Escheat is the legal process by which the ownership of property reverts to the state or government when the property owner dies intestate (without a will) and has no legal heirs. This ensures that the property does not remain ownerless and is used in a manner that benefits the public.
Escrow is an arrangement in which a third party holds funds or documents on behalf of the primary parties involved in a transaction, pending the fulfillment of specified conditions.
An escrow account is a financial arrangement where a third party holds funds temporarily until they're needed for specific obligations, such as property taxes, homeowner's insurance, and mortgage insurance in real estate transactions.
An escrow agent is a neutral third party who holds funds or assets during a transaction until specified conditions are met, ensuring a secure process for the involved parties.
Escrow analysis reviews and itemizes expenditures and contributions to an escrow account, primarily conducted at the end of a calendar year, to project the following year's required monthly payments.
Escrow Closing refers to the final phase in a real estate transaction, particularly in states that use deeds of trust instead of mortgages. During this phase, an escrow agent or title company holds onto necessary documents and funds until all conditions of the sale are met.
An escrow payment is part of a borrower's monthly mortgage payment that is set aside in an account to cover property taxes and insurance when they become due.
ESRI (Environmental Systems Research Institute) is a renowned service provider specializing in Geographic Information System (GIS) technology. They offer tools and solutions to analyze geographical and spatial data, aiding diverse fields like urban planning, wildlife preservation, and business logistics.
An estate encompasses the degree, nature, and extent of interest that a person has in real property as well as all their property, real or personal, that they own and leave at death.
An Estate at Sufferance refers to a situation where a tenant continues to occupy a property after the expiration of their lease, without the landlord's permission.
Estate at Will refers to the occupation of real estate by a tenant for an indefinite period, terminable by either the landlord or tenant at any time.
An Estate for Life is a property interest that terminates upon the death of a specified individual. This estate type grants usage rights to the beneficiary during their lifetime, while ensuring the property will revert to another designated party upon the beneficiary's death.
An Estate for Years is an interest in land that grants possession for a specified and limited period, often defined in a lease agreement. It is a fixed-term tenancy where the duration of the estate is explicitly stated.
An estate in reversion is a future interest that a grantor retains for themselves, which begins after the termination of some particular estate that has been granted.
An Estate in Severalty, also referred to as Tenancy in Severalty, is a real estate ownership structure where a single entity, either an individual or a corporation, holds exclusive ownership of a property. This type of ownership means that the owner has the complete responsibility and control over the property, making all decisions independently.
An estate tax is a levy on the estate of a deceased person, based on the value of the property left by the deceased. The tax is typically calculated based on the market value of the estate either at the date of death or six months afterward, taken at the lower value if applicable.
Estoppel is a legal doctrine that stops a party from denying or asserting something that contradicts what they have previously established as the truth in the eyes of another party who has relied on that position or representation in good faith.
An estoppel certificate is a legal document where the borrower acknowledges the amount of debt secured by a mortgage. It also can be a lease clause where a tenant confirms the lease's enforceability, absence of landlord default, and current rent status.
Estovers refer to the legally supported right to take necessities such as wood for fuel or repair from property. This is particularly relevant in cases where a life tenant requires resources from the land to maintain their daily living needs.
An abbreviation of the Latin phrase 'et alii,' meaning 'and others,' commonly used in real estate documents to reference multiple owners or parties involved.
Et Con. is an abbreviation of the Latin phrase et conjunx, meaning 'and husband.' It is commonly used in legal documents to refer to a party and their spouse, particularly in the context of property transactions and other legal matters.
An abbreviation of the Latin term et uxor, meaning 'and wife.' Commonly used in legal documents to indicate that a husband and wife are both parties to a contract, agreement, or deed involving real estate.
Ethics principles by which one treats colleagues, clients, and the public in a fair, just, and truthful manner. Adherence to such standards is considered one of the requisites for recognition as a profession.
The landmark U.S. Supreme Court decision on the legality of zoning, cited as Village of Euclid, Ohio, vs. Ambler Realty Company, 272 U.S. 365, 1926.
Founded in 1994, the European Real Estate Society (ERES) fosters a structured and permanent network that facilitates collaboration between real estate academics and professionals throughout Europe.
Evaluation in real estate involves a detailed study of the potential uses of a property, but it does not focus on determining the present value. It includes analyses such as market trends, feasibility studies, highest and best use assessments, and base land use.
Eviction is a legal process initiated by a lessor (landlord) to regain possession of their property from a tenant who has violated the lease agreement.
Actual eviction is the legal process where a tenant is removed from a property either by physical force or through legal procedures, typically initiated by the landlord for reasons such as non-payment of rent or breach of lease terms.
Evidence of title refers to the legal documents that demonstrate ownership rights to a property. These documents are essential in confirming and asserting a person's or entity's legal property ownership.
Ex-Situ processes involve offsite handling and treatment of contaminated material, distinct from the property where contamination exists. These methods are often employed in environmental remediation projects.
An Examination of Title involves a review of the title to a piece of real estate. It is typically less thorough than a full Title Search and often focuses on more recent historical records to ensure the property is free from significant encumbrances or defects.
An exception in real estate refers to specific conditions or items that are not covered by an insurance policy. Understanding exceptions is crucial for property buyers and owners as it affects the extent of protection provided by their insurance policies.
Excess accelerated depreciation refers to the accumulated difference between accelerated depreciation claimed for tax purposes and what straight-line depreciation would have been. It's typically recaptured as ordinary income upon sale instead of receiving more favorable capital gains treatment.
Excess land refers to the portion of a property that sits beyond the amount needed to support its current highest and best use, and which has the potential for separate development.
