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Real Estate Dictionary Terms - D
Damages
The indemnity recoverable by a person who has sustained an injury
to either his or her person, property,or rights through the act or
default of another. Compensation ordered by the courts for the loss
of or injury to one's person or property.
Datum
A horizontal plane from which heights and depths are measured.
Dealer
A person who holds property primarily for sale to his or her customers
in the ordinary course of his or her business.
Debit
On a closing statement, an amount charged; that is, an amount that
the debited party must pay.
Debt
An amount owed to another.
Debt Service
The sum of money needed each payment period to amortize the loan
or loans.
Debtor
A party who "owns" the property that is subject to a security
interest. A person who owes a debt.
Decedent
A person who has died.
Deck
Usually an open porch on the roof or another part of the structure.
Declaratory Relief
A court's decision on the rights of the parties in a question of
law, without ordering anything to be done.
Dedication
An appropriation of land by its owner for some public use and accepted
for such use by authorized public officials on behalf of the public.
A gift of privately owned land to the public or for public use. It
may be voluntary or involuntary.
Dedication
The voluntary transfer of private property by its owner to the public
for some public use, such as for streets or schools.
Deed
The legal document conveying title to a property. A written instrument
that when properly executed and delivered conveys title. A written
instrument that, when executed and delivered, conveys title to or
an interest in real estate.
Deed In Lieu Of Foreclosure
A deed given by the mortgagor to the mortgagee when the mortgagor
is in default under the terms of the mortgage. This is a way for
the mortgagor to avoid foreclosure.
Deed In Trust
An instrument that grants a trustee under a land trust full power
to sell, mortgage and subdivide a parcel of real estate. The beneficiary
controls the trustee's use of these powers under the provisions of
the trust agreement.
Deed of Trust
Some states, like California, do not record mortgages. Instead, they
record a deed of trust which is essentially the same thing. A security
instrument transferring title to property to a third?person (trustee)
as security for a debt or other obligation. See trust deed.
Deed Of Trust Lien
See trust deed lien
Deed Restriction
Clauses in a deed limiting the future uses of the property. Deed
restrictions may impose a vast variety of limitations and conditions,
for example, they may limit the density of buildings, dictate the
types of structures that can be erected or prevent buildings from
being used for specific purposes or even from being used at all.
Deed-In-Lieu
Short for "deed in lieu of foreclosure," this conveys title
to the lender when the borrower is in default and wants to avoid
foreclosure. The lender may or may not cease foreclosure activities
if a borrower asks to provide a deed-in-lieu. Regardless of whether
the lender accepts the deed-in-lieu, the avoidance and non-repayment
of debt will most likely show on a credit history. What a deed-in-lieu
may prevent is having the documents preparatory to a foreclosure
being recorded and become a matter of public record.
Default
Failure to make the mortgage payment within a specified period of
time. For first mortgages or first trust deeds, if a payment has
still not been made within 30 days of the due date, the loan is considered
to be in default. Failure to fulfill a duty or promise or to discharge
an obligation. Omission or failure to perform any act. Failure to
perform a legal duty or to discharge a promise. The nonperformance
of a duty, whether arising under a contract or otherwise; failure
to meet an obligation when due.
Default Judgment
A judgment obtained because the defendant failed to appear and defend
his case.
Defeasance Clause
The clause in a mortgage or deed of trust that gives the borrower
the right to redeem his or her property upon the payment of his or
her property upon the payment of his or her obligations to the lender.
A clause used in leases and mortgages that cancels a specified right
upon the occurrence of a certain condition, such as cancellation
of a mortgage upon repayment of the mortgage loan.
Defeasible
Capable of being defeated. A defeasible estate is one that has a
condition attached to the title, which if broken causes the termination
of that estate.
Defeasible Fee Estate
An estate in which the holder has a fee simple title that may be
divested upon the occurrence or nonoccurrence of a specified event.
There are two categories of defeasible fee estates: fee simple on
condition precedent (fee simple determinable) and fee simple on condition
subsequent.
Defendant
The party being sued in a lawsuit; the party against whom an action
is filed.
Deferred Maintenance
Maintenance and accumulated repairs that have been postponed.
Deficiency Judgement
A judgment given for the unpaid balance of a debt remaining after
the surety is sold. A court decree holding a debtor personally liable
for the shortage or insufficiency realized on the sale of secured
property. The debtor owes the difference between the sale price of
the property and the amount of the secured debt. Point levied against
the borrower when a foreclosure sale does not produce sufficient
funds to pay the mortgage debt in full.
Delinquency
Failure to make mortgage payments when mortgage payments are due.
For most mortgages, payments are due on the first day of the month.
Even though they may not charge a "late fee" for a number
of days, the payment is still considered to be late and the loan
delinquent. When a loan payment is more than 30 days late, most lenders
report the late payment to one or more credit bureaus.
Delivery (Of A Deed)
The unconditional, irrevocable intent of a grantor immediately to
divest (give up) an interest in real estate by a deed or other instrument.
Demand
The amount of goods people are willing and able to buy at a given
price; often coupled with supply.
Density Zoning
Zoning ordinances that restrict the maximum average number of houses
per acre that may be built within a particular area, generally a
subdivision.
Deposit
A sum of money given in advance of a larger amount being expected
in the future. Often called in real estate as an "earnest money
deposit."
Deposit
Money given to another as security to ensure the performance of a
contract. The money is usually intended to be applied toward the
puchase price of property, or forfeited on failure to complete the
contract.
