Bear Island Land Co., Inc.

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Dictionary of Terms



Earnest Money
Down payment made by a purchaser of real estate as evidence of good faith.
A right or interest in the real property of another The right to use another's land for a specific purpose, as a right of way.
Economic Life
The period of time over which a property may be profitability used. It is reduced to a percent in the capitalization process. Example 100% divided by 50 years equals 2% anticipated depreciation per year.
Eminent Domain
The right of a government to take private property for public use upon the payment of just compensation. The legal proceeding by which the government exercises this right is called "condemnation proceedings".
The illegal intrusion of a structure, part of a building, or obstruction over or upon a highway, sidewalk or the property of another. Encumbrance A claim, lien, charge, or liability attached to and binding upon real property, such as a judgment, mortgage, mechanics lien, lien or unpaid taxes, right of way.
Writing one's name, either with or without additional words, on a negotiable instrument or on an attachment thereto.
In real estate, the interest or value of the real estate over and above amount of indebtedness thereon.
The revision of property to the state in the event the owner of the property dies without leaving a will and has no blood heirs or relatives to whom the property may pass by lawful decent.
In real estate, it is the state or condition of a deed which is conditionally held by a third party, called the escrow agent, pending the performance or fulfillment of some act or condition.
Escrow Agreement
A written agreement between two or more parties whereby the grantor, promisor or obligor delivers certain instruments or property into the hands of a third party, the escrow agent, to be held by said third party until the happening of a contingency or performance of a condition, and then to be delivered to the grantee, promisee or obligee.
In real estate, it refers to the degree, quantity, nature and extent of interest which a person has in real property; such as a fee simple absolute estate, an estate for years.
Dispossession by process of law; the act of depriving a person of the possession of lands, in pursuance of the judgment of a court.
Exclusive Right to Sell Listing
A listing whereby the owner appoints one real estate broker as his sole agent for a specified period of time. No matter who sells the property, including the owner himself, the broker is entitled to a commission.




Ely, Minnesota's most experienced Realtors, serving Buyers and Sellers in the Ely, MN area since 1995.