We Buy Houses Glossary - E

Earnest Money
It’s the money given by a buyer to a seller as part of the purchase price to join a transaction or guarantee the payment. It’s a deposit that is usually not refundable, that a buyer puts down to prove that they are serious about buying something. For Example: A property such a house, etc…

Easement
A right-of-way approved to a person or company authorizing admittance to or over the owner's land. It’s the restricted rights to use a property owned by another person. Example: A right of way across the property.

Effective Age
It’s an appraiser’s estimate to the physical situation of a building in years. The concrete age of a building may be shorter or longer than its effective age.

Equity
The dissimilarity between the fair market value and current indebtedness also referred to as the owner's interest is known as equity. It’s the Ownership interest in a company in the form of common stock or preferred stock. It also refers to total assets minus total legal responsibilities, in which case it is also referred to as shareholder's equity or net value or book value. In real estate, it is the difference between what a property is worth and what the proprietor owes against that property

Escrow
An escrow is defined as a deposit of funds, a deed or other instrument by one party for the delivery to another party upon completion of a particular condition or event. The escrow holder has the responsibility to safeguard the funds or documents while they are in the possession of the holder, and to spend funds or convey title only when all provisions of the escrow have been complied with. The selection of the escrow holder is usually done by agreement between the principals.

Endorser
A person who signs ownership interest to a new party.

Endorsement
A signature used to officially convey a negotiable device.

Estate
All assets owned by a person at death, that is to be disseminated according to the individual's will (or a court decision if there is no will). It’s the degree of ownership.