Archive for November, 2010
D HORIZON – Limestone deposits under the C horizon.
DADO – (1) To secure by setting in a groove. (2) To make a rectangular groove in a board or plank.
DALE – A valley between hills or other high ground.
DAM – An earthen, metal, masonry, or wooden wall or barrier across a flow of water, which is used to restrict or prevent the water from flowing.
DAMAGES – (1) Money recoverable by one suffering a loss or injury. (2) The loss of value to property adjoining a property taken in condemnation proceedings, rather than the value of the property taken.
DAMPER – An adjustable plate in the flue of a fireplace or furnace, which is used to control the draft from the flames.
DARK STORE CLAUSE – A clause usually found in a retail store percentage lease stating that the tenant must stay open for business at the site for the full term of the lease, and limits the tenant’s right to open a competitive business.
DATA PLANT – Information on real property, filed and held by an appraiser, lender, etc.
DATED DATE – Indicates the date a document was executed (signed), rather than the date of recording (recording date).
DATUM – A position from which distances are measured.
DATUM LINE – A horizontal line from which heights and depths are measured. Varies with the area but is usually set forth in the local building code.
DBA (DOING BUSINESS AS) – An identification of the owner or owners of a business and the business name. Not a partnership or corporation.
DE – Latin for of; by; from; concerning.
DEAD LOAD – (1) Most commonly, the weight of a truck, exclusive of cargo. (2) The weight of a building or other structure, including furnaces, air conditioning units, elevators, and other permanent machinery, but not furniture, people, or inventory of a business in the structure.
DEAD RENT – A term used in mining to indicate the fixed annual rent, exclusive of royalties. In commercial percentage leases, usually called minimum rent or base rent.
DEAD-END STREET – A street having ingress and egress at one end only. Differs from a cul de sac in that the dead-end street does not have an enlarged area at the closed end for U turns.
DEALER – One who buys and sells real estate as a business, as opposed to an investor. The importance of the term is for tax purposes. If IRS determines that a taxpayer is a dealer, said taxpayer will not be allowed the capital gains benefits of an investor, but will be taxed at ordinary income rates. The term applies to the transactions more than the person. One may be a dealer in certain transactions and an investor in others.
DEAMORTIZATION – A term used to describe a loan with payments that begin at less than interest only.
DEATH RATE – Number of deaths in a given area in a given time. Based on a per 100 or per 1000 population.
DEBENTURE – Unsecured indebtedness, usually long-term. Most common debentures are in the form of bonds.
DEBENTURE BOND – See: Debenture.
DEBENTURE STOCK – See: Debenture .
DEBIT – An accounting term used to designate a payment or owing, as opposed to a credit which is a receiving or being owed.
DEBT – Money owing from one person to another.
DEBT EQUITY RATIO – The ratio of the mortgage balance to the owner’s equity.
DEBT FINANCING – Borrowing money rather than selling ownership interests (equity financing). For example: A corporation would get a loan or issue bonds as a means of debt financing. The corporation would issue stock or use retained earnings as a means of equity financing.
DEBT RATIO – The ratio, expressed as a percentage, of a borrower’s monthly expenses to gross monthly income. There are two ratios. The first is the expense of the property to income. This includes the mortgage payment, taxes and insurance. The second is the total expense to income. This includes car payments, credit card payments, etc. Acceptable numbers for almost any loan would be 25% property expense to income and 35% total expense to income. The percentages may be much higher, especially for a hard money mortgage.
DEBT SERVICE – (1) The periodic payment of mortgages or trust deeds on a specific property. (2) The interest payments of said mortgages or trust deeds. (3) Sometimes loosely used for the total amount owing on said mortgages or trust deeds.
DEBT-TO-INCOME RATIO – See: Debt Ratio.
DEBTOR – One who owes a debt.
DEBTOR’S POSITION – Value of property over the amount of mortgages. Commonly called the equity.
DECEDENT – Originally, one who was dying. Modernly, one who is dead.
DECENTRALIZATION – The movement of people and businesses from a central area (a city or downtown area) to more scattered positions (surrounding suburbs).
DECIBEL – A unit of measurement for sound or noise levels. Some states require a builder to make a purchaser aware of the noise level in given areas (usually near airports).
DECIDUOUS TREES – Those which shed their leaves or fruit at seasonal intervals.
DECK – Any flat surface which resembles the deck of a ship, and is not enclosed. A flat area on a roof, roof of a porch, etc.
DECK PAINT – An exterior paint having a high resistance to wear, and used in areas of heavy use, such as a porch.
DECK ROOF – A flat roof without parapets.
DECLARATION – See: Declaration of Restrictions; Restriction; Condo-minium Map.
DECLARATION OF HOMESTEAD – See: Homestead.
DECLARATION OF RESTRICTIONS – A set of restrictions filed by a subdivider to cover an entire tract or subdivision.
DECLARATION OF TRUST – A written acknowledgement by one holding legal title to property that the property is held in trust for the benefit of another.
DECLARATORY JUDGMENT – A determination by a court as to the legal rights of the plaintiff, with no order for relief. The judgement is binding on future litigation.
DECLINING BALANCE METHOD OF DEPRECIATION – Depreciation by a fixed annual percentage of the balance after deducting each yearly depreciation amount.
DECORATE – To adorn or add to the beauty of something. Connotes only superficial changes, but in some areas, is used to indicate major repair.
DECREE – The judgment of a court.
DECREE OF DISTRIBUTION – The final determination of the rights of heirs to receive the property of an estate.
DEDICATED – Property given by an owner for public use.
DEDICATION – The giving by an owner of private property for public use, and the acceptance by the proper public authority. Most commonly the dedication by a builder of the streets in a subdivision.
DEED – Actually, any one of many conveyancing or financing instruments, but generally a conveyancing instrument, given to pass fee title to property upon sale.
DEED BOOK – See: Liber.
DEED IN LIEU – See: Deed in Lieu of Foreclosure.
DEED IN LIEU OF FORECLOSURE – A deed given by an owner/borrower to a lender to prevent the lender from bringing foreclosure proceedings. The validity of the deed depends to some degree on “fairness” under the circumstances, and adequacy of consideration will be considered.
DEED OF RECONVEYANCE – See: Reconveyance.
DEED OF TRUST – An instrument used in many states in place of a mortgage. Property is transferred to a trustee by the borrower (trustor), in favor of the lender (beneficiary), and reconveyed upon payment in full.
