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Dual agency
Dual agency is when one agent represents both sides rather than having both a buyer’s agent and a listing agent.
Debt-to-income ratio
Debt-to-income, or DTI, ratio is a number used by mortgage lenders which is determined by the total of your debt expenses, plus your monthly housing payment, divided by your gross monthly income, and multiplied by 100. This helps lenders determine affordability based off of their available loan programs, and allows them to estimate how much you can afford to pay monthly for a mortgage.
Lenders typically look for borrowers who pay 28 percent, or less, of their total monthly income on housing, and less than 36 percent of their income on debt payments, according to Investopedia. If either percentage is on the higher side, and you want to buy a home, you might need to adjust your budget.
Datum
A horizontal plane from which heights and depths are measured.
Defeasible fee estate
A qualified estate in which the grantee could lose his or her interest upon the occurrence or non-occurrence of a specified event. There are two types of defeasible fee estates: (1) Those known as a condition subsequent where the possibility of re-entry takes place, and (2) A qualified limitation, where the grantee’s ownership automatically ends with the possibility of reverter (otherwise known as a fee simple determinable). The words as long as, while, or during are key to creating a qualified limitation defeasible fee estate.
DBA
Doing business as
Debenture
A note or bond given as evidence of debt and issued without security
Debt
Something owed to another; an obligation to pay or return something.
Declining balance method
An accounting method of calculating depreciation for tax purposes designed to provide large deductions in the early years of ownership.
Deed
A written instrument that when executed and delivered conveys title to, or an interest in, real estate.
Deed in lieu of foreclosure
A process by which the mortgagor can avoid foreclosure. Mortgagor gives a deed to mortgagee when mortgagor is in default according to terms of mortgage.
Deed of reconveyance
The instrument used to reconvey title to a trustor under a deed of trust once the debt has been satisfied.
Deed of trust
An instrument used to create a lien by which the mortgagor conveys her or his title to a trustee, who holds it as security for the benefit of the noteholder.
Deed restrictions
The clauses in a deed limiting the future users of the property. Deed restrictions may impose a variety of limitations and conditions, such as limiting the density of buildings, dictating the types of structures that can be erected, and preventing buildings from being used for specific purposes or from used at all.
Default
The nonperformance of a duty, whether arising under a contract or otherwise; failure to meet an obligation when due.
Defeasance clause
A clause used in leases or mortgages that cancels a specified right on the occurrence of a certain condition, such as cancellation of a mortgage on repayment of the mortgage loan.
Deficiency judgment
A personal judgment levied against the mortgagor when a foreclosure sale does not produce sufficient funds to to pay the mortgage debt in full.
Delinquent taxes
Unpaid taxes that are past due.
Delivery
The legal act of transferring ownership. Documents such as deeds and purchase agreements must be delivered and accepted to be valid.
Delivery in escrow
Delivery of a deed to a third person until the performance of some act or condition by one of the parties.
Demand
The willingness of persons to buy available goods at a given price; often coupled with supply.
Density zoning
The zoning ordinances that restrict the average maximum number of houses per acre that may be built within a particular area, generally a subdivision.
Depreciation
In appraisal, a loss of value in property due to all causes, including physical deterioration, functional obsolescence, and economic obsolescence. 2. In real estate investment, an expense deduction for tax purposes taken over the period of ownership of the income property.
Descent
The hereditary succession of an heir to the property of a relative who dies intestate.
Designed agency
An agency relationship where a client designates a broker to appoint an office agent to singularly represent his or her interest to the exclusion of all of the other agents in the broker’s office.
Determinable fee estate
A fee-simple estate in which the property automatically reverts to the grantor on the occurrence of a specified event or condition.
Devise
A transfer of real estate by will or last testament. The donor is the devisor and the recipient is the devisee.
Diminishing returns
The principle that applies when a given parcel of land reaches its maximum percentage return on investment, and further expenditures for improving the property yield a decreasing return.
Discount points
An added loan free charged by a lender to make the yield on a lower-than-market-value loan competitive with higher-interest loans.
Discount rate
The rate of interest a commercial bank must pay when it borrows from its federal reserve bank. Consequently, the discount rate is the rate of interest the banking system carries within its own framework. Member banks may take certain promissory notes that they have received from customers and sell them to their district federal reserve bank for less than face value. With the funds received, the banks can make further loans. Changes in the discount rate may cause banks and other lenders to reexamine credit policies and conditions.
Dispossess
To oust from land by legal process.
Dominant tenement
A property that includes in its ownership the appurtenant right to use an easement over another’s property for a specific purpose.
Dower
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 lifetime of the husband, the right is only a possibility of an interest; on his death it can become an interest in land.
Duress
The use of unlawful constraint that forces action or inaction against a person’s will.
DVA loan
A mortgage loan on approved property made to a qualified veteran by an authorized lender and guaranteed by the Department of Veterans Affairs to limit possible loss by the lender. Real estate terms that begin with E
Down payment
An initial payment used to purchase an item, for our purposes a property. A down payment is typically 20%, but other amounts can be used.