DAMAGES

The estimated monetary value of the injury a person suffers as a result of an unlawful act or negligent act of another person. Once proven, damages may be awarded by a Court

DEBT

An amount owed to another. See installment loan and revolving liability.

DEBT COVERAGE RATIO (DCR)

A comparison of the net income of a property with the cost of payments (principal and interest) on the mortgage on the property, used to assess the ability of the property to generate enough income to pay for itself.

DEBT EQUITY RATIO

A comparison of the amount owing on a property with the equity (value of property minus amount owing).

DEBT FINANCING

Paying for the purchase of a property with credit.

DEBT RATIO

Also known as Debt-to-Income ratio. A comparison of the total monthly payments of all of the borrower's debts (including the mortgage) with the gross monthly income of the borrower, used to assess borrower's ability to pay mortgage.

DEBT SERVICE

The mortgage payment for a given period of time.

DEBTOR

A person who has borrowed and therefore owes (opposite of Creditor ).

DEED

The legal document conveying title to a property.

DEED-IN-LIEU

A deed given by a borrower to the lender to satisfy a debt and avoid foreclosure. Also called a "voluntary conveyance."

DEED OF RECONVEYANCE

A legal instrument which conveys title from a trustee back to the borrower under a mortgage once the mortgage has been paid out.

DEED OF TRUST

The document used in some states instead of a mortgage; title is vested in a trustee to secure repayment of the loan. See Trust Deed.

DEED RESTRICTION

A clause in a deed which limits the use of the property in certain respects.

DEFAULT

Failure to make loan payments on a timely basis or to comply with other requirements of a mortgage.

DEFECTIVE TITLE

Ownership of property which is subject to some competing claim

DELINQUENCY

Failure to make mortgage payments when due.

DELIVERY

The act of turning over any legal document (including a Deed) to another party so as to make it legally operative and no longer revocable

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD)

A federal agency focusing on programs regarding housing and renewal of city communities.

DEPARTMENT OF VETERANS AFFAIRS (VA)

An agency of the federal government that guarantees residential mortgages made to eligible veterans of the military services. The guarantee protects the lender against loss and thus encourages lenders to make mortgages to veterans.

DEPOSIT

A sum of money given to bind the sale of real estate, or a sum of money given to ensure payment or an advance of funds in the processing of a loan. See earnest money deposit .

DEPRECIATION

A decline in the value of property because of physical or economic changes such as wear and tear; the opposite of appreciation.

DESCRIPTION

Also known as "Legal Description". The manner in which a piece of land is identified. May involve metes and bounds measurements using astronomic bearings or may simply set out Lot and Plan numbers in a specific municipality. Most jurisdictions require description of land to be included in all instruments to be registered on title to that property.

DETERIORATION

The impact of time and wear and tear on a dwelling or other building which results in a decrease in its value if nothing is done to counteract it.

DEVELOPED LAND

See Improved Land .

DEVISE

The act of leaving a piece of land to another person in a will.

DEVISEE

The beneficiary under a will who receives a gift of real estate under the will.

DEVISOR

The deceased person under whose will the beneficiary receives real estate. More commonly called the "testator".

DISCLOSURE

Sometimes known as "Vendor's Disclosure", a legal requirement in some jurisdictions in which the Vendor of a property must provide a written statement to a prospective purchaser setting out defects in the property known to the Vendor.

DISCLOSURE STATEMENT

A document issued by a lender to a borrower in which the lender sets out the terms and conditions of the loan. Often required under legislation.

DISCOUNT RATE

A benchmark for interest rates, the rate charged by the Federal Reserve System on loans to banks.

DISCOUNT POINTS

Amounts paid to the lender at origination to lower the rate on the face of the note. See point.

DOMINANT ESTATE

The property which enjoys the benefit of an easement over another property (known as the Servient Estate ).

DOWER

The interest enjoyed by a wife in real property her husband acquired during his life time. The right becomes exercisable upon the death of the husband. Dower still exists in some jurisdictions but has been abandoned in most.

DOWN PAYMENT

The part of the purchase price of a property that the buyer pays in cash and does not finance with a home loan.

DRAW PERIOD

The time period in which the borrower may access and use a line of credit.

DUE-ON-SALE PROVISION

A provision in a mortgage home loan that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the loan.

DUE-ON-TRANSFER PROVISION

This terminology is usually used for second mortgages. See due-on-sale provision.

DURESS

A state in which the improper, threatening or coercive actions of another place a person in a disadvantage psychological position. A person is not bound by a contract she enters while under duress.

DWELLING

A house, home, living unit. Generally refers to a building designed for use as a living space.