We are committed to making the purchase or sale of your home as simple and easy as possible. During this process, you may encounter real estate terminology that is new to you. Following is a guideline of real estate terms, as well as financial and architectural terms to help you during the purchase or sale of your home.
The economic life is the period of time during which property is financially beneficial to an owner.
Effective interest rate is the actual rate of interest paid on a loan.
Egress is the exit from a building or parcel of land.
Enabling acts are laws passed by state legislatures authorizing cities and counties to regulate land use within their jurisdictions.
Encroachment is the trespassing on the land of another by a structure or other object.
An encumbrance is a claim, lien, charge or liability attached to and binding upon real property.
The environment impact statement is a requirement of the State Environmental Quality Review Act prior to initiating or changing a land use that may have an adverse effect on the…
The EPA is a federal agency that oversees land use.
ECOA is a federal law prohibiting discrimination in consumer laws.
Equitable title is an interest in real estate such that a court will take notice and protect the owner’s rights.
Equity is the difference between what something is worth and any loan secured by the asset (i.e. the value of a property less the outstanding mortgage). For example, if a…
The equity of redemption is the borrower’s right to redeem the title pledged or conveyed in a mortgage or deed of trust after default and prior to a foreclosure sale…
Erosion is the wearing away of land by water, wind or other processes of nature.
Escheat is the right of the government to take title to property left by a person who dies without leaving a valid will (intestate) or qualified heirs.
A state where consideration, benefits, legal rights, document, or a sum of money is held by one person in trust for another, for the purpose of assuring performance under an…
Estate refers to the collection of all assets of a deceased person. It is also the extent of interest a person has in real property.
Estate at sufferance is the continuation to occupy property after legal authorization has expired.
Estate at will is a leasehold condition that may be terminated at any point by either party.
This is the interest of real property that ends with the death of a person.
Estate for years is a leasehold condition of definite duration.
Estate from year-to-year is a leasehold state that automatically renews itself for consecutive periods until terminated by notice by either party; also called estate from period-to-period or periodic tenancy.
Estate in real property is an interest sufficient to provide the right to use, possession, and control of land. It also establishes the degree and duration of ownership.
An estoppel certificate is a document executed by a mortgagor or mortgagee setting forth the principal amount. The executing parties are bound by the amount specified.
An eviction is a landlord’s action that interferes with the tenant’s use or possession of the property. Eviction may be actual or constructive.
An exclusive agency agreement is between a broker and a seller designating the broker as the seller’s sole agent for the purpose of selling his or her property. This agreement…
An exclusive right to sell agreement is between a broker and a seller designating the broker as the seller’s sole representative for the purpose of selling property. In contrast to…
Exclusive use zoning is a type of zoning in which only the specified use may be made of property within the zoned district.
An executed contract is an agreement that has been fully performed.
An express agency is a relationship created by an oral or written agreement between a principal and an agent.
The Fair Housing Act of 1968 is a federal act prohibiting discrimination in the sale, rental or financing of housing on the basis of race, color, religion, gender or national…
This federal act prohibits discrimination in the sale, rental, financing, or appraisal of housing on the basis of race, color, religion, gender, national origin, handicap, or familial status.
An amendment to the Fair Housing Act that prohibits discrimination based on a mental or physical handicap, or family status.
The fair market value is the price for a property agreed upon between a buyer and seller in a competitive market.
Fannie Mae is the nickname for the Federal National Mortgage Association (FNMA), a privately owned corporation that purchase FHA, VA, and conventional mortgages.
The fascia is the area facing the outside of a soffit in house construction.
The Federal Housing Administration is a federal agency that is part of the Department of Housing and Urban Development (HUD) that sets policy for mortgage underwriting and provides insurance for…
Fee simple absolute is the inheritable estate in land providing the greatest interest of any form of title.
An FHA insured loan is a mortgage insured by the Federal Housing Administration.
The finance charge is the amount imposed on the borrower in a mortgage loan, consisting of origination fee, service charges, discount points, interest, credit report fees, and finders’ fees.
A loan secured by personal property, such as real estate property. The stock and lease of a cooperative corporation also constitute such personal property, and a loan secured by these…
A first mortgage is a mortgage whose lien is superior to the lien of any other mortgage on the same property. This lien is superior either because it was recorded…
A fixed lease is when the rental amount remains the same for the entire lease term; also called flat, straight or gross lease.
A loan secured by real estate that has a fixed interest rate and payment amount for the term of the loan (normally 15 or 30 years).
A fixture is an item (appliance, light fixture, etc.) that is permanently attached to a property.
Flashing is a metal material used in parts of the roof or walls to prevent water from penetrating the structure.
A levy issued on the transfer of ownership by a cooperative corporation or condominium association against the seller, typically, though it may be against the buyer.. The flip tax is…
A type of loan where the interest rate is not fixed over the term but is allowed to vary according to the change in a specified index, and is also…
A floating slab is a type of foundation constructed by pouring the footing first and then pouring the slab after the footing has set.
The footing is the concrete base below the frost line that supports the foundation of the structure.
Foreclosure is an enforcement process in which the lender under a defaulted mortgage takes title to the property for the purposes of selling it to recoup moneys owed under the…