Mortgage and Real Estate Glossary
Alberta Equity's glossary contains hundreds of terms. With this tool, you can click or search through the largest real estate and mortgage glossary in Canada!
- E-cheque or E-check (U.S.)
- An electronic version or representation of a paper cheque. The account holder writes an e-check (or e-cheque) using a computer or other type of electronic device and transmits the e-cheque to the payee electronically. Like paper cheques, e-checks are signed by the payer and endorsed by the payee. Rather than handwritten or machine-stamped signatures, however, e-checks are affixed with digital signatures, using a combination of smart cards and digital certificates. The payee deposits the e-check, receives credit, and the payee's bank clears the e-check to the paying bank. The paying bank validates the e-check and then charges the cheque writer's account for the cheque.
- E-commerce
- A system used to conduct business transactions of buying and selling goods and services over a computer network
- Early Closing Cost Reimbursement
- Some line-of-credit lenders waive underwriting costs when a line is opened in anticipation of future profits. If a line is then closed early, these institutions impose those fees retroactively.
- Early Occupancy
- A condition in which the seller allows the buyer to move in before the sale is closed.
- Early Termination Charge
- Charges that the leasee must pay if the car is turned in early before the term of the lease is over.
- Early Withdrawal Penalty
- A depositor forfeits interest or is assessed a service charge for withdrawing funds from or closing out a time deposit before its maturity date.
- Earned and Unearned Income
- Two different sources of income: earned income comes from wages, salary or business profits; unearned income comes from sources such as interest, dividends, rental income and pension benefits.
- Earned Income
- All the money you earn. This includes any wages, salaries, tips, net earnings (if you're self-employed) and any other income received for personal services. Investment income, such as dividends and interest, is not counted as earned income. See also "Unearned Income."
- Earnest Money
- Money given by a buyer when making a formal offer to demonstrate that the buyer is serious. Also called a deposit.
- Easement
- A right of way giving persons other than the owner access to or over a property.
- Economic Growth
- The rate of change in output from one year to the next.
- Economic Indicators
- Statistics that help determine how the economy is faring. They include the Consumer Price Index, housing starts, and unemployment rates, among others.
- Effective Age
- An appraiser's estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.
- EFT/POS
- Electronic funds transfer (EFT) at the point of sale (POS). A payment option which allows consumers to pay for purchases by transferring funds directly from their accounts to a merchant's accounts.
- Electronic Cash
- Also known as e-cash. A system used to transfer cash over the Internet to pay for goods and service.
- Electronic Commerce
- A system used to conduct business transactions of buying and selling goods and services over a computer network.
- Electronic Data Interchange (EDI)
- EDI is a system that companies use to exchange business information electronically, virtually eliminating paperwork.
- Electronic Filing
- Taxpayers can now file their tax information with personal computers and tax preparation software. The information goes directly to Revenue Canada and they can directly deposit refunds into the taxpayer's bank account.
- Electronic Funds Transfer
- The transfer of money between accounts by consumer electronic systems such as automated teller machines (ATMs), and electronic payment of bills.
- Employment Equity Act
- A federal statute that requires employers with 100 or more employees to eliminate any practices in the workplace discriminating against four designated groups of people who have historically been disadvantaged in the labour market: women; people who, by reason of race or colour, are members of visible minority groups; aboriginal peoples; and persons with disabilities.
- Empty Nesters
- People whose children have grown up and moved out and who might be in the market for a smaller house.
- Encroachment
- An improvement, such as a fence, that illegally extends onto another property or impedes the neighbour's use of that property.
- Encryption
- A method for ensuring the privacy and security of a consumer's personal finance information at a bank or financial institution Web site. Encryption is the process of scrambling data so that only the intended receiver can use it. To be effective, encryption needs to be used by both the sender and the receiver. Consumers should make sure it is being used when sending sensitive information. CanEquity uses a encrypted server for all of our online applications.
- Encumbrance
- Anything that affects or limits the fee simple title to a property, such as mortgages, leases, easements, or restrictions.
- End Loan/Mortgage
- The final mortgage on a property, as opposed to a construction or other interim loan.
- Endorse
- To sign the back of a cheque in order to cash it.
- Entrepreneur
- A person who starts and manages a business.
- Environmental Impact Statement/Assessment
- A government-required evaluation of how construction will affect the environment surrounding a site.
- Equifax
- One of the major credit bureau companies in Canada along with Trans Union.
- Equity
- The value of a property minus outstanding mortgage debt and other liens. Equity is the portion of your property that you have already paid for plus the appreciation, if any, in the value of the property since you acquired it.
- Errors and Omissions Insurance
- Malpractice insurance that protects architects, home inspectors and contractors from claims by clients for professional mistakes.
- Escrow
- An account in which a neutral third party holds the documents and money in a real-estate transfer until all conditions of a sale are met. Also, an account in which money for property taxes and insurance is held until paid; money is added to the account every time a mortgage payment is made.
- Escrow Account
- An account in which money for property taxes and insurance is held until paid; money is added to the account every time a mortgage payment is made.
- Escrow agent
- A neutral third party who holds the documents and money in a real-estate transfer until all conditions are met.
- Estate
- The ownership interest of an individual in real property. The total sum of all the real property and personal property owned by an individual at time of death.
- Eviction
- The act of kicking someone out of a property, usually for violating terms of a lease.
- Examination of Title
- A review of public records and title abstracts to determine the chain of ownership of a property.
- Excess Wear Charge
- Most leases set limits for wear and tear on the car during the lease term. The lessee must pay charges for exceeding the limits when turning in the car at the end of the lease.
- Exchange
- A trade of property for other property or services. Like-kind property exchanges are a popular tax-deferral strategy.
- Exclusive Listing
- A legal agreement that gives one real-estate agent the right to sell a property for a specified period. The owner retains the right to sell the property himself or herself without paying the agent a commission.
- Expensing
- The method allowed under Government tax law that allows you to expense certain business activities.
- Experian
- One of the Big Three credit bureaus, along with Equifax and Trans Union, Experian not normally used in Canada.
- Exports
- Products and services produced in Canada and sold in other countries.
- Express Account
- A low-fee or no-free chequing account, limited to ATM, telephone and personal computer transactions. Express account customers are charged fees if they use bank teller services.
- Extended Warranty
- Also known as service contract. A contract that covers certain car repairs or problems after the manufacturer's or dealer's warranty expires. Extended warranties are sold by car manufacturers, dealers and independent companies. With a new car, the extended warranty usually must be purchased by the end of the first year of ownership.
