Real Estate Glossary Terms Beginning With – E

Updated: November 22, 2021

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Terms Beginning With - E

Property Development & Investment Glossary, Terms & Definitions

Early repayment

Making extra debt service payments before the due date is essential.

Earnest money

The deposit paid by the buyer when a purchase contract is signed, demonstrating the buyer's seriousness.

Easement

A right, privilege, or interest that allows the holder to utilise something for a certain purpose.

Economic base

The industry that supports a community by providing job opportunities within a geographic market region.

Economic benefits

The complete advantages of an investment, including equity growth, cash flow, and resale profits, excluding tax benefits.

Economic depreciation

The loss of a property's value as a result of external causes.

Economic feasibility study

An in-depth examination of the economic and financial aspects of a proposed real estate investment.

Economic life

The amount of time that a structure may be employed to create a service or an asset.

Effective age

The age of a property is determined by its wear and tear rather than its chronological age.

Effective cost of borrowing

The real cost of taking out a loan.

Effective gross income

Vacancy rate minus planned gross revenue + any miscellaneous income.

Effective rate

The genuine rate of return after all costs and discounts have been deducted.

Egress

Access from a building to a public road or exit.

Electrified floor

The house telephone and power lines protrude through the floor at numerous intervals allowing convenient installation of the telephones and power equipment on the first floor of a business building.

Eminent domain

The government's or a public utility's right to buy property for public use.

Encroachment

A structure or component of a structure that physically encroaches on another's property.

Encumbrance

A debt or liability that affects a property's fee-simple title.

End loan

This is a long-term loan.

Equalization board

A governmental body that assesses the fairness of any taxes imposed on a property.

Equitable title

A party's interest in a property that they have committed to buy but have not yet completed the transaction.

Equity

After all debts have been paid off, the ownership stake in a property is calculated.

Equity Build-up

The amount of net value gained as a result of paying off a mortgage.

Equity dividend rate

A simple return is calculated by dividing the cash flow dividend before taxes by the equity.

Equity kicker

A lender's share of the cash flow or resale revenues received in exchange for providing a loan.

Equity REIT

A real estate investment trust (REIT) is a company that invests in the ownership of income-producing real estate.

Escalation clause

A provision in a contract that requires a price increase.

Escalation payments

Payments made in accordance with an escalation agreement.

Escheat

When a property owner dies without a will or heirs, the property reverts to the state.

Escrow

A third party holds property or other compensation in line with an agreement.

Escrow agent

A person who is in charge of an escrow payment.

Established Neighbourhood

An place that is sound, stable, and healthy, with all of the land developed.

Estate

The degree to which a person is interested in real estate.

Estate at sufferance

When a renter occupies a property after his lease has ended without permission.

Estate at will

The tenancy of a property for an indeterminate amount of time. It can be ended at any time by either side.

Estate for life

A property interest that expires upon the death of a certain person.

Estate for years

An interest in land that permits for the temporary ownership of the property for a set length of time.

Estate in reversion

An estate left by a donor that continues after the grantor's estate has been terminated.

Estate tax

The tax levied on the value of a decedent's property.

Estoppel

A legal theory barring a party from refuting facts that they previously admitted were accurate and that others had accepted in good faith.

Estoppel certificate

Tenants or the underlying lender sign a form declaring any and all claims they may have against the property owner. These certificates shield the buyer against any claims brought by any of these parties at a later period.

Et al

"And others," in Latin.

Eviction, actual

The eviction of an individual from a property by force or by legal means.

Eviction, constructive

When a lessor terminates a lease because the property is inappropriate for the reasons for which it was leased.

Eviction notice

When a renter fails to meet their rental responsibilities, they are issued a notice. Evidence of title is a document that proves who owns a piece of property.

Exchange

Section 1031 of the Internal Revenue Code allows for a tax-free exchange of like-kind properties.

Exclusive agency listing

A contract between a seller and a broker giving the broker exclusive rights to sell a property for a set length of time. This arrangement also allows the seller to sell the property without paying a commission to the broker.

Exclusive right-to-sell listing

A contract between a seller and a broker that grants the broker exclusive rights to sell a property for a set length of time. The broker is entitled to a commission regardless of who sells the property.

Exculpatory clause

A clause in a mortgage that states that the borrower is not personally responsible in the event of failure.

Execute

To agree to a deal.

Executed contract

A contract with terms that have been met.

Executory contract

An agreement in which one or more parties have yet to fulfil their obligations.

Expected cash flow

The most probable cash flow in all potential global scenarios.

Expenses

The expenses incurred in the operation, acquisition, or organisation of an investment entity.

Expense ratio

The connection between total costs (not including debt payment) and gross revenue.

Expenses of the syndicator

The syndicator's expenditures, which he wants to pay himself without reimbursement.

Expense stop

A cash limitation or restriction on how much the landlord will pay for a certain spending category. This ceiling is calculated by multiplying the base year expenses by a percentage or a monetary amount.

Extension

A contract between two parties to prolong the contract's duration.

Glossary Index

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