Money / Earnest Money Deposit
A customary payment by the Buyer
in a transaction of funds to evidence the contractual promise.
Usually the earnest mondy deposit is a percentage of the transaction like
1%, 5% or 10%, which is often held by the escrow agent until
An easement is a right to use another persons property for some particular
use, the right is generally conveyed via an easement document.
Easements are most often given for roadway purposes, that at times improve
accessibility to a property, or for utility purposes, typicall allowing
phone, electric power, water, sewer and cable television. Easements
can be temporary or permanent. The taking of easements for public
purposes usually requires the payment of just compensation to an
owner. Appraisers are often employed to provide value opinions
regarding easement takings.
EMF is used to describe the electric and magnetic fields created by all
power transmission and distribution lines. Negative health affects from
power lines has not been proven. Concern has prompted further study of the
effects of EMF, and some further studies should become available over the
next several years.
The fact that public concern has been raised regarding this issue may be
enough of a reason for many buyers and sellers of real estate to consider
the location of power lines as a factor in the value of their property.
The right of the government to take private property for a public
purpose. As discussed under Condemnation
(the process), appraisers become involved in government takings as experts
who provide value opinions regarding the just
compensation due. While the ultimate decision maker with regard
to just compensation is the courts, appraisers are hired to opine values
and testify as expert witnesses.
A consideration of many buyers is a home's energy saving ability or it's
energy efficiency. An energy audit, often given free by gas and electric
companies, can point out problem areas in a home. Insulation, ventilation,
a solar system, and appliance are a few of the areas that receive
Property development can be limited by federal, state and local laws when
environmental contamination of any type is suspected. Lenders have also
become sensitive to environmental issues. Audits are now often performed
by qualified consultants prior to the purchase of real estate. The audits
signal a buyer and/or lender that a potential environmental problem may
That part of the total value of a property that exceeds all existing liens
and mortgages. A $ 500,000 home encumbered with only a $ 200,000 mortgage
and $ 10,000 in accrued property taxes would have an owner equity position
of $ 290,000.
and Omissions Insurance
The liability insurance coverage carried by many real estate brokerage
firms that protects them from claims made for mistakes made by them or
their agents during the processing of a real estate transaction.
Many transactions are closed by the title insurance company who issues the
title insurance policy, keeps copies off all documents and holds the
earment money deposit and paid funds. The title company thus acts as
the "escrow holder" and has parties to the transaction sign
"escrow instructions" that allow the to act.
Many lenders require that a borrowers place one-twelfth of their annual
taxes, assessments and insurance premiums into an account called an escrow
account. Escrow payments increase the monthly principal and interest
payments of borrowers but protects financial institutions from heavy
losses due to the non-payment of taxes or insurance premiums.
Standards of professional conduct. Realtors® adhere to a Code of Ethics
as outlined in their "Professionalism in Real Estate Practice"
publication available through the National
Association of Realtors®. The ethics publication notes that
Realtors® attempt to attain an "Optimum performance the public has
the right to expect."
When only one agent is authorized to buy or sell real estate in an
agreement with a client an exclusive agency relationship has been
established. An exclusive agency contracts does not preclude the Seller
from selling the property.
This term is used to describe the act of signing a contract, and it often
is assumed to include it's sealing and delivery.
A person designated in a will to carry out it's provisions (male)
Executrix is the female.