E

Earnest Money: Money from the buyer deposited towards the down payment which is usually non-refundable after a specified time period as evidence of a commitment to purchase the property.  The earnest money is usually held by the escrow company.

Easement: The right to use another persons land for a specific purpose. Example: a road to get to a property.

Eminent Domain: The government’s or public utility’s right to take private property through the process of condemnation after payment of fair compensation to the owner.  Example: government needing to expand the freeway, etc…

Encroachment: The infringement of a structure (i.e. building) or improvement (i.e. wall) on another persons land. 

Entitlement: The VA home loan benefit. Entitlement for a VA guaranteed home loan, otherwise known as eligibility.

Equal Credit Opportunity Act (ECOA): Prohibits lenders and other creditors from discriminating based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs and to make credit equally available.

Equity: The value of the property less any liens against the property

Equity Line of Credit: A line of credit issued and secured by the equity in a specific property.  After a maximum loan amount is established, the borrower is able to make withdrawals and deposits as long as it meets the conditions set forth in the contract.  A home equity line of credit (HELOC) is a very popular equity line of credit that is secured by the borrower’s personal residence.

Equity Sharing: Joint ownership of a property between the occupant and investor.  Both receive tax advantages and the profits from the sale of the property are split between both owners.

Escheat: The process of the government taking over a property when the owner dies and has no legal heirs or will.

Escrow: The neutral third party that creates a trust account where all the funds of the real estate transaction are held and distributed. The escrow account also receives the funds from the lender as well as deposits from the buyer. All commissions, liens, taxes, and other fees are paid from this trust account.