Waterfront Properties Condos Homes with Docks
Destin Vacation Properties Destin Beach Condos
Real Estate
Glossary
AIBICIDIEIFIGIHIIIJILIMINIOIPIQIRISITIUIVIWIZI
EARNEST MONEY DEPOSIT:
A sum of money paid by a potential purchaser as proof of her intention to
complete the purchase transaction. Held in trust, usually by the Listing Agent,
and credited to Purchaser off purchase price. May be forfeited if Purchaser
fails to complete transaction.
EASEMENT:
The right of the owner of one parcel of land to use all or part of the land of
another for a specific purpose. Runs with the land. Requires one property to be
in dominant position (enjoys the benefit of the easement) and one property to be
in servient position (is subject to the right).
EASEMENT BY NECESSITY:
A land owner's right to make use of the property of another (or a portion of it)
for a specific purpose, when such use is required to allow the land owner to
enjoy his own land.
EASEMENT BY PRESCRIPTION:
The continuing, unchallenged use of all or part of a property by the owner of a
neighboring or nearby property for a specific period of time (20 years in many
jurisdictions) such that, by law, the using owner gains a legal right to
continue that use.
EASTLAKE HOUSE:
A house which is remarkable for its three-dimensional ornamentation following a
nineteenth-century style.
ECONOMIC BASE:
The commercial or industrial foundation of a community which provides
opportunities for employment.
ECONOMIC DEPRECIATION:
The decline in value of a property which is caused by reasons outside of the
property itself.
ECONOMIC LIFE:
The length of time an improvement to real estate can be expected to provide more
value than its operating or upkeep costs.
EFFECTIVE AGE:
An appraisal term for the age of improvements to a property based on an
assessment of their current condition (i.e. a well-maintained 100-year-old house
could have an effective age of 10 years while a ramshackle, unmaintained
20-year-old house could have an effective age of 50 years). Opposite of "actual
age".
EFFECTIVE GROSS INCOME:
1. For borrowers, the actual amount of money earned from stable sources over a
set period (i.e. a month) before taxes and expenses are deducted.
2. For rental properties, the amount of income the property will produce if
leased at market value before costs, taxes, upkeep and discounts for vacancy are
deducted.
EFFECTIVE RATE:
The actual rate (or interest or return) once all factors are accounted for
(factors include compounding of interest or costs of earning the return).
EFFICIENCY RATIO:
A comparison of the space in a building available for lease to the total space
of the building.
EFFICIENCY UNIT OR APARTMENT:
A term for a small dwelling unit in which kitchen and sometimes bath areas are
combined with the living area. Also known as "bachelor apartment" or
"studio apartment".
EGRESS:
Means of exit from a room, building or property (often to a road).
EJECTMENT:
Legal proceeding to evict a tenant without a lease.
ELIZABETHAN OR HALF TIMBER STYLE:
A two-storey or two-and-a-half storey, English-style house which has the upper
storey overhanging the first, often with stone and stucco walls and half-timber
beams.
EMINENT DOMAIN:
The right of a body of government (often a state) to expropriate private
property, while paying appropriate compensation to the owner.
EMPTY NESTERS:
Middle-aged or older couples whose children have grown up and "left the
nest" to live on their own. Often looking to sell a larger house and buy a
smaller one.
ENCROACHMENT:
The intrusion across the property line and into one property of an improvement
to a neighboring property. May result in a claim for adverse
possession if the encroachment is unchallenged for a long period of time.
ENCUMBRANCE:
Any right, interest or other claim against land which is registered on title and
affects the owner's ability to sell the property.
ENDORSER:
The person who signs a document to represent the transfer of property to
another.
ENERGY EFFICIENT:
A description of a property which has special features aimed at reducing use of
electrical or heating power (i.e. insulation, double-insulated windows,
high-efficiency furnace, etc.).
ENERGY TAX CREDITS:
A tax break given to property owners who took steps to save energy in their
property such as installing insulation.
ENTITLEMENT:
1. The legal right to a benefit or program.
2. Name for the VA home loan benefit.
ENVIRONMENTAL IMPACT STATEMENT (EIS):
A report on the anticipated effect of a development on the local environment.
May be required for federal funding for the development.
ENVIRONMENTAL PROTECTION AGENCY (EPA):
U.S. government agency for the protection of the environment.
EQUAL CREDIT OPPORTUNITY ACT:
U.S. federal law aimed at affording people of all races, genders, religions,
ages etc. an equal chance to borrow money.
EQUALIZATION BOARD:
Agency with a mandate to ensure fairness in property tax assessments.
EQUITABLE CONVERSION:
A common law doctrine which treats a Vendor under an Agreement for the sale of
property as holding the property in trust for the Purchaser even before the
transaction has been completed such that the Vendor is liable to the Purchaser
for any damage negligently caused to the property.
EQUITABLE TITLE:
The common law interest of the Purchaser in the property for which she has
entered an Agreement to Purchase prior to the completion of the transaction.
EQUITY:
The difference, in dollars, between the market value of a property and the
principal owing on debts secured against the property. The amount of money the
owner will be able to keep from a sale transaction once the mortgages are paid
out. Also known as "owner's interest".
