Glossary

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There are 96 names in this directory beginning with the letter D.
Damages
In a civil lawsuit, a sum of money the defendant is ordered to pay the plaintiff.
Damages, Actual
Damages awarded to a plain_tiff based on losses actually incurred as a result of the defendant's acts.
Damages, Compensatory
Damages awarded to a plaintiff as compensation for injuries (per_sonal injuries, property damage, or financial losses) caused by the defendant's act or failure to act.
Damages, Liquidated
A sum that the parties to a contract agree in advance (at the time the contract is made) will serve as full compensa_tion in the event of a breach.
Damages, Punitive
In a civil lawsuit, an award added to compensatory damages, to punish the defendant for outrageous or malicious conduct and discourage others from similar conduct.
Datum
An artificial horizontal plane of eleva_tion, established in reference to sea level, used by surveyors as a reference point in determin_ing elevation.
Dealer
One who buys and sells for one's own account, merchandise is inventory and gain on sale is treated as ordinary income.
Dealer Property
Property held for sale to cus_tomers rather than for long-term investment; a developer's inventory of subdivision lots, for example.
Debit
A charge or debt owed to another.
Debt Coverage Ratio (DCR)
A ratio used in underwriting loans for income producing property which is created by dividing net operating income by total debt service. Ratios of at least 1.10 are generally required with ratios of 1.20 and higher considered the norm. (See definition of "underwriting" below.).
Debt Ratio (DR, D:I)
Also known as debt to income. The ratio of the total of minimum monthly debt payments to gross monthly income. If minimum monthly payments on a credit card, auto lease, and mortgage (PITI) were $30, $220 and $750 respectively and the gross monthly income was $3000, the debt ratio would be 33.33% ($1000 / $3000). Only debt obligations that will be in place after the loan has funded are considered. Payments for food, utilities, entertainment, medical bills, etc. are not included in the calculation
Debt Service
The amount of money required to make the periodic payments of principal and interest on an amortized debt, such as a mort_gage.
Debtor
One who owes money to another.
Decedent
A person who has died.
Decree
An order issued by one in authority, a court order or decision.
Decrement
A decrease in value; the opposite of increment.
Dedication
A voluntary or involuntary gift of private property for public use; may transfer ownership or simply create an easement.
Dedication, Common Law
Involuntary dedi_cation, resulting from a property owner's ac_quiescence to public use of his or her property over a long period. Also called implied dedica_tion.
Dedication, Statutory
A dedication required by law; for example, dedication of property for streets and sidewalks as a prerequisite to sub_division approval.
Deduction
An amount a taxpayer is allowed to subtract from his or her income before the tax on the income is calculated (as distinguished from a tax credit, which is deducted from the tax owed).
Deed
Written document, properly signed and delivered, that conveys title to real property.
Deed Executed under Court Order
A deed that is the result of a court action, such as judi_cial foreclosure or partition.
Deed in Lieu of Foreclosure
A deed given by a mortgage borrower to the lender to satisfy the debt and avoid foreclosure.
Deed of Partition
Deed used by co-owners (such as tenants in common or joint tenants) to divide up the co-owned property so that each can own a portion in severally.
Deed of Reconveyance
The instrument used to release the security property from the lien created by a deed of trust when the debt has been repaid. Not used in Minnesota.
Deed of Trust
An instrument that creates a vol_untary lien on real property to secure the re_payment of a debt, and which includes a power of sale clause permitting nonjudicial foreclo_sure; the parties are the grantor or trustor (bor_rower), the beneficiary (the lender), and the trustee (a neutral third party). Not used in Min_nesota.
Deed of Trust (DOT)
DOT's are similar to mortgages in that they serve as security for a loan by encumbering real estate. However, a mortgage is between two parties (borrower and lender) and a deed of trust involves three parties (borrower, lender and trustee). The trustee holds the property in trust as security for the payment of the debt and can sell the property if the borrower defaults.
Deed Restriction
see Conditions, Covenants, and Restrictions.
