Spectrus – Investment Real Estate Glossary – E
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- Equity
- A buyer's financial interest in a property. Equity is the difference between the fair market value of the property and the amount still owed on its mortgage.
- Escrow
- an agreement between two or more parties providing that certain instruments or property be placed with a third party for safekeeping, pending the fulfillment or performance of a specified act or condition. Example: The deed to the property and the earnest money were both placed in escrow pending fulfillment of other conditions to the contract.
- Exchange period
In a 1031 exchange, the replacement property should be received by the taxpayer within the "exchange period," which ends on the earlier of 180 days after the date which the taxpayer transferred the property relinquished, or the due date for the taxpayer's tax return for the taxable year when the transfer of the relinquished property occurs (such as April 15th). The exchange period is 180 days, due to the Taxpayer's ability to extend the date of payment.
Also see 1031 Exchange timelines. - Exchanger
- In a 1031 exchange, the party wishing to defer tax on gain on the exchange of investment property.
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