Real Estate Glossary E

Click on the beginning letter of the real estate term to find the definition.

A B C D F G H I J L M N O P Q R S T U V W Y

Effective Interest Rate: The actual cost the borrower pays in interest for his loan. Also called true interest rate.

Encumbrance: In a legal or technical sense, anything that limits or affects the ownership or property, such as a lien, mortgage, easement or restriction. In the daily language of real estate people, the term usually means a lien.

Endorsement: A signature placed on the back of a note or check to transfer ownership. An endorsement in blank guarantees payment to later holders. An endorsement without recourse, or qualified endorsement, does not guarantee payment to later holders.

Entity: A form of business organization.

Equitable Title: The ownership held by a buyer after he has contracted to buy property but before legal title has been conveyed to him.

Equity: The value or interest an owner has in property over and above any indebtedness owed on the property.

Equity in Property: The current market value of a property less the amount of all liens and charges against it.

Equity Loan: Subordinate loan based on a percentage of the equity.

Equity of Redemption: Also called right of redemption. The right of an owner to redeem his property after he has defaulted on a mortgage.

Equity Return: Dollars paid to principle on a loan that reduces the outstanding balance.

Escalation: The raising of some item, such as the interest rate or size of installment payments. The right to escalate the interest rate or size of payment may be given by contract to the lender under specified conditions.

Escalator Clause: A clause providing that an item will be adjusted upward or downward under certain conditions. For example, a note may provide that the interest rate goes up or down as the cost of living index rises or falls.

Escrow: The system by which money documents, personal property, or real property is held in trust for another party by a disinterested third party until the terms and conditions of the escrow instructions are completed or terminated.

Escrow Officer: An employee of an escrow agent who has the responsibility of handling and closing escrows.

Estoppal Certificate: An instrument executed by a note payer setting forth the status of and the balance due on the promissory note as of the date of the execution of the certificate.

Extension Agreement: An agreement giving additional time in which to pay money or perform some other obligation.