Excess rent refers to the amount by which the rent specified in an existing lease exceeds the rental rate currently demanded in the market for similar properties. It carries implications for property valuation and investor decision-making.
Under Section 1031 of the Internal Revenue Code, like-kind property used in a trade or business or held as an investment can be exchanged tax-free.
Exclusionary zoning refers to municipal regulations that effectively bar certain types of housing or people from living in certain areas, predominantly limiting access for low- and moderate-income individuals.
An exclusive (agency) listing is a written employment contract giving a single brokerage firm the right to sell a property within a specified time frame while also allowing the property owner to sell the property independently without paying a commission.
An employment contract that grants the broker the right to collect a commission if the property is sold by anyone, including the owner, during the term of the agreement.
An exculpatory clause is a provision in a mortgage allowing the borrower to surrender the property to the lender without personal liability for the loan. This means the borrower can walk away from the property if unable to meet the mortgage obligations, without other personal assets being pursued for the debt.
To execute a contract means to sign and implement it, formalizing the agreement between involved parties and potentially fully performing the terms of the contract.
An executed contract is a legal agreement whose terms have been fully fulfilled by all parties involved, signifying the completion of the contract's stipulated obligations.
An executor is an individual named in a will to administer the estate of the deceased according to the terms stipulated in the will. The executor ensures that the estate is distributed to the beneficiaries as per the decedent's wishes.
An executory contract is a contract under which one or more parties has not yet performed their obligations. It remains in a state of incompletion until all terms have been fully met by all involved parties.
An Executrix is a woman appointed by a will or a legal document to execute the last wishes and directives of the deceased, handling the distribution of the estate and ensuring all legal and financial responsibilities are met.
An exemption in real estate refers to certain portions of a property's value or income that are legally excluded from taxation, lowering the overall tax burden.
Exhibits are attachments to leases, mortgages, and other legal documents, providing detailed, supplementary information pertinent to the main document.
The Existing Home Sales (NAR) dataset is a comprehensive measure of the number of completed transactions involving single-family homes, condos, and co-ops. Reported by the National Association of Realtors® (NAR), the data is derived from more than 1,200 local Multiple Listing Services (MLS) and is crucial for gauging the health of the U.S. residential real estate market.
The Expense Ratio is a financial metric used to compare the operating expenses of a property to its potential gross income, allowing investors and property managers to analyze the relative operating efficiency.
An Expense Stop, also known as a Stop Clause, is a provision in a lease agreement that sets a limit on the amount of operating expenses a landlord will cover. Any expenses beyond this limit are the tenant's responsibility.
Expenses in real estate represent the costs associated with acquiring, maintaining, and operating a property. These expenses can significantly impact the profitability of real estate investments and the overall management of properties.
Experian is one of the largest and most prominent credit rating agencies in the world. It plays a critical role in providing credit reports, scores, and other financial information to both individual consumers and businesses.
The term 'expire' refers to the end or termination of a lease, contract, or agreement after a specific period or upon the occurrence of a predetermined event. In real estate, expiration typically pertains to the conclusion of lease terms, rental agreements, or any legal document.
Exposure in a financial context refers to the amount of money that one might potentially lose on an investment or business operation. It represents the degree of risk associated with the unprotected portion of an investment or asset.
Market exposure in the context of real estate refers to the efforts made to advertise and promote a property for sale. This can involve various strategies, ranging from traditional classified ads in newspapers to advanced online listings and signs.
Exposure (Physical) refers to the direction in which a property or building faces, impacting light, heat, and overall energy efficiency.
Exposure Time in appraisal terminology refers to the estimated amount of time it would have taken to sell the subject property prior to the date of the appraised value. This metric contrasts with Marketing Time, which is considered after the appraised value date.
Express Agency refers to a clearly articulated and formally recognized relationship between an agent and a principal, delineated through a written contract or oral agreement. This is in contrast to Implied Agency, which might arise from actions or circumstances rather than explicit communication.
An express contract is a written agreement that clearly outlines the elements needed for a valid contract and specifies the terms of the agreement. This differs from an implied contract, which is formed based on the actions and circumstances of the parties involved.
Expropriation refers to the seizure or takeover of private property for public use by an entity that possesses the legal authority to do so. Typically, this action is undertaken by governments or other regulatory bodies under the justification that the property is needed for public utility.
Extended coverage is a type of insurance that provides protection against specific incidents that are typically excluded from standard insurance policies. This coverage can help property owners mitigate risks that are unique to their properties or situations.
An extender clause is a provision in a listing contract that automatically extends the terms of the contract upon expiration. This element can have significant implications for both the agent and the principal involved in the contract.
An extension is an agreement between two or more parties to extend the time period specified in a contract. Extensions are common in real estate transactions and are used to ensure that all parties have adequate time to fulfill their obligations.
An external appraisal, also known as an independent valuation, is conducted by an impartial third-party appraiser to determine the market value of a property, ensuring objectivity and compliance with regulatory standards.
External obsolescence, also known as economic obsolescence, refers to the depreciation in the value of a property due to external factors beyond the property owner's control, such as changes in the neighborhood, economic conditions, or local regulations.
Extra-Jurisdictional Territory (EJT) refers to areas outside the official legal boundaries of a city or other governmental unit, over which that government has limited control. The extent and specifics of the territory and controls are defined by state law.
An extraordinary assumption is an essential presumption made in an appraisal that, if proven false, would render the value opinion erroneous. It is crucial for scenarios where certain hypothetical or uncertain conditions affect the overall appraisal outcome.
Partial eviction occurs when a tenant is deprived of a portion of the leased property, often resulting in a reduced rent or relocated space within the property.
