Earnest money: The monetary advance of part of the purchase price to indicate the intention and ability of the buyer to carry out the contract

Easement: A right created by grant, reservation, agreement, prescription or necessary implication to use someone else's property

Economic feasibility: The feasibility of a building or project in terms of costs and revenue, with excess revenue establishing the degree of viability

Economic rent: The market rental value of a property at a given point in time

Effective date: The date on which a registration statement becomes effective and the sale of securities can commence

Effective gross income (EGI): The total income from a property generated by rents and other sources, less a vacancy factor estimated to be appropriate for the property. EGI is expressed as collected income before expenses and debt service.

Effective gross rent (EGR): The net rent generated, after adjusting for tenant improvements and other capital costs, lease commissions and other sales expenses

Effective rent: The actual rental rate to be achieved by the landlord after deducting the value of concessions from the base rental rate paid by a tenant, usually expressed as an average rate over the term of the lease

Electronic Authentication: Any of several methods used to provide proof that a particular document received electronically is genuine, has arrived unaltered and came from the source indicated

Eminent domain: A power to acquire by condemnation private property for public use in return for just compensation

Encroachment: The intrusion of a structure that extends, without permission, over a property line, easement boundary or building setback line

Encumbrance: A right to, or interest in, real property held by someone other than the owner that does not prevent the transfer of fee title

Environmental impact statement: Documents required by federal and state laws to accompany proposals for major projects and programs that will likely have an impact on the surrounding environment

Equity: The residual value of a property beyond mortgage or liability

ERISA (Employee Retirement Income Security Act): Legislation passed in 1974 and administered by the Department of Labor that controls the investment activities primarily of corporate and union pension plans. More public pension funds are adopting ERISA-like standards.

Escalation clause: A clause in a lease that provides for the rent to be increased to reflect changes in expenses paid by the landlord such as real estate taxes and operating costs

Escrow agreement: A written agreement made between an escrow agent and the parties to a contract setting forth the basic obligations of the parties, describing the money (or other things of value) to be deposited in escrow, and instructing the escrow agent concerning the disposition of the monies deposited

Estoppel certificate: A signed statement certifying that certain statements of fact are correct as of the date of the statement and can be relied upon by a third party, including a prospective lender or purchaser

Exclusive agency listing: A written agreement between a real estate broker and a property owner in which the owner promises to pay a fee or commission to the broker if specified real property is leased during the listing period

Exit strategy: Strategy available to investors when they desire to liquidate all or part of their investment

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