Earnest Money – Initial payment made by a purchaser of real estate as evidence of good faith.

Easement – A right, privilege or interest which one party has in the land of another.

Easement in Gross – An easement which encumbers the land, and is usually given to a quasi-public corporation, such as the electric or phone company.

Easement By Prescription – A method of acquiring a right to a portion of property by lapse of time, in the manner of adverse possession.

Eminent Domain – The right of a government to take private property for public use upon the payment of just compensation.

Encroachment – A building or fixture which intrudes partly or wholly upon the property of another.

Equity – The interest or value which an owner has in real estate over and above the debts against it.

Escalation Clause – A clause in a contract permitting an adjustment of certain payments up or down to cover certain contingencies; mostly found in agreements of sale, mortgages and leases.

Escrow – The deposit of instruments and funds with instructions to a third neutral party to carry out the provisions of an agreement of contract.

Estate – The degree, quantity, nature, and extent of interest a person has in real property.

Eviction – A legal proceeding by a landlord to recover possession of leased premises from a tenant due to some breach of lease contract.

Exchange – A method of conveying real property by trading with another property.

Exclusive Right To Sell – A written agreement between owner and agent giving agent the right to collect a commission if the property is sold by anyone during the term of his agreement.

Execute – To complete, to perform, to make, to do, to follow out; to execute a deed, to make a deed, including especially signing; to execute a contract, to perform the contract, to follow out to the end, to complete.

Executed Contract – A contract that is fully performed.

External Obsolescence – Loss in value due to factors outside of the property (such as near airport).