Encroachment to Entry-Level Home

 

Encroachment

An encroachment is any structure or object that protrudes beyond a property’s legal boundary, into a neighboring property.  The encroachment must be corrected or be insured by the title insurance before a mortgage loan can be closed for its purchase or financing.  For example, if your fence is accidentally built on your neighbor’s property then that fence is an encroachment.  Even if your neighbor allows it, the title company must insure this encroachment or obtain a “hold harmless” letter before concluding the settlement.

Encumbered Space

In the commercial property realm, encumbered space is leasable space that is currently vacant but is not completely available. This typically applies to space on which another tenant or party has a claim, such as with a first right of refusal option.

Encumbrance

An encumbrance is any legal claim, charge, liability, intrusion, restriction or obstruction against property ownership.  Encumbrances affect the marketability of the property and, thus, its value.  For example, past due tax and mortgage liens are considered encumbrances because property ownership cannot be fully sold and transferred unless those items are completely paid or somehow addressed.  Other types of encumbrances include nonconforming zoning status, easement rights, restrictive covenants and claims.

End Loan

Sometimes called a permanent loan, the end loan refers to a long-term refinance loan that pays off a short-term construction loan.

Endangered Species Act

The Endangered Species Act is a 1973 federal legislation that was intended to preserve wildlife by extending legal protection to species considered endangered or at risk of extinction. This has caused developers to consider the wider environmental impact of any proposed project, especially on currently raw land.

Endowment Funds

Large endowment funds for schools, foundations and not-for-profit organizations depend on safe but solid investments to provide earnings for their mission and projects. Experienced real estate investors and developers have found such funds (and their managers) to be excellent sources for commercial projects.

Energy Audit

The energy audit is an examination of a home or property to determine its energy efficiency.  The audit includes an examination of the mechanical systems (especially HVAC), as well as the building’s ability to control heat loss and retention.

Energy Efficient Glass

See the Low Emissivity Glass entry.

EEM

See the Energy Efficient Mortgage entry.

Energy Efficient Mortgage

The Energy Efficient Mortgage (EEM) refers to different mortgage loan programs intended to encourage the addition or improvement of homes with energy efficient fixtures, design and elements. EEM programs include the FHA Energy Efficient Mortgage, VA Energy Efficient Mortgage and conventional (Fannie Mae or Freddie Mac) Energy Efficient Mortgage programs, as well as the Energy Improvement Mortgage (EIM) loan. The main thrust of the EEM program is that it allows homeowners (and homebuyers) to get higher loan amounts, in order to finance the addition of energy-efficient features for their home, such as new windows, doors and heating systems. It increases the debt-to-income (DTI) ratio limits by two percentage points, thereby allowing borrowers to qualify for larger loan amounts. The higher DTI limits are justified because of the potential energy savings from the home’s lower energy costs. The loan amounts may also be increased – without increasing the down payment.

Energy Improvement Mortgage

A type of Energy Efficient Mortgage loan program, the Energy Improvement Mortgage (EIM) loan program can be used to finance improvements to residential buildings, for the purpose of making them more energy efficient.

EIM

See the Energy Improvement Mortgage entry.

Energy Star Home

The Energy Star Home is a designation (and registered trademark) created by the Environmental Protection Agency (EPA), awarded to homes with energy efficiency rating that is 30% above national standards.

Engineered Lumber

Also called composite wood, the term engineered lumber refers to a whole range of manufactured wood products, which are now commonly used in construction. Engineered lumber can produce high-quality wood products, using a wider array of trees, as well as certain straws, stalks and other vegetable fibers. Plywood is the most well-known of engineered lumber products and typically uses whole logs. Other types of engineered lumber include oriented strand board (OSB), glued laminated timber (glulam), laminated veneer lumber (LVL), cross-laminated timber (CLT), parallel strand timber (PST) and Laminated Strand Lumber (LSL).

Engineered Wood

See the Engineered Lumber entry.

Engineering Report

The engineering report is a summary or review of an inspection of a building and its operating systems. Engineering reports are conducted by engineers or architects with expertise. In addition to examining the building’s structure and overall quality, the report also inspects the building’s mechanical and operating systems.

English Basement

The English basement refers to a type of basement that is at least 50% below street level, with no cellar underneath, but with windows above street level.

English Tudor

See the Tudor entry.

Entertainment Property

In the real estate industry, the term entertainment property refers to a type of retail property used for entertainment purposes. This can run the gamut from movie theaters to amusement parks. Note that this is not the same as recreational property.

Entertainment-Based Retail Center

An entertainment-based retail center is a commercial property development that is focused around key entertainment venues, such as movie theaters, casinos, arcades, night clubs, restaurants and theme parks. Many cities have used such centers to revitalize central business districts and encourage tourism.  Well-known examples are Chicago’s Navy Pier and New Orleans’ Bourbon Street.

Entitlement

In the mortgage industry, entitlement refers to a military veteran’s available benefits with a VA-guaranteed loan.

Entitlement Process

The entitlement process is a term applied to the process by which municipalities, regions and counties regulate how future development will or should unfold.

Entry-Level Home

See the Starter Home entry.