Real Estate Insurance Terms - E

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EASEMENT - A right created by grant, reservation, agreement, prescription, or necessary implication, which one has in the land of another. It is either for the benefit of land (appurtenant), such as right to cross A to get to B, or "in gross", such as a public utility easement.

EASEMENT IN GROSS - An easement for the benefit of a person or company, rather than for the benefit of another parcel of land. Commonly, such easements as for public utilities.

EASEMENT OF NECESSITY - An easement granted by a court when it is determined that said easement is absolutely necessary for the use and enjoyment of the land. Commonly given to landlocked parcels.

EAVES - The margin or lower part of a roof projecting beyond an exterior wall.

EBB TIDE - The tide at is low, or the period from high to low.

EFFICIENCY - An apartment consisting of one room, sectioned into areas for a kitchen, bedroom, etc.

EGRESS - A term concerning a right to come and go across the land (public or private) of another. Usually part of the term ingress and egress.

EJECTMENT - Most commonly, a court action to recover real property, usually by eviction of a tenant. In some states, an action to enforce specific enforcement.

ELEVATION - (1) Height above sea level. (2) The exterior design of a structure, usually but not necessarily, viewed from the front. Called a horizontal elevation. (3) Height measured from any point, such as elevation from a floor. Commonly called vertical elevation.

EMINENT DOMAIN - A governmental right to acquire private property for public use by condemnation and the payment of just compensation.

ENGLISH ARCHITECTURE - A general term, encompassing the styles of various English design, but which have common elements. The exterior being either of large stones, or exposed timbers with large stones or brick placed between the timbers, in a decorative manner. The roof is most often of slate and windows are hinged vertically.

ENVIRONMENT - Surroundings. As an appraisal term, the characteristics of the area around a property which bear on the value of the property.

ENVIRONMENTAL DEFICIENCY - Deficiency of the area surrounding a property, (environment), which decreases its value, such as poorly designed streets and traffic patterns, a high crime rate, no major sewer lines, etc.

EQUITABLE CONVERSION - A legal fiction applied to a land contract which treats the vendee's (buyer's) interest as a real property interest even though the seller holds legal title, and the seller's interest as a security interest (personal property). This enables the buyer to act as the "owner" of the property without having "legal" title.

EQUITABLE LIEN - A lien enforceable in a court of equity, based on evidence of an intent between debtor and creditor to create a lien on specific property of the debtor, but a failure to legally create said lien.

EQUITABLE MORTGAGE - (1) A lien against real property (mortgage) which is enforceable in a court of equity, but does not legally constitute a mortgage. (2) A deed given as security for a debt will be held to be a mortgage rather than a transfer of title. Also called a constructive mortgage.

EQUITABLE OWNERSHIP - Ownership by one who does not have legal title, such as a vendee under a land contractor, technically, a trustor under a deed of trust (legal title being in the trustee). Also called equitable title.

EQUITY - (1) A legal doctrine based on fairness, rather than strict interpretation of the letter of the law. (2) The market value of real property, less the amount of existing liens.

EQUITY BUILD-UP - The reduction of principal on a mortgage or deed of trust by periodic payments, which increases (builds-up) the difference (equity) between the property value and amount of the lien.

EQUITY LINE OF CREDIT - A combination of a line of credit and equity loan. A maximum loan amount is established based on credit and equity. A mortgage (deed of trust) is recorded against the potential borrower's property for said maximum loan amount. The potential borrower has the right to borrow, as needed, up to the amount of the mortgage.

EQUITY LOAN - A loan based upon the equity in a property. The credit of the borrower is not a major factor.

EQUITY OF REDEMPTION - Properly, the right to pay off the lien of a mortgage which is in default by payment of the principal, interest, and costs which are due. Often confused with the redemption period after the foreclosure sale, which is a right established by statute.

ERRORS AND OMISSIONS INSURANCE - Insurance covering losses caused by errors and omissions of professions other than medicine. Used by banks, real estate companies, escrow companies, etc.

ESCALATION CLAUSE - A clause in a lease providing for an increased rental at a future time. May be accomplished by several types of clauses, such as: (1) Fixed increase - A clause which calls for a definite, periodic rental increase. (2) Cost of living - a clause which ties as the index changes. (3) Direct expense - The rent is adjusted according to changes in the expenses of the property paid by the lessor, such as tax increases, increased maintenance costs, etc.

ESCROW - Delivery of a deed by a grantor to a third party for delivery to the grantee upon the happening of a contingent event. Modernly, in some states, all instruments necessary to the sale (including funds) are delivered to a third (neutral) party, with instructions as to their use.

ESTATE - (1) The interest or nature of the interest which one has in property, such as a life estate, the estate of a deceased, real estate, etc. (2) A large house with substantial grounds surrounding it, giving the connotation of belonging to a wealth person.

ESTOPPEL - The prevention of one from asserting a legal right because of prior actions inconsistent with the assertion.

ET AL - And others.

ET CON - And husband.

ET UX - And wife.

ET VIR - Latin meaning "and husband".

EVICTION - A court action to remove one from possession of real property. Most commonly, the removal of a tenant.

EVIDENCE OF TITLE - A document establishing ownership to property. Most commonly, a deed.

EXACT INTEREST - Interest based on a 365-day year, rather than a 30-day month (360-day year).

EXCEPTION - (1) Specific items set forth in an insurance policy which are not covered by said policy. (2) Any item specifically excluded.

EXCESS CONDEMNATION - Taking, by right of eminent domain, more property than actually necessary for the intended purpose. This happens frequently the excess property being sold at auction after completion of the project.

EXCHANGE - A reciprocal transfer of real property which has certain tax advantages over a sale. Definite procedures must be followed in order to qualify the transfer as an exchange.

EXCLUSIVE LISTING - A written contract between a property owner and a real estate broker, whereby the owner promises to pay a fee or commission to the broker if certain real property of the owner is sold during a stated period, regardless of whether the broker is or is not the cause of the sale. The broker promises to put forth his or her best efforts to sell the property, and may make specific promises as to advertising or other promotion in certain instances.

EXECUTE - To complete; to fulfill a purpose, such as to execute an instrument, meaning to sign, seal (modernly, to notarize), and deliver.

EXECUTION SALE - Sale of real property under a writ of execution by a court. A judicial mortgage foreclosure sale is in this category.

EXECUTOR - One who is appointed under a will to carry out (execute) the terms of the will.

EXECUTOR'S DEED - A deed issued by the executor of an estate.

EXECUTRIX - A female executor.

EXPANSIBLE HOUSE - A house specifically designed for later additions or expansion.

EXPENSES OF SALE - The costs which are attributed to the sale of real estate. They would include commission, loan points, title and escrow fees, documentary transfer tax, etc.

EXPERT TESTIMONY - Testimony by one acknowledged to have special training and knowledge in a particular subject. Only testimony on the subject in which the witness is "expert" is considered expert testimony.

EXPERT WITNESS - One acknowledged to have special training and knowledge of a particular and testifying on that subject.

EXPRESSWAY (FREEWAY) - A highway (usually divided) with control of access, and with major streets crossing it at a different grade level. Distinguished from "toll roads" in that no fee is charged to those using the expressway.

EXTENSION - A continuing under the same conditions, as opposed to a renewal, which implies new terms or conditions.

EXTERIOR WALL - The outer vertical surface of a structure, which enclose the entire structure, and the dimensions of which are used to find the gross area of the enclosure for appraisal purposed.