A-B

C-D

E-G

H-J

K-M

N-P

Q-R

S-T

U-Z

E

Earnest Money

The deposit money given to the seller or his agent by the potential buyer upon the signing of the agreement of sale to show that he is serious about buying the house. If the sale goes through, the earnest money is applied as part of the down payment. If the sale does not go through, the earnest money will be forfeited or lost unless the binder or offer to purchase expressly provides that it is refundable.

Easement Rights

A right-of-way granted to a person or company authorizing access to or over the owner’s land. An electric company obtaining a right-of-way across private property is a common example.

Effective Demand

A qualifying term meaning the ability to pay as well as desire to buy.

Egress

The right to leave a tract of land. Usually used as part of the term “ingress and egress” and interchangeably with “access”.

Eminent Domain

The right of a government to take privately owned property for public purposes under condemnation proceedings upon payment of its reasonable value.

Encroachment

An obstruction, building or part of a building that intrudes beyond a legal boundary onto neighboring private or public land, or a building extending beyond the building line or into an easement.

Encumbrance

A legal right or interest in land that affects a good or clear title and diminishes the land’s value.

Endorsement

Addition to or modification of a title insurance policy which expands or changes coverage of the policy, fulfilling specific requirements of the insured.

Equity

The market value of real property, less the amount of existing liens.

Escheat

The reversion of property to the state when an owner dies leaving no legal heirs, devisees or claimants.

Escrow

Funds paid by one party to another (the escrow agent) to hold until the occurrence of a specified event, after which the funds are released to a designated individual.

Estate

The interest or nature of the interest which one has in property, such as a life estate, the estate of a decreased, real estate, etc.

Estoppel

A legal restraint that stops or prevents a person from contradicting or reneging on his previous position or previous assertions or commitments.

Examination (of Title)

The study of the instruments incident to a chain of title to determine their effect and condition in order to reach a conclusion as to the status of the title.

Exception

A provision in a title insurance binder or policy that excludes liability for a specific title defect or an outstanding lien or encumbrance.

Execute

To sign a legal instrument. A deed is said to be executed when it is signed, sealed, witnessed and delivered.

Execution Sale

Sale of real property under a writ of execution by a court. A judicial mortgage foreclosure sale is in this category.

Executor

A person appointed in a will and affirmed by the probate court to cause a distribution of the decedent’s estate in accordance with the will. (The one who makes the will is called a “testator”.) If a woman is appointed, she is referred to as the “executrix”.

F

Fannie Mae

Federal National Mortgage Association (also FNMA) is a private corporation, federally chartered to provide financial products and services that increase the availability and affordability of housing by purchasing mortgage loans.

Federal Housing Administration (FHA) Guarantee

An insurance contract in which HUD through FHA insures that the named lender will recover a specific percentage of the loan amount from the insurer (FHA) in the event that the loan goes bad.

Fee Simple

An estate under which the owner is entitled to unrestricted powers to dispose of the property, and which can be left by will or inherited. Commonly, a synonym for ownership.

Financing Statement

A document filed with the Register of Deeds or Secretary of State securing the title to personal property.

Fixed-Rate Mortgage

A loan that carries an unchangeable interest rate over its entire term typically a period of 15-30 years.

Fixtures

Personal property that is attached to real property and is legally treated as real property while it is so attached.

Flood Certification

A common term for a Federal Emergency Management Agency (FEMA) Standard Flood Hazard Determination Form (SFHDF). This determines whether land or a building is located within a Special Flood Hazard Area for purposes of flood insurance requirements under the National Flood Insurance Program.

Foreclosure

A proceeding in or out of court, to extinguish all rights, title, and interest, of the owner(s) of property in order to sell the property to satisfy a lien against it.

Forfeiture of Title

A common penalty for the violation of conditions or restrictions imposed by the seller upon the buyer in a deed or other proper document. For example, a deed may be granted upon the condition that if liquor is sold on the land, the title to the land will be forfeited (that is, lost) by the buyer (or some later owner) and will revert to the seller.

Forgery

The fraudulent signing of another’s name to an instrument such as a deed, mortgage or check.

Freddie Mac

Federal Home Loan Mortgage Corporation (also FHLMC) is a stockholder-owned corporation chartered by Congress that purchases mortgage loans.

G

General Warranty Deed

A deed which conveys not only all the grantor’s interests in and title to the property to the grantee, but also warrants that if the title is defective or has a “cloud” on it (such as mortgage claims, tax liens, title claims, judgments or mechanic’s liens against it) the grantee may hold the grantor liable.

Ginnie Mae

Government National Mortgage Association (also GNMA) is a wholly-owned United States corporation that guarantees privately issued securities backed by pools of mortgages insured by FHA (Federal Housing Administration), FMHA (Farmers Home Administration) or VA (Veterans Administration).

Good Faith Purchaser or Mortgagee

A person who buys or lends in good faith, that is, without knowledge of fraudulent circumstances, or reason to inquire further, where value is paid or lent.

Graduated Payment Mortgage

A loan in which monthly payments are relatively small in the beginning and gradually increase in dollar amount over the life of the mortgage.

Grant

To transfer an interest in real property, either the fee simple or a lesser interest, such as an easement. A transfer of real estate from a sovereign is accomplished by patent or royal decree.

Grantee

That party in the deed who is the buyer or recipient.

Grantor

That party in the deed who is the seller or giver.

Guardian

A person appointed by a court to manage the person and/or property of one who is legally incompetent to handle his/her own affairs. 

Westcor Land Title Insurance Company does not guarantee complete accuracy of this dictionary.