Glossary of Real Estate Terms: E to L

Colorado Springs Property » Glossary of Real Estate Terms: E to L

E:

Earnest Money: A sum paid to the seller to show that a potential purchaser is serious about buying. The money is applied to the down payment at closing

Easement: The right-of-way granted to a person or company authorizing access to the owner’s land; for example, a utility company may be granted an easement to install pipes or wires. An owner may voluntarily grant an easement, or can be ordered to grant one by a local jurisdiction

Equity: The difference between the value of a home and what is owed on it

Escrow: The handling of funds or documents by a third party on behalf of the buyer and/or seller

Estimated Net to Seller: The amount of money the seller will have after the closing. This is how much of the purchase price the seller actually gets, after paying off the loans and covering all costs

F:

Floodplain: The flat surfaces along the courses of rivers, streams, and other bodies of water that are subject to overflow and flooding

G:

Grantee: A person to whom property is transferred by deed or to whom property rights are granted by a trust instrument or other document

Grantor: A person who transfers property by deed or grants property rights through a trust instrument or other document

Guaranteed Title: A title whose validity is insured by an abstract, title, or indemnity company

H:

Hazard Insurance: Protection against damage caused by fire, windstorm or other common hazards. Many lenders require borrowers to carry it in an amount at least equal to the mortgage

I:

J:

Joint Tenancy: A Form of ownership in which the tenants own a property equally. If one dies, the other would automatically inherit the entire property

K:

L:

Legal Description: A description of land that identifies the real estate according to a system established or approved by law; an exact description that enables the real estate to be located and identified