Glossary of Terms
Mortgage. Real Estate & Insurance
- Earnest Money
- Earnest Money, also known as a Deposit or Down Payment, is made by a purchaser of real estate as evidence of good faith.
- Right to the limited use or enjoyment of land held by another. An easement is an interest in land to enable sewer or other utilities lines to be laid, or to allow for access to a property. In another word, an Easement is an interest in land/property owned by another that entitles its holder to a specific use or enjoyment.
- Economic Life
- Estimated period of time during which a property can be utilized profitably.
- EFFECTIVE DATE
- This is the date a new mortgage payment is effective-the month following the rate change date.
- Effective Gross Income
- Income that is verifiable and likely to continue during the first five (5) years of the term of the mortgage.
- EQUITY LINE OF CREDIT (HELOC)
- A combination of a line of credit and equity loan secured by real property. A maximum loan amount is established based on credit and equity. A mortgage is recorded against the potential borrower's property for said maximum loan amount. The potential borrower has the right to borrow, as needed, up to the amount of the credit line.
- Delivery of something of value by a grantor to a 3rd party for delivery to the grantee upon the happening of a contingent event. In some states, all instruments necessary to the sale are delivered to a 3rd party, with instructions as to their use. Normally, in a residential real estate sale, the attorney for the seller is the "escrow agent" for the deposit money securing the deal until closing.
- Escrow Payment
- Portion of a mortgagor's monthly payments held by the lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also known as impounds or reserves in some states.
- EXCEPTIONS TO TITLE
- Claims against the property as of the date of the title report.
- Exclusive Right to Sell Agreement
- Exclusive Right to Sell Agreement is an agreement between a broker and a seller which designates the broker as the seller's sole representative. Under this agreement, a commission is due to the broker even if the apartment is sold directly by the owner.
- EXTERNAL OBSOLESCENCE
- Any influence negatively affecting a property's value that falls outside of the specific property site. An example of this would be a property located under an airport flight pattern.