Deposit Receipt
A contract used in the he real estate business that includes the
terms of the contract and acts as a receipt for "earnest money" to
bind an offer for property by the prospective purchaser. The name
given to most real estate contracts containing the terms of the sale
of real estate, and receipt for earnest money (deposited).
Depreciation
A decline in the value of property; the opposite of appreciation.
Depreciation is also an accounting term which shows the declining
monetary value of an asset and is used as an expense to reduce taxable
income. Since this is not a true expense where money is actually
paid, lenders will add back depreciation expense for self-employed
borrowers and count it as income. A loss in value from any cause.
This loss in value to real property may be caused by age or physical
deterioration, or by functional or economic obsolescence. In appraisal,
a loss of value in property due to any cause, including physical
deterioration, functional obsolescence and external obsolescence.
In real estate investment, an expense deduction for tax purposes
taken over the period of ownership of income property.
Descent
Acquisition of an estate by inheritance in which an heir succeeds
to the property by operation of law.
Desist And Refrain Order
An order that the Real Estate Commissioner is empowered by law and
refrain from committing an act in violation of the Real Estate Law.
Deterioration
The process of gradual worsening or depreciation.
Developer
One who attempts to put land to its most profitable use through the
construction of improvements.
Devise
A gift of real property by deed. A gift of real property by will.
The donor is the devisor, and the recipient is the devisee.
Devisee
One who receives real property under a will.
Dictum
A written observation, remark, or opinion by a judge to?illustrate
or suggest an argument or rule of law not incidental to the case
at hand, and which, therefore, although persuasive, is not binding
on the judge.
Directional Growth
The direction in which the residential sections of a city seem destined
or determined to grow.
Disclosure Statement
A statement that the Truth-in-Lending Law requires a creditor to
give a debtor showing the finance charge, annual percentage rate,
and other required information.
Discount
To sell a promissory note before maturity at a price less than the
outstanding principal balance of the note at the time of sale. It
may also be the amount deducted in advance by the lender from the
face of the note.
Discount Points
A unit of measurement used for various loan charges; one point equals
1 percent of the amount of the loan. In the mortgage industry, this
term is usually used in only in reference to government loans, meaning
FHA and VA loans. Discount points refer to any "points" paid
in addition to the one percent loan origination fee. A "point" is
one percent of the loan amount. A fee charged by the lender when
making an FHA or VA loan to offset the lower interest rate the lender
will receive compared with conventional loan interest rates. One
point is equal to 1 percent.
Discount Rate
The interest rate that is charged on money borrowed by banks from
the Federal Reserve System.
Discounted Trust Deed
An investment in this kind of deed can be a perfect investment.
Discriminatory Conduct
The DRE Regulations state that discriminatory conduct is a basis
for disciplinary action.
Dissolution Of Marriage
A divorce.
District Court
The main trial court in the federal court system and the lowest federal
court. It has jurisdiction in civil cases where the plaintiffs and
defendants are from different states (diversity of citizenship) and
the amount in controversy is over $10,000, and in cases involving
a federal question.
Divestment
The elimination or removal of a right or title, usually applied to
the cancellation of an estate in land.
Domicile
A person's permanent residence.
Dominant Tenement
The tenement obtaining the benefit of an easement appurtenant.?That
parcel of land that benefits from an easement across another parcel
of property (servient tenement).
Dominant Tenement
A property that includes in its ownership the appurtenant right to
use an easement over another person's property for a specific purpose.
Donee
The person to whom a gift is made.
Donor
The person who makes a gift.
Double Escrow
An escrow that will close only upon the condition that a prior escrow
is consummated. The second escrow is contingent upon and tied to
the first escrow. While double escrow is not illegal, unless there
is full and fair disclosure of the second escrow, there may be a
possibility of fraud or other actionable conduct by the parties.
Dower
The right that a wife has in her husband's estate at his death. The
legal right or interest, recognized in some states, that a wife acquires
in the property her husband held or acquired during their marriage.
During the husband's lifetime the right is only a possibility of
an interest; upon his death it can become an interest in land.
Down Payment
The part of the purchase price of a property that the buyer pays
in cash and does not finance with a mortgage.
Dual Agency
Representing both parties to a transaction. This is unethical unless
both parties agree to it, and it is illegal in many states.
Due Process Of Law
A constitutional guarantee that the government will not interfere
with a person's private property rights without following procedural
safeguards prescribed by law.
Due-On-Encumbrance Clause
A clause in a deed of trust or mortgage that provides that upon the
execrtion of additonal deeds of trust or other encumbrances against
a secured parcel of property, the lender may declare the entire unpaid
balance of principal and interest due and owing.
Due-On-Sale Clause
An acceleration clause that grants the lender the right to demand
full payment of the mortgage or deed of trust upon sale of the property.
A clause in a deed of trust or mortgage that provides that if the
secured property is sold or transferred, the lender may declare the
entire unpaid balance immediately due and payable. Its use has been
severely limited by recent court decisions. Also called an alienation
clause A provision in the mortgage that states that the entire balance
of the note is immediately due and payable if the mortgagor transfers
(sells) the property.
Due-On-Sale Provision
A provision in a mortgage that allows the lender to demand repayment
in full if the borrower sells the property that serves as security
for the mortgage.
Duress
Unlawful constraint by force or fear. E.I.R. Abbreviation for Environmental
Impact Report. Unlawful constraint or action exercised upon a person
whereby the person is forced to perform an act against his or her
will. A contract entered into under duress is voidable.
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