EARNEST MONEY DEPOSIT (EARNEST MONEY)

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 to persons other than the owner to access to or over a property.

ECONOMIC LIFE
The length of time an improvement to real estate can be expected to provide more value than its operating or upkeep costs.

ECONOMIC OBSOLESCENCE

Loss of value of real property due to external forces or events; eg., a sewer plant is built next door to the subject property.

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.

EMINENT DOMAIN

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

EMPLOYER-ASSISTED HOUSING

A special Fannie Mae housing initiative that offers several different ways for employers to work with local lenders to develop plans to assist their employees in purchasing homes.

ENCROACHMENT

An improvement that physically intrudes or trespasses on another's property.

ENCUMBRANCE

Anything that affects or limits the Fee Simple title to a property, such as mortgages, leases, easements, deeds, or restrictions.

ENDORSER

A person who signs a check or promissory note over to another party. Contrast with co-signer.

EQUAL CREDIT OPPORTUNITY ACT (ECOA)

A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

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 any home loans or liens against the property.

EQUITY LOAN
A loan to a home owner secured against the equity the owner enjoys in the property.

ERRORS AND OMISSIONS INSURANCE
Professional protection from liability for mistakes, negligence, etc.

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 deposit by a borrower with the lender of funds to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.

ESCROW (OR IMPOUND) ACCOUNT

The account in which a loan servicer holds the borrower's escrow payments prior to paying property expenses, such as property taxes or homeowners insurance.

ESCROW AGENT

Any independent third party who receives items to be held in escrow, holds such items until transfer is allowed, and then delivers them.

ESCROW ANALYSIS

The periodic examination of escrow accounts to determine if current monthly deposits will provide sufficient funds to pay taxes, insurance, and other bills when due.

ESCROW COLLECTIONS

Funds collected by the loan servicer and set aside in an escrow account to pay borrower expenses such as property taxes, mortgage insurance, and hazard homeowners insurance.

ESCROW CLOSING

The completion of a transaction whereby documents, consideration etc. are held in trust (either by the parties and their representatives or by an independent third party) pending the completion of certain conditions, at which time the items held in escrow are released and the transaction is completed.

ESCROW DISBURSEMENTS

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

ESCROW PAYMENT

The portion of a borrower's monthly payment that is held by the loan servicer to pay for taxes, hazard homeowners insurance, mortgage insurance, lease payments, and other items as they become due. Known as "impounds" or "reserves" in some states.

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 TAX

A government levy against the property in the estate of a deceased person, payable out of the estate.

ET AL

Latin meaning "and others".

ET CON

Latin meaning "and husband".

ET UX

Latin meaning "and wife".

EVICTION

A legal proceeding by a landlord to recover possession of real property from the tenant.

EXAMINATION OF TITLE

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

EXCLUSIVE LISTING

A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time, but reserving the owner's right to sell the property alone without the payment of a commission.

EXECUTED CONTRACT

1. A contract which has been completely carried out by the parties.
2. A contract which has been signed by the parties.

EXECUTION

1. The act of signing a legal document.
2. A writ filed with a Sheriff of a jurisdiction evidencing a legal claim against the person named in the Writ. May attach to real property owned by the person named in the writ.

EXECUTOR

The person or people appointed in a will to give effect to the wishes of the testator (the maker of the will) as set out in the will. A female executor may be called "Executrix".

EXPOSURE (MARKET)

A term used to describe the presence, through advertising, of a property that is for sale in the marketplace.