University of Phoenix
University of Phoenix

Search for glossary terms (regular expression allowed)
Begins with Contains Exact term
All | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | Y | Z


Term Definition
Earnest Money
A deposit that a buyer of real estate makes in order to show that he or she is serious about completing the deal; a show of "good faith."

One party’s privelege, right, or interest in the land of another party.

Easement by Necessity
The right of an owner to enter another’s property for a certain necessary purpose.

Easement by Prescription
By meeting certain conditions, an owner may convert continued use of another’s property (for a special purpose) to permanent use.

Effective Mortgage Rate
Blended mortgage rate adjusted for leverage. If you are borrowing at 80% LTV, for example, with a rate of 10%, your effective mortgage rate is 8%. A quick and useful performance measure is to subtract your effective mortgage rate from the Cap Rate. If the result is positive, you should expect positive cashflow.

A method of access and/or exit.

Eminent Domain
The right of the government or a public utility to condemn a property in order to acquire it for necessary public use. Under eminent domain laws, the acquiring party must pay the owner fair compensation.

Employer-Assisted Housing
A housing initiative by Fannie Mae that offers a number of different ways in which employers may work with local lenders to develop plans to help their employees in buying homes.

A building or any part of a building that physically overlaps, intrudes upon, or trespasses upon the property of another. This also may include other fixtures or obstructions on the property that are not actually part of the building.

Any right to or interest in land that may affect its value in a transaction. This may include unpaid taxes, mortgage loans, junior liens, easements, or deed restrictions.

Equal Credit Opportunity Act (ECOA)
A federal law that states that lenders and other creditors must make credit equally available, with no discrimination based on race, color, national origin, religion, age, sex, marital status, or public assistance income.

Equitable Conversion
A legal doctrine effective in certain states. Equitable conversion laws state that under a contract of sale, buyers and sellers are treated as if a closing has taken place in the sense that the seller in possession is required to take adequate care of the property.

Equitable Title
The interest held by a party who has agreed to purchase a property, but has not yet actually closed the transaction.

The value of the unencumbered interest in a piece of real estate. Equity is determined by subtracting the total of unpaid mortgage balances, plus any outstanding liens against the property, from the fair market value of the property.

In the event that the owner of a property dies without leaving a will and has no legal heirs, ownership of the property will revert to the state.

An agreement under which property or instruments are placed with a third party for safekeeping, then returned to the owner after the fulfillment of a specific condition.

Escrow Account
An account from which funds can be withdrawn only for specific reasons stated in a contract. In lending, these accounts are usually used to hold and disburse real estate taxes and hazard insurance premiums which are paid in advance by the borrower.

Escrow Analysis
A periodic examination of escrow accounts that determines whether the current amount of monthly deposits is enough to pay taxes, insurance, and other bills at the time that they are due.

Escrow Collections
Funds that are collected by the loan servicer, then deposited into an escrow account. These funds are used to pay borrower expenses such as property taxes, mortgage insurance, and hazard homeowners insurance.

Escrow Disbursements
The act of using escrow funds to pay real estate taxes, homeowners insurance, mortgage insurance, and other expenses from the property.

Escrow Payment
A loan servicer will hold a part of the borrower's monthly payment to be used to pay for taxes, hazard homeowners insurance, mortgage insurance, lease payments, and other items as they become due.

A person’s interest in a real property, measured by the degree, extent, and nature of interest.

Estate at Sufferance
A tenant’s unlawful occupancy of a property after his or her lease has expired.

Estate for Life
See Life Estate.

Estate Tax
A tax that is applied to a property left behind by a deceased party. This is subject to certain tax rules that may vary by state.

A doctrine that states that a person may not acknowledge facts as true and later deny them.

A legal proceeding that a lessor (landlord) must carry out in order to recover a property from a tenant occupying it.

Like-kind property that is used in a business or trade or held as an investment may be exchanged without any tax applied to the transaction, subject to certain conditions, under Section 1031 of the IRS Tax Code.

Exclusive Listing
A written contract giving a licensed real estate agent the exclusive right to sell a property for a specific and limited time. The contract retains the owner’s right to sell the property alone without the payment of a commission.

Exculpatory Clause
A stipulation in a mortgage that allows a borrower to surrender the property to the lender with no personal liability.

Investment - Companies
Connect with us