Effective Gross Rent to Encapsulation

 

Effective Gross Rent

The effective gross rent (EGR) is the project’s net rent, after making adjustments for capital expenditures, improvements, leasing agent commissions and other marketing expenses (spent to bring in the tenants). This separates the cost of obtaining a tenant from the operating expenses of maintaining the property.

Effective Interest Rate

The actual interest rate that a borrower is paying, as opposed to the note rate.  For example, a mortgage loan borrower may elect to pay discount fees and points to lower the nominal rate on the promissory note.  However, when you consider that discount points are really prepaid interest; and when you add the discount points (calculated as an amortized percentage) to the note rate, the effective rate comes out much higher.

Effective Monthly Income

For loan qualifying purposes, the effective monthly income is the gross monthly income amount used to qualify the applicant.  Effective monthly income must come from a stable and acceptable source, such as regular employment, investments or court-ordered judgments.  Undocumented income is normally not acceptable.

Effective Rent

The effective rent is the dollar amount of the actual rental rate that a lease will generate, after the landlord deducts concessions (given to the tenant) from the base rent.

Efficiency Factor

In real estate, the efficiency factor is a measurement of the investment property’s performance.

Efflorescence

Efflorescence is the white deposit or residue sometimes found on masonry.

Egress

In real estate, egress refers to access from a property to an exit or public road.

Ejectment Suit

The ejectment suit is a more complicated form of lease termination and tenant eviction. The ejectment suit, used in Illinois and other states, typically involve ownership complications. The most common issues involve adverse possession, mortgage repossession rights and beneficiaries.

Elastic Mortgage

The elastic mortgage is a type of mortgage loan whose term can lengthen or shorten, depending on interest rate fluctuations. This is basically an adjustable-rate mortgage (ARM) loan with a fixed payment. The monthly payments remain the same regardless of whether the interest rates move up or down. However, if the rates do go down, more of the monthly payment will go toward the principal balance.  Because the principal balance is paid off faster, the loan’s amortization and term is shortened.  Unfortunately, if the interest rate increases, more of the monthly payment must be allocated toward paying the interest charges.  This results in a slower amortization and longer term, as it will take longer to pay off the loan balance.

Fuse (Electric)

The electric fuse is a device through which electric current flows and regulates the maximum flow of electricity. Inside the fuse, the current goes through a thin metal strip.  When any current above the rated amperage (of the specific fuse) tries to flow through the fuse, the metal strip melts and stops the flow.  Most older homes use plug fuses, which screw into place and resemble the screw portion of a light bulb; these fuses normally have windows that show the metal strip.  Main service fuses and those in 240-volt circuits normally use cartridge fuses, which resemble shotgun shells with metal prongs at the end.  Cartridge fuses are snapped into place.

Electric Service Panel

See the Service Panel entry.

Electrified Floor

A method of interior design that runs power and telephone lines beneath the floor of each building level.  This design allows quick installation of phone and electric outlets at more points with fewer visible wiring and without having to drill into and behind walls.

Electromagnetic Field

The magnetized field created by electric currents.  In real estate, areas below and near high-powered electric lines are raising concerns as possibly causing brain cancer.

Elevation

In addition to the vertical level of a structure or element, the term elevation also refers to a blueprint or design view of a building’s exterior, which shows the height and position of the house (and its elements) relative to the surrounding grade. This becomes particularly important when dealing with condominiums and air lots.

Ell

The ell is an addition or annex to a building, which is built at a right angle to the main building, thus creating an “L” shape.

Emblements

The term emblements refer to cultivated annual crops, which are considered personal property.  See the Fruits of Industry entry.

Embodied Energy

The embodied energy of a product is a simple measure of the impact of that item on the environment, since it includes all the energy to product that product, starting with the raw material that had to be extracted, all the way to the product’s deliver to the consumer.

Eminent Domain

The legal term eminent domain refers to the power of the government to take land from private owners for public use.  This is one of the four basic government powers of taxation, eminent domain, escheat and police powers.  Congress later expanded this power of eminent domain to public utilities.  When a property is taken from its private owner, the property is then legally condemned and the owner must be paid fair market rates or fair compensation.  The government exercises its eminent domain power through condemnation.

Employer-Assisted Housing

Employer-assisted housing refers to programs in which employers assist their employees with their housing and homebuying expenses. Typical assistance includes employer-paid relocation costs, mortgage loan points to lower the interest rate or reimbursements for home offices.

Empty Nesters

The term empty nester refers to senior citizens and older adults whose children have grown up and have moved away. Such homeowners often transition to smaller or more efficient homes.

En Suite Bathroom

The en suite bathroom is one that is connected directly (usually exclusively) to the bedroom or office.

Enabling Declaration

See the Declaration of Condominium entry.

Enabling Legislation

Enabling legislation refers to specific laws and statues enacted by state government that give local governments (county or municipality) the authority to exercise certain government powers, such as taxation or police powers.  However, some local governments receive those powers through home rule provisions in their state’s constitution.

Encapsulation

Encapsulation is an approved method for dealing with potential asbestos and similar environmental contamination. As the name suggests, encapsulation entails sealing off the contamination with something that will prevent exposure or release. For example, minimal land contamination can sometimes be addressed with a foot-thick layer of concrete, while asbestos can be sealed so that it does not become friable (which is when it is really dangerous).