Real Estate Glossary D

D

Debt

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

deed

A deed is a signed and usually sealed legal instrument in writing used to grant a right. Deeds have historically been part of the broader category of instruments under seal, requiring only the affixing of a common seal to render them valid. Today, however, deeds are instruments in solemn form which require the author's signature and a number of attesting witnesses. A deed is 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 trust

In real estate, a trust deed or deed of trust, is a document wherein specific financial interest in the title to real property is held by a trustee, which holds it as security for a loan

default

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

delinquency

Failure to make mortgage payments when due.

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.

discount points

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

down payment

A down payment is 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.