California License Real Estate Terms Glossary

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EARNEST MONEY DEPOSIT

A deposit of money paid by a buyer for real property as evidence of good faith. Can not be given back to the buyer unless he obtains written permission from the seller.

EASEMENT

A right, privilege, or interest that one party has to use the land of another. Example: A right of way. A legal right to use another's land for one's benefit or the benefit of one's property (right-of-way).

EASEMENT APPURTENANT

An easement created for the benfit of a particular parcel of property. There is both a dominant and a servient estate. The easement is annexed to and part of the dominant property.

EASEMENT IN GROSS

An easement that benefits a particular individual, not a parcel of property. Involves only a servient estate. A public utility easement is an example.

EASY QUALIFIER MORTGAGE

This may be referred to as "low doc" or "no doc" loan.

EAVES

The lower projecting edge of a roof over the wall.

ECONOMIC LIFE

The remaining useful life of an improvement or structure; that period during which an improvement will yield a return on the investment.

ECONOMIC OBSOLESCENCE

The loss in value to property due to external causes such as zoning or a deteriorating neighborhood. It is also referred to as social obsolescence.

EFFECTIVE GROSS INCOME

The amount of net income that remains after the deduction from gross income of vacancy and credit lossess.

EGRESS

Exit; the act or avenue or leaving property.

EMBLEMENTS

Things that grow on the land require annual planting and cultivation.

EMINENT DOMAIN

The right of the government and certain others, such as public utilities, to acquire property for public or quasi-public use by condemnation, upon payment of just compensation to the owner. The constitutional or inherent right of a government to take private property for public good upon the payment of just compensation.

ENCROACHMENT

The projection of a structure onto the land of an adjoining owner. A structure or natural object that unlawfully extends into another's property.

ENCUMBRANCE

Any claim, interest, or right inproperty possessed by another that may diminish the true owner's rights or value in the estate. Examples include mortgages, easements, or restrictions of any kind. A claim, lien, or charge on property.

ENDORSEMENT

See Indorsement.

ENVIRONMENTAL IMPACT REPORT

A report that must be prepared whenever any agency or indvidual considers a project that may have a significant impact on the environment, as directed by the California Environmental Quality Act.

EQUAL CREDIT OPPORTUNITY ACT

Prohibits discrimination amongst lenders.

EQUAL HOUSING OPPORTUNITY

Prohibits discrimination in the listing, sale, lease, rental or financing of real property due to race, creed, religon, sex, marital status or handicap. Should apply exactly the same in all real estate

EQUAL PROTECTION

The Fourteenth Amendment to the U.S. Constitution and similar provisions in the California Constitution require each citizen to receive equal protection of the laws. There are no minimum standards of protection; all equally situated individuals must simply be treated equally. (The due process clause of the Constitution imposes certain minimum standards of protection.)

EQUITY

1. The interest or value that on owner has in real property over and above the liens against it.
2. A part of our justice system by which courts seek to supplement the strict terms of the law to fairness under the circumstances, rather than on fixed legal priciples or statutes.
3. Ownership in property, determined by calculating the fair market value less the amoutn of liens and encumbrances.

EQUITY BUILD-UP

The increase of the owner's equity due to mortgage pricipal reduction and value appreciation.

EQUITY OF REDEMPTION

The right to redeem property during the foreclosure period. In California the mortgagor has the right to redeem within 12 months after the foreclosure sale.

EROSION

The wearing away of the surface of the land by the action of wind, water, and glaciers, for example.

ESCALATOR CLAUSE

A clause in a contract that provides for the upward or downward adjustment of certain items to cover the specific contingencies set forth. A clause in a promissory note, lease, or other document that provides that upon the passage of a specified time or the happening of a stated event, the interest rate shal increase.

ESCHEAT

The reversion of property to the state when there are no devisees or heirs capable of inheritance. Reversion of property to the state upon the death of an owner who has no heirs able to inherit.

ESCROW

The deposit of instruments and funds with a third neutral party with instructions to carry out the provisions of an agreement or contract. A complete or perfect escrow is one in which everything has been deposited to enable carrying out the instructions. The neutral third party (stakeholder) who holds deeds or other documents pursuant to instructions for delivery upon completion or occurrence of certain conditions.

