Glossary of Terms

• Earnest Money

  Money given by the Buyer with an offer to purchase. Shows good faith.
  
  
• Encumbrance

  A claim, lien, charge, or liability attached to and binding real property. Any right to, or interest in, land which may exist in one other than the owner, but which will not prevent the transfer of fee title.
  
  
• Escrow

  Agreement to retain and disburse items of value to achieve a particular purpose.
  
  
• Escrow Closing

  Delivery of a deed by a grantor to a third party for delivery to the grantee upon the happening of a contingent event. Modernly, in some states, all instruments necessary to the sale (including funds) are delivered to a third (neutral) party, with instructions as to their use.
  
  

• Easements

  A right created by grant, reservation, agreement, prescription or necessary implication, which one has in the land of another. It is either for the benefit of land (appurtenant), such as right to cross A to get to B, "in individual" or " in gross," such as a public utility easement.
  
  
• Equity

  The interest or value which an owner has in real estate over and above the liens against it.
  
  
• Escrow Agent

  A neutral third party, appointed to act as custodian for documents and funds.
  
  
• Estoppels

  The prevention of one from asserting a legal right because of prior actions inconsistent with its assertion.