EQUITY BUILDUP:
The increase over time of the owner's interest in a property, the difference
between the value of the property and the amount owed on the mortgage.
EQUITY LOAN:
A loan to a home owner secured against the equity the owner enjoys in the
property.
EQUITY OF REDEMPTION:
The right a borrower has to pay out in full a mortgage against a property that
has gone into foreclosure or power of sale proceedings, thus redeeming the
property.
EROSION:
The gradual diminishing of land or soil as a result of the action of water,
wind, rain, etc.
ERRORS AND OMISSIONS INSURANCE:
Professional protection from liability for mistakes, negligence, etc.
ESCALATOR CLAUSE:
Part of a net lease. A provision that increases the rent payable under a lease
when certain costs of the building increase (i.e. taxes, utility charges, etc.).
ESCAPE CLAUSE:
Any provision in a contract that allows one or more parties to end the contract
upon the occurrence of certain events.
ESCHEAT:
The reversion of title to a property to the state. Can occur when an owner dies
with no legal heirs or when a corporate owner is dissolved by act of law or by
voluntary act while holding legal title to the property.
ESCROW:
A state wherein consideration, benefits, legal rights, money, documents or other
valuables are transferred to another party in advance of that party's legal
entitlement to them, on the basis that the legal entitlement will arise at a
given point in the future. A form of trust.
ESCROW ACCOUNT:
A form of trust account in which advance payments are held on behalf of the
payor until the contract allows their use by the payee or a third party.
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 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 COLLECTIONS:
Moneys taken in by the agent and set aside for future payments as required by
the contract (i.e., in a mortgage situation, for taxes, insurance, etc. on the
property). Also known as "escrow deposits", "impounds" or
"reserves".
ESCROW DEPOSIT:
Similar to "escrow collections", the deposit of funds for the purpose
of future payments required under the contract.
ESCROW DISBURSEMENTS:
The payment out of escrow funds of taxes, insurance, etc. as required by the
contract. Also known as "escrow payments".
ESCROW REIMBURSEMENT:
The return to the borrower of left over funds held in escrow once the debt has
been paid out.
ESTATE:
1. The nature and extent of a person's interest in real property.
2. The term used to described the collection of assets of a deceased person.
ESTATE AT SUFFERANCE:
The continued occupation of a premises by a tenant after the lease has expired
or after the landlord has taken legal and appropriate steps to remove the
tenant.
ESTATE AT WILL:
The occupation of a premises by a tenant for an undefined period, which either
party may terminate at will.
ESTATE FOR LIFE:
Also known as "Life Estate". A legal interest in property which ends
with the death of the person who is entitled to the interest.
ESTATE FOR YEARS:
Entitlement to land which allows a person to occupy, use and enjoy the land for
a specified period of time.
ESTATE IN REVERSION:
The right of an owner to re-occupy land once the estate he has granted to
another person (such as an estate for years or an estate for life) has come to
an end.
ESTATE TAX:
A government levy against the property in the estate of a deceased person,
payable out of the estate.
ESTOPPEL:
A legal doctrine which blocks a person from taking a position on any fact which
is contrary to a position that same person previously took on that same fact.
Also blocks a party from re-opening an issue that has previously been decided by
a court.
ESTOPPEL CERTIFICATE:
A document issued by an interested party setting out certain facts to which the
issuer agrees to be bound. May be issued by a Condominium Corporation (setting
out the common element fees for a particular unit, the amount in the
corporation's reserve account, any special assessments against unit owners,
etc.), by a mortgagor or mortgagee (setting out the terms, conditions, interest
rate and principal outstanding) or by a tenant in a building to be purchased
(setting out amount of rent, the amount of any rental deposit, etc.).
ET AL:
Latin meaning "and others".
ET CON:
Latin meaning "and husband".
ET UX:
Latin meaning "and wife".
EVALUATION:
An analysis of a property regarding its potential uses rather than its current
value.
EVICTION:
The forced removal of a tenant from occupation of a property. Also known as
"Actual
eviction". See also "constructive
eviction".
EVIDENCE OF TITLE:
Instruments or documents that provide any proof or information regarding
ownership of land.
EXAMINATION OF TITLE:
Similar to a subsearch: a review of the current title to a property for the
purposes of establishing current apparent owners and encumbrances.
EXCEPTION:
An exclusion from coverage in a policy of insurance, usually referring to a
known risk or defect for which the insurer assumes no responsibility.
EXCLUSIVE AGENCY LISTING:
A contract whereby the owner of a property grants a single agent or broker the
right to market the property for sale.
EXCULPATORY CLAUSE:
The term of a mortgage giving the borrower the right simply to surrender the
property to the lender as payment for the loan without personal liability to the
borrower for any shortfall.
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".
EXECUTORY CONTRACT:
A contract which has not yet been completely fulfilled by one or more of the
parties.
EXPENSE RATIO:
A comparison of the costs of owning and operating something to its potential
gross income.
EXPOSURE (MARKET):
A term used to describe the presence, through advertising, of a property that is
for sale in the marketplace.
EXTENSION:
The postponement of the completion date of an Agreement, agreed to by the
parties to the Agreement.