This information is provided for reference only. Real estate laws are different in each state.
If in doubt about any real estate matter seek the advice of an attorney.
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DBA Doing Business As. Business names or aliases filed with the county.
Debenture Bonds issued without security.
Debt Service The total amount of credit card, auto, mortgage or other debt upon which you must pay.
Debt-Service Ratio The measurement of debt payments to gross household income which may include, in addition to the main wage earner's salary, salaries of other wage earners, commissions, bonuses, overtime, etc.
Deceptive Trade Practices Act Part of the federal Consumer Protection Act originally passed in 1973 and made specifically applicable to real estate in 1975, specifically prohibiting a lengthy number of false, misleading and deceptive acts or practices.
Declaration of Restrictions A set of restrictions filed by a subdivider to cover an entire tract or subdivision.
Dedication The voluntary giving of private property to some public use by the owner, as the dedication of land for streets, schools, etc. in a development.
Deed A formal written instrument by which title to real property is transferred from one owner to another. The deed should contain an accurate description of the property being conveyed, should be signed and witnessed according to the laws of the State where the property is located, and should be delivered to the purchaser at closing day. There are two parties to a deed: the grantor and the grantee. Related: deed of trust, general warranty deed, quitclaim deed and special warranty deed
Deed of Trust Like a mortgage, a security instrument whereby real property is given as security for a debt. However, in a deed of trust there are three parties to the instrument: the borrower, the trustee, and the lender, (or beneficiary). In such a transaction, the borrower transfers the legal title for the property to the trustee who holds the property in trust as security for the payment of the debt to the lender or beneficiary. If the borrower pays the debt as agreed, the deed of trust becomes void. If, however, he defaults in the payment of the debt, the trustee may sell the property at a public sale, under the terms of the deed of trust. In most jurisdictions where the deed of trust is in force, the borrower is subject to having his property sold without benefit of legal proceedings. A few States have begun in recent years to treat the deed of trust like a mortgage.
Deed of Trust Rider The document required by the lender to be recorded along with the security instrument for an ARM.
Deed Restriction Restrictions placed on use of real property by writing in a deed to control use and occupancy of the property by future owners. Example: Developers often place deed restrictions that require that all structures have a brick exterior.
Default Non-performance of a duty arising under a contract or otherwise.
Defeasanse A provision or condition in a deed or in a separate instrument which, being performed, renders the instrument void.
Defective Title Title to real property which lacks some of the elements necessary to transfer good title.
Deficiency Judgment Personal claim against the debtor when the sale of foreclosed property does not yield sufficient proceeds to pay off the loan(s) and accrued interest.
Delivery The actual transfer of the deed, or an act of a seller showing intent to make a deed effective, without which, there is no transfer of title to the property.
Deposit Also called Earnest Money Deposit. A deposit made by the buyer as evidence of good faith in offering to purchase real estate and to secure performance of the contract. Earnest money is typically held by a title company, in an escrow account, during the period between acceptance of the contract and the closing. If the sale goes through, the earnest money is usually applied against the downpayment. If the sale does not go through, the earnest money will be forfeited or lost unless the agreement of sale expressly provides that it is refundable.
Depreciation Decrease in value to real property or improvements caused by deterioration, obsolescence, or economic factors.
Descent Acquisition of property through inheritance laws when there is no will (when a person dies Intestate).
Designated AgencyAlso known as Split Agency, Appointed Agency. Agency relationship where the Broker appoints one agent in the office to represent the seller and another agent in the same office to represent the Buyer. Caution: This is a relatively new concept and has not been tested in the Courts yet. Prior relationships or conversatins between the 2 agents appointed could possibly create a conflict of interest. Example: Agent A (representing the buyer) tells Agent B (not involved at this point) that he has a Client that has financially qualified for up to $150,000. Later, the Buyer decides to make a $125,000 offer on a property listed by the same agency. The Broker appoints Agent B to represent the Seller. Since Agent B already knows the Buyer can qualify for $150,000 must he tell the Seller? Remember, he is obligated to reveal any information that he knows that would help the Seller.
Devise A transfer of real estate by will or last testament.
Devisee One to whom real estate is given by will.
Devisor A testator who leaves real estate.
Direct Endorsement A lender that can complete the processing and closing of an FHA loan without prior approval from FHA.
Direct Reduction Mortgage An amortized mortgage in which principal and interest are computed on the remaining balance.
Discount Points (or Points) The amount paid either to maintain or lower the interest rate charged. Each point is equal to one percent (1%) of the loan amount (i.e., two points on a $100,000 mortgage would equal $2,000).
Disbursements Payments made during the course of an escrow or at closing.
Disclosure An agent must disclose to the principal all known relevant and material information that pertains to the scope of the agency. The duty includes any facts affecting the value or desirability of the property, as well as any other relevant information pertaining to the transaction, such as the other party's bargaining position, the identity of all potential purchasers, information concerning the ability or willingness of the buyer to offer a higher price, any intent to subdivide or resell the property for a profit.
An agent's duty of disclosure to his/her principal must not be confused with a real estate broker's duty to disclose any know material facts about the property value to non-principals. The duty to disclose known material facts is based on a real estate broker's duty to treat all persons honestly. The duty of honesty does not depend on the existence of an agency relationship.
Discount (ARM) An ARM with an initial discount, the lender gives up a number of percentage points of interest to give you a lower rate and lower payments for part of the mortgage term. After the discount period, the ARM rate will probably go up depending on the index rate.
Discount Rate (1) The rate charged member banks who borrow from the Federal Reserve System. (2) The rate used to convert future income into present value.
Dispossess To oust from land by legal process.
Documentary Tax Stamps Stamps, affixed to a deed, showing the amount of transfer tax.
Dower The rights of a widow to a portion of her deceased husband's property.
Down Payment An amount of money the buyer pays which is the difference between the purchase price and the mortgage amount.
Dragnet Clause A clause in a mortgage or deed or trust which places the real estate as security for existing debts between the parties.
Dual Agency Representing the buyer and the seller in the same transaction by the same agent. Since there is an inherent conflict in Fiduciary Duties to two different principals, Dual Agency, at best, is a risky undertaking. All states require that Dual Agency must be disclosed to all parties to the transaction. Also see Intermediary and/or Undisclosed Dual Agency is illegal in all states. Caution: This form of agency offers a reduced level of service and should never be considered unless you are very knowledgeable about real estate.
Due on Sale A clause in a mortgage agreement providing that, if the mortgagor (the borrower) sells, transfers, or, in some instances, encumbers the property, the mortgagee (the lender) has the right to demand the outstanding balance in full.
Duress Forcing action or inaction against a person's will.
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