Deed of Trust
A security agreement creating a lien by which title to real property is transferred to a third-party trustee as security for an obligation owed by the trustor (borrower) to the beneficiary (lender).

Documentary Transfer Tax
The tax, based on sales price, less loans which are being assumed, which is charged by the city and/or county on the transfer of real property.

Due-on-Sale-Clause
A clause in a mortgage loan which gives the lender the right to demand payment in full when the property changes ownership. Not applicable to FHA or VA loans.

E

Earnest Money
The cash deposit paid by a prospective buyer as evidence of good faith to bind a sale of real estate.

Easement
A limited right or interest in land of another that entitles the holder of the right to some use, privilege or benefit over the land.

Encumbrance
A claim, right or lien upon real property, held by someone other than the owner.

Endorsement
A rider attached to an insurance policy to expand or limit coverage. Also spelled indorsement.

Equity
The value of a person’s interest in real property after all liens and charges have been deducted.

Escrow
The process in which a disinterested third party holds money and documents for delivery to the respective parties in a transaction on performance of established conditions.