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early occupancy
The condition in which buyers can occupy the property
before the sale is completed. |
earnest money
Money a buyer gives with an offer to purchase
a property. Also called a deposit. |
earthquake insurance
A policy that provides coverage
against damage to a home from an earthquake. |
easement
A right given to a third party to use a portion
of the property for certain purposes, such as
power lines or water mains. |
eaves
The projecting overhang at the lower edge of a
roof. |
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effective age
The age of a structure estimated
by its condition rather than its actual age. |
effective gross income
Additional income that a lender
considers when assessing the loan application
of a potential borrower. |
efflorescence
White, powdery substance on concrete, stucco,
or other masonry caused by water-soluble salts
leaching to the surface. |
electric service panel
A panel that transfers power
from the utility line into a house to be distributed
through fuses or circuit breakers. |
electronic transfer
The process of having a mortgage
payment automatically deducted from a borrower's
checking or savings account. Many lenders offer
this service. |
elevations
The exterior view of a home design that shows
the position of the house relative to the grade
of the land. |
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ell
An extension or wing of a house that is at right
angles to the main structure. |
eminent domain
The government's right to condemn private land
for public use, such as the routing of a public
highway. |
employer-assisted housing
Programs which help employees
purchase homes through special plans developed
with lenders. |
empty nesters
Potential buyers who have raised their families
and want to move into a smaller home. |
encroachment
Fences or other structures that extend into the
property of another owner. |
encumbrance
A claim or lien on a property which complicates
the title process. |
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encumbrance
Any right or interest in property interfering
with its use or transfer. |
end loan
The conversion from a construction loan to permanent
financing a condominium buyer secures after all
units in a project have been completed. |
endorser
A person who signs over ownership of property
to another party. |
English Tudor style
An architectural design that
features stone or brick exterior walls and exposed
beams. |
environmental impact statement
A government-mandated evaluation
of all aspects and effects a development will
have on the environment of a proposed site. |
environmentally friendly
home construction
A method of construction that
utilizes recycled materials. |
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Equal Credit Opportunity
Act (ECOA)
Federal law that prohibits
a lender or other creditor from refusing to grant
credit based on the applicant's sex, marital status,
race, religion, national origin, or age, or because
the applicant receives public assistance. |
equalization
A mass appraisal or reappraisal of all property
within a jurisdiction for the purpose of equalizing
values to assure that each taxpayer is bearing
a fair share of the tax load. |
Equifax
Equifax Credit Information Services, Inc., is
one of the "Big Three" credit-reporting bureaus
that operate nationwide. Address: P.O. Box 740249,
Atlanta, GA 30374. URL: http://www.equifax.com.
Phone: (800) 685-1111. |
equity
A determination of the value of a property after
existing liens are deducted. |
errors and omissions insurance
A policy that pays for mistakes
made by a builder or architect. |
escheat
A situation in which the ownership of property
reverts to the state when the owner dies without
leaving a will. |
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escrow
A neutral third party holds documents and money
for a real estate transaction and ensures that
all conditions of a sale are met. Also refers
to a special account that a lender uses to hold
a borrower's monthly payments on property taxes
and insurance. |
escrow account
An account that a lender or mortgage servicer
establishes to hold funds for the payment of expenses
such as homeowners insurance and property taxes.
Also known as an impound account. |
escrow agent
A neutral third party who ensures that all conditions
of a real estate transaction are met. |
escrow analysis
A lender's periodic examination of an escrow account
to determine if the lender is withholding enough
funds from a borrower's monthly mortgage payment
to pay for expenses such as property taxes and
insurance. |
escrow closing
Escrow closes when all conditions of a real estate
transaction are met and the title of the property
is transferred to the buyer. |
escrow company
A firm that acts as a neutral third party to ensure
that all conditions established by the buyer,
seller, and lender in a real estate transaction
are met. |
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escrow payment
Funds that a mortgage servicer
withdraws from a borrower's escrow account to
pay property taxes and insurance. |
estate
The total assets of a person, including real property,
at the time of death. |
estimated closing costs
An estimate of expenses incidental
to the sale of real estate, including loan, title,
and appraisal fees. These costs are in addition
to the price of the property, and are prepaid
at closing. Some are one-time expenses and some
are recurring. |
estimated hazard insurance
An estimate of hazard insurance,
also known as homeowner's insurance or fire insurance,
to cover physical risks such as fire and wind
damage. Lenders usually require coverage at least
equal to the replacement value of the home. |
estimated property taxes
An estimate of property taxes
to be paid semiannually, or monthly if the lender
requires. The amount is based on local tax rates
and assessed property value, which is based on
the most recent sale price plus assessment updates
(subject to local policies). |
estimated taxes and insurance
A calculation of monthly estimated
taxes and insurance, used by a lender to evaluate
a borrower's effective monthly housing expense. |
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estoppel
Agency situation in which one party incorrectly
states that another person is the agent, and a
third person relies on that representation. |
European style
A cabinetry term referring to a style of cabinet
without a face frame. Also known as box cabinets. |
evaporator
A system of coils in a refrigeration (or air conditioning)
system that, when filled with cold refrigerant,
cools the air around it. On a refrigerator, the
evaporator is the coil inside the unit; an air
conditioner's evaporator is inside the plenum
on the furnace or air-handler. |
eviction
A legal procedure to remove a tenant for reasons
including failure to pay rent. |
examination of title
An inspection by a title company
of public records and other documents to determine
the chain of ownership of a property. |
excavation
The process of clearing trees, removing topsoil
and grading land before a foundation is laid. |
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exceptional depreciation
A term used to describe damages
to a building that are not the result of normal
wear and tear. |
exclusive agency
An agreement to employ a particular broker. If
another broker makes the sale, both are entitled
to commissions. |
exclusive buyer's agent
(EBA)
An agent, company, or franchise
working exclusively for buyers as a fiduciary
agent. EBAs do not represent sellers or list properties. |
exclusive listing
A contract that gives an agent
the exclusive right to market a property for a
specific period of time. |
executed contract
A contract in which all parties
have fulfilled their promises. |
executor
A person appointed to carry out the instructions
in a will. If no executor is named in the will,
a probate court will appoint an executor. |
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exemption
The removal of property from the tax base. An
exemption may be partial or complete. |
exfiltration
Air leakage from a building's interior to the
environment. |
exhaust fan
Ventilating devices that remove water vapor, undesired
smells, or smoke. |
Experian
Experian, formerly known as TRW Information Systems & Services,
is one of the "Big Three" credit-reporting bureaus.
Address: 505 City Parkway West, Orange, CA 92868.
Phone: (800) 392-1122. |
express agreement
An contract in which the parties
express their intentions in words. |
