early occupancy
The condition in which buyers can occupy the property before the sale is completed.

earnest money deposit
A deposit made by the potential home buyer to show that he or she is serious about buying the house.

earthquake insurance
A policy that provides coverage against damage to a home from an earthquake.

easement
A right of way giving persons other than the owner access to or over a property.

eaves
The projecting overhang at the lower edge of a roof.

effective age
An appraiser’s estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.

effective gross income
Additional income that a lender considers when assessing the loan application of a potential borrower.

Effective Rate
The effective rate is a consumer-oriented rate that takes into account the projected amount of time you tell us you will actually have the loan, as well as the specific costs, fees, and potential rate changes associated with it. The fees and costs are distributed over the time you plan to be in the house, allowing you to do an apples-to-apples comparison of a variety of loan types. The effective rate is not the APR. It is similar in that it factors in interest, mortgage insurance, and other fees (including points); however, the APR assumes that you keep your loan for the entire term, while the effective rate takes into account how long you tell us you plan to be in your house. 

efflorescence
White, powdery substance on concrete, stucco, or other masonry caused by water-soluble salts leaching to the surface.

electric service panel
A panel that transfers power from the utility line into a house to be distributed through fuses or circuit breakers. 

electronic transfer
The process of having a mortgage payment automatically deducted from a borrower's checking or savings account. Many lenders offer this service.

elevations
The exterior view of a home design that shows the position of the house relative to the grade of the land. 

ell
An extension or wing of a house that is at right angles to the main structure.

eminent domain
The right of a government to take private property for public use upon payment of its fair market value. Eminent domain is the basis for condemnation proceedings.

employer-assisted housing
Programs which help employees purchase homes through special plans developed with lenders.

empty nesters
Potential buyers who have raised their families and want to move into a smaller home.

encroachment
An improvement that intrudes illegally on another’s property.

encumbrance
Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.

end loan
The conversion from a construction loan to permanent financing a condominium buyer secures after all units in a project have been completed.

endorser
A person who signs over ownership of property to another party.

English Tudor style
An architectural design that features stone or brick exterior walls and exposed beams.

environmental impact statement
A government-mandated evaluation of all aspects and effects a development will have on the environment of a proposed site.

environmentally friendly home construction
A method of construction that utilizes recycled materials.

Equal Credit Opportunity Act (ECOA)
A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

equalization
A mass appraisal or reappraisal of all property within a jurisdiction for the purpose of equalizing values to assure that each taxpayer is bearing a fair share of the tax load.

Equifax
Equifax Credit Information Services, Inc., is one of the "Big Three" credit-reporting bureaus that operate nationwide. Address: P.O. Box 740249, Atlanta, GA 30374. URL: http://www.equifax.com. Phone: (800) 685-1111.

equity
A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage and other liens.

errors and omissions insurance
A policy that pays for mistakes made by a builder or architect.

escheat
A situation in which the ownership of property reverts to the state when the owner dies without leaving a will.

escrow
An item of value, money, or documents deposited with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow until delivered to the seller when the transaction is closed.

escrow account
Once you close your purchase transaction, you may have an escrow account or impound account with your lender. This means the amount you pay each month includes an amount above what would be required if you were only paying your principal and interest. The extra money is held in your impound account (escrow account) for the payment of items like property taxes and homeowner’s insurance when they come due. The lender pays them with your money instead of you paying them yourself.

Escrow Agent
A person with fiduciary responsibility to the buyer and seller, or the borrower and lender, to ensure that the terms of the purchase/sale or loan are carried out.

escrow analysis
Once each year your lender will perform an "escrow analysis" to make sure they are collecting the correct amount of money for the anticipated expenditures.

escrow closing
Escrow closes when all conditions of a real estate transaction are met and the title of the property is transferred to the buyer.

escrow company
A firm that acts as a neutral third party to ensure that all conditions established by the buyer, seller, and lender in a real estate transaction are met.

escrow disbursements
The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.

escutcheon
A shield or decorative plate for door hardware, plumbing fixtures, etc.

estate
The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.

estimated closing costs
An estimate of expenses incidental to the sale of real estate, including loan, title, and appraisal fees. These costs are in addition to the price of the property, and are prepaid at closing. Some are one-time expenses and some are recurring.

estimated hazard insurance
An estimate of hazard insurance, also known as homeowner's insurance or fire insurance, to cover physical risks such as fire and wind damage. Lenders usually require coverage at least equal to the replacement value of the home.

estimated property taxes
An estimate of property taxes to be paid semiannually, or monthly if the lender requires. The amount is based on local tax rates and assessed property value, which is based on the most recent sale price plus assessment updates (subject to local policies).

estimated taxes and insurance
A calculation of monthly estimated taxes and insurance, used by a lender to evaluate a borrower's effective monthly housing expense.

estoppel
Agency situation in which one party incorrectly states that another person is the agent, and a third person relies on that representation.

European style
A cabinetry term referring to a style of cabinet without a face frame. Also known as box cabinets.

evaporator
A system of coils in a refrigeration (or air conditioning) system that, when filled with cold refrigerant, cools the air around it. On a refrigerator, the evaporator is the coil inside the unit; an air conditioner's evaporator is inside the plenum on the furnace or air-handler.

eviction
The lawful expulsion of an occupant from real property.

examination of title
The report on the title of a property from the public records or an abstract of the title.

excavation
The process of clearing trees, removing topsoil and grading land before a foundation is laid.

exceptional depreciation
A term used to describe damages to a building that are not the result of normal wear and tear.

exclusive agency
An agreement to employ a particular broker. If another broker makes the sale, both are entitled to commissions.

exclusive buyer's agent (EBA)
An agent, company, or franchise working exclusively for buyers as a fiduciary agent. EBAs do not represent sellers or list properties.

exclusive listing
A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time.

executed contract
A contract in which all parties have fulfilled their promises.

executor
A person named in a will to administer an estate. The court will appoint an administrator if no executor is named. "Executrix" is the feminine form.

exemption
The removal of property from the tax base. An exemption may be partial or complete.

exfiltration
Air leakage from a building's interior to the environment.

exhaust fan
Ventilating devices that remove water vapor, undesired smells, or smoke.

Experian
Experian, formerly known as TRW Information Systems & Services, is one of the "Big Three" credit-reporting bureaus. Address: 505 City Parkway West, Orange, CA 92868. Phone: (800) 392-1122.

express agreement
An contract in which the parties express their intentions in words.