Early Occupancy: Occurs when a buyer or tenant is allowed to move into a property before the official closing or lease start date. This arrangement is typically governed by a separate agreement outlining the terms and any associated fees or responsibilities.
Earnest Money: A deposit made by the buyer to demonstrate their serious intent to purchase a property, often held in escrow until the closing.
Easement: The legal right to use or access another person's property for a specific purpose, such as a shared driveway or utility lines. An easement can be granted by the owner of the property, or it can be established through laws or legal precedent. Easements can take a variety of forms and can be used for different purposes. For example, an easement may grant the right to access a property to maintain utility lines or other infrastructure. An easement may also grant the right to use a shared driveway or access a property to hunt or fish.
Easements can be either affirmative or negative. An affirmative easement grants the right to do something on the property, such as use a shared driveway. A negative easement, on the other hand, restricts the use of the property in some way, such as preventing the owner from blocking a view or access to light.
Effective Age: The perceived age of a property based on its condition and level of depreciation, rather than its actual age. The effective age takes into account factors such as maintenance, renovations, and overall wear and tear that may have either accelerated or slowed down the aging process of the property.
Encroachment: An unauthorized intrusion or physical trespass onto another person's property by a structure, improvement, or other encumbrance.
Encumbrance: A legal claim or liability that affects the ownership or use of a property. Encumbrances can include mortgages, liens, easements, restrictions, or any other limitations that restrict the transfer or free use of the property.
End Loan: Also known as a "take-out loan," it is a type of long-term financing that replaces a short-term construction loan or interim financing used during the construction or renovation of a property. The end loan provides the borrower with permanent financing once the construction or renovation is completed.
Endorser: An individual or entity who signs the back of a negotiable instrument, such as a check or promissory note, to transfer ownership or to guarantee payment.
Environmental Impact Statement (EIS): A document prepared to assess and disclose the potential environmental effects of a proposed project or action. It provides a comprehensive analysis of the project's potential impacts on the environment, including factors such as air and water quality, wildlife, ecosystems, cultural resources, and socioeconomic aspects.
Equity: The difference between the market value of a property and the outstanding balance of any liens or mortgages on it.
Equivalent Level Rate (ELR): A method used to calculate the equal monthly payment required to repay a loan or mortgage over its term. The ELR takes into account both the principal amount and the interest accrued, ensuring that the total amount is distributed evenly over the loan term.
Errors and Omissions Insurance (E&O Insurance): A type of professional liability insurance that provides coverage for professionals and businesses in case of claims made against them for negligence, errors, or omissions in their professional services or advice.
Escalation: An increase in costs or prices over time, often addressed through escalation clauses in contracts or lease agreements to account for inflation or rising expenses.
Escrow: A neutral third-party account where funds and documents are held during a real estate transaction, to be released upon completion of specific conditions. The escrow process is typically used when the buyer and seller of a property want to ensure that certain conditions are met before the transaction is completed.
Escrow Costing: The fees and expenses associated with establishing and maintaining an escrow account during a real estate transaction.
Estate: In real estate, an estate refers to the ownership interest that an individual or entity has in a piece of property. It represents the bundle of legal rights and privileges associated with the property, including the right to occupy, use, sell, lease, or transfer the property.
Estoppel: A legal principle that prevents someone from going back on their word or denying something they previously agreed to, especially in real estate contracts. It stops a person from changing their position after another party has relied on their promises or actions, ensuring fairness and preventing unfair treatment.
Eviction: The legal process through which a landlord removes a tenant from a rental property against their will. It occurs when a tenant violates the terms of the lease agreement, such as non-payment of rent, breach of contract, or illegal activities on the premises.
Exclusive Listing: A contractual agreement that grants a real estate agent or broker the sole right to market and sell a property within a specified timeframe.
Executor: A person or entity appointed in a will to carry out the instructions and wishes of a deceased individual, often referred to as the testator. The executor is responsible for managing the estate, including distributing assets, settling debts and taxes, and handling any legal or administrative matters related to the estate.
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