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damage or contamination
damages
The indemnity recoverable by a person who has sustained an injury, either in his/her person, property, or relative rights, through the act or default of another. (See liquidated damages)
data
Raw facts (See database)
data source list
A listing of government offices, companies, and other locations at which information regarding real estate can be found.
database
A collection of data stored on a computer and arranged for ease of manipulation, search and retrieval. (See data)
database software
A software program designed to allow the user to easily create and manage databases. (See data, database)
date of the appraisal report
The date of the appraisal report indicates when the appraisal analysis was completed.
datum
A horizontal plane from which heights and depths are measured.
days
Days means a period of time expressed in calendar days, except when disclosures are required to be given to borrowers—then days will exclude Saturdays, Sundays, and legal holidays.
Days in each month
| JAN – | 31 | FEB – | 28 | MAR – | 31 | |||
| APR – | 30 | MAY – | 31 | JUN – | 31 | |||
| JUL – | 31 | AUG – | 31 | SEP – | 30 | |||
| OCT – | 31 | NOV – | 30 | DEC – | 31 |
De facto steering
De facto steering happens when there is no explicit acts of steering, but the policies of or regulators produce an outcome that is the same as if there were. The result is a racial gap in housing opportunities and values…which is simply another way of saying housing segregation.
debenture
A type of long-term bond or note given as evidence of debt. Unlike a mortgage note, a debenture is not secured by a specific property. Fannie Mae issues debentures to finance the acquisition of mortgages in the secondary mortgage market. If a borrower defaults on an FHA loan, the government gives interest-bearing debentures to the mortgagee after the title is transferred to FHA. (See Fannie Mae, FHA)
debit
A charge on an accounting statement or balance sheet (appearing on the left-hand column); the opposite of a credit. Used in bookkeeping and in preparing the closing statement in a real estate transaction.
debt financing
Debt financing is when a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise that the principal and interest on the debt will be repaid.
debt ratio
The relationship between a person’s long term debt payments and their monthly income.
debt relief service
Any program or service represented, directly or by implication, to renegotiate, settle, or in any way alter the terms of payment or other terms of the debt between a person and one or more unsecured creditors or debt collectors, including, but not limited to, a reduction in the balance, interest rate, or fees owed by a person to an unsecured creditor or debt collector.
debt service coverage ratio
The ratio of the annual loan payment to an income property’s net operating income (NOI). The ratio is calculated by dividing the NOI by the annual loan payment. (See net operating income)
debt-to-income ratio
A borrower’s monthly long term debt payments divided by the borrower’s gross monthly income and expressed as a percentage. This ratio is used by lenders to determine if a loan applicant is qualified for the amount of the loan.
debtor
One who owes money; a borrower, a maker of a note; a mortgagor.
debug
To look for and remove errors in a software program.
decedent
A deceased person, particularly one who has died recently.
decentralized organization
An organization where decision-making authority does not sit with a central figure or group. Some decentralized organizations empower all levels within the hierarchy with decision influence.
decimal
A numerical system based on representations of numbers in units of 10, with the decimal point indicating positive multiples of ten to the left of the decimal point, and negative multiples of ten to the right of the decimal point.
decisiveness
Having the power or quality of deciding; putting an end to controversy; displaying no or little hesitation; resolute; determined.
declaration of condominium
The declaration includes: 1. A legal description of the condominium units and the common elements (including limited common elements-those that serve only one particular unit); 2. A copy of the condominium’s bylaws, drafted to govern the operation of the owners’ association; 3. A survey of the property; 4. An architect’s drawings, illustrating both the vertical and horizontal boundaries of each unit; and 5. Any restrictive covenants controlling the rights of ownership. (See condominium)
declaration of default
A notice, accompanied by the original note and trust deed, provided by a lender (beneficiary) to a trustee upon the default of trustor (borrower), stating the reason for the default.
declaration of restrictions
A statement of all the covenants, conditions and restrictions (CC&Rs) that affect a parcel of land. A subdivider may note the restrictions on the map or plan when recording the subdivision plat. If the restrictions are numerous, the subdivider may also prepare a separate document called a declaration, listing all the restrictions, and then record this declaration. (See CC&Rs)
declarations of coverage/coverage amount/limit of liability
The maximum amount of money the insurance company will pay out for a covered loss. If a policy holder’s house burns down, and their coverage amount is $200,000, that is the maximum they will receive. Generally the policy holder selects the amount of coverage, subject to insurance company minimums and maximums allowed for a given property.
declaratory relief action
An action to have a court determine the rights of parties under a contract or a statute. The theory is that an early resolution of legal rights will resolve some or all of the other issues in the matter.
decline
Decline is a period in which property loses value due to lack of maintenance.
declining-balance method
An accounting method of depreciation for income-tax purposes designed to provide larger-than-straight-line deductions in the early years of a property’s life, and applicable to property placed in service before 1981.
