The Learning Center

Glossary

Earnest Money

A sum of cash paid to a seller by a buyer prior to the closing to show that the buyer is serious about buying the house. The earnest money is deducted from the purchase price at closing and is not an additional cost. Sometimes referred to as a binder deposit.

Earthquake Insurance

A policy that provides coverage against damage to a home from an earthquake.

Easement

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

Economic Base

The industry within a certain geographic area that provides employment opportunities which are essential to support the community.

Effective Age

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

Effective Gross Income

Normal annual income, which may include overtime and bonuses, that is regular, consistent and guaranteed. A person’s salary is usually the prime source, but other income may qualify if it is significant, documented and stable.

Eminent Domain

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

Encroachment

A property improvement or obstruction that physically intrudes upon the property of another.

Encumbrance

Anything that affects the title to a property such as a mortgage, judgment, or easement.

End Loan

The permanent financing that is obtained to refinance a short-term, construction loan once the construction of the property is completed.

Endorsements

Additions to a title insurance policy for special coverage such as surveys, environmental and state particular endorsements that are not included in the standard insurance policy. Some lenders may include related fees in the cost of the title insurance.

Endorser

A person who signs ownership interest over to another party.

Equal Credit Opportunity Act (ECOA)

The federal regulations that require lenders to make credit equally available to all without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

Equifax

Equifax Credit Information Services, Inc., is one of the "Big Three" credit-reporting repositories that operate nationwide. The other major providers are Experian and TransUnion. For more information about Equifax, visit there website at http://www.equifax.com.

Equity

An owner's financial position in a property. Equity is the difference between the property's value and the amount that is owed on mortgages.

Escrow

Funds paid by one party to another to be held until a specific date when the funds are released to a designated individual. Generally, an escrow account refers to the funds a mortgagor pays to the lender along with their monthly principal and interest payments for the payment of real estates taxes and hazard insurance. This is also referred to as impounds. The money is held by the lender to make payments when they are due. An escrow can also refer to funds that are held by a third party to insure the completion of repairs or improvements that must be completed on the property but that cannot be done prior to closing.

Escrow Account

The account that funds are held in by the lender for the payment of real estate taxes and/or homeowner's insurance. Can also refer to the account that funds are held in for the completion of repairs or improvements to a property that cannot be completed prior to closing.

Escrow Analysis

A periodic review of escrow accounts to determine if current monthly deposit balances will provide sufficient funds to pay property taxes, hazard insurance and other bills when they come due.

Escrow Payment

The portion of a borrower’s monthly mortgage payment that is held by the loan servicing company to pay for property taxes, hazard insurance, mortgage insurance and other items as they become due.

Escrow Waiver Fee

A fee charged by some lenders to remove the requirement that an escrow account for the payment of property taxes, hazard insurance and other bills when they come due. If an escrow account is not established, the borrower is responsible for these payments directly.

Estate

The nature and extent of interest that an individual has in real property (degree of ownership). Also, the combined total of all real and personal property owned by an individual at the time of their death.

Exam Fee

A fee associated with an inspection by a title company of public records and other documents to determine the chain of ownership of a property.

Examination of Title

The report on the title of a property from the public records. Not as thorough as a full title search.

Exclusive Listing

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

Executor

A person named in a will to administer an estate. Most Courts will appoint an administrator if no executor is named. (The feminine form is executrix)

Experian

Experian Americas is one of the "Big Three" credit-reporting repositories that operate nationwide. The other major providers are Equifax and TransUnion. For more information about Experian, visit their website at www.experian.com