DEED POLL – The common form of deed executed by the grantor(s) only. When the grantee(s) also execute the deed (perhaps to accept certain restrictions or liens), it is an indenture deed (see which).
DEED RESTRICTIONS – Limitations on the use of property placed in the conveyancing deed by the grantor, which bind all future owners.
DEFAULT – An omission or failure to perform a legal duty.
DEFAULT JUDGMENT – A judgment entered against a party who fails to appear in court at the scheduled time.
DEFAULT RATIO – The point at which income producing property fails to carry itself (pay operating expenses and mortgage payments). It is determined by the ratio of occupied units to total units.
DEFEASANCE DEED – A deed, made collaterally with a conveyancing deed, which imposes conditions which, if met, will defeat the conveyance.
DEFEASIBLE TITLE – Title which is not absolute but possibly may be annulled or voided at a later date. For example: Title conveyed to A with condition that if A marries before age 30, title will go to B. A’s title may be good (doesn’t marry) or may be defeated (marries before 30).
DEFECTIVE TITLE – (1) Title to a negotiable instrument obtained by fraud. (2) Title to real property which lacks some of the elements necessary to transfer good title.
DEFENDANT – The person against whom a civil or criminal action is brought.
DEFERRED EXCHANGE – A process whereby the taxpayer sells the relinquished property and purchases the replacement property at a later date. The process must conform to the rules of IRS code section 1031 in order to gain the tax benefits. See also: Concurrent Exchange; Reverse Exchange.
DEFERRED INTEREST – Interest that is postponed (deferred) until a later date. This would occur if a borrower was paying less than interest only on a loan.
DEFERRED MAINTENANCE – Repairs necessary to put a property in good condition. A concern of a purchaser. An owner may have an account for such maintenance.
DEFERRED PAYMENT LOANS (DPLS) – Reverse mortgages that give the borrower a lump sum of cash to repair or improve a home; usually offered by state or local governments.
DEFERRED PAYMENTS – (1) Payments to begin at a future time. (2) Installment payments.
DEFICIENCY JUDGMENT – Commonly, the amount for which the borrower is personally liable on a note and mortgage if the foreclosure sale does not bring enough to cover the debt. Actually the judgment is for the total amount and not for the deficiency, the recovery from the foreclosure sale being deducted from this amount.
DEFLATION – A decrease in the supply of money and credit. The value of money is increased in relation to what it will buy (price drop). Opposite of inflation.
DEGREE – (1) A geometric measure. 360 degrees makes a circle; 180 degrees a straight line; 90 degrees a right angle, etc. Used in metes and bounds descriptions to show the direction the boundaries follow. A degree is itself divided by minutes and seconds, 60 minutes making 1 degree, and 60 seconds making 1 minute. (2) A term used in inheritance to show the closeness of blood relationships. (3) Extent, such as 1st degree murder. (4) That which is received upon graduation from school, such as a law degree.
DELAYED RECONVEYANCE – A reconveyance of a deed of trust which is issued and recorded after transfer of title and issuance of title insurance (not showing the deed of trust). Usually occurs when the lender is in another state and will not issue the reconveyance until paid in full.
DELEGATE (DELEGATEE) – One to whom a duty under a contract is transferred.
DELEGATION – The transfer of a duty under a contract. The opposite of assignment, which is the transfer of a right.
DELEGATOR – One who transfers a duty under a contract.
DELINQUENCY – An overdue amount owing on a loan.
DELIVERY – In conveyancing, the placing of the property in the actual or constructive possession of the grantee. Usually accomplished by delivery of a deed to the buyer or agent of the buyer, or by recording said deed.
DELTA – (1) The Greek letter used to symbolize a change in percentage. When capitalizing yield for valuation of income property, it represents the anticipated percentage change in the value of the property over the period projected. (2) The land formed at the mouth of a river where it meets tidal water.
DEMAND – (1) The quantity of goods which can be sold at a specified price, in a given market, at a particular time. (2) A letter from a lender showing the amount due in order to pay off a mortgage or trust deed.
DEMAND DEPOSIT – Any deposit which may be withdrawn upon demand. For trust funds, non interest bearing deposits.
DEMAND NOTE – A note having no date for repayment, but due on demand of the lender.
DEMINIMIS PUD – A planned unit development having very limited common area.
DEMISE – A lease or conveyance for life or years. Loosely used to describe any conveyance, whether in fee, for life, or for years.
DEMISING WALL – A wall separating tenants in the same building.
DEMOGRAPHICS – Statistics. Commonly refers to statistical information required by certain businesses (especially chain stores) regarding a possible new location.
DEMURRER – A legal term whereby one party states that even if the other party’s facts or allegations are true, there is still no cause of action.
DENSITY – (1) The degree of crowding together of people or buildings. (2) Weight or thickness.
DEPARTMENT OF REAL ESTATE – That department of the state government responsible for the licensing and regulation of persons engaged in the real estate business. The person heading the department is usually called The Real Estate Commissioner. Other names for the department are The Division of Real Estate and The Real Estate Commission.
DEPARTMENT OF VETERANS AFFAIRS – Formerly the Veterans Administration.
DEPLETION – The reduction or exhaustion of an asset, such as a wasting asset, and its corresponding loss of value.
DEPLETION RATE – Percentage of the total amount of a wasting asset (oil, minerals, etc.) to be mined, drilled or otherwise used yearly.
DEPONENT – One who makes a sworn written statement (deposition). If the statement is an affidavit, the maker is called and affiant.
DEPOSIT – (1) Money given by the buyer with an offer to purchase. Shows good faith. Also called earnest money. (2) A natural accumulation of resources (oil, gold, etc.) which may be commercially recovered and marketed.
DEPOSIT RECEIPT – See: Purchase Agreement.
DEPOSITION – Testimony of a witness taken under oath outside of court.
DEPOT – (1) A railroad or bus station. (2) Any place used for the storage and protection of goods.
DEPRECIABLE LIFE – A tax term meaning the number of years used to determine depreciation of an asset (generally a building). The time used is determined by the local IRS office under general guide lines.
DEPRECIABLE PROPERTY – Property on which a useful life can be determined for depreciation. For example: A building is depreciable (has a lifetime) but the land under it is not (lasts forever).
DEPRECIATION – (1) Decrease in value to real property improvements caused by deterioration or obsolescence. (2) A loss in value as an accounting procedure to use as a deduction for income tax purposes. (See specific types of depreciation).
