Oconee County Real Estate
Real Estate Terms | E
Earnest Money
The deposit money given to the seller or his agent by
the potential buyer upon the signing of the agreement
of sale to show that he is serious about buying the
house. If the sale goes through, the earnest money is
applied against the downpayment. If the sale does not
go through, the earnest money will be forfeited or lost
unless the binder or offer to purchase expressly provides
that it is refundable.
Easement Rights
A right- of- way granted to a person or company authorizing
access to or over the owner's land. An electric company
obtaining a right- of- way across private property is
a common example.
Economic Obsolescence
Loss of useful life and desirability of a property through
economic forces, such as change in zoning, changes in
traffic flow, etc., rather than deterioration.
Encroachment
An obstruction, building, or part of a building that
intrudes beyond a legal boundary onto neighboring private
or public land, or a building extending beyond the building
line.
Encumbrance
A legal right or interest in land that affects a good
or clear title, and diminishes the land's value. It
can take numerous forms, such as zoning ordinances,
easement rights, claims, mortgages, liens, charges,
a pending legal action, unpaid taxes, or restrictive
covenants. An encumbrance does not legally prevent transfer
of the property to another. A title search is all that
is usually done to reveal the existence of such encumbrances,
and it is up to the buyer to determine whether he wants
to purchase with the encumbrance, or what can be done
to remove it.
Escalation Clause
A clause in a lease providing for an increased rent
at a future time due to increased costs to lessor, as
in cost of living index, tax increases, etc.
Escheat
The reverting of property to the state in the absence
of heirs.
Estate
The ownership interest of a person in real property.
Is also used to refer to a deceased person's property.
And often used to describe a large home with spacious
grounds
Equity
The value of a homeowner's unencumbered interest in
real estate. Equity is computed by subtracting from
the property's fair market value the total of the unpaid
mortgage balance and any outstanding liens or other
debts against the property. A homeowner's equity increases
as he pays off his mortgage or as the property appreciates
in value. When the mortgage and all other debts against
the property are paid in full the homeowner has 100%
equity in his property.
Escrow
Funds paid by one party to another (the escrow agent)
to hold until the occurrence of a specified event, after
which the funds are released to a designated individual.
In FHA mortgage transactions an escrow account usually
refers to the funds a mortgagor pays the lender at the
time of the periodic mortgage payments. The money is
held in a trust fund, provided by the lender for the
buyer. Such funds should be adequate to cover yearly
anticipated expenditures for mortgage insurance premiums,
taxes, hazard insurance premiums, and special assessments.
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