Real Estate Terms "E"
Earnest Money -Also known as the Escrow Deposit. This in money paid by the buyer at the time an official offer to purchase is submitted to the seller, inteded to demonstrate the good faith of the buyer to complete the purchase. Earnest money is applied against the purchase price when the sale is complete. The Earnest money may be forfeited if the buyer fails to complete the purchase under the terms of the purchase contract.
Easement-This is the right to use the land of another person.
Encroachment-This condition limits the interest in a title to property, such as deed restrictions, mortgage, unpaid taxes, easements, etc...
Equity Mortgage- A mortgage that is based on the equity in the borrower's home instead of on ther credit worthiness.
Escrow Amount- A third-party account used to retain funds, including the property onwer's real estate taxes, the buyer's earnes money, or hazard insurance premiums.
Exchange-The trading of equity of one piece of property for equity in a different property.
We'll cover "f" next week!