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Earnest money deposit: A deposit made by the potential home buyer to show
that he or she is serious about buying the house.
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Easement: A right of way giving persons other than the owner access to or
over a property.
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Effective age: An appraiser’s estimate of the physical condition of a building.
The actual age of a building may be shorter or longer than its effective age.
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Effective gross income: Normal annual income including overtime that is regular
or guaranteed. The income may be from more than one source. Salary is generally
the principal source, but other income may qualify if it is significant and stable.
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Eminent domain: The right of a government to take private property for public
use upon payment of its fair market value. Eminent domain is the basis for condemnation
proceedings.
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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.
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Encroachment: An improvement that intrudes illegally on another’s property.
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Encumbrance: Anything that affects or limits the fee simple title to a property,
such as mortgages, leases, easements, or restrictions.
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Endorser: A person who signs ownership interest over to another party. Contrast
with co-maker.
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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.
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Equity: A homeowner's financial interest in a property. Equity is the difference
between the fair market value of the property and the amount still owed on its mortgage.
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Escrow: An item of value, money, or documents deposited with a third party
to be delivered upon the fulfillment of a condition. For example, the deposit by
a borrower with the lender of funds to pay taxes and insurance premiums when they
become due, or the deposit of funds or documents with an attorney or escrow agent
to be disbursed upon the closing of a sale of real estate.
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Escrow account: The account in which a mortgage servicer holds the borrower’s
escrow payments prior to paying property expenses.
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Escrow analysis: The periodic examination of escrow accounts to determine
if current monthly deposits will provide sufficient funds to pay taxes, insurance,
and other bills when due.
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Escrow collections: Funds collected by the servicer and set aside in an escrow
account to pay the borrower’s property taxes, mortgage insurance, and hazard insurance.
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Escrow disbursements: The use of escrow funds to pay real estate taxes, hazard
insurance, mortgage insurance, and other property expenses as they become due.
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Escrow payment: The portion of a mortgagor’s monthly payment that is held
by the servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments,
and other items as they become due. Known as "impounds" or "reserves"
in some states.
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Estate: The ownership interest of an individual in real property. The sum
total of all the real property and personal property owned by an individual at time
of death.
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Estate tax: The amount of tax levied on a deceased individual’s taxable estate;
it generally consists of the value of the gross estate above a set exemption amount
minus any allowable deductions.
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Eviction: The lawful expulsion of an occupant from real property.
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Examination of title: The report on the title of a property from the public
records or an abstract of the title.
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Exchange accommodation titleholder (EAT): An individual or legal entity engaged
by the Exchanger in a Reverse Exchange to hold title to Replacement Property or,
in rare cases, Relinquished Property, to facilitate a parking transaction.
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Exchange agreement: A contract entered into between an Exchanger and a Qualified
Intermediary providing, among other things, that the Qualified Intermediary will
facilitate the exchange and hold the exchange proceeds subject to the (g)(6) Restrictions.
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Exchange period: The period beginning the day after the transfer of the Relinquished
Property and ending 180 days later. This period will be cut short if the Exchanger
files the tax return for the taxable year of the exchange prior to the 180th day.
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Exchange proceeds: Consideration received for the Relinquished Property.
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Exchanger: An individual or entity pursuing a Like-Kind Exchange.
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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.
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Executor: A person named in a will to administer an estate. The court will
appoint an administrator if no executor is named. "Executrix" is the feminine
form.
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Exemption: A deduction, based on a status or circumstance, allowed by law
to reduce the total amount of taxable income.