MORTGAGE TERMS DICTIONARY
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Earnest Money |
| A deposit made by a buyer of real estate towards the down payment to evidence good faith. This money is typically held by the real estate brokers or the escrow company. |
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Easement |
The right to use the land of another for a specific purpose. Easements may be temporary or permanent.
Example : The utility company may need an easement to run electric lines. |
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Eminent Domain |
| The right of the government or a public utility to acquire property for necessary public use by condemnation, with proper compensation to the owner. |
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Encroachment |
| A building, a part of a building, or an obstruction (e.g.. a fence or a wall) that physically intrudes upon or overlaps into the property of another. |
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Encumbrance |
| A legal right or interest in land that affects a good or clear title, and diminishes the land's value. It can take numerous forms, such as zoning ordinances, easement rights, claims, mortgages, liens, charges, a pending legal action, unpaid taxes, or restrictive covenants. An encumbrance does not legally prevent transfer of the property to another. A title search is all that is usually done to reveal the existence of such encumbrances, and it is up to the buyer to determine whether he wants to purchase with the encumbrance, or what can be done to remove it. |
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Equity |
| Equity=Property Value - Loans/Liens Against the property.
Equity is typically expressed as a percentage of the property value. |
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Equity Sharing |
| Joint ownership of a property between the owner/occupant and the owner/investor, that results in tax advantages for both parties. Upon sale of the property the joint owners split profits based on the percentage they own. |
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Escrow |
| Neutral third party that handles all funds in a real estate transaction. The buyer puts his deposit into escrow, the lender funds the loan into escrow. Escrow pays the real estate brokers commission, pays off any loans/liens against the property, pays real estate taxes and any other fees associated with the transaction and sends the balance of the money to the seller.
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| | See Also : Impound Account |
Escheat |
| The reversion of property to the state in the event that the owner dies without leaving a will and has no legal heirs. |
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Executor |
| A person named in a will to carry out its provisions for the disposition of the estate. |
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Executrix |
| Female Executor |
| | See Also : Executor |
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