Early Occupancy
Situation in which a buyer is permitted to take possession of real property prior to closing.

Earnest Money
A sum of money given to bind a sale of real estate, or assure payment or an advance of funds in the processing of a loan; a deposit.

Easement
A right to the limited use or enjoyment of land held by another. Also, an interest in land to enable sewer or other utility lines to be laid, or to allow access to a property.

ECOA
Equal Credit Opportunity Act. 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. Also called "Regulation B."

Effective Age
For purposes of appraisal, the physical age given to a building based on its present condition, which may differ from its actual age.

Effective Interest Rate
The actual rate of return to the investor, considering the commitment fees, loan points, or other fees. Also called yield.

Effective Yield
The annual return expressed as the face interest rate divided by the amount invested, used when a mortgage or other debt instrument is bought at a discount or premium.

Eminent Domain
The right of government bodies, public utilities, and public service corporations to take private property for public use (e.g., schools and roads) upon payment of its fair market value.

Encroachment
An improvement that illegally violates another’s property or right to use that property.

Encumbrance
Anything that affects or limits the fee simple title to property, such as mortgages, leases, easements, or restrictions.

End Loan
The final mortgage loan to the ultimate purchaser of a property, as opposed to a construction loan or other form of interim financing.

Endorsement
A signature on a negotiable instrument by which title to property mentioned therein is assigned and transferred. Also, a notation added to an instrument after execution to change or clarify its contents. In insurance, coverage may be restricted or enlarged by endorsing a policy. In FHA loans, a notation placed on the note by the FHA indicating that the loan is insured under the National Housing Act.

Engineer’s Report
A report rendered by an engineer stating the physical condition of property that has been inspected, with a summation or recommendation thereof.

Equity
Net ownership, the difference between fair market value and current indebtedness, sometimes called owner’s interest.

Equity of Redemption
The common law right to redeem property following default on a mortgage by paying the unpaid debt plus interest and costs prior to the foreclosure sale. In some states, the mortgagor has a statutory right to redeem property after a foreclosure sale.

Errors and Omissions Insurance (E&O Insurance)
Liability insurance coverage for errors, mistakes, and negligence in the usual activities of a mortgage banker. Fraudulent behavior is not included.

Escalation Clause
A clause providing upward adjustments of rent payments to cover specified contingencies. Also, a provision in a lease to provide for increases in property tax and operating expenses.

Escape Clause
A clause that allows a tenant to cancel a lease in situations that would not necessarily justify lease cancellation.

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. In some parts of the country, escrows of taxes and insurance premiums re called impounds or reserves.

Escrow Account
The segregated trust account in which escrow funds are held.

Escrow Agent
The person or organization having a fiduciary responsibility to both the buyer and seller (or lender and borrower) to see that the terms of the purchase/sale (or loan) are carried out. Also called escrow company or escrow depository.

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 Company
An organization established to act as an escrow agent.

Escrow Contract
A three-party agreement between the buyer, seller, and the escrow agent, specifying the rights and duties of each.

Escrow Overage or Shortage
The difference, determined by escrow analysis, between escrow funds on deposit and escrow funds required to make a payment when it becomes due.

Escrow Payment
That portion of a mortgagor’s monthly payments held by a lender or servicer to pay taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also called impounds or reserves in some states.

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

Estoppel Certificate
A written statement setting forth ceratin facts about a piece of real estate, such as the precise amount of indebtedness remaining.

Estoppel Letter
A statement that, in itself, prevents its issuer from later asserting different facts.

Eviction
The lawful expulsion of an occupant from real property.

Evidence of Title
Proof of ownership of property.

Examination of Title
The review of the chain of title as revealed by an abstract of title or public record.

Exception
In legal descriptions, that portion of land to be deleted or excluded. The term is also used to describe an objection to title or encumbrance on title.

Exclusive Listing
A written contract giving one 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.

Exclusive Right to Sell
A written contract giving one real estate agent the right to sell a piece of real property and entitling that agent to a commission upon sale, regardless of who finds a buyer.

Execute
Recordation of the appropriate signature on a document such as a mortgage note, to render it "in effect."

Execution
A judicial order directing an appropriate officer of the court to enforce a judgment against the property or person of the judgment debtor, in an attempt to satisfy the judgment.

Executor
A person named in a will to administer an estate. The court will appoint an administrator if no executor is named. Executrix is the feminine form.

Exempt Property
Real estate not subject to property taxes. Religious, educational, and charitable organizations generally hold exempt property.

Exit Price
The price at which property might be sold at some future date. Generally, the price used to calculate internal rate of return.

Extension
Continuation past original maturity date; continuation of a commitment.