DEPRECIATION METHODS – Accounting methods to compute the decrease in value of an improvement.
DEPRECIATION RESERVE – An account for the amount needed for depreciation caused by time and use of equipment, buildings, etc. Common in accounting of public utilities.
DEPRESSION – The bottom of a business cycle, when production, prices, and purchasing, are usually low, and unemployment is high.
DEPTH CURVE – An appraisal graph showing the increase or decrease in value of lots of equal front footage, as the depth increases or decreases (depth factor).
DEPTH FACTOR – The increase or decrease of the value of a lot as the depth increases or decreases; the frontage remains the same.
DERAIGN – To displace, as by proving something to be false.
DERELICT – Dry land that is exposed by a change in the water line.
DERELICTION – The changing of the water line that exposes dry land.
DEROG – A slang shortening of the word derogatory. Used in reference to information on a credit report.
DESCENT – Technically, to pass by succession (operation of law). Modernly, the term includes passing by will.
DESCRIPTION – See: Legal Description.
DESIGN – A plan of a structure, encompassing all phases of its appearance and function.
DESIST AND REFRAIN – To stop doing what one is doing, and not to start doing it again in the future. The real estate commissioner in some states has the power to issue a desist and refrain order when real estate laws are violated.
DESKTOP APPRAISAL – An appraisal done from the appraiser’s desk without a physical inspection of the property. The appraiser uses comparables to estimate value. Usually used for loan rather than sale transactions. The appraisal may sometimes be labeled as a desktop appraisal even if the appraiser has physically inspected the property.
DETACHED – Not connected to. A house with a detached garage, for example, would have no direct access from one to the other.
DETERIORATION – A gradual wearing away of a structure through use or exposure to the elements, rather than a sudden destruction. Also called physical deterioration.
DEVELOPER – (1) A builder. (2) One who prepares the raw land for construction and then sells lots to a builder.
DEVELOPMENT – A planned construction project, rather than simply the building of unrelated buildings.
DEVELOPMENT COST – See: Off-Site Improvements.
DEVELOPMENT LOAN – A loan for the purchase of land or off-site improvements, rather than building costs. The land involved is used to secure the loan.
DEVEST – See: Divest.
DEVISE – Traditionally, a gift by will of real property. Modernly, a gift of either real or personal property. See also: Bequest.
DEVISEE – One to whom real estate is given by will.
DEVISOR – A testator who leaves real estate.
DIAGRAM RULES – A method of determining the boards to be produced from a log by drawing a cross section of the log, and cross sections on it of the boards to be produced, leaving between each board the width of a saw kerf.
DIKE – (1) A barrier erected to restrain the flow of water. A levee. (2) a ditch or channel for water.
DILUVIUM – A deposit of land produced by a flood.
DIMENSION LUMBER – Lumber cut to commonly used sizes or cut to a custom order.
DIMINISHING ASSETS – See: Wasting Assets.
DIMINISHING RETURNS – See: Increasing and Diminishing Returns.
DIRECT COMPENSATION – See: Compensation.
DIRECT COSTS – Construction costs not including overhead.
DIRECT DEEDING – A process whereby the parties to a 1031 exchange deed directly to each other rather than to the accommodator. The process must conform to the rules of IRS section 1031 in order to obtain the tax advantages.
DIRECT ENDORSEMENT – A program allowing private lenders to process and endorse FHA loans. The lender must first be approved by FHA.
DIRECT EXPENSE ESCALATION – See: Escalation Clause(3).
DIRECT REDUCTION MORTGAGE – An amortized mortgage. One on which principal and interest payments are paid at the same time (usually monthly) with interest being computed on the remaining balance.
DIRECT STEAM SYSTEM – A radiator system fed from a steam boiler.
DIRECTIONAL GROWTH – The path of growth of an urban area. Used to determine where future development will be most profitable.
DISBURSEMENTS – Payments made during the course of an escrow or at closing.
DISCHARGE – See: Release.
DISCHARGE OR RELEASE FROM THE MILITARY – To be eligible for a V.A. loan, a person must receive a discharge which is not a dishonorable discharge or have been eligible for such a discharge or release but not received one because of reenlistment.
DISCLAIMER – (1) Statement on a publication attempting to limit liability in the event the information is inaccurate. (2) Renunciation of a claim or right of another. (3) Refusal to accept an estate, either as trustee or as owner.
DISCLOSURE – A form filled out by the owner of a home describing to a potential buyer any defects in the property of which the owner is aware but are not obvious to the buyer. Courts have held that owners may be liable for undisclosed defects of which they “should be aware”, even if they have no actual knowledge of them.
DISCOUNT – The difference between face value of an installment note and mortgage or deed of trust, and the present cash value.
DISCOUNT BROKER – A real estate broker charging a lower than the usual commission. The broker will have the seller take on some of the tasks normally performed by the broker, such as showing the property to prospective purchasers.
DISCOUNT FEE – See: Discount Points.
DISCOUNT POINT – See: Point (1).
DISCOUNT POINTS – The amount paid to increase the yield. Example: A borrower receives a loan with an interest rate of seven percent but pays the lender three points in advance. The points raise the annual percentage rate of the loan. The lender may then sell the loan at less than face value and still make a profit. Each point equals one percent of the face value of the loan.
DISCOUNTED CASH FLOW – The present value of future cash flow, determined by a given discount rate.
DISCRIMINATION – Refusal to sell or rent property or make a loan based on reasons forbidden by federal or state law. This can include race, gender, pregnancy, color, religion, national origin, age, disability or sexual orientation. Discrimination extends beyond real estate to areas such as hiring and firing and refusing admittance to private schools and other organizations. All the reasons above do not apply to all areas.
DISINTERESTED APPRAISAL – An estimate of value of real estate by one having no personal interest in the property.
DISPOSABLE INCOME – See: Spendable Income.
DISPOSAL FIELD – A system of clay tiles and gravel used to dispose of the waste draining from a septic tank. The percolating qualities of the soil determine the extent of the field needed. (Also, called a tile field).
DISPOSITION – The giving up or alienating of property.
DISPOSITION OF REAL ESTATE STATEMENT – A statement that the buyer will occupy the property being purchased even though the buyer owns other property. The buyer states that the other property will be sold or rented. Particulars must be given as to any loan on the property and the equity or rent to payment amounts.
