Earnest Money
The earnest money is 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 against the down payment. If the sale does not go through, the earnest money deposit will be forfeited to the seller unless the purchase contract expressly provides conditions for its return to the buyer.

Easement
A right-of-way created by grant, reservation, agreement, prescription or necessary implication which one has in land owned by another.

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.

Economic Obsolescence
Impairment of desirability or useful life arising from economic forces, such as changes in optimum land use, legislative enactments which restrict or impair property rights and changes in supply-demand relationships. Loss in the use and value of property arising from the factors of economic obsolescence is to be distinguished from loss in value from physical deterioration and functional obsolescence.

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
A government right to acquire private property for public use by condemnation and the payment of just compensation.

Encroachment
Unauthorized intrusion of a building or improvement such as a wall, fence, etc. onto another's land.

Encumbrance
A legal right or interest in land that affects a good or clear title and may diminish the land's value. It can take numerous forms, such as zoning ordinances, easement rights, claims, mortgages, liens, charges, a pending legal action, unpaid taxes, or restrictive covenants. An encumbrance does not legally prevent the transfer of real property. It is up to the buyer to determine whether to purchase with the encumbrance.

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