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Property and real estate glossary

There are 150 entries in this glossary.
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Term Definition
DISTRESSED PROPERTY

A mortgaged property which has been foreclosed on.

DOWN PAYMENT

An amount paid in cash for a property, with the intent to mortgage the remaining amount due.

DUE ON SALE PROVISION

A clause in a mortgage giving the lender the right to demand payment of the full balance when the borrower sells the property.

DUPLEX

A single-building improvement which is divided and provides two units which serve as homes to two families.

DWELLING

A house or other building which serves as a home.

EARNEST MONEY DEPOSIT

A cash deposit made to a home seller to secure an offer to buy the property. This amount is often forfeited if the buyer decides to withdraw his offer.

EASEMENT

The right of a non-owner of property to exert control over a portion or all of the property. For example, power companies often own an easement over residential properties for access to their power lines.

EAVE

The part of the roof that extends beyond the exterior wall.

ECONOMIC DEPRECIATION

The decline in property value caused by external forces, such as neighborhood blight or adverse development.

ECONOMIC LIFE

The amount of time which any income-producing property is able to provide benefits to its owner.

EFFECTIVE AGE

The subjective, estimated age of a property based on its condition, rather than the actual time since it was built. Excessive wear and tear can cause a property's effective age to be greater than its actual age.

EMINENT DOMAIN

The legal process whereby a government can take ownership of a piece of property in order to convert it to public use. Often, the property owner is paid fair-market value for the property.

ENCROACHMENT

A building or other improvement on one property which invades another property or restricts its usage.

ENCUMBRANCE

A claim against a property. Examples are mortgages, liens and easements.

ENERGY EFFICIENT RATIO

An efficiency rating system for air conditioning units that corresponds to the number of BTU's output per watt of electricity used.

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