Real Estate Glossary

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D

datum

A horizontal plane from which heights and depths are measured.

Debit

is a charge; an amount that a party owes and must pay at closing.

debt service

is the annual amount of mortgage payments.

dedication

is the process to transfer ownership of land from a private owner to the government – the main purpose of which is to permit the funding of maintenance through tax dollars.

Example: When a subdivision is complete the developer will dedicate roads and public areas to the governing authority for ongoing upkeep and maintenance.

Keyword(s):

deed

A written instrument that conveys title to or an interest in property from one party to another. Deeds must be executed and delivered in order to be valid.

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deed in lieu of foreclosure

Sometimes known as a friendly foreclosure because it is carried out by mutual agreement rather than by lawsuit. This is still considered an adverse element in the borrower's credit history.

Deed of trust

A legal document where title to property is given to a third-party trustee as security for obligation owed by the borrower to the beneficiary.

deed restrictions

Clauses in a deed limiting the future uses of the property. They may impose a vast variety of limitations and conditions - for example, they may limit the density of buildings, dictate the types of structures that can be erected, or prevent buildings from being used for specific purposes or even from being used as all.

Keyword(s):

defeasance clause

A clause used in leases and mortgages that cancels a specified right upon the occurence of a certain condition, such as cancellation of a mortgage upon repayment of the mortgage loan.

deficiency judgment

A personal judgment levied against the borrower when a forclosure sale does not produce suficient funds to pay the mortgage debt in full.

demand

is one of the four essential characteristics that must be present for any product to have value. Demand refers to the desire to have something. People must desire or need an item for it to have value. However, for this analysis, the desire alone is insufficient. The desire must be coupled with the financial ability to purchase. Value isn’t created just because people “want” something. They have to want and be able to buy – then value will be created.

The four essential characteristics or elements of value are: Demand, Utility, Scarcity, and Transferability – a useful tool to remember them is the acronym DUST.

designated agency

the broker may appoint sales people employed by the broker to represent the interests of buyer and seller.

developer

Real estate developers invest in land, add improvements and subdivide the land into the residential building sites.

devise

A gift of real property in a will. The recipient is the devisee.

direct costs

are the costs for materials, the labor to install the materials and for subcontractor fees. Direct costs are often referred to as “hard costs” or the costs that result in visible improvements to the land.

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disclaimers

indications made on real estate websites that the material on the site is solely for informational purposes and that no warranties or representations have been made.

disclosure

the giving out of information, either voluntarily or to be in compliance with legal regulations.

discount point

used to increase the lender's rate of return on its investment.

For example, the interest rate that a lender charges for a loan might be less than the yield an investor demands. To make up the difference the lender charges the borrower discount points. The number of points charged depends on two factors:

difference between the loan's stated interest rate and the yield required by the lender.
how long the lender expects it will take the borrower to pay off the loan.

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districts and land lots

A legal description system used in Georgia. Grid lines divide areas into rectangles or squares and large square areas are divded into districts. Land lots further divide each district.

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Do Not Call Registry

The Do-Not-Call Implementation Act of 2003 authorized the Federal Trade Commission (FTC) to create and maintain a national list of telephone numbers whose owners no longer wanted to receive telephone solicitations. It is necessary to verify that numbers being called are not listed on the Do Not Call Registry.

doctrine of merger

provides that an easement will automatically be extinguished when the servient and dominant estates are brought under the same ownership.

dollar adjustment

Appraisers adjust for property differences using lump-sum dollar amounts, percentage, or unit adjustments. Ultimately, all adjustments will be converted to a dollar amount for the purpose of adjusting the comparable’s sales price. Which type adjustment the appraiser will use depends in large part on how the differences are perceived by the market participants.

A lump-sum dollar adjustment allows the appraiser to quantify the contributory value of a specific feature or item and make the specific dollar adjustment directly for that feature or item. Appraisers will typically make lump-sum dollar adjustments for the following items or features: site/view, condition, basements, energy efficient items, heating and cooling systems, garages or carports, pools, porches, patios, fireplaces, and detached buildings.

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dominant estate

is a piece of property that benefits from a right attached to another piece of property due to an appurtenant easement.

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dual agency

is the representation of opposing interests in a real estate transaction such as representing both buyer and seller in the same transaction. Georgia real estate license law prohibits this unless it is disclosed.

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