Real Estate Glossary Terms Beginning With – E

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Terms Beginning With - E

Property Development & Investment Glossary, Terms & Definitions

Early finish (EF)

Based on network logic and any timetable limitations, the earliest potential time a Project Management: Principles, Processes, and Practice activity (or the project) may be completed.

Early payment mortgages

Loans in which the borrower makes extra payments to lower the outstanding principle faster than planned.

Early repayment

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

Early start (ES)

Based on network logic and any timetable limitations, the earliest potential time an activity (or project) can begin.

Earnest money

The deposit paid by the buyer when a purchase contract is signed, demonstrating the buyer's seriousness. Money paid as proof of good faith or true intent to finish a deal, which is generally forfeited by purposeful failure to execute the agreement. A monetary deposit made by a buyer at the time of the offer to establish the offer's legitimacy and to give recourse to the seller if the buyer defaults.

Earnest money deposit

A deposit made in good faith into an escrow account (or into a broker's trust account), usually accompanied with a purchase offer.

Easement

A right, privilege, or interest that allows the holder to utilise something for a certain purpose. Nonpossessory interest in someone else's land that allows for restricted use. Only conveys the right to utilise the land.
A right-of-way given but not dedicated to allow for the restricted use of private land for public or quasi-public purposes. The emergence of situations in which the growth of deposits in banks and savings organisations turns negative as a result of alternative, more appealing direct investment options. One person's contractual right to use a piece of another person's land, commonly as a drive for access or as a water run-off.

Easement appurtenant

An easement formed on one parcel of property (the servient tenement) for the benefit of another parcel of land (the dominant tenement). A continuing right of use including a connection between two pieces of land: a dominant parcel that benefits from a servient parcel.

Easement by estoppel

The right of use generated when a landowner grants another landowner permission to rely on her land.

Easement by expressed grant

A special agreement between the concerned parties creates an easement.

Easement by implication

An easement created as a result of a landowner selling property to which access requires crossing other land owned by the landowner. By implication, easements are formed when they are reasonably necessary, when the need is obvious at the time the land is ceded, and when the need appears to be permanent in nature.

Easement by prescription

An easement obtained via the open, continuous, and unfavourable use of real property over a predetermined time period. The acquisition of an easement right via open, public, and continual assertion of the right, which is detrimental to the subordinate land owner's interest. The time it takes to get the right of easement by prescription varies by state.

Easement by prior use

An implied right of use that permits the owner of a landlocked piece to use an existing passage across another property for entry and egress.

Easement in gross

An easement that is apart from any linked land interest and comprises personal property. The right to utilise property for a single, defined purpose that is unconnected to any adjacent lot.

Easement of necessity

A established implied right of use that grants the owner of a landlocked parcel the right to utilise a way across mother property for entry and egress.

EBITDA

Earnings before interest, taxes, depreciation and amortization.

Economic and environmental impact statements

Studies of the impact that a new development will have on the region's economy or environment.

Economic base

The industry that supports a community by providing job opportunities within a geographic market region. A city's set of economic activities for the world beyond its borders.

Economic base analysis

A research that splits economic activity into domestic and export sectors and aims to identify the extent to which domestic activity is dependent on export activity.

Economic base theory

A theory of urban growth that holds that overall economic activity in a city is proportional to the degree of activity in its export industry.

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. The amount of years that a property could be profitable.

Economic obsolescence

Value loss as a result of an inconvenient placement.

Economic recovery tax act of 1981

In 1981, Congress passed a substantial modification to the Internal Revenue Code.

Economic rent

Profit created by a good or service that is greater than the profit required to entice enterprises to manufacture the good or service. Pure profit is a term that is used sometimes.

Ecosystem

A community of organisms and their surroundings that is tied together by a flow of energy.

Ecotone

The zone of transition between two vegetation groupings or zones.

Effective age

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

Effective borrowing cost

The real borrowing cost, taking into account all upfront financing fees. It is comparable to the annual percentage rate, but it takes into account the effect of early pay-out.

Effective cost of borrowing

The real cost of taking out a loan.

Effective gross income

Vacancy rate minus planned gross revenue + any miscellaneous income. Potential gross rental revenue, less vacancy and uncollectible account losses, plus income from associated sources. The total yearly revenue generated by the rental property after deducting vacancy losses and adding miscellaneous income.

Effective gross income multiplier

The ratio of the revenue-producing property's sale prices to its yearly effective gross income.

Effective interest rates

Actual interest rates charged for the utilisation of borrowed cash. The effective rate is determined by the amount borrowed as well as the amount and date of the needed payback.

Effective rate

The genuine rate of return after all costs and discounts have been deducted. In contrast to the nominal rate, the actual rate of return or repayment.

Effective tax rate (income taxes)

Income taxes diminish the going-in IRR on a property acquisition or development by a percentage amount.

Effective tax rate (property taxes)

The tax liability divided by the market due or selling price of the property.

Efficient markets

Markets in which all important information is reflected in market prices instantly and completely. Participants in efficient markets are unable to gain above-average market yields on a continual basis. The strong form of the efficiency hypothesis is the belief that a market is entirely efficient.

Effort

The number of resource units needed to execute an activity.

Egress

Access from a building to a public road or exit.

Elective share

A provision that allows a surviving spouse to inherit the majority of the decedent's possessions.

Electrical engineer

An engineer who specialises in the design and building of electro systems for power generation and distribution, as well as electrical circuits in general.

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.

Electromagnetic Radiation (EMR)

Energy spreads over space as a result of an increasing interplay of electric and magnetic fields. EMR is often referred to as "electromagnetic energy."

Elements of comparison

In the sales comparison technique, the relevant attributes are utilised to compare and modify the selling prices of comparable properties.

Elevation

Vertical distance between a datum point, such as mean sea level, and a point or item on the earth's surface; not to be confused with height, which refers to points or things above the earth's surface.

Eminent domain

The government's or a public utility's right to buy property for public use. Both the federal and state governments have authority to appropriate private land for public purpose without the owner's agreement. The authority of the government to seize private property for a public purpose in exchange for reasonable recompense to the owner.

Encroachment

A structure or component of a structure that physically encroaches on another's property. Studies of the impact of a new development on the region's economy or environment.

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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