Phoenix Home Loans E

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HOME LOAN DICTIONARY E

Earnest Money -  See Deposit.

Easement -  A right to the enjoyment or access of land held by another. An easement is a non-ownership interest in land.  

Easement by Estoppel - An easement created when one person's words or actions lead another to believe in the existence of an easement, causing the second person to act to his or her own detriment. 

Easement by Necessity - An easement sometimes granted when there is no other possible access to a property.

Easement by Prescription - An easement created by open, notorious and hostile use of property for a prescribed period of time. 

Easement in Gross - A personal easement to use land of another where there is no dominant tenement being benefited.

ECOA - See Equal Credit Opportunity Act.  

Economic Life - The period of time during which a structure may reasonably be expected to perform the function for which it was designed or intended.

Economic Obsolescence -  See External Obsolescence.

Economic Rent - The estimated income that a property should generate in the current rental market.  This is generally based upon the rent generated from comparable properties.

Economics of Scale - Savings possible by increasing production.

Effective Age - The age of a building based on the actual wear and tear and maintenance (or lack of it) that the building has received.  This may be more or less than the building's actual age.

Effective Gross Income (Commercial Property)  - Income from all sources, less anticipated vacancy and collection losses.

Effective Gross Income (Personal) -  Normal annual income of an individual, including regular or guaranteed overtime.  It may be from more than one source. Salary/wages are  generally the principal source, but other regular, ordinary income may qualify.  

Egress - The right to leave a property to reach a public way, generally used in reference to a property owner's access right. 

EIR - See Environmental Impact Report.

Ejectment - An action to oust an encroacher or a trespasser. 

Elevations - 1) Views of a structure from various directions on a builder's plans. 2) Height above sea level. 

Emblements - Cultivated annual crops.  Considered to be personal property.

Eminent Domain -  A government action that takes private land through a court action called condemnation.  The court determines whether the use is a public one and what the compensation paid to the owner should be. 

Enabling Act - A legislative act that confers power on local governments that they would not have had otherwise.  Zoning and planning powers were given under enabling acts.

Encroachment -  An improvement that intrudes or invades illegally upon another’s property.  

Encumber - The placing of a legal claim on a property.

Encumbrance -  A right, lien or claim attached  to real property that passes with title.  For example, easements, judgment liens, and mortgages that may reduce the property’s market value.

Endorsement -  1) The signature on the back of a check, note or other negotiable instrument. 2) An addition made to a  document, such as a title policy, in order to alter or clarify it.  

Entitlement - The portion of a VA loan that the VA guarantees (generally 25% of the loan). 

Environmental Impact Report - A report required for projects that may have a significant effect on the environment.

Environmental Obsolescence - See External Obsolescence. 

Environmental Protection Agency - Agency that enforces federal environmental standards.

Enfeoff - The conveyance of fee title to land; sometimes used on deeds as the "granting" verbiage. 

EPA - See Environmental Protection Agency.

Equal Credit Opportunity Act -  Federal legislation that prohibits a creditor from discriminating in mortgage lending on the basis of race, color, religion, national origin, sex, marital status, age, income derived from public assistance programs, or previous exercise of Consumer Credit Protection Act rights.  

Equal Dignities Rule - If an act must bein writing, then the agency agreement appointing someone to perform the act must also be in writing.

Equalization - The raising or lowering of assessed values for real property tax purposes in a particular county or taxing district to make them equal to assessments in other counties or districts.

Equitable Owner - One who has pledged his/her property as security for a debt while still maintaining the right to use and enjoy the property.

Equitable Right of Redemption -  During a foreclosure proceeding, a defaulted borrower’s right to redeem his property, by full payment of the mortgage debt, up to the date of the mortgage foreclosure sale.

Equity -  The owner’s interest, or the amount of cash the owner has, realized, paid in or invested in real estate.  

Equity Capital - Money raised by a business through selling shares in the business.

Equity Erosion -  A loss of equity due to negative amortization, a decline in property value, or a combination of both.

Equity Mortgage -  A debt secured by a lien against real estate that usually is subordinate to a previous mortgage and is based or given on the amount of equity one has in real estate after deducting the previous mortgage.