The declining-balance method of calculation is applied in the IRS percentage tables for determining ACRS depreciation deductions applicable to personal property. The 3-, 5-, 7- and 10-year classes use the 200 percent declining-balance method, switching to straight-line at the appropriate time, and the 15- and 20-year classes use the 150 percent declining-balance method, also switching to straight-line. (See depreciation, straight-line method)
dedication
The voluntary transfer of private property by its owner to the public for some public use, such as for streets or schools. deed A written instrument that, when executed and delivered, conveys title to or an interest in real estate.
deductible
The amount a policy holder must first pay in any approved insurance claim. If the policy holder has a $5,000 loss and their deductible is $1000, the insurance company will reimburse $4,000. The higher deductible, the lower the annual policy premiums.
deductions
Amounts on which income tax need not be paid; the home mortgage interest deduction from taxable income benefits homeowners.
deed
A written instrument, when executed and delivered, that conveys title to or an interest in real property. The deed is recorded on public record with the property description and the owner’s signature. Also known as the title. (See title)
deed executed pursuant to court order
Executors’ and administrator’ deeds, masters’ deeds, sheriffs’ deeds and many other types are all deeds executed pursuant to a court order. These deeds are established by state.
deed in lieu of foreclosure
Voluntarily signing over to a lender the property pledged as collateral on a defaulted loan. It is an alternative to a foreclosure action. Its main disadvantage to a lender is that the deed does not wipe out junior liens, as a foreclosure action would. (See junior liens)
deed in trust
An instrument that grants a trustee under a land trust full power to sell, mortgage and subdivide a parcel of real estate in the case of default. The beneficiary controls the trustee’s use of these powers under the provisions of the trust agreement.
deed of reconveyance
A document used to transfer naked title from the trustee back to the borrower (trustor) after a debt secured by a deed of trust has been paid to the lender (beneficiary). (See deed of trust)
deed of trust (Arizona definition)
A deed of trust is a legal document signed and notarized by the borrower, which is then recorded at the courthouse to publicly disclose that the property is secured by a debt. It acts as security for the loan. It outlines the borrower’s rights and responsibilities in relation to the Promissory Note that represents the loan. The deed of trust also details insurance requirements, default provisions, property use restrictions, and other relevant terms, typically spanning about 15 pages.
deed of trust (DOT)
A deed of trust is a legal document signed and notarized by the borrower, which is then recorded at the courthouse to publicly disclose that the property is secured by a debt. It acts as security for the loan. It outlines the borrower’s rights and responsibilities in relation to the Promissory Note that represents the loan. The deed of trust also details insurance requirements, default provisions, property use restrictions, and other relevant terms, typically spanning about 15 pages.
Deed of Trust and Assignment of Rents
The first page of a lending instrument; identifies the parties to the agreement, conveys title to the trustee, describes the collateral, states the terms and conditions of the note, and refers to previously recorded “fictitious deeds of trust.”
deed restrictions
Provisions placed in deeds to control future uses of the property. (See covenants, conditions & restrictions, restrictive covenants)
defamation
An untrue statement lowering one’s reputation in the community and causing injury to that person. Opinions are not false statements. However, if the opinion is stated as fact, then it can be construed as a false statement. The plaintiff in a defamation suit must show that the defendant understood the statement, and understood that the statement applied to the plaintiff.
default
The nonperformance of a duty or obligation that is part of a contract. The most common occurrence of default on the part of a buyer or lessee is nonpayment of money when due. A default is normally a breach of contract, and the nondefaulting party can seek legal remedies to recover any loss. Defaults in long-term leases or contracts for deed other than nonpayment might be failure to pay real estate taxes, damage to the property and so forth.
defeasance clause
A clause used in leases and mortgages that cancels a specified right upon the occurrence of a certain condition, such as cancellation of a mortgage upon repayment of the mortgage loan.
defeasible fee estate
An estate in which the holder has a fee simple title that may be divested upon the occurrence or nonoccurrence of a specified event. There are two categories of defeasible fee estates: fee simple on condition precedent (fee simple determinable) and fee simple on condition subsequent.
defect
A condition that materially affects the value or use of residential property in an adverse manner.
