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- Early occupancy
- The condition in which buyers can occupy the property before the sale is completed.
- Earnest money
- Money a buyer gives with an offer to purchase a property. Also called a deposit.
- Easement
- A right given by the owner to use a portion of the property for certain purposes, such as power lines or water mains.
- Effective age
- The age of a structure estimated by an appraiser based on its condition rather than its actual age.
- Effective rental income
- The resulting income a property produces after estimated vacancy and credit losses have been deducted from potential rental income.
- Efficiency percentage
- The relationship of useable area to rentable area on a given property. It is calculated by dividing useable square feet by rentable square feet.
- Encroachment
- Structures that illegally extend onto another’s property.
- Encumbrance
- A claim or lien on a property which affects the title process.
- Environmental impact statement
- A government-mandated evaluation of all aspects and effects a development will have on the environment of a proposed site.
- Equal Credit Opportunity Act
- A federal law that prohibits a lender or other creditor from refusing to grant credit based on the applicant's sex, marital status, race, religion, national origin, age or receipt of public assistance.
- Equity
- A determination of the value of a property after existing liens are deducted.
- Equivalent Level Rate (ELR)
- Flat rate per square foot that will equal the same total present value as a proposed lease's variable cash flows.
- Escrow account
- An account that a lender establishes to hold funds for the payment of expenses such as homeowners insurance and property taxes. Also known as an impound account.
- Escrow agent
- A neutral third party that holds the documents and money involved in a real estate transaction and ensures that all conditions of a sale are met.
- Escrow analysis
- A lender's periodic examination of an escrow account to determine if the lender is withholding enough funds from a borrower's monthly mortgage payment to pay for expenses such as property taxes and insurance.
- Escrow closing
- Escrow closes when all conditions of a real estate transaction are met and the title of the property is transferred to the buyer.
- Escrow company
- Firms that act as neutral third parties to ensure that all conditions that the buyer, seller and lender establish in a real estate transaction are met.
- Escrow payment
- Funds that a mortgage broker withdraws from a borrower's escrow account to pay property taxes and insurance.
- Estate
- The total assets of a person, including real property, at the time of death.
- Estimated Increase in Equity
- A specified property value increased by a selected rate of appreciation for a specific number of years.
- Estoppel Certificate
- Prevents individuals from asserting facts different from those contained in a document. Both the tenant and landlord sign the estoppel certificate to confirm the facts pertaining to the lease.
- Eviction
- A legal procedure to remove a tenant from a property.
- Examination of title
- An inspection by a title company of public records and other documents to determine the chain of ownership of a property.
- Exclusive listing
- A contract that gives an agent the exclusive right to market a property for a specific period of time.
- Executor
- A person appointed to carry out the instructions in a will. If there is no will, a probate court will appoint an executor.
- Expansion Option
- Right granted by the landlord which provides the option of adding more space to the premises.
- Expense stop
- The level (or maximum amount) up to which the landlord will pay certain operating expenses. Amounts above the expense stop are the tenant’s responsibility.
- Extension Option
- Mutually agreed continuation of occupancy under the same conditions as outlined in previous agreements.
Some definitions come from the Certified Commercial Investment Member Institute (CCIM).