Deed Restrictions
Provisions in a deed that restrict use of the property, and which may be either covenants or conditions.
Deed, Administrator's
A deed used by the ad_ministrator of an estate to convey property owned by a deceased person to the heirs.
Deed, Correction
A deed used to correct mi_nor mistakes in an earlier deed, such as the mis_spelling of a name or an error in the legal description of the property.
Deed, General Warranty
A deed in which the grantor warrants the title against defects that might have arisen before or during his or her period of ownership.
Deed, Gift
A deed that is not supported by valu_able consideration; often lists "love and affec_tion" as the consideration.
Deed, Grant
A deed that uses the word "grant" in its words of conveyance and carries certain implied warranties. Not used in Minnesota.
Deed, Limited Warranty
A deed in which the grantor warrants title only against defects that may have arisen during his or her period of ownership. Also called a special warranty deed.
Deed, Quitclaim
A deed that conveys any in_terest in a property that the grantor has at the time the deed is executed, without warranties.
Deed, Sheriff's
A deed transferring title to the highest bidder at a mortgage foreclosure sale when the statutory redemption period has ex_pired.
Deed, Tax
A deed given to a purchaser of prop_erty at a tax foreclosure sale.
Deed, Trustee's
A deed given to a purchaser of property at a trustee's sale, in the nonjudicial foreclosure of a deed of trust. Not used in Minnesota.
Deed, Warranty
1. A general warranty deed. 2. Any type of deed that carries warranties.
Deed, Wild
A deed that won't be discovered in a standard title search, because of a break in the chain of title.
Default
Failure to meet all of the commitments and obligations specified in the mortgage or deed of trust. Defaults usually give the lender the right to accelerate payments and start foreclosure.
Defeasance
Clause in mortgage that gives the borrower the right to redeem the property after default by paying the full indebtedness and fees incurred.
Defeasance Clause
A clause in a mortgage or lease that cancels or defeats a certain right upon the occurrence of a particular event.
Defendant
1. The person being sued in a civil lawsuit. 2. The accused person in a criminal lawsuit.
Deferred Maintenance
A type of physical depreciation due to lack of normal upkeep
Deferred Payments
Payments to be made at some future date.
Deficiency Judgment
A court order stating that the borrower still owes money when the security for a loan does not entirely satisfy a defaulted debt.
Degree
In surveying, a unit of circular mea_surement equal to '/seo of one complete rotation around a point in a plane.
Delivery
The legal transfer of a deed from the grantor to the grantee, which results in the trans_fer of title.
Demand
Desire to own coupled with ability to afford; in appraisal, this is one of the four ele_ments of value, along with scarcity, utility, and transferability.
Demise
The transfer of an estate or interest in property to another for years, for life, or at will.
Density
In land use law, the number of buildings or occupants per unit of land.
Department of Commerce
The division of the state government that oversees the real estate industry in Minnesota.
Deposit
Money offered as an indication of com_mitment or as a protection, and which may be refunded under certain circumstances; for ex_ample, a buyer's earnest money deposit or a tenant's security deposit.
Deposition
The formal, out-of-court testimony of a witness in a lawsuit, taken before trial for possible use later, during the trial; either as part of the discovery process, to determine the facts of the case, or when the witness will not be avail_able during the trial.
Depreciable Property
In the federal income tax code, property that is eligible for cost re_covery deductions because it will wear out and have to be replaced.
Depreciation
1. A loss in value (caused by de_ferred maintenance, functional obsolescence, or economic obsolescence). 2. For the purposes of income tax deductions, apportioning the cost of an asset over a period of time.
Depreciation Deductions
Under the federal income tax code, deductions from a taxpayer's income to permit the cost of an asset to be re_covered; allowed only for depreciable property that is held for the production of income or used in a trade or business. Also called cost recov_ery deductions.
Depreciation Recapture
When real property is sold at a gain and accelerated depreciation has been claimed, the owner may be required to pay tax at ordinary income rates to the extent of the excess accelerated depreciation.