DISPOSSESS PROCEEDINGS – Eviction proceedings by a landlord to remove a tenant from possession because of nonpayment of rent or other breach of the rental agreement. The term is not widely used.
DISSEISIN – A wrongful dispossession of someone seised (in rightful possession) of real property.
DISSOLUTION – A cancellation or annulment of a contract or business association, such as a partnership or corporation.
DISTEMPER – A mixing of paint with egg whites or size, to use as background decoration for a painting on a wall or ceiling.
DISTRAINT – To take (legally or illegally) personal property and keep it until its owner performs an obligation. Commonly, a landlord taking personal property (furniture, etc.) of a tenant until rent is paid.
DISTRESS SALE – A sale of property when the seller is under extreme pressure to sell. Generally the property is sold for less than market value.
DISTRIBUTED LOAD – Weight distributed over a surface, such as a floor, or along a beam or other support member, and measured in pounds or tons per square foot of area.
DISTRIBUTION BOX – (1) See: Fuse Box. (2) An underground box which receives the waste from a septic tank and distributes it laterally to a disposal field.
DISTRIBUTION PANEL – A board containing electrical circuits which distribute the main load to branch circuits.
DISTRIBUTION TILE – Tile, usually clay or cement, used in a disposal field.
DISTRICT – An area geographically set apart for a specific purpose, such as a congressional district or drainage district. The boundaries of one may overlap the other.
DITCH – A trench, natural or man made, especially when used for drainage or irrigation.
DIVEST – To take away. The opposite of invest.
DIVIDED INTEREST – Different estates in the same property, such as the interest of owner, lessee, mortgagee, etc.
DIVIDED RATE – See: Split Rate.
DIVIDEND – A dividing into shares of a fund of money or property for distribution, as among shareholders of a corporation. The money or property distributed is the dividend.
DIVIDEND YIELD – Ratio of cash flow to cash invested, expressed as a percentage.
DIVISA – A boundary, commonly of a farm. Seldom used.
DIVISION FENCE – A term used in ranching to describe the fence separating pastures.
DIVISION OF REAL ESTATE – See: Department of Real Estate.
DIVISION WALL – (1)A wall between two buildings, but not a part of either. (2) A wall which divides a building into rooms. Differs from a partition in that it is load-bearing.
DIVORCE – The legal dissolution of a marriage, leaving the parties with the results of the marriage (includes alimony, child support, property settlements, etc.) rather than an annulment which puts the parties in the position they were before the marriage.
DOCK – (1) A platform used for loading and unloading ships, trucks, or railroad cars. (2) A landing pier for boats. (3) The part of a courtroom where a prisoner is kept.
DOCTRINE OF ADVANCEMENTS – See: Advancements.
DOCUMENT – See: Instrumen).
DOCUMENT PREPARATION FEE – A charge by an escrow agent, attorney or other person for preparing the documents for a sale or loan.
DOCUMENTARY TAX STAMPS – Stamps, similar to postage stamps, affixed to a deed, showing the amount of transfer tax paid. Most states now “stamp” the deed rather than actually affixing a stamp.
DOCUMENTARY TRANSFER TAX – A state tax on the sale of real property, based on the sale price or equity transferred, being $ .55 for each $500 of the taxable amount in most states. Some states use $1.10 per $1000; $ .50 per $500; $1.00 per $1000.
DOG – A mechanical device for holding logs together in a logging operation; usually has some type of claw which penetrates the wood.
DOLPHIN – (1) A bumper around a boat to prevent damage. (2) A buoy with a ring for mooring.
DOMESTIC CORPORATION – (1) Refers to a state rather than a county. For example: In Delaware, a corporation organized under Delaware law would be a domestic corporation. In New York, a corporation organized under Delaware law would be a foreign corporation (foreign to New York). See also: Corporation. (2) In international terms, refers to the country in which the corporation is based. In the U.S., for example, U.S. based corporations are domestic.
DOMICILE – (1) A legal term signifying a place where a person has his permanent home. The most accurate meaning is the layman’s understanding of the place where a person “lives”, since this takes into consideration the intent of the person to make a particular property his “home”. (2) The state or country in which a corporation is chartered (organized), such as a corporation “domiciled” in the U.S.
DOMINANT TENEMENT – A parcel of land which benefits from an easement. For example: An easement exists over parcel A for access to parcel B. Parcel B is the dominant tenement; parcel A is the servient tenement.
DONEE – One who receives a gift.
DONOR – One who gives a gift.
DOOR – A sliding or hinged structure, covering an opening to a cupboard, closet, room, building, etc. May be used as an entrance or exit. Usually constructed of wood, glass, or metal, depending on its service.
DOOR JAMB – The members surrounding a door or door opening.
DORMER WINDOW – (1) A window which rises vertically above the roof line of a sloping roof. (2) Originally any bedroom window.
DOUBLE DECLINING BALANCE METHOD OF DEPRECIATION – A use of the declining balance method, but with double the depreciation allowable by straight line. An accelerated method.
DOUBLE ESCROW – Two concurrent escrows on the same property, having the same party as buyer and seller of the property. Example: Escrow 1-A buys from B. Escrow 2-A sells the same property to C. A is using C’s money to buy B’s property. The process is illegal in many states unless full disclosure is made.
DOUBLE FLOOR – A floor and subfloor, both of wood.
DOUBLE FRAMING – A method of adding strength to framing by doubling the amount of structural supports.
DOUBLE GABLED ROOF – See: M Roof.
DOUBLE GLAZING – See: Thermal Window.
DOUBLE HOUSE – See: Duplex.
DOUBLE PITCH – The most common roof for houses, coming to a crest at the center and sloping away in two directions.
DOUBLE-HUNG WINDOW – A window which opens vertically from the top and bottom, containing two separate sashes with a locking device, usually at the center where the top of the lower sash meets the bottom of the upper sash.
DOVETAIL JOINT – A joint which interlocks in a zigzag pattern, similar to the tail of a dove.
DOWEL – A cylindrical piece of wood used to join members together by fitting the ends into corresponding holes of the members.
DOWER – A common law interest of a wife in the property of her deceased husband. Being changed in many states by statute to give more equality between men and women in property rights.
DOWN PAYMENT – Cash portion paid by a buyer from his own funds, as opposed to that portion of the purchase price which is financed.
DOWNSPOUT – A pipe leading from the gutters of a roof to the ground and into a sewer or away from the building.
DOWNSTROKE – Slang for down payment.
