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Glossary of Real Estate Terms
ERISA (Employee Retirement Income Security Act)
Legislation passed in 1974 and administered by the Department of Labor that controls the investment activities primarily of corporate and union pension plans. More public pension funds are adopting ERISA-like standards.
Earnest money
The monetary advance of part of the purchase price to indicate the intention and ability of the buyer to carry out the contract
Easement
A right created by grant, reservation, agreement, prescription or necessary implication to use someone else's property
Economic feasibility
The feasibility of a building or project in terms of costs and revenue, with excess revenue establishing the degree of viability
Economic rent
The market rental value of a property at a given point in time
Effective date
The date on which a registration statement becomes effective and the sale of securities can commence
Effective gross income (EGI)
The total income from a property generated by rents and other sources, less a vacancy factor estimated to be appropriate for the property. EGI is expressed as collected income before expenses and debt service.
Effective gross rent (EGR)
The net rent generated, after adjusting for tenant improvements and other capital costs, lease commissions and other sales expenses
Effective rent
The actual rental rate to be achieved by the landlord after deducting the value of concessions from the base rental rate paid by a tenant, usually expressed as an average rate over the term of the lease
Electronic Authentication
Any of several methods used to provide proof that a particular document received electronically is genuine, has arrived unaltered and came from the source indicated
Eminent domain
A power to acquire by condemnation private property for public use in return for just compensation
Encroachment
The intrusion of a structure that extends, without permission, over a property line, easement boundary or building setback line
Encumbrance
A right to, or interest in, real property held by someone other than the owner that does not prevent the transfer of fee title
Environmental impact statement
Documents required by federal and state laws to accompany proposals for major projects and programs that will likely have an impact on the surrounding environment
Equity
The residual value of a property beyond mortgage or liability
Escalation clause
A clause in a lease that provides for the rent to be increased to reflect changes in expenses paid by the landlord such as real estate taxes and operating costs
Escrow agreement
A written agreement made between an escrow agent and the parties to a contract setting forth the basic obligations of the parties, describing the money (or other things of value) to be deposited in escrow, and instructing the escrow agent concerning the disposition of the monies deposited
Estoppel certificate
A signed statement certifying that certain statements of fact are correct as of the date of the statement and can be relied upon by a third party, including a prospective lender or purchaser
Exclusive agency listing
A written agreement between a real estate broker and a property owner in which the owner promises to pay a fee or commission to the broker if specified real property is leased during the listing period
Exit strategy
Strategy available to investors when they desire to liquidate all or part of their investment
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