A GLOSSARY OF REAL ESTATE TERMS

D


Measures a mortgaged property’s ability to cover monthly payments defined as the ratio of net operating income over the mortgage payments. A DCR, or DSCR (debt service coverage ratio), of less than 1.0 means that there is insufficient cash flow generated by the property to cover required debt payments.
Measures a mortgaged property’s ability to cover monthly payments defined as the ratio of net operating income over the mortgage payments. A DSCR of less than 1.0 means that there is insufficient cash flow generated by the property to cover required debt payments.
Declaration of Restrictions
A set of restrictions filed by a sub divider 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.
A legal instrument used to grant a right. The deed is best known as the method of transferring title to real estate from one person to another, often using a description of its "metes and bounds."
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.
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 violations other provisions of the mortgage note.
Is an instrument which defeats the force or operation of some other deed or estate; as distinguished from condition, that which in the same deed is called a condition is a defeasance in another deed.
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.
Deferred Maintenance
Is a practice of allowing machinery or infrastructure to deteriorate by postponing prudent but non-essential repairs to save cost, labor and/or material. The failure to perform needed repair, maintenance, and renewal by normal maintenance management creates deferred maintenance. Generally, a policy of continuing deferred maintenance will result in higher costs or failure than if normal maintenance had occurred.
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.
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.
Decrease in value to real property improvements due to wear and tear, adverse changes in the neighborhood, or any other reason.
Devise
Real Estate left by will.
Devisee
One to whom real estate is given by will.
Devisor
A testator who leaves real estate.
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.
Discount
A loan funded below par (100%). Lenders or investors will fund loans at a discount in order increase the overall yield on the note.
Discount Margin
The difference between the price of a security and the face amount of the security.
The rate applied to each year’s cash flow from a building to determine the net present value (NPV) of a series of cash flows.
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 Nebraska the documentary tax is $1.75 for each thousand dollars of the selling price.
Dower
The rights of a widow to a portion of her deceased husband’s property.
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.
Dragnet Clause
A clause in a mortgage or deed of trust which places the real estate as security for existing debts between the parties.