Equity of Redemption - See Equitable Right of Redemption.

Equity Refinance -  The borrower obtains a new loan, taking cash out of the equity which has built up in the original loan, resulting in a larger loan balance than the original loan.  Also called cash take-out refinance.  

Equity Sharing - A type of purchase wherein two or more parties share in the equity and appreciation of the property.

Escalator Clause - A provision in a contract or lease that provides for an upward or downward adjustment of price, costs, rents, expenses, etc. based on factors beyond the control of all parties involved.  

Escape Clause - Lets a party out of contract responsibilities in the event of stated situations.

Escheat - The process by which the property of a descendent dying without a will and without heirs reverts to the state.

Escrow  - Money or documents held by a third party until specific conditions of an agreement or contract are fulfilled.

Escrow Account -  An account held by the lending institution to which the borrower pays monthly installments for property taxes, insurance and special assessments, and from which the lender disburses these sums as they become due.

Escrow Agreement -  An agreement to allocate funds to be set aside in a special account to guarantee payments that occur after settlement.  

Escrow Holdback - An amount of money held back at closing by the lender or the escrow agent until a particular condition has been met.

Escrow Payment -  The portion of a borrower’s monthly payment that is set aside by the lender in an escrow account to pay the taxes, hazard insurance, mortgage insurance, ground rents and other special items as they come due.  

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

Estate at Will - The right of possession by a tenant or a landlord that can be terminated upon notice by either party.

Estate for Life - An estate that is measured by a person's lifetime with no defined duration except the person's lifetime.

Estate for Years - An estate that is created and measured for a specific duration of time.

Estate in Remainder - An estate based on a preceding life estate.

Estate of Inheritance - An estate that can be inherited.  See Fee Simple. 

Estate on a Condition Subsequent - An estate given based on a specific condition.  Upon breach of the condition, the grantor can declare a reach and regain the property.

Estoppel - A doctrine whereby a party is barred from raising a defense when that person's acts or words induced another party to act to his or her detriment.

et al. - "And others" 

et ux. - "And wife"

Eviction -  A court action to remove a person from possession of real property.  Most commonly, the removal of a tenant.

Examination of Title - The process of determining the vesting, encumbrances, and liens upon a title. 

Exception in a Deed - An exclusion in the deed.  Deeding only part of the property.

Excess Land - Land that does not contribute economically to use and/or value.

Excess Rent - The difference between the market rent and the contract rent, when the market rent is lower. 

Exchange Agreement - A contract for the exchanging of title and equity positions. 

Exchange Value - The value a property has as to other goods.

Exclusionary Clause - See Exception in a Deed. 

Exclusionary Zoning - Zoning that excludes a stated use.

Exclusive Agency - An agreement between a property owner and a real estate agent that gives the agent the right to sell the property within a specified period of time while allowing the owner the right to sell the home without paying a commission.

Exclusive Agent - A real estate sales person or broker with the right to sell a property within a specified period of time.  

Exclusive Listing - A property that is for sale by an exclusive agent.  

Exclusive Right to Sell - A written agreement between a property owner and a real estate agent that give the agent the exclusive right to sell the property within a specified period of time. 

Exculpatory Clause - A contract provision excusing a party for injuries to another; frequently used by lessors in leases.  Exculpatory clauses do not affect the rights of third parties who may be injured on the premises. 

Executed Contract - A contract where all performance has been completed.

Executor's Deed - Deed from probate containing the warranty that the executor(trix) has not encumbered the property. 

Executory Contract - A contract that has yet to be performed. 

Express Contract - A contract that is stated verbally or in writing, as opposed to an implied contract, which is understood but not stated.

Expropriate - To take land or other property from a property owner for public use. 

Extended Coverage Policy - Extends basic fire policy (fire, lightning and smoke) to cover additional perils such as windstorm, hail, riot and such.

External Obsolescence - The effect of external requirements or conditions that have a negative influence on the value of the property as it now stands.

Extension Agreement - A mutual agreement that grants additional time to a contract in order to complete a condition or satisfaction of a contingency.