Easement - A right given to a third party to use a portion of the property for certain purposes, such as power lines or water mains.

Encroachment - Fences or other structures that extend into the property of another owner.

Encumbrances - A claim or lien on a property which complicates the title process.

Equal credit opportunity act - Federal law that prohibits a lender or other creditors from refusing to grant credit based on the applicant's sex, marital status, race, religion, national origin or age. The law also prohibits a creditor from refusing to grant credit because the applicant receives public assistance.

Equifax - Is one of the "Big Three" credit reporting bureaus that operate nationwide.

Equity - A determination of the value of a property after existing liens are deducted.

Escrow - A neutral third party holds the documents and money involved in a real estate transaction and ensures that all conditions of a sale are met. Escrow also refers to a special account that a lender establishes to hold monthly installments from the borrower to cover property taxes and insurance.

Exclusive listing - A contract that gives an agent the exclusive right to market a property for a specific period of time.

Experian - Formerly known as TRW Information Systems and Services, is one of the "Big Three" credit reporting bureaus that operate nationwide.

Fair housing act - Landmark federal law passed in 1965 and amended in 1988 that makes it illegal to deny rent or refuse to sell to anyone based on race, color, religion, sex or national origin. The 1988 amendment expanded the protections to include family status and disability.

Fannie mae - The official name of the Federal National Mortgage Association, it is a congressionally chartered, shareholder-owned company that buys mortgages from lenders and resells them as securities on the secondary mortgage market.

Federal housing administration - This government agency operates a variety of home loan programs. Its most popular is the Sec.203(b), program, which provides low-rate mortgages to buyers who make a down payment as small as 3 percent.

Federal national mortgage association - Now officially dubbed Fannie Mae, this federally chartered agency buys mortgages from lending institutions, pools them with other loans and sells shares to investors.

FHA loans - Mortgages that are insured by the Federal Housing Administration. The FHA's 203(b) loan program provides low-rate mortgagers to buyers who make a down payment as small as 3 percent. The agency also operates loan plans for investors and purchasers of rural property.

Fiduciary duty - The relationship of trust that buyers and sellers expect from a real estate agent. The term also applies to legal and business relationships.

First mortgage - The primary mortgage on a property that has priority over all other voluntary liens.

Fixed-rate mortgage - A home loan with an interest rate that will remain at a specific rate for the term of the loan. About 75 percent of all home mortgages have fixed rates.

Flood insurance - Hazard coverage that is required in designated flood areas.

Flood plain - Flat, flood-prone areas located along waterways.

Forbearance - A course of action a lender may pursue to delay foreclosure or legal action against a delinquent borrower.

Foreclosure - The legal process reserved by a lender to terminate the borrower's interest in a property after a loan has been defaulted. When the process is completed, the lender may sell the property and keep the proceeds to satisfy its mortgage and any legal costs. Any excess proceeds may be used to satisfy other liens or be returned to the borrower.

Freddie Mac - The common name for the Federal Home loan Mortgage Corporation, a congressionally chartered institution that buys mortgages from lenders and resells them as securities on the secondary mortgage market.

Fully amortized adjustable-rate mortgage - A mortgage that amortizes, or pays down, the balance of a loan.

Good-faith estimate - An estimate from an institutional lender that shows the costs a borrower will incur, including loan-processing charges and inspection fees.

Government national mortgage association - Commonly known as Ginnie Mae, this agency buys home loans from lenders, pools them with other loans and sells shares to investors. Ginnie Mae differs from its cousins, Fannie Mae and Freddie Mac, in that it only purchases loans backed by the federal government.

Grace period - A specified amount of time to make a loan payment after its due date without penalty.

Graduated-payment mortgage (GPM) - A mortgage that requires a borrower to make larger monthly payments over the term of the loan. The payment is unusually low for the first few years but gradually rises until year three or five, then remains fixed.

Grantee - A person conveyed an interest in a piece of property.

Grantor - The person who conveys an interest in a piece of property to another person.

Gross income - The total income of a household before taxes or expenses are subtracted.

Guarantee mortgage - A loan guaranteed by a third party, such as a government institution.

Hectare - The equivalent of 2.471 acres.

Home equity loan - A loan that allows owners to borrow against the equity in their homes.

Home inspection - An examination of a home's construction, condition and internal systems by an inspector or contractor prior to purchase.

Homeowner's association - A group that governs a modern subdivision or planned community. An association collects monthly fees from all owners to pay for maintenance of common areas, handle legal and safety issues, and enforce the covenants, conditions and restrictions set by the developer.

Homeowner's insurance - This insurance includes hazard coverage for any damages that may affect the value of a house, in addition to personal liability and theft coverage.

Homeowner's warranty - Special insurance policies that cover certain home repairs for a specified period of time.

Home warranty - A type of insurance that covers repairs to certain parts of a house and some fixtures.

HUD-1 uniform settlement statement - A closing statement or settlement sheet that outlines all closing costs on a real estate transaction or refinancing.