A deposit made toward a down payment as a sign of
good faith. The deposit is typically made when a purchase agreement is signed.
Easement
An interest in land owned by another person, consisting of the right to use
or control the land, or an area above or below it, for a specific limited
purpose. e.g an ingress and egress easement for the right to access the land
through the land of another. The land benefiting from an easement for the right
to access the land though the land of another. The land benefiting from an
easement is called the dominant estate, while the land burdened by an easement
is called the servient estate. Unlike a lease or license, an easement may last
forever, but it does not give the holder the right to possess, take from,
improve upon, or sell the land. The Primary recognised easements are:
(1) A right of way
(2) A right of entry for any purpose relating to the dominant estate
(3) A right to support of land and buildings
(4) A right of light and air
(5) A right to water
(6) A right to do some act that would otherwise amount to nuisance
(7) A right to place or keep something on the servient estate
Economic Obsolescence
Obsolescence that results from external economic factors, such as decreased
demand or changed governmental regulations.
Effective Interest rate
The actual annual rate, which incorporates compounding when calculating
interest, rather than the stated rate or coupon rate.
Eminent domains
The inherent power of a governmental entity to take privately owned property
and convert it to public use, subject to reasonable compensation for the
taking.
Employee-Assisted Housing
A program in which an employer assists its employees in purchasing homes by
helping with the down payment, closing costs, or monthly payments.
Encroachment
An interference with or intrusion onto another's property.
Entitlement
An absolute right to a benefit granted immediately upon legal requirement.
Encumbrance
Any lien or liability attached to a property that
affects or limits the title to that property, for example unpaid taxes,
mortgages and leases.
Equal Credit Opportunity Act (ECOA)
A federal law that
requires lenders and other creditors to make credit available without discrimination
based on race, color, religion, national origin, age, sex, marital status or
receipt of income from public assistance programs. Learn more about the
ECOA layer
Equity
The difference between the fair market value (appraised
value) of your home and your outstanding mortgage balances and other liens.
Equitable Mortgage
A transaction that has the intent but not the form of a mortgage, and that a
court of equity will treat as a mortgage.
Escrow
Funds deposited with a third party, to be held until a
specific date is reached and/or a specific condition is met.
Escrow impound account /Escrow Account
Typically refers to an account set up by
a lender in which funds to pay for real estate taxes and homeowners insurance
are deposited as part of the borrower's monthly mortgage payment, then
disbursed as tax and insurance payments come due.
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 Agent
The third-party depository of an escrow. An escrow holder is not a
common-law agent because the holder does not act subject to the control of the
parties to the escrow agreement.
Escrow Agreement
The instruction given to the third-party depository of an escrow.
Escrow Contract
The contract among buyer, seller, and escrow holder, setting forth the
rights and responsibilities of each.
Eviction
The act or process of legally dispossessing a person of land or rental
property.
Exclusive Right-to-sell Listing
The right to sell a principal's products or to act as the seller's real
estate agent to the exclusion of all others, including the owner. The listing
agreement upon which the broker gets commission even if seller is the one who
sells the house during the agreement period or for a certain period thereafter.
Exclusive Agency Listing
A listing giving one agent the right to be the only person, other than the
owner, to sell the property during a specified period. A listing agreement upon
which the broker does not get a commission if the seller sells the property
themselves.
Executor
A person named by a testator to carry out the provisions of the testator's
will.
Earnings
Money gained on the principal in your financial accounts, such as an IRA.
Emerging market
Generally, economies that are in the process of growth and
industrialization. Developing markets, such as Africa, Asia, Eastern Europe,
the Far East, Latin America and the Middle East may hold significant growth
potential in the future. Investing in emerging markets may provide significant
rewards, as well as significant risks
Emerging market fund
A fund that invests primarily in emerging market countries.
Employee Retirement Income Security Act of 1974 (ERISA)
A federal law that imposes various requirements on voluntary established
pension plans in the private industry. ERISA establishes standards in order to
provide protection for plan participants.
Equity
A security or investment representing ownership in a corporation. Equity is
often used interchangeably with stock. Compare to a bond, which represents a
loan to a borrower.
Equity Fund
A fund that invests primarily in equities.
Equity wash restriction
A provision in certain stable value or fixed income products that require
transfers to be directed to an equity fund or other noncompeting investment
option. Restrictions last for a stated period of time (usually 90 days) before
those funds may be invested in any other competing fixed income fund (such as a
money market fund) provided by the plan.
Exchange traded fund (ETF)
An investment company, such as a mutual fund. ETF shares are traded
throughout the day on stock exchanges at market-determined prices.
Expense ratio
A measure of what it costs to operate an investment, expressed as a
percentage of its assets or in basis points. You pay for these costs through a
reduction in the investment’s rate of return. See operating expenses and total
annual operating expenses.
Acronyms
EIM
effective interest method
EU
European Union
ECOA
(Equal Credit Opportunity Act):
A law in the US that makes it illegal for any creditor to discrimination against an applicant based on race,religion, national origin, sex etc.