Real Estate Glossary and Dictionary

for Tax Lien E Terms

Find the Meaning of Real Estate Terms related to Tax Liens and Tax Deeds

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Early indicator - Program used by Freddie Mac to identify loans most likely to result in foreclosure.

Earnest money - A deposit made by a buyer of real estate toward the down payment to evidence good faith. This money typically is held by the real estate broker or an escrow company.

Easement - The right to use the land of another for a specific purpose. Easements may be temporary or permanent. Utility companies often use easements to install power lines and utility poles on private land. Or, property may have an easement to allow for road access to another property behind it.

Easement Appurtenant - An easement created to benefit adjacent land.

Easement by Implication  - Occurs because of necessity, such as the conveyance of a land-locked property.

Easement by Necessity - the right of an owner to cross over another's property for a special necessary purpose.

Easement by Prescription - continued use of another's property for a special purpose can convert to permanent use if certain conditions are met.

Easement in Gross - A personal right to use the land of another.

Economic Life - The time period over which an improvement to land earns more income than the cost incurred in generating the income. Profitability.

Economic Obsolescence - A loss in value due to factors outside the subject property, such as changes in competition or surrounding land use. Also referred to as external obsolescence.

Economic Rent - The amount of rental which a building would receive, if set by the market, as opposed to contract rent set by the lease.

Effective Age - The difference between the theoretical economic life of a structure and its actual remaining economic life. Maintaining the property.

Effective Gross Income - The anticipated income resulting from the estimated potential gross income from a rental property less an allowance for vacancy and bad debts.

Egress - a means of access or exit.

Ejectment - An action to gain possession of real property. An eviction.

Election to convey - A term generally associated with the notification to the VA of the lender’s intention to convey title to the VA. When the lender acquires title to the property, and has the option of conveying title to the VA, the lender must notify the VA within 15 days of title acquisition of its election to convey title using a VA Form 26-8903.

Emblements - Refers to crops which require annual planting.

Eminent domain - The right of the government or a public utility to acquire property for necessary public use, with proper compensation to the owner.

Employer-Assisted Housing - a special Fannie Mae housing initiative that offers several different ways for employers to work with local lenders to develop plans to assist their employees in purchasing homes.

Encroachment - A building, part of a building or construction that physically intrudes onto the property of another.

Encumbrance - A legal right or interest in land that affects a good or clear title and diminishes the land’s value. Common examples are zoning ordinances, easement rights, claims, mortgages, liens, pending legal actions, unpaid taxes or restrictive covenants. An encumbrance does not prevent transfer of the property to another. A title search can reveal the existence of such encumbrances, and a buyer must determine whether he wants to purchase with the encumbrance or what can be done to remove it.

Entitlement - VA home loan benefit used to guarantee a VA home loan. Also called Guaranty.

Entry and possession - A method of foreclosure used in some states in which the lender, who already owns the property, reenters it and takes possession away from the borrower, either peacefully or by court order. A form of foreclosure found in the State of New Hampshire.

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.

Equitable Conversion - a legal doctrine in some states in which, under a contract of sale, buyers and sellers are treated as though the closing has taken place in that the seller in possession has an obligation to take care of the property.

Equitable Lien - Created when justice and fairness would require a court of equity to declare such a lien exists or when conduct of parties would imply that a lien was intended.

Equitable mortgage - A document that is construed by the court to be a mortgage instrument even though on its face it is not. An example might be a land contract on which the vendee has made payment.

Equitable right of redemption - The borrower’s right to pay the balance owing prior to the holding of the foreclosure sale.

Equitable subordination - The action by which a court postpones payment to one creditor until others are paid.

Equitable Title - the interest held by one who has agreed to purchase, but has not yet closed the transaction.

Equity - The value of the unencumbered interest in real estate as determined by subtracting the total of the unpaid mortgage balances plus the sum of any current liens against the property from the property's fair market value.  The difference between the fair market value and current indebtedness, also referred to as the owner’s interest. The value an owner has in real estate over and above the obligation against the property. The difference between the market value of the property and the homeowner’s mortgage debt; the value of the property minus the balance of any loans and liens on the property.

Equity Cushion - The amount of equity required before a lender will make a loan.

Equity Loan - Junior (subordinate) loan based on a percentage of the equity.

Equity Right of Redemption - A right of the owner to avert foreclosure by paying the debt, interest, and costs.

Equity sharing - Joint ownership of a property between the owner/ occupant and the owner/investor, that results in tax advantages for both parties. Upon sale of the property, the joint owners split profits based on the percentage they own. Parents sometimes enter into such an arrangement to help their children purchase homes.

