REAL ESTATE GLOSSARY

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DBA:	See Doing Business As

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.

Deduction:	In tax law, an amount that you can subtract from the total amount on which you owe tax.

Deed:	A legal document transferring ownership of a property from one party to another. The deed contains a description of the property, and is signed, witnessed, and delivered to the buyer at closing.

Deed in Lieu (of foreclosure):	A means of escaping an overly burdensome mortgage. If a homeowner can't make the mortgage payments and can't find a buyer for the house, many lenders will accept ownership of the property in place of the money owed on the mortgage. Even if the lender won't agree to accept the property, the homeowner can prepare a quitclaim deed that unilaterally transfers the homeowner's property rights to the lender.

Deed of Trust:	A legal document that conveys title to real property to a third party. The third party holds title until the owner of the property has repaid the debt in full.

Deed Restrictions:	Deed restrictions cover allowable land uses and home types and sizes within a neighborhood.

Default:	Failure to meet legal obligations in a contract, including failure to make payments on a loan.

Defeasance:	A clause in a deed, lease, will or other legal document that completely or partially negates the document if a certain condition occurs or fails to occur. Defeasance also means the act of rendering something null and void.

Delinquency:	Failure to make payments as agreed in the loan agreement.

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.

Depreciation:	A loss in value.

Descent:	Acquisition of property through inheritance laws when there is no will.

Devise:	A transfer of real estate by will or last testament.

Disclosure:	The making known of a fact that had previously been hidden; a revelation. For example, in many states you must disclose major physical defects in a house you are selling, such as a leaky roof or potential flooding problem.

Discount Points (or Points):	Points are an up-front fee paid to the lender at the time that you get your loan. Points and interest rates are inherently connected: in general, the more points you pay, the lower the interest rate you get. However, the more points you pay, the more cash you need up front since points are paid in cash at closing. 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).

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.

Doing Business As:	Also known as DBA. Business names or aliases filed with the county.

Dominant Tenement:	Property that carries a right to use a portion of a neighboring property. For example, property that benefits from a beach access trail across another property is the dominant tenement.

Down Payment:	An amount of money the buyer pays which is the difference between the purchase price and the mortgage amount. Private mortgage insurance may be removed with a down payment of at least 20% of your home's purchase price.

Dual Agency:	Representing the buyer and the seller in the same transaction by the same agent. Since there is an inherent conflict in fiduciary obligations to two different principals, dual agency, at best, is a risky undertaking.

Due-on-Sale Clause:	Provision in a mortgage or deed of trust allowing the lender to demand immediate payment of the loan balance upon sale of the property.

Duress:	Forcing action or inaction against a person's will.

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