Real Estate City Glossary

Real Estate City Glossary E
(Equity - Executor)

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Equity
The value of a property after existing liens (mortgages, etc.) are deducted.

Equity Mortgage
Financing of a home based on how much equity the homeowner has in it.

Equity Participation
Lender has an equity interest in the property that is the subject of the loan. This is in addition to principal and interest payments on the mortgage. The lender shares in the increase in market price of the property as well as any net income generated.

Equity in Property
Amount by which the appraised value of property exceeds the debt balance. If property has a fair market value of $400,000 while the mortgage balance is $50,000, the owner's equity in the property is $350,000.

Equity Rate of Return
Return before taxes on the capital invested in real estate property.

Escape Clause
Provision in a contract that allows one or more of the parties to cancel all or part of the contract if certain events or situations do or do not happen.

Escheat
The reversion of property to the state or some agency of the state in the event that the owner dies leaving no leagally qualified heir to whom the property may pass by lawful descent.

Escrow
A written agreement between two or more parties providing that certain instruments relating to property be placed with a third party to be delivered to a designated person upon fulfillment or performance of some act or condition.

Estate
Total assets of a person at the time of death, including real estate and personal.

Estimated Closing Costs
An estimate of the expenses incidental to the sale of real estate, including loan, title, and appraisal fees. These costs exist in addition to the price of the property and are paid at closing. Some are one-time expenses and some are recurring.

Estimated Property Taxes
An estimate of property taxes to be paid. Amount is based on local tax rates and assessed property value (based on most recent sale price plus assessment updates).

Evidence of Title
Document, such as a deed, which demonstrates property ownership.

Executor
A person assigned by the testator to perform the provisions of the testator's will.