Glossary of Real Estate terms - E

Easement

A right of way giving persons other than the owner access to or over a property. The most common are utility easements for the servicing of properties with utilities such as water, sewer, gas and hydroelectric power. There are also access easements for driveways and access lanes, etc.

Encroachment

An improvement that intrudes illegally on another's property. Common examples are a fence, storage shed, or overhanging roofline that partially (or even fully) extends over the property line of the adjoining property.

Encumbrance

Anything registered on title, whether financial or non-financial, that affects or limits the fee simple title to a property, such as mortgages, leases, easements, liens or restrictions. An easement is a non-financial charge, while a mortgage, Judgement or Claim of Builder's Lien would be a financial charge.

Equity

A homeowner's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its debts.

Estate

The ownership interest of an individual in real property. The sum total of all the real property and personal property owned by an individual at time of death.

Exclusive Listing

A written contract that gives a licensed real estate agent the exclusive right to sell a property for a specified time. This does not obligate the REALTOR® to cooperate with other agents as in the case of a Multiple Listing Service® (MLS®) contract.