The real estate industry has its own unique language and, without some knowledge of this language, you may find yourself a bit confused if you become involved in a real estate transaction. With this in mind, the experts at Commonwealth Land Title Insurance Company have compiled the following glossary of terms commonly used in the real estate industry. Whether you are entering the real estate market for the first time or have invested in it before, this handy reference will provide an understanding of basic real estate words and phrases.
A | B | C | D | E | F | G | H | I | J | L | M | N | P | Q | R | S | T | U | V | W | Z
Earnest Money –

A deposit of funds by the purchaser of a piece of real estate as evidence of good faith.



Easement –

A right to use all or part of the land owned by another for a specific purpose. An easement may, for example, entitle its holder to install and maintain sewer or utility lines.



Eminent Domain –

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



Encroachment –

Any building, improvement or structure located on one property (such as a wall, fence or driveway) that intrudes upon the property of another.



Encumbrance –

Any interest, right, lien or liability attached to parcel of land (such as unpaid taxes or an unsatisfied mortgage) that constitutes or represents a burden or charge upon the property.



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 –

A method of closing a real estate transaction in which all required documents and funds are placed with a third party for processing and disbursement.



Estoppel –

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



Examination –

The study of the instruments and muniments 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 commitment or policy that excludes liability for a specific title defect or an outstanding lien or encumbrance.



Excise Tax –

A state and county imposed tax upon each sale or transfer of ownership of real property.



Execute –

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