Glossary of Terms - D

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


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.  Typically required of developers and shown on their plans of subdivision.

Deed
Formal written document transferring title to real estate; a new deed is used for each transfer. 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. (See also "Deed of Trust", "General Warranty Deed", "Quitclaim Deed", and "Special Warranty Deed" in this Glossary.)

Deed of Trust
An instrument given by the borrower to a third party (trustee) vesting title to the property in the trustee as security for the borrower's repayment of the mortgage loan. In some states the term "mortgage" prevails and in some states "Deed of Trust". (See "Mortgage" in this Glossary)

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.

Default
Failure to make mortgage payments or a violation of other provisions of the mortgage note.

Defective Title
Title to real property which lacks some of the elements necessary to transfer good title. Title to a negotiable instrument obtained by fraud.

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. Deficiency Judgment statutes in most states regulate how a creditor can obtain such a judgment against a debtor.

Deposit
Also called Earnest Money Deposit, the deposit is money given to the seller or his agent by the potential buyer upon the signing of the agreement of sale to show that he is serious about buying the house. If the sale goes through, the earnest money is applied against the down payment. If the sale does not go through, the earnest money deposit will be forfeited to the seller unless the purchase contract expressly provides conditions for its return to the buyer. Should never be paid to the Seller, but only to a Real Estate Broker or an attorney.  Otherwise, if the Seller declares bankruptcy before the transaction is consummated, the Buyer becomes a general, unsecured creditor of the Seller (See "Earnest Money" in this Glossary)

Depreciation
Decrease in value of real property improvements due to wear and tear, adverse changes in the neighborhood, or any other reason.

Devise
Real Estate left by will.

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.

Disbursements
Payments made during the course of an escrow or at closing.

Documentary Tax Stamps
Stamps affixed to a deed showing the amount of transfer tax. In Pennsylvania (PA), the PA State Tax is 1% of the consideration.  Local realty transfer taxes vary considerably from municipality to municipality and must be separately ascertained for each transaction.

Down Payment
Cash to be paid by the buyer at closing to consummate a real estate transaction. Down payment is the difference between the sales price and the mortgage amount. Buyer cash required at closing includes the down payment, closing costs and prepaid expenses. (See "Deposit" and "Earnest Money" in this Glossary)

 

 

 

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