Depreciation, Accrued
Depreciation that has built up or accumulated over a period of time.
Depreciation, Age-Life
A method of estimat_ing depreciation for appraisal purposes, based on the life expectancy of the property, assum_ing normal maintenance.
Depreciation, Curable
Deferred maintenance and functional obsolescence that would ordi_narily be corrected by a prudent owner, because the correction cost could be recovered in the sales price.
Depreciation, Incurable
Deferred mainte_nance, functional obsolescence, or economic ob_solescence that is either impossible to correct, or not economically feasible to correct, because the cost could not be recovered in the sales price.
Depreciation, Straight Line
A method of cal_culating depreciation for income tax or appraisal purposes, in which an equal portion of a structure's value is deducted each year over the anticipated useful life; when the full value of the improvement has been depreciated, its eco_nomic life is exhausted.
Depth Table
A mathematical table used in ap_praisal to estimate the differences in value be_tween lots with different depths. Frontage has the greatest value, and land at the rear of a lot has the least value.
Detached Residence
A home physically sepa_rated from the neighboring home(s), not con_nected by a common wall.
Developed Land
Land with man-made improvements, such as buildings or roads.
Developer
One who subdivides or improves land to achieve its most profitable use.
Development
1. Any development project, such as a new office park. 2. A housing subdi_vision. 3. In reference to a property's life cycle, the earliest stage, also called integration.
Devise
1. (noun) A gift of real property through a will. 2. (verb) To transfer real property by will. Compare: Bequest; Bequeath; Legacy.
Devisee
Someone who receives title to real property through a will. Compare: Beneficiary; Legatee.
Devisor
A testator who devises real property in his or her will.
Directional Growth
The direction in which a city's residential neighborhoods are expanding or expected to expand.
Disaffirm
To ask a court to terminate a void_able contract.
Disbursements
Money paid out or expended
Disclaimer
A denial of legal responsibility.
Discount
1. (verb) To sell a promissory note at less than its face value. 2. (noun) An amount withheld from the loan amount by the lender when the loan is originated; discount points.
Discount Points
One point equals one percent of the loan amount. Paying points has the effect of giving the lender a higher yield. Two points on a $100,000 mortgage would cost $2,000 ($100,000 x 0.02).
Discount Rate
The interest rate charged when a member bank borrows money from the Fed_eral Reserve Bank.
Discrimination
Treating people unequally be_cause of their race, religion, sex, national ori_gin, or some other fundamental characteristic.
Disintegration
In a property's life cycle, the period of decline when the property's present economic usefulness is near an end and con_stant upkeep is necessary.
Disintermediation
When depositors withdraw savings deposits from an intermediary finan_cial institution, such as a savings and loan as_sociation or commercial bank, in favor of direct investment.
Dispossess
To force someone out of possession of real property through legal procedures, as in an eviction.
Domicile
The state where a person has his or her permanent home.
Double-Entry Bookkeeping
An accounting technique in which an item is entered in the led_ger twice, once as a credit and once as a debit; used for some settlement statements.
Down Payment
The portion of the purchase price paid by a buyer to a seller from sources of funds outside of those provided by a lender.
Downpayment
The part of the purchase price of property that the buyer is paying in cash; the difference between the purchase price and the financing.
Downzoning
Rezoning land for a more lim_ited use.
Drainage
A system to draw water off land, ei_ther artificially (e.g., with pipes) or naturally (e.g., with a slope).
Draw
A periodic advance of funds from a lender.
Due Diligence
The act of carefully reviewing, checking and verifying all of the facts and issues before proceeding. In lending it is, among other things, verification of employment, income and savings; review of the appraisal; credit report; and status of the title.
Due-on-Sale
see Acceleration Clause, reservation of lender's right to call the loan due and payable upon sale of the property.
Duplex
A structure that contains two separate housing units, with separate entrances, living areas, baths, and kitchens.
Duress
Unlawful force or constraint used to compel someone to do something (such as sign a contract) against his or her will.
Dwelling
A building or a part of a building used or intended to be used as living quarters.