Default A breach of a mortgage contract (such as not making monthly payments).

Density The number of homes built on a particular acre of land. Allowable densities are usually determined by local jurisdictions.

Down payment The difference between the sales price and the mortgage amount on a home. The down payment is usually paid at closing.

Due-on-Sale A clause in a mortgage contract requiring the borrower to pay the entire outstanding balance upon sale or transfer of the property. A mortgage with a due-on-sale clause is not assumable.

Earnest Money A sum paid to the seller to show that a potential purchaser is serious about buying.

Easement Right-of-way granted to a person or company authorizing access to the owner’s land; for example, a utility company may be granted an easement to install pipes or wires. An owner may voluntarily grant an easement, or in some cases, be compelled to grant one by a local jurisdiction.

Equity The difference between the value of a home and what is owed on it.

Escrow The handling of funds or documents by a third party on behalf of the buyer and/or seller.

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