Glossary E

EARNEST MONEY
A good faith deposit.

EASEMENT
The right to use the land of another for a specific limited purpose. Examples include utility lines, driveways, and INGRESS AND EGRESS. Easements can be temporary or permanent.

EMINENT DOMAIN
The power of the state to take private property for public use upon payment of just compensation.

EN-BLOC SALE
A collective sale allowing the owners of a property to come together and sell the whole property collectively in hopes of fetching a higher price as compared to selling the respective units within the property individually.

ENCROACHMENT
The physical intrusion of a structure or improvement on the land of another. Examples include a fence or driveway over the property line.

ENCUMBRANCE
Any lien, liability or charge against a property.

EQUAL CREDIT OPPORTUNITY ACT (ECOA)
Is a federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs.

EQUITY
The difference between the fair market value and current indebtedness, also referred to as the owner’s interest. The value an owner has in real estate over and above the obligation against the property.

EQUITY LOAN
An equity loan account gives you a revolving line of credit secured by the value of your house. This allows you to use the funds for any other purpose such as the purchase of a second property, shares or other investments. The interest rate is generally higher than a standard variable rate, and these accounts are not suitable for everyone.

EQUITY SHARING
A form of joint ownership between an owner/occupant and an owner/investor. The investor takes depreciation deductions for his share of the ownership. The occupant receives a portion of the tax write-offs for interest and taxes and a part of his monthly payment is treated as rent. The co-owners divide the profit upon sale of the property.
compare JOINT OWNERSHIP AGREEMENT

ESCHEAT
Property that reverts to the state when an individual dies without heirs and without a will.

ESCROW
A disinterested third party holds funds or documents on behalf of others and subject to their instructions.

EXECUTIVE CONDOMINIUM
A type of housing introduced by the government in 1995. It is a strata-titled apartment built by the private sector and has facilities comparable to a private condominium. However, there are some restrictions attached to it in the initial years such as eligibility conditions (similar to those for HDB flats) and a minimum occupation period before the flat can be sold.

EXECUTOR
A person named in a will to carry out its terms and administer the estate. The feminine form is Executrix.
compare ADMINISTRATOR

EXERCISE OF OPTION
Should the purchaser decide to proceed with the purchase, the purchaser would be required to exercise the option granted by placing an additional deposit which would constitute a legally binding agreement on both parties for the sale and purchase of the subject property.
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