Glossary of Real Estate Terms

E

EASEMENT
The right acquired for access over another person’s land for a specific purpose, such as for a driveway or public utilities.


ECONOMIC DEPRECIATION
Loss in value of property due to external influences related to the property or not controlled by the owner.


EFFECTIVE GROSS INCOME
The estimated gross income less allowances for vacancies and rent losses.


EFFECTIVE INTEREST RATE
The actual interest rate on investment where a debt or loan was bought at a discount or at a premium.


ENCROACHMENT
A fixture, such as a wall or fence, which illegally intrudes into or invades on public or private property diminishing the size and value of the invaded property.


ENCUMBRANCE
Outstanding claim or lien recorded against property, or any legal right to the use of the property by another person who is not the owner e.g. a mortgage.


END LOAN
The mortgage loan to the final customer, such as a purchaser of a condominium unit.


EQUITY
The value of real estate over and above the mortgage(s) against it.


EQUITABLE MORTGAGE
The transfer of equity in property as security for a debt. Any mortgage registered after the first mortgage.


EQUITY OF REDEMPTION
The right of the mortgagor to reclaim clear title to the real property upon full repayment of the debt.


ESCROW ACCOUNT
An account held by an agent on behalf of his principal for the payment of money due to a third party on the event of specified incidents, e.g. a vendor’s solicitor will hold funds on his behalf until title deeds to a property have been delivered and the property registered and the keys delivered to the purchaser; or an account maintained by a mortgagee for the payment of property taxes or life insurance premiums.


ESCHEAT
The reversion of property to the state in event the owner thereof dies leaving no will and having no legally qualified heir to whom the property may pass by lawful descent.


ESTATE
The degree, quantity, nature and extent of interest which a person has in real property.


ESTOPPEL CERTIFICATE - now called a STATUS CERTIFICATE
A written statement or certificate which states certain facts upon which the receiver of the statement or a third party may rely, e.g. Lender’s estoppel statement as to a purchaser or property. The lender cannot later deny the truth of these statements because a third party has relied and acted upon them.


EXACT DAY INTEREST
Interest calculated on the basis of 365 days per year or 366 days in a leap year.


EXCULPATORY CLAUSE
A clause which excuses one party from personal liability in the event of a default. EXPROPRIATION The act of forcefully taking private property for public use.


EXTENSION AGREEMENT
The lengthening of a term on a contract to extend the maturity date; or to permit more time for the performance of an obligation or condition; or the extension of the coverage of a lien to include more property.

 

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