ESTATE

The degree, quantity, nature, and extent of the interest that a person has in real property.

1. Ownership interest in real estate.
2. The quality and quantity of rights in property

ESTATE AT WILL

The occupation of real property by a tenant for an indefinite period. It may be terminated at will by one or both parties. A leasehold tenancy, which at common law could be terminated by either party at any time, without advance notice. Thirty days' notice are now required to terminate this type of estate in California.

ESTATE FOR LIFE

A freehold estate whose duration is measured by and limited to the life or lives of one or more persons.

ESTATE FOR PERIOD TO PERIOD

A leasehold tenancy that continues indefinitely for successive periods of time, until terminated by proper notice. When the periods are one month in duration, it is often called a month-to-month tenancy.

ESTATE FOR YEARS

A lease that will expire at a definite time or date. A?leasehold tenancy of a fixed duration, being a definite and ascertainable period of a year or any fraction of multiple thereof. It has a definite beginning and ending date, and hence a known and definite duration.

ESTATE OF INHERITANCE

An estate that may go to the heirs of the deceased. All freehold estates are estates of inheritance, except life estates.

ESTOP

To ban, stop, or impede.

ESTOPPEL

A doctrine whereby one is forbidden to contradict or deny his or her own previous statement, act, or position. The doctrine that prevents a person from exercising a legal right, because that person previously acted in an inconsistent manner, so that a third person detrimentally relied on the earlier acts. An agency is created this way when an individual knowingly allows another individual to act as their agent without authorizing such acts.

ET AL

Abbreviation meaning and others (other person).

ET UX

Abbreviation meaning and wife.

ETHICS

A standard of conduct that all members of a given profession owe to the public, clients or patrons, and to other members of that profession. Refers to a branch of philosophhy that deals with moral science and moral principles. It is a debateable subject and can not be legislated. It is based on what each individual feels is good or bad.

ETHNIC

The seller of a property is not allowed to ask the buyer their ethnic background.

EVICTION

Dispossession by legal process, as in the termination of a tenant's right to possession through re-entry or other legal proceedings.

EVIDENCE

All relevant information, facts, and exhibits admissible in a trial.

EX PARTE

By only one party or side. For example, an injunction obtained by evidence presented by only one side, without notice to the other parties.

EXCEPTION

(See Reservation.)

EXCHANGE

A reciprocal transfer of properties between two or more parties.

EXCLUSIVE AGENCY

A contract hiring the broker as the exclusive agent for the seller. If anyone, except the seller, finds a buyer, the broker has earned the commission.

EXCLUSIVE AGENCY LISTING

A written agreement giving one agent the exclusive right to sell property for a specified period of time, but reserving the right of the owner to sell the property himself or herself without liability for the payment of a commision.

EXCLUSIVE RIGHT TO SELL AGENCY

A contract hiring the broker as the only person authorized to sell property. If anyone, including the seller, finds a buyer, the broker earns the commissions.

EXCLUSIVE-RIGHT-TO-SELL LISTING

A written agreement giving one agent the exclusive right to sell property for a specified period of time. The agent may collect a commission if the property is sold by anyone, including the owner, during the term of the listing agreement.

EXCULPATORY CLAUSE

A provision in leases and other instruments seeking to relieve one party of liability for his negligence and other acts. In residential leases such clauses are invalid, and in other leases the courts have limited the landlord's ability to escape liability for intentional acts, and for acts of affirmative negligence.

EXECUTE

To complete, make, perform, do or to follow out. To sign a document, intending to make it a binding instrument. The term is also used to indicate the performance of a contract.

EXECUTION LIEN

A lien arising because of an execution on property. A judgment is not self-executing; however, when a writ of execution has been obtained, the sheriff will levy (seize) property, which creates a lien on the property.

EXECUTOR

A persone named by the testator of a will to carry out its provisions as to the disposition of the estate. A personal representative appointed in a will to administer a decedent's estate.

EXPANSIBLE HOUSE

A home designed for expansion and additions in the future.

EXPANSION JOINT

A fiber strip used to separate units of concrete to prevent cracking due to expansion as a result of temperature changes.