Real Estate Glossary and Terms
Realty Terms beginning with E
Money earned through wages, salaries, tips, net earnings (if self-employed), and any other income received for work or personal services. Investment income, such as dividends and interest, is not counted as earned income. See also "Unearned Income."
A right, such as a right of way, which allows a person to use another person's real property in a limited capacity.
Individuals with grown children that no longer live in the same residence. For real estate purposes, empty nesters tend to down-size and purchase smaller homes when children move out.
A structure, fence, or other object that illegally extends onto another person's property. Such encroachments might also impede the use of the property by the property owner.
A claim (as a lien) against a property or more specifically, an interest or right (as an easement or a lease) in real property that may diminish the value of the estate, but does not prevent the conveyance of the estate. Encumbrances can include mortgages, leases, easements, or restrictions.
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The difference between the value of a property and the amount of financing on that property.
Errors and Omissions Insurance
Malpractice insurance that protects architects, home inspectors, and contractors from claims by clients for professional errors or faults resulting from defective judgment, deficient knowledge, or carelessness.
In a real estate transaction, a neutral third party holds the money in a bank account (escrow) and related documents until all conditions of the property sale are met. 2. An account in which money for property taxes and insurance is held until paid. Money is added to the account every time a mortgage payment is made.
A bank account in which money for property taxes and insurance is held until paid. Money is added to the account every time a mortgage payment is made.
A neutral third party who holds the documents and money in a real-estate transaction until all conditions of the property sale are met.
The ownership interest of an individual in real property. The total sum of all the real property and personal property owned by an individual at time of death.
To force or put out (a tenant, for example) by legal process when lease terms are violated.
Examination of Title
A review of public records and title abstracts to determine the chain of ownership of a property.
A legal agreement giving one real-estate agent the right to sell a property for a specified period, but owners retain the right to sell their property themselves without paying the agent commission.