| 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. |
| 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.) |
| Deed in Lieu | A deed given by a mortgagor to the mortgagee to satisfy a debt and avoid foreclosure. Also called a voluntary conveyance. |
| Deed of Trust | Like a mortgage, a security instrument whereby real property is given as security for a debt. However, in a deed of trust there are three parties to the instrument: the borrower, the trustee, and the lender, (or beneficiary). In such a transaction, the borrower transfers the legal title for the property to the trustee who holds the property in trust as security for the payment of the debt to the lender or beneficiary. If the borrower pays the debt as agreed, the deed of trust becomes void. If, however, he defaults in the payment of the debt, the trustee may sell the property at a public sale, under the terms of the deed of trust. In most jurisdictions where the deed of trust is in force, the borrower is subject to having his property sold without benefit of legal proceedings. A few States have begun in recent years to treat the deed of trust like a mortgage. |
| 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 on a timely basis or to comply with other conditions of a mortgage. |
| 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. A court order to pay the balance owed on a loan if the proceeds from the sale of the security are insufficient to pay off the loan. Deficiency judgments are not allowed in all states. |
| Delinquency | A loan in which a payment is overdue but not yet in default. |
| Department of Veterans Affairs (VA) | Having the right to use a portion of a fund such as an individual retirement fund. |
| 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. |
| Depreciation | Decrease in value to real property improvements due to wear and tear, adverse changes in the neighborhood, or any other reason. A decline in the value of property; the opposite of appreciation. |
| 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. |
| Disbursements | Payments made during the course of an escrow or at closing. |
| 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. |
| Document Fees | Charges for the lender's services associated with making the loan inlcuding processing, underwriting and document fees. |
| Documentary Tax Stamps | A State tax, in the forms of stamps, required on deeds and mortgages when real estate title passes from one owner to another. The amount of stamps required varies with each State. |
| Dower | The rights of a widow to a portion of her deceased husband's property at his death. |
| 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. |
| Dragnet Clause | A clause in a mortgage or deed of trust which places the real estate as security for existing debts between the parties. |
| Due on Sale Provision | A provision in a mortgage that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage. |
| Due on Transfer Provision | A clause in a mortgage or deed of trust which places the real estate as security for existing debts between the parties. |
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