D Terms Flashcards
datum plane
A surveyor’s horizontal plane from which elevations and depths are measured.
deed of reconveyance
A deed given by the trustee to the trustor when the trustor has paid the beneficiary in full. It is used for trust deeds to remove the lien in the same manner as a satisfaction is used to remove a mortgage.
deed in lieu of foreclosure
A deed from owner to lienholder. Unlike foreclosure, it may not wipe out junior encumbrances.
dedication
The gift of real property to a governmental unit, usually by a subdivider, in order to gain approval. If the dedication is given for a particular purpose, and that purpose is later abandoned, the land dedicated may revert to the grantor.
declaration of restrictions
A declaration of the restrictive covenants recorded by the subdivider. In each deed, the subdivider usually incorporates the restrictions by referencing the recording of the document.
dealer
A person who makes a regular part of his income by buying and selling property.
declaration of homestead
A formal procedure of recording a homestead declaration. It protects the homestead from unsecured creditors up to a statutory amount.
decedent
A person who has died.
debtor
One who owes money to a creditor.
debt capital
Money raised by a business by borrowing through bonds or other debentures.
debit
A minus factor on a buyer’s or a seller’s closing statement.
deed of trust
The transfer of title from the trustor (borrower) to a trustee (third party) as security for a note to a beneficiary (lender).
designated agency
An agency where one salesperson in the listing broker’s office is designated the agent of the owner. If the listing office sells the property, the selling salesperson is the agent of the buyer. Also called split agency.
descent
Hereditary succession by act of law when property does not pass by will.
dereliction
Land that is created by the recession of water. It belongs to the adjacent landowners. Also called reliction.
depth table
An appraiser’s table that determines additional value attributable to additional depth.
depreciation
A loss in property value from any cause.
deed
A document that conveys title to real property from a grantor to a grantee.
Department of Veterans Affairs (VA)
A federal governmental organization dedicated to serving U.S. veterans.
Department of Housing and Urban Development (HUD)
Federal department that establishes rules and regulations concerning housing and real property in the United States.
demise
The transfer of a leasehold interest.
delivery
The actual transfer of an interest; requires the intent to make an irrevocable transfer.
degree
A measurement for angles, used in metes-and-bounds descriptions. One degree (1°) is ‘/360 of a circle.
default clause
A mortgage provision that allows a junior lienholder to cure any default of a prior lien (and then foreclose on his or her own lien).
deficiency judgment
A judgment obtained when a foreclosure sale does not satisfy a debt. Deficiency judgments are difficult to obtain in many states because of restrictions on them. In some states, they are not allowed at all.
deferred maintenance
Maintenance that has been postponed.
defeasible estate
An estate that can be lost should a certain event take place.
defeasance clause
A mortgage provision that defeats (or cancels) the mortgage on the full payment as agreed.
default
The breach of a promise or an agreement.
designated broker
The licensed broker who has the direct responsibility for the real estate activities of a firm.
documentary transfer tax
Formerly a federal tax on real property conveyances that, when abandoned by the federal government, was adopted in many states. Also called revenue stamps.
distribution
The apportionment and division of an estate in probate after debts and costs have been paid.
disintermediation
The sudden withdrawal of savings from lending institutions, resulting in a tight money market.
desk cost
The office overhead cost per desk. It is determined by dividing overhead by the number of salespeople in an office.
discounting a loan
Selling a loan for less than its face value (common with second mortgages or loans bearing low interest rates).
discount rate
Rate charged by the Federal Reserve to member banks for loans.
discount point
Fee charged by mortgage provider to increase the effective rate of interest.
direct endorsement
A lender authorized to make FHA-insured loans without FHA prior approval.
diminishing returns
A point where additional improvements fail to increase value to cover the cost of improvements.
desktop underwriter
A computer program developed by Fannie Mae that allows loan applications to be processes in a few minutes.
devisor
The testator or testatrix who transfers real property by will upon his or her death.
devisee
The person receiving real property by will.
devise
The passing of real property by will.
development method
An appraisal method to determine land value where cost of development is deducted from estimated value after development.
determinable fee
An estate that would end on the happening of an event that may or may not happen.
Dodd-Frank Act
Protects consumers by regulating appraisers and lenders.
duress
The use of force or threat to make a person act; makes a contract voidable.
due-on-sale clause
A type of acceleration clause in a note that makes all future payments due when a property is sold. It prevents an assumption of the loan. Also called an alienation clause.
due diligence
The process of investigation and evaluation expected of a reasonably prudent person under the circumstances.
dual agency
An agency created when an agent acts for the buyer, as well as the seller in a transaction.
drive-by appraisal report
Report based on exterior viewing, area and sales in area.
domiciliary probate
Probate in the deceased’s state of residence.
drive-by appraisal report
Report based on exterior viewing, area and sales in area.
dragnet clause
A provision extending a mortgage to cover future obligations that may arise between the parties; used in an open-end mortgage.
downzoning
A change in zoning resulting in a lower-density use or lesser use.
dower
A wife’s common-law right in the estate of her husband should she survive him. In some states, it is a statutory right, such as one-third interest.
double escrow
The use of one escrow to purchase and resell a property.
dominant tenement
An estate using the land of another under an easement. The easement is an appurtenance to the dominant tenement.
donee
The person who receives a gift.
donor
The person who gives a gift.
