Real Estate Definitions
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E-cheque or E-check (U.S.) An electronic version of a paper cheque. The account holder writes an e-cheque using a computer or other type of electronic device and transmits the e-cheque to the payee electronically. Like paper cheques, e-cheques are signed by the payer and endorsed by the payee. Rather than handwritten or machine-stamped signatures, however, e-cheques are affixed with digital signatures, using a combination of smart cards and digital certificates. The payee deposits the e-cheque, receives credit, and the payee's bank clears the e-cheque to the paying bank. The paying bank validates the e-cheque and then charges the cheque writer's account. E-commerce A way to handle business transactions such as buying or selling goods and services online or through a computer network. Early Closing Cost Reimbursement Some line-of-credit lenders waive underwriting costs when a credit line is opened in anticipation of future profits. If the credit line is closed early, fees are retroactively imposed by the lender. Early Occupancy When the buyer is granted permission from the seller to move into the property before closing. Early Termination Charge If a leasee turns in a leased vehicle before the lease term expires, a fee is charged to terminate the lease. Early Withdrawal Penalty A depositor forfeits interest or is charged a service fee for either withdrawing funds or closing a time deposit before the maturity date. Earned and Unearned Income Earned income comes from wages, salary, or business profits whereas unearned income comes from sources such as interest, dividends, rental income, and pension benefits. Earned Income Money earned through wages, salaries, tips, net earnings (if self-employed), and any other income received for work or personal services. Investment income, such as dividends and interest, is not counted as earned income. See also "Unearned Income." Earnest Money Like a deposit, the buyer gives the seller money when making a formal offer to show he or she is serious about the transaction. Easement A right, such as a right of way, which allows a person to use another person's real property in a limited capacity. Economic Growth The rate of change in output from the current year to the next year. Economic Indicators Statistics that help to determine the state of the economy. Such statistics can include the Consumer Price Index, housing starts, and unemployment rates. Effective Age An estimation of a building's physical condition as determined by an appraiser. The actual age of a building may be more or less than the estimated effective age. EFT/POS Electronic funds transfer (EFT) at the point of sale (POS). A payment option that allows consumers to make purchases by transferring funds directly from their accounts to merchant accounts. Electronic Cash A method used to transfer funds over the Internet as payment for goods and services. Also commonly referred to as e-cash. Electronic Commerce A way to conduct business transactions such as buying or selling goods and services online or over a computer network. Electronic Data Interchange (EDI) EDI is a system used by corporations or organizations to transfer business information electronically. This system will virtually eliminate paperwork. Electronic Filing Income tax returns can be filed online using a personal computer with tax preparation software. The information is sent directly to Revenue Canada. If a tax payer is set up with direct deposit, refunds can be directly deposit into his or her bank account. Electronic Funds Transfer The transfer of money between accounts using consumer electronic systems such as automated teller machines (ATMs) or electronic bill payments. Employment Equity Act A federal statute that requires employers with 100 or more employees to eliminate any practices in the workplace discriminating against four designated groups of people who have historically been disadvantaged in the labour market: women; people who, by reason of race or colour, are members of visible minority groups; aboriginal peoples; and persons with disabilities. Empty Nesters Individuals with grown children that no longer live in the same residence. For real estate purposes, empty nesters tend to down-size and purchase smaller homes when children move out. Encroachment A structure, fence, or other object that illegally extends onto another person's property. Such encroachments might also impede the use of the property by the property owner. Encryption A method used to ensure the privacy and security of a customer's personal and financial information when using banking services over the Internet. Encryption scrambles the data that is being sent, so only the intended receiver can read the information. To be effective, encryption must be used by both the sender and receiver. Consumers should ensure encryption is being used before sending sensitive information over the Internet. CanEquity uses a encrypted server for all of our online applications. Encumbrance A claim (as a lien) against a property or more specifically, an interest or right (as an easement or a lease) in real property that may diminish the value of the estate, but does not prevent the conveyance of the estate. Encumbrances can include mortgages, leases, easements, or restrictions. End Loan/Mortgage The final mortgage on a property, as opposed to a construction or other interim loan. Endorse To write one's signature on the back of a cheque in return for the cash or credit indicated on the front of the cheque. Entrepreneur A person who has the skills and initiative to establish their own business. This person also manages the business and assume the financial risks associated with the venture. Environmental Impact Statement/Assessment A mandatory (required by government) evaluation or assessment that must be conducted prior to construction. The assessment details the possible effects that the development could have on the environment surrounding the site. Equifax A major credit bureau company in Canada along with Trans Union. Equity The value of a property minus outstanding mortgage debt and other liens. Equity is the portion of your property that you have already paid for plus the appreciation, if any, in the value of the property since it was purchased. Errors and Omissions Insurance Malpractice insurance that protects architects, home inspectors, and contractors from claims by clients for professional errors or faults resulting from defective judgment, deficient knowledge, or carelessness. Escrow 1. In a real estate transaction, a neutral third party holds the money in a bank account (escrow) and related documents until all conditions of the property sale are met. 2. An account in which money for property taxes and insurance is held until paid. Money is added to the account every time a mortgage payment is made. Escrow Account A bank account in which money for property taxes and insurance is held until paid. Money is added to the account every time a mortgage payment is made. Escrow agent A neutral third party who holds the documents and money in a real-estate transaction until all conditions of the property sale are met. Estate The ownership interest of an individual in real property. The total sum of all the real property and personal property owned by an individual at time of death. Eviction To force or put out (a tenant, for example) by legal process when lease terms are violated. Examination of Title A review of public records and title abstracts to determine the chain of ownership of a property. Excess Wear Charge Most leases contain limits for wear and tear on the vehicle during the lease term. The lessee must pay charges for exceeding the limits when turning in the vehicle at the end of the lease. Exchange To give something in return for something else (such as goods or services). Making exchanges for similar or like property is a popular tax-deferral strategy. Exclusive Listing A legal agreement giving one real-estate agent the right to sell a property for a specified period, but owners retain the right to sell their property themselves without paying the agent commission. Expensing Government tax law allows individuals to expense certain business activities. Experian One of the Big Three credit bureaus, along with Equifax and Trans Union. Experian is not normally used in Canada. Exports Products and services produced in Canada to be sold in other countries. Express Account A low-fee or no-free chequing account, limited to ATM, telephone, and online transactions. Express account customers are charged fees when using bank teller services. Extended Warranty A service contract that covers certain vehicle repairs or problems after the manufacturer's or dealer's warranty expires. Extended warranties are sold by vehicle manufacturers, dealers, and independent companies. With a new vehicle, the extended warranty must be purchased by the end of the first year of ownership. |
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