DOWNTOWN – (1) In a small city or town, the business area. (2) In a larger city, a business section reference to distinguish the area from midtown or uptown.
DOWNZONING – A change in the allowable use of land by the appropriate zoning authority to a lesser (usually less valuable) use. Example: Eight units per acre to four units per acre.
DRAFT CURTAINS – Fire retardant partitions (usually of sheet metal or dry wall) which attach to the interior of a roof, to divide a building in order to prevent the spread of fire within the building.
DRAGNET CLAUSE – A clause in a mortgage or deed of trust which places the real estate as security for existing debts between the parties.
DRAINAGE – (1) The gradual flowing of liquid off a surface. (2) Any system to remove liquid waste or rainwater by having it flow to a designated area.
DRAINAGE DISTRICT – (1) A geographical area under the authority of a single unit of local government which controls the construction and operation of the drainage systems of the area. (2) The governmental body having control over the area drainage systems.
DRAINAGE DITCH – Any open water channel, natural or man made, used for drainage.
DRAW – (1) Portions of a construction loan, given after certain stages of completion. (2) An advance against future income.
DREDGE – (1) A machine which drags over the bottom of a waterway, to excavate or gather. (2) To excavate or gather by using a dredge.
DRESS – To finish or ornament, such as lumber, masonry, a facing of a building, etc.
DRESSER DRAWER TITLE – The failure to record evidence of title; instead, placing it in a “dresser drawer”. Also called: Trunk Title.
DRIFT – The stress or thrust of an arch in a horizontal direction.
DRIFT FENCE – A barrier to prevent cattle from “drifting” into an area as they graze. The fence does not form an enclosure.
DRIP – (1) A small pipe, used to drain larger pipes of condensation. (2) A projection from a roof edge or sill to throw off rainwater. See also: Drip Cap.
DRIP CAP – A molding which projects from over the exterior of a door or window, forcing rainwater to drip away from the building.
DRIVEWAY – (1) Commonly, a private roadway, paved or unpaved, leading from a public street to a garage or other shelter for an automobile. (2) An entrance to private land for any purpose, to be used by a motor vehicle.
DROP SIDING – A siding applied to the exterior of a frame structure by tongue and groove method.
DROUGHT – Lack of water due to insufficient rainfall over an extended period of time.
DRUMLIN – A long narrow hill of glacial deposit, sometimes trapping water and so forming a swamp at its foot.
DRY MORTGAGE – A lien which places no personal liability on the mortgagor, looking only to the property for security.
DRY ROT – A fungal decay of seasoned wood.
DRY-WALL CONSTRUCTION – Type of construction by which the interior wall is attached in a dry condition, generally as sheet materials, as contrasted to wet plaster application.
DUAL AGENCY – The representation of opposing principals (buyer and seller) at the same time. In brokerage many states get around this by saying that the agent aids the buyer but is the agent of the seller only. A problem arises if both buyer and seller pay the broker. Then full disclosure must be made. An escrow agent is the agent of buyer and seller and usually paid by both. This is why an escrow agent must be neutral.
DUCES TACUM – (Latin: Bring With You) An order, usually a subpoena, to bring records, documents, etc. for court examination.
DUCTS – Any conduit holding gas, water, electrical wiring, etc., as a means of carrying said gas, water, or electricity from one place to another.
DUE-ON-SALE-CLAUSE – See: Alienation Clause.
DUE-ON-TRANSFER PROVISION – See: Alienation Clause.
DUFF – Organic matter, mostly leaves, in various stages of decomposition on the floor of a forest.
DUPLEX – (1) Any building containing exactly two dwelling units. Most commonly refers to the units which are side by side, with a common wall and roof. (2) An apartment on two floors or levels.
DURESS – Forcing one to do that which he would not voluntarily do.
DUTCH DOOR – A door divided horizontally into halves, each opening and closing independent of the other, or latched together to act as one door.
DWELLING UNIT (DWELLING HOUSE) – The apartment, building, or group of buildings, occupied by a person as a residence.
Posted in EXPENSES – See: Operating Expenses.
EXPENSES OF SALE – The costs which are attributed to the sale of real estate. They would include commission, loan points, title and escrow fees, documentary transfer tax, etc.
EXPERT TESTIMONY – Testimony by one acknowledged to have special training and knowledge in a particular subject. Only testimony on the subject in which the witness is “expert” is considered expert testimony.
EXPERT WITNESS – One acknowledged to have special training and knowledge of a particular subject, and testifying on that subject.
EXPOSURE – (1) The degree to which a property for sale, lease, etc., is made noticeable (exposed) to potential buyers, tenants, etc., through advertising, multiple listing groups, etc. (2) The direction in which a property faces. For example: Does a store depending on walk-in trade face the sun in the morning when people walk in the sun to get warm (eastern exposure), or face the sun in the afternoon when people walk in the shade to keep cool (western exposure).
EXPRESS – Clear and definite; set forth, as opposed to implied.
EXPRESS WARRANTY – A warranty given by words of the seller rather than by law or circumstances.
EXPRESSWAY (FREEWAY) – A highway (usually divided) with control of access, and with major streets crossing it at a different grade level. Distinguished from “toll roads” in that no fee is charged to those using the expressway.
EXPROPRIATION – A taking, as under eminent domain. The word has come to be used in connection with a foreign location, such as a foreign government taking an American industry located in the foreign country. The word is used instead of eminent domain in Louisiana.
EXTENDED COVERAGE – With reference to insurance, coverage beyond the normal (standard) policy.
EXTENSION – A continuing under the same conditions, as opposed to a renewal, which implies new terms or conditions.
EXTENSION OF MORTGAGE – See: Extension.
EXTERIOR – The outside surface of any structure.
EXTERIOR FINISH – The outside covering of a structure, such as wood, brick, stucco, etc.
EXTERIOR WALL – The outer vertical surface of a structure, which encloses the entire structure, and the dimensions of which are used to find the gross area of the enclosure for appraisal purposes.
EXTERNAL OBSOLESCENCE – See: Economic Obsolescence.
EXTRAORDINARY PROPERTY LOSS – An accounting procedure which includes the depreciated value of property from unanticipated damage not insured
EZ/EC – See: Empowerment Zones and Enterprise Communities.
E & O INSURANCE – See: Errors And Omission Insurance.
EA – See: Environmental Assessment.
EARNEST MONEY – See: Deposit (1).
