf of a principal.

exclusive listing

A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time.

executor

A person named in a will to administer an estate. The court will appoint an administrator if no executor is named. "Executrix" is the feminine form.

extension

The continuation of an agreement under existing terms and conditions.