Equity Skimmer - A scam artist who assumes a loan and collects money up front, and possibly rents, then refuses to pay the payments on the assumed loan while keeping the cash paid up front.

Ernest money - A deposit that accompanies an offer to purchase property.

Escheat - The reversion of property to the state in the event that the owner dies without leaving a will or legal heirs.

Escrow - A third party that handles all funds in a real estate transaction. The buyer puts his earnest-money deposit into escrow, and the lender funds the loan into escrow. Escrow pays the real estate agents’ commissions, pays off any loans and/or liens against the property, pays real estate taxes and any

Escrow account - A third-party account used to retain funds, including the property owner’s real estate taxes, buyer’s earnest money or hazard insurance premiums. (Note - In some parts of the country, “escrow” is synonymous with “settlement,” meaning delivery of a deed and completion of sale.)

Escrow analysis - The periodic (usually annual) examination of the borrower’s escrow account to determine if sufficient amounts will be on hand for the payment of taxes, hazard insurance and mortgage insurance premiums when they become due. Analysis completed in accordance with the requirements of RESPA.

Escrow Collections - funds collected by the loan servicer and set aside in an escrow account to pay borrower expenses such as property taxes, mortgage insurance, and hazard homeowners insurance.

Escrow Disbursements - the use of escrow funds to pay real estate taxes, homeowners insurance, mortgage insurance, and other property expenses as they become due.

Escrow payment - That portion of a mortgagor’s monthly payment held in trust by the lender to pay for taxes, mortgage insurance, hazard insurance, lease payments and other items as they become due, also know as “impounds” in some states.

Escrow reimbursement - In assumptions or wrap-loan transactions, the buyer reimburses the seller for the current balance of his escrow (or impounded) funds.

Estate - All interests in the debtor’s property as of the date of the bankruptcy filing. Property of the estate includes all such interests that are not exempted by the debtor.

Estate at Sufferance - the wrongful occupancy of property by a tenant after the lease has expired.

Estate at Will - An occupation of space, for an indefinite period, which can be terminated by either the lessor or lessee at any time. Also referred to as tenancy at will.

Estate for Years - A conveyance of realty for a definite stated period of time. The term may be one year, one month, one week or even one day. No notice needed to terminate.

Estate from Period to Period - A leasehold, which is automatically renewed for the same term as in the original lease; also referred to as a periodic tenancy or an estate from period to period. Month to month rental. Notice needed to terminate.

Estate in Fee - The maximum possible estate one can possess in real property; also referred to as fee simple or fee simple absolute.

Estate for Life - see Life Estate.

Estate Tax - a tax on the value of property left by the deceased, subject to certain tax rules.

Estoppel - A bar that precludes allegation or denial of a certain fact, or facts, in consequence of previous conduct or admission. Protects one who acts in reliance upon a statement received from a party where that party later claims damages.

Estoppel affidavit - A document that is customarily taken in conjunction with acceptance of a deed-in-lieu, attesting to the fact that the borrower tenders the deed of his own free will.

Eviction - The act of forcibly removing an occupant from a property.

Exchange - under Section 1031 of the IRS Tax Code, like-kind property used in a trade or business or held as an investment can be exchanged tax-free, subject to certain conditions.

Execution Sale - The sale of property by a sheriff pursuant to a court order.

Exclusive buyer’s agent - An agent who represents the buyer and owes fiduciary duties to the buyer only and never takes listings or works for a brokerage company that takes listings.

Exclusive Listing - a written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time, but reserving the owner\'s right to sell the property alone without the payment of a commission.

Exclusive right to sell - A written agreement between the agent and the owner, whereby the owner promises to pay a fee or commission to the broker if his or her property is sold during the listing period, whether the broker finds the buyer or not.

Exclusivity period - In a Chapter 11 bankruptcy filing, the debtor has an exclusive right to file a plan of reorganization for a period of 120 days from the filing of its petition.

Exculpatory clause - A clause in a contract holding one party harmless in the event of some default.

Executor (feminine - executrix) - A person named in a will to carry out its provisions for the disposition of the estate.

Exemptions - State and Federal law provide exemptions, which are intended to provide the debtor a “fresh start” following bankruptcy. Exemptions allow the debtor to keep certain necessary property, such as a house or clothing, up to a certain limit set by statute. The debtor must claim exemptions in the bankruptcy Schedules and make an election whether exemptions are claimed under state or federal statute.

Ex Parte - (Lat. without notice) A court proceeding held with limited, or no, notice to other parties.

Express Contract - An agreement formed through the oral or written words of the parties.

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