Real Estate Glossary

D

Declaration of Restrictions
A set of restrictions filed by a subdivider to cover an entire tract or subdivision.

Deed in Lieu
A deed granted by a mortgagor (borrower) to a mortgagee (lender) to satisfy a debt and avoid foreclosure.

Deed of Trust
A document used in some states in place of a mortgage. A type of security instrument granted by a mortgagor (borrower) to a mortgagee (lender) which conveys title in trust to a third party (trustee) for the purpose of securing payment of a note. Under the terms of a deed of trust, the trustee is bound to reconvey title to the mortgagor upon satisfaction of the note, and is bound to sell the property and pay the debt in the event of default on the note.

Deed of Trust Rider
The document required by the lender to be recorded along with the security instrument for an ARM.

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

Defective Title
Title to a negotiable instrument obtained by fraud. Title to real property which lacks some of the elements necessary to transfer good title.

Deficiency
The difference between the amount of the mortgage indebtedness and any lesser amount recovered by the mortgagee (lender) from a foreclosure sale.

Deficiency Judgement
A court order requiring payment of the balance owed on a loan if the proceeds from a sale in foreclosure are insufficient to pay off the loan.

Delinquency
Failure to make mortgage payments when mortgage payments are due. For most mortgages, payments are due on the first day of the month. Even though they may not charge a "late fee" for a number of days, the payment is still considered to be late and the loan delinquent. When a loan payment is more than 30 days late, most lenders report the late payment to one or more credit bureaus.

Demand Feature
A clause in a note which entitles the mortgagee (lender) to declare the note due a payable in full prior to its stated maturity date.

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.

Depreciation
A sum representing presumed loss in the value of a building or other improvements to a parcel of real estate resulting from age, physical wear, and economic or functional obsolescence.

Devise
A gift of real property by a will.

Devisee
One who receives real property through a will.

Devisor
One who gives real property through a will.

Direct Endorsement
A lender that can complete the processing and closing of a FHA loan without prior approval from FHA.

Discount
An amount paid to a lender to increase the yield on a mortgage. Often referred to as "discount points", one "point" is equal to one percent of the loan amount in question.

Documentary Stamps
A state tax required on deeds and mortgages when real estate title passes from one owner to another. The amount varies for each state.

Down Payment
A portion of a purchase price paid prior to closing the transaction. Earnest money may be part of or the entire down payment.

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 Clause
A clause in a mortgage or deed of trust which allows the mortgagee (lender) to demand immediate full payment of the note in the event the title to the property is conveyed by the mortgagor (borrower) to another party without the prior written consent of the mortgagee.

Duplex
A single residential structure containing two living units.