GLOSSARY of American & Mexican
Real Estate Terms
E
Earnest Money - Depositos condicionales
A sum of money given to bind an offer or
agreement.
Easement - Servidumbre
A right to limited use or enjoyment by one or
more persons in the land of another.
Easement Appurtenant
An easement created to benefit adjacent
land.
Easement by Implication
Occurs because of necessity, such as the
conveyance of a land-locked property.
Easement in Gross
A personal right to use the land of another.
Economic Life
The time period over which an improvement to
land earns more income than the cost incurred in generating the
income. Profitability.
Emblements
Refers to crops which require annual
planting.
Economic Obsolescence
A loss in value due to factors outside the
subject property, such as changes in competition or surrounding land
use. Also referred to as external obsolescence.
Economic Rent
The amount of rental which a building would
receive, if set by the market, as opposed to contract rent set by the
lease.
Effective Age
The difference between the theoretical economic
life of a structure and its actual remaining economic life.
Maintaining the property.
Effective Gross Income
Income received from property before the
deductions for operating expenses; also called gross income. Gross
Income minus vacancy.
Eminent Domain
The right of government to acquire property, for
a public purpose, after paying just compensation.
Encroachment
The extension of some improvement or object
across the boundary of an adjoining tract (Off sides).
Encumbrance
Any interest in or claim on, the land of
another, which in some manner burdens or diminishes the value of the
property.
Equitable Lien
Created when justice and fairness would require
a court of equity to declare such a lien exists or when conduct of
parties would imply that a lien was intended.
Equity
The value of real estate less any liens against
it.
Escalation Clause
(1) in finance, permits the lender to raise the
interest rate upon the occurrence of certain stipulated condition,
(2) in leasing, permits the lessor to raise lease payments upon the
occurrence of certain stipulated condition.
Escheat
The right of government to ownership of
property, which is left by a deceased property owner who leaves no
will, and dies without descendants.
Escrow - Cuenta en Plica, Cierre de Plica
The deposit of funds with a neutral third party
who is instructed to carry out the provisions of an agreement.
Escrow Instructions - Instruciones del Escrow
Referrente Alacuenta de Deposito en Garantia
The document containing instructions and held in
trust by a 3rd party to be turned over to the grantee upon
fulfillment of a condition.
Estate
A legally recognized interest in the use,
possession, control and disposition that a person has in land, and
defines the nature, degree, extent and duration of a person's
ownership in land.
Estate at Sufferance
Retention of possession without the consent of
the landlord after the lease has expired; also referred to as tenancy
at sufferance.
Estate at Will
An occupation of space, for an indefinite
period, which can be terminated by either the lessor or lessee at any
time. Also referred to as tenancy at will.
Estate for Years
A conveyance of realty for a definite stated
period of time. The term may be one year, one month, one week or even
one day. No notice needed to terminate.
Estate from Period to Period
A leasehold, which is automatically renewed for
the same term as in the original lease; also referred to as a
periodic tenancy or an estate from period to period. Month to month
rental. Notice needed to terminate.
Estate in Fee
The maximum possible estate one can possess in
real property; also referred to as fee simple or fee simple
absolute.
Exchange (Real Estate) - Cesion
The act of giving or taking one thing in return
for another.
Exclusive Agency Listing
The owner employs only one broker but retains
the right to personally sell the property, and thereby not pay a
commission. However, if any other real estate company sells the
property, the listing broker is still entitled to the commission
stipulated.
Exclusive Buyer's Agent/Broker
An agent or broker who solely represents buyers
and who works for a firm that never accepts real estate
listings.
Exclusive Buyer's Brokerage
A real estate company that represents buyers
only and never accepts property listings thus avoiding the conflicts
of interest that are typical of the real estate industry such as Dual
Agency.
Exclusive Right to Sell Listing
Under this listing arrangement, the broker
employed is entitled to a commission no matter who sells the property
during the listing period (Even the Seller).
Executed Contract
One in which the obligations have been performed
on both sides of the contract and nothing is left to be completed
(Closed Deal).
Executor
A person appointed in the will to carry out the
instructions of the testator, pay the debts of the estate, and
dispose of the property as instructed.
Expenses - Gastos
A financial burden or outlay to secure a benefit
or bring about a result.
Express Contract
An agreement formed through the oral or written
words of the parties.
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