EARNINGS – Money received for labor or personal services rather than a return on capital, although corporate income from all sources is described as “earnings”.
EASEMENT – 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, or “in gross”, such as a public utility easement.
EASEMENT APPURTENANT – An easement for the benefit or another parcel of land, such as the right to cross parcel A to reach parcel B. The easement will pass with the transfer of property to a new owner. See also: Dominant Tenement; Servient Tenement.
EASEMENT BY PRESCRIPTION – See: Prescriptive Easement.
EASEMENT IN GROSS – An easement for the benefit of a person or company, rather than for the benefit of another parcel of land. Commonly, such easements as for public utilities.
EASEMENT OF NECESSITY – An easement granted by a court when it is determined that said easement is absolutely necessary for the use and enjoyment of the land. Commonly given to landlocked parcels.
EASY DOC LOANS – See: Low Doc Loans.
EAT – See: Exchange Accommodation Titleholder.
EAVES – The margin or lower part of a roof projecting beyond an exterior wall.
EBB TIDE – The tide at its low, or the period from high to low.
ECONOMIC AGE-LIFE METHOD OF DEPRECIATION – See: Age-Life Method of Depreciation.
ECONOMIC DEPRECIATION – See: Economic Obsolescence.
ECONOMIC DEVELOPMENT ADMINISTRATION (EDA) – Part of the U.S. Department of Commerce. The EDA manages grant and loan programs aid economically depressed areas.
ECONOMIC LIFE – The “profitable” life of an improvement. Generally shorter than the physical life (before it is worn out).
ECONOMIC OBSOLESCENCE – A loss in value to property (depreciation) caused by a negative influence near the property. Concerned with location rather than physical characteristics of the property. Also called External Obsolescence; Environmental Obsolescence.
ECONOMIC RECOVERY ACT OF 1981 (ERTA) – Laws designed to stimulate the economy, including stimulation of the real estate market. See: Accelerated Cost Recovery System.
ECONOMIC RENT – The market rental value of a property at any given time, even though the actual rent may be different.
ECONOMICS – The study of the laws and theories pertaining to the creation and distribution of wealth, either of the private sector or of governments.
EDA – See: Economic Development Administration.
EEM (ENERGY EFFICIENT MORTGAGE) – An FHA program that helps homebuyers save money on utility bills by enabling them to finance the cost of adding energy efficiency features to a new or existing home as part of the home purchase.
EFFECTIVE AGE – Age of a structure as estimated by its condition rather than actual age. Takes into account rehabilitation and maintenance.
EFFECTIVE DEMAND – A qualifying term meaning the ability to pay as well as desire to buy.
EFFECTIVE GROSS INCOME – See: Adjusted Gross Income.
EFFICIENCY – An apartment consisting of one room, sectioned into areas for a kitchen, bedroom, etc.
EFFLUENT – (1) The flowing of a branch of a stream out from the main stream. (2) The flow of sewage, either from a storm sewer or sanitary sewer, after some stage of treatment.
EGRESS – A term concerning a right to come and go across the land (public or private) of another. Usually part of the term ingress and egress
EIS – See: Environmental Impact Statement.
EJECTMENT – Most commonly, a court action to recover real property, usually by eviction of a tenant. In some states, an action to enforce specific performance.
ELECTRIC HEATING – Any heating system using electricity as its power source. May be a water or air system.
ELECTRICAL CURRENT – Any flow of electricity.
ELEEMOSYNARY CORPORATION – A corporation created for a charitable purpose. There are tax advantages accorded to such corporations. The corporation may operate the same as a profit making corporation. Commonly called a nonprofit corporation.
ELEVATION – (1) Height above sea level. (2) The exterior design of a structure, usually but not necessarily, viewed from the front. Called a horizontal elevation. (3) Height measured from any point, such as elevation from a floor. Called vertical elevation.
ELUVIATION – The movement of soil materials, either in a downward or horizontal direction, caused by excessive water in the soil.
EMBLEMENTS – Growing crops. Considered chattels which may be removed by a tenant at the expiration of his lease.
EMINENT DOMAIN – A governmental right to acquire private property for public use by condemnation, and the payment of just compensation.
EMOLUMENT – Compensation for personal services, such as salary, commission, or other compensation.
EMPHYTHEUTIC LEASE – A lease in perpetuity or for a long period, freely transferable by the lessee, upon the condition that the lessee improve the property and pay rent.
EMPLOYER-ASSISTED HOUSING – Programs offered by employers to help their employees purchase a home. The Federal National Mortgage Association (Fannie Mae) offers advice to employers in setting up these programs.
EMPLOYMENT LETTER – A letter from an employer stating the time a person has been employed and income from said employment.
EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES (EZ/EC) – Targeted areas to be aided through tax incentives, grants and loans to improve economic conditions. The program was created by Title XIII of the Omnibus Budget Reconciliation Act of 1993 and expanded by the Taxpayer Relief Act of 1997.
ENCROACHMENT – Generally, construction onto the property of another, as of a wall fence, building, etc.
ENCUMBRANCE, INCUMBRANCE – 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.
END LOAN – See: Take Out Loan.
ENDORSEMENT (INDORSEMENT) – The act of the holder of a note, bill, check, or other negotiable instrument, of transferring said instrument by signing the back of the instrument, with or without qualifications.
ENDORSER – One who transfers a check or mortgage note by signing (endorsing) the check or note rather than by a separate document (assignment). The transferee may receive greater rights by endorsement than by assignment.
ENGLISH ARCHITECTURE – A general term, encompassing the styles of various English design, but which have common elements. The exterior being either of large stones, or exposed timbers with large stones or brick placed between the timbers, in a decorative manner. The roof is most often of slate and windows are hinged vertically.
ENTERPRISE ZONE – See: Empowerment Zones And Enterprise Communities (EZ/EC).
ENTIRE TENANCY – See: Tenancy by the Entirety.
ENTITLEMENT – A veteran’s eligibility for a home loan. Specific programs set out requirements to restore entitlement if the veteran has already used the benefit.
ENTITY – A separate existence or being, most commonly referring to a corporation or other form of business, rather than an individual.
ENTRANCE – (1) The opening used to go into an enclosed area, such as a door, gate, etc. (2) To go upon land, such as to gain entrance to, the point of entrance not necessarily being through a door, gate, or other opening.
ENTREPRENEUR – A businessman, taking the risk of loss and gaining profit, rather than a salaried employee.
