You've probably heard some real estate terms and are wondering what in the world they mean. Use this glossary to look them up! If you are wondering what a word or phrase means and I don't have it in the glossary, please send me an email asking!

Earnest Money
Deposit of money accompanying an offer to buy property, to show good faith.

Easement
A legal definition whereby rights to the use of real property by someone other than the legal owner are conveyed to that person by the legal owner. This must be in writing. Prescriptive easements are the adverse possession form of easements.

Encroachment
Fences or other structures that extend into the property of another owner.

Equity
The value of the property actually owned by the homeowner: the purchase price plus appreciation plus improvements, less mortgages and liens.

Escrow
A neutral third party holds documents and money for a real estate transaction and ensures that all conditions of a sale are met. Also refers to a special account that a lender uses to hold a borrower's monthly payments on property taxes and insurance

Escrow Account
An account that a lender or mortgage servicer establishes to hold funds for the payment of expenses such as homeowners insurance and property taxes. Also known as an impound account.

Escrow Agent
A neutral third party who ensures that all conditions of a real estate transaction are met.

Escrow Analysis
A lender's periodic examination of an escrow account to determine if the lender is withholding enough funds from a borrower's monthly mortgage payment to pay for expenses such as property taxes and insurance.

Estimated Closing Costs
An estimate of expenses incidental to the sale of real estate, including loan, title, and appraisal fees. These costs are in addition to the price of the property, and are prepaid at closing. Some are one-time expenses and some are recurring.

Estimated Hazard Insurance
An estimate of hazard insurance, also known as homeowner's insurance or fire insurance, to cover physical risks such as fire and wind damage. Lenders usually require coverage at least equal to the replacement value of the home.

Estimated Property Taxes
An estimate of property taxes to be paid semiannually, or monthly if the lender requires. The amount is based on local tax rates and assessed property value, which is based on the most recent sale price plus assessment updates (subject to local policies).