Real Estate Definitions - D


debt
An amount owed to another.
deed
The legal document conveying title to a property.
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.
deed of reconveyance
A document used as evidence for the full payment of a mortgage. This is issued by the mortgage holder to the debtor releasing him from his liabilities by indicating in the document that the mortgage has been paid in full. A reconveyance deed must be recorded in the public records of the county where the property is located.
deed of trust
Some states, like California, do not record mortgages. Instead, they record a deed of trust which is essentially the same thing.
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.
Defeasance Clause:
A clause in a mortgage or trust deed which states that the mortgage/trust deed is defeated when the note is timely paid.
Defeasible Fee Estate:
Another name for a Qualified Fee Estate. The Fee may be "defeated" if an owner breaks a condition stated in the deed.
deficiency judgment
A judgment given to the lender against the borrower for the short fall amount if the high bid at a foreclosure sale is not enough to pay off the amount owed.
A judgment against a borrower, endorser, or guarantor for the balance of the debt issued when the security for a loan is insufficient to satisfy the debt.
Personal claim against the debtor when the sale of foreclosed property does not yield sufficient proceeds to pay off the mortgages.
A personal claim based on a court order against a borrower (mortgagor) for difference between what is owed the lender (mortgagee) and the amount realized following a foreclosure on the property.
Delivery:
The legal act of transferring ownership. Documents such as deeds and mortgages must be delivered and accepted to be valid.
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.
Demise:
Conveyance of a rental estate. A synonym for the verb "Rent".
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 Agreement:
The written agreement in the Earnest Money Receipt that forms the instructions on how to handle any Earnest Money deposit in the case of certain contingencies ..whether the buyer gets it back or whether the seller receives it.
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.
discount points
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.
Designated Broker:
A person who is qualified as a Broker and is in charge of a Real Estate Brokerage. This person is held liable for the actions of the salespersons he hires.
distraint
The landlord taking any of the tenant's personal property for unpaid rent.
The seizure of someone’s property in order to obtain payment of rent or other money owed.
Devise:
The passing of ownership of real property by way of a will.
Devisee:
The receiver of real property from a will.
Devisor:
The giver of real property by way of a will; a Testator; a deceased owner of real property who left a valid will.
Dominant Estate:
The interest of the party who has the right to use an Easement Appurtenant across the land of another.
down payment
The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.
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.