ENVIRONMENT – Surroundings. As an appraisal term,the characteristics of the area around a property which bear on the value of the property.
ENVIRONMENTAL ASSESSMENT (EA) – A preliminary environmental analysis used to determine whether a more detailed environmental impact statement will be necessary.
ENVIRONMENTAL DEFICIENCY – Deficiency of the area surrounding a property, (environment), which decreases its value, such as poorly designed streets and traffic patterns, a high crime rate, no major sewer lines, etc.
ENVIRONMENTAL IMPACT STATEMENT (EIS) – A report of the probable effect of a development on the surrounding area (environment). The report is prepared by an independent company to federal, state, or local guide lines.
ENVIRONMENTAL LIEN – A lien to secure payment for removal of contaminants. Example: Superfund money is used for cleanup. The lien is then filed as well as a lawsuit to recover the money from the responsible parties.
ENVIRONMENTAL OBSOLESCENCE – See: Economic Obsolescence.
ENVIRONMENTAL PROPERTY ASSESSMENT – See: Environmental Site Assessment.
ENVIRONMENTAL PROTECTION AGENCY (EPA) – The federal agency concerned with the protection of our resources of land, water, and air.
ENVIRONMENTAL SITE ASSESSMENT – A physical inspection of a site (land and improvements) to determine if environmental problems exist. (See: Phase 1 Environmental Site Assessment; Phase 2 Environmental Site Assessment; Phase 3 Environmental Site Assessment).
EPA – See: Environmental Protection Agency.
EPRA (ENVIRONMENTAL PROPERTY ASSESSMENT) – See: Environmental Site Assessment.
EQUAL CREDIT OPPORTUNITY ACT – Federal law granting women certain independent status, and preventing lenders from considering such negative credit aspects as the possibility of a woman having children and dropping out of the labor market.
EQUAL DIGNITY RULE – A term used most often in contracts involving real property. The rule is that if a matter requires a writing, agency agreements concerning the matter must also be written. For example: Since a contract to sell real estate must be in writing, the agency (listing) agreement to sell real estate must be in writing.
EQUALIZATION – See: Board of Equalization.
EQUATOR – The imaginary circle separating the Northern and Southern Hemispheres of the Earth, and used as the starting point for measurements of latitude, its own latitude being zero degrees.
EQUIPMENT – As an industrial term, everything necessary to produce a product, such as land, improvements, machinery, etc.
EQUITABLE CONVERSION – A legal fiction applied to a land contract which treats the vendee’s (buyer’s) interest as a real property interest even though the seller holds legal title, and the seller’s interest as a security interest (personal property). This enables the buyer to act as the “owner” of the property without having “legal” title.
EQUITABLE LIEN – A lien enforceable in a court of equity, based on evidence of an intent between debtor and creditor to create a lien on specific property of the debtor, but a failure to legally create said lien.
EQUITABLE MORTGAGE – (1) A lien against real property (mortgage) which is enforceable in a court of equity, but does not legally constitute a mortgage. (2) A deed given as security for a debt will be held to be a mortgage rather than a transfer of title. Also called a constructive mortgage.
EQUITABLE OWNERSHIP – Ownership by one who does not have legal title, such as a vendee under a land contract or, technically, a trustor under a deed of trust (legal title being in the trustee). Also called equitable title.
EQUITABLE RIGHT OF REDEMPTION – See: Equity of Redemption.
EQUITABLE TITLE – See: Equitable Ownership.
EQUITY – (1) A legal doctrine based on fairness, rather than strict interpretation of the letter of the law. (2) The market value of real property, less the amount of existing liens. (3) Any ownership investment (stocks, real estate, etc.) as opposed to investing as a lender (bonds, mortgages, etc.).
EQUITY BUILD-UP – The reduction of principal on a mortgage or deed of trust by periodic payments, which increases (builds-up) the difference (equity) between the property value and amount of the lien.
EQUITY CAPITALIZATION RATE – See: Cash-On-Cash.
EQUITY DIVIDEND RATE – See: Cash-On-Cash.
EQUITY LINE OF CREDIT – A combination of a line of credit and equity loan. A maximum loan amount is established based on credit and equity. A mortgage (deed of trust) is recorded against the potential borrower’s property for said maximum loan amount. The potential borrower has the right to borrow, as needed, up to the amount of the mortgage.
EQUITY LOAN – A loan based upon the equity in a property. The credit of the borrower is not a major factor. See also: Personal Property Loan.
EQUITY OF REDEMPTION – Properly, the right to pay off the lien of a mortgage which is in default by payment of the principal, interest, and costs which are due. Often confused with the redemption period after the foreclosure sale, which is a right established by statute.
EQUITY PARTICIPATION – See: Participation.
EQUITY PURCHASER – One who purchases the equity of another in real property, either assuming or taking subject to existing mortgages or deeds of trust.
EQUITY SHARING – A method of borrowing by giving the lender an ownership interest in the property. When the property is sold, the lender receives a portion of the profit in addition to repayment.
EQUITY SKIMMING – A scam where a “buyer” approaches a homeowner who is behind on his/her mortgage payments. The owner moves out of the property based on the promise to bring the mortgage current and give the owner money when the property is sold. After getting a deed from the homeowner, the con artist rents out the property until the foreclosure is final. Also known as milking.
EQUITY STAKE MORTGAGE – See: Shared Appreciation Mortgage.
EROSION – The wearing away, over a prolonged period, of rock, earth, or other portions of land.
ERRORS AND OMISSIONS INSURANCE – Insurance covering losses caused by errors and omissions of professions other than medicine. Used by banks, real estate companies, escrow companies, etc.
ESA – See Environmental Site Assessment
ESCALATION CLAUSE – A clause in a lease providing for an increased rental at a future time. May be accomplished by several types of clauses, such as (1) Fixed increase – A clause which calls for a definite, periodic rental increase. (2) Cost of living – A clause which ties the rent to a government cost of living index, with periodic adjustments as the index changes. (3) Direct expense – The rent is adjusted according to changes in the expenses of the property paid by the lessor, such as tax increases, increased maintenance costs, etc.
ESCALATOR CLAUSE – See: Escalation Clause.
ESCARPMENT – A cliff.
ESCHEAT – A reversion of property to the state in the absence of an individual owner. Usually occurs when a property owner dies intestate, and without heirs.
ESCROW – 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.
ESCROW ACCOUNT – See; Impound Account.
ESCROW ANALYSIS – A review by a lender to determine if the proper amount is being deposited each month by the borrower to pay taxes and insurance when they become due.
ESCROW COLLECTIONS – See: Impound Account.
ESCROW DISBURSEMENTS – See: Impound Disbursements.
ESCROW INSTRUCTIONS – Instructions which are signed by both buyer and seller, and which enable an escrow agent to carry out the proce- dures necessary to transfer real property, a business, or other assignable interest.
ESCROW OFFICER – An escrow agent. In some states, one who has, through experience and education, gained a certain degree of expertise in escrow matters.
ESTATE – (1) The interest or nature of the interest which one has in property, such as a life estate, the estate of a deceased, real estate, etc. (2) A large house with substantial grounds surrounding it, giving the connotation of belonging to a wealthy person.
ESTATE AT SUFFERANCE – See: Tenant at Sufferance.
ESTATE AT WILL – See: Tenant at Will.
ESTATE FOR LIFE – See: Life Estate.
ESTATE FOR YEARS – Any estate for a definite period of time. Com-monly, a lease.
ESTATE IN REMAINDER – See: Remainder.
ESTATE IN REVERSION – See: Reversion.
ESTATE OF INHERITANCE – An estate which may descend to heirs. For example: A fee estate is an estate of inheritance, whereas a life estate is not.
ESTATE TAX – A tax against the property of a deceased, based on the value of the estate.
ESTOPPEL – The prevention of one from asserting a legal right because of prior actions inconsistent with the assertion.
ESTOVERS – Old doctrine allowing use, primarily of timber, by a tenant for fuel and repair of his shelter. Not much application in the U.S. today.
ET AL – And others.
ET CON – And husband.
ET UX – And wife.
ET VIR – Latin: meaning “and husband”.
ETHICS – With regard to professions, a code of professional standards, containing aspects of fairness and duty to the profession and the general public.
EVICTION – A court action to remove one from possession of real pro-perty. Most commonly, the removal of a tenant.
EVIDENCE OF TITLE – A document establishing ownership to property. Most commonly, a deed.
EXACT INTEREST – Interest based on a 365-day year, rather than a 30-day month (360- day year).
EXAMINATION OF TITLE – See: Title Search.
EXCAVATE – To dig and then remove, leaving a pit or hollow. Used to describe the removal of earth in construction; or coal, copper, etc., in mining.
EXCAVATION – (1) A pit or other opening which remains after the removal of dirt, minerals, etc., from the surface of the Earth. (2) The process of digging and removal of dirt, minerals, etc., from land.
EXCEPTION – (1) Specific items set forth in an insurance policy which are not covered by said policy. (2) Any item specifically excluded.
EXCESS CONDEMNATION – Taking, by right of eminent domain, more property than actually necessary for the intended purpose. This happens frequently, the excess property being sold at auction after completion of the project.
EXCESS INCOME – See: Excess Rent.
EXCESS RENT – Rental income (usually under a lease) which exceeds the fair rental value of the property.
EXCESSIVE CONDEMNATION – See: Excess Condemnation.
EXCHANGE – A reciprocal transfer of real property which has certain tax advantages over a sale. Definite procedures must be followed in order to qualify the transfer as an exchange.
EXCHANGE ACCOMMODATION TITLEHOLDER – One who takes title to property to meet the requirements of IRS section 1031 and Treasury Revenue Ruling 2003-37 to facilitate a build to suit exchange or a reverse exchange.
EXCHANGE AGREEMENT – Instrument (contract) used in an exchange. See also: Exchange.
EXCHANGE PERIOD – The time allowed between the sale of relinquished property and the purchase of replacement property in order to qualify for the tax advantage under IRS section 1031. In a reverse exchange it is the time between the purchase of the replacement property and the sale of the relinquished property.
EXCHANGOR – The party seeking the tax advantage under IRS section 1031. The taxpayer.
EXCLUSIVE AGENCY AGREEMENT – See: Agency Agreement.
EXCLUSIVE AGENCY LISTING – A listing or agreement protecting the listing broker’s commission against the sale of the property by another agent but not against the sale by the principal. The term is not universal, as some areas use the term, nonexclusive listing, to describe this agreement.
EXCLUSIVE LISTING – A written contract between a property owner and a real estate broker, whereby the owner promises to pay a fee or commission to the broker if certain real property of the owner is sold during a stated period, regardless of whether the broker is or is not the cause of the sale. The broker promises to put forth his or her best efforts to sell the property, and may make specific promises as to advertising or other promotion in certain instances.
EXCLUSIVE RIGHT TO SELL – See: Exclusive Listing.
EXCULPATORY – Holding free from or limiting guilt or liability.
EXECUTE – To complete; to fulfill a purpose, such as to execute an instrument, meaning to sign, seal (modernly, to notarize), and deliver.
EXECUTED SALE – One which is final and completed.
EXECUTION SALE – Sale of real property under a writ of execution by a court. A judicial mortgage foreclosure sale is in this category.
EXECUTOR – One who is appointed under a will to carry out (execute) the terms of the will.
EXECUTOR’S DEED – A deed issued by the executor of an estate. (See: Executor).
EXECUTORY CONTRACT – A contract under which there is still to be performance. See also: Executory Sale.
EXECUTORY SALE – A sale not fully completed, such as (at least in theory) a land contract sale. See also: Executed Sale.
EXECUTRIX – A female executor.
EXEMPLARY DAMAGES – Damages to punish (make an example of) the offender. This is done when the wrong is deliberate or grossly negligent and compensatory damages do not appear to be sufficient.
EXIT – (1) The leaving or departing, usually of a person. (2) The place through which one leaves, as a door, gate, etc.
EXPANSIBLE HOUSE – A house specifically designed for later additions or expansion.
EXPANSION JOINT – Any connection of two members which allows for movement of the members when effected by pressure toward or away from the connecting area (joint). A joint in a bridge, building, or similar structure, allowing for expansion or contraction of the parts of the structure from temperature changes.
EXPENSE RATIOS – Formulas to determine a potential borrower’s ability to repay a mortgage loan. The ratios are (1) the monthly amount to repay all mortgage loans on the property divided by the borrower’s gross monthly income and (2) the borrower’s total monthly expenses divided by the gross monthly income.
EXPENSE STOP – A clause limiting the expense of one of the parties and shifting the burden to the other party at an agreed upon amount. Used primarily in leases.