defect of record
Any encumbrance on a title that is made a part of the public record. Recorded defects include judgments, deeds of trust, mortgages, other liens and easements. (See encumbrance)
defendant
A defendant is the person to which a legal action or lawsuit is taken. (See plaintiff)
deferred capital gain
The part of the realized gain that is tax deferred. (See capital gains, excluded capital gain, realized capital gain (loss), recognized capital gain)
deferred maintenance
Physical deterioration of a building resulting from postponed maintenance.
deficiency judgment
1. A personal judgment levied against the borrower when a foreclosure sale does not produce sufficient funds to pay the mortgage debt in full. 2. A deficiency judgment is a judgment against a borrower for the balance of a debt owed when the security for a loan is insufficient to satisfy the debt. A deficiency occurs when the foreclosure sale of a property produces less than the amount due on the loan.
deficit rent
The amount by which market rent exceeds scheduled rent at the time of the appraisal.
defragment
Reorganizing the data on a computer storage disk so that the data is stored in sequence rather than in various locations on the disk. (See data)
delayed exchange
A three way exchange in which the properties close at different times.
delegation
To appoint another person as deputy or representative; to commit powers or functions to another as agent or deputy.
delete
delinquent
The status of a financial obligation, such as a mortgage loan, when it is past-due.
delinquent taxpayer
demand
The amount of goods people are willing and able to buy at a given price; often coupled with supply. (See supply)
demand feature
The Closing Disclosure has a statement that reads “Your loan has a demand feature,†which is checked “yes†or “no.†If it is checked “yes,†the lender can require that that the borrower immediately pay the entire loan balance (principal and interest) at any time. The lender can make this demand for any reason or for no reason.
demand for payoff
Lender’s statement of remaining indebtedness that will be paid at closing on transfer of the property securing the debt.
Democratic Style
A humanistic management style in which the manager creates a democratic environment that promotes initiative and recognizes the value of the human resources. Participative management utilizes the talents and insight of people to a greater extent than is common in other styles of management. See also autocratic style; dictatorial style; laissez-faire style.
demographics
“Demographics” is the study and description of a population, especially in reference to size, density and distribution. Demographic information is of particular importance to people involved in market analyses and highest and best use analyses in determining potential land uses of sites.
demography
The statistical study of human populations, especially in reference to size, density and distribution. Demographic information is of particular importance to people involved in market analyses and highest and best use analyses in determining potential land uses of sites.
demolition
The systematic destruction of a building, all or in part. Demolition is the opposite of construction.
density zoning
Zoning ordinances that restrict the maximum average number of houses per acre that may be built within a particular area, generally a subdivision. (See zoning)
Department
Arizona Department of Real Estate.
department
The department is the Department of Banking of the Commonwealth.
department
The department is the Department of Banking and Finance.
Department of Housing and Community Development
State agency that carries out California’s State Housing Law by adopting building standards and administrative regulations that ensure safe and durable housing while safeguarding affordability.
Department of Veterans Affairs
Federal agency providing assistance to veterans, including the guarantee of VA mortgage loans. Department of Veterans Affairs Website
deposit
Money offered by a prospective buyer as an indication of good faith in entering into a contract to purchase; earnest money; security for the buyer’s performance of a contract. An earnest money deposit is not necessary to create a valid purchase contract because the mutual promises of the parties to buy and to sell are sufficient consideration to enforce the contract. If the buyer completes the purchase, the deposit money is applied toward the purchase price.
deposition
A witness’s out-of-court testimony that is reduced to writing. Usually, there is a court reporter present during the testimony. The deposition is conducted under oath, usually in one of the lawyer’s offices. A transript is always made of the deposition and it is used for discovery purposes.
depository institution
The term depository institution means any bank, credit union or savings association.
depreciable basis
In investment real estate only structures can be depreciated. The depreciable basis is the original basis less the value of the land. (See basis)
depreciation
The decrease in the value of an asset allowed when computing property value for tax purposes. It can also be a loss in the appraised value of a property due to physical deterioration. This latter type of depreciation is curable when it can be remedied by repair or an addition to the property, and incurable when there is no easy or economical remedy. (See appreciation)
depreciation deduction
This is a deduction that goes on Schedule E and applies to real estate and any other capital asset that has a useful life of more than one year. For rental properties this could include flooring, sidewalks, a new kitchen, etc. The IRS required years of useful life for residential real estate is 27.5 years depreciation, while commercial real estate is 31 years. (See Schedule E)
depression
A severe and prolonged downturn in economic activity. A depression is commonly defined as an extreme recession that lasts two or more years. A depression is characterized by high unemployment, a drop in available credit, diminishing output, bankruptcies and debt defaults, reduced trade and commerce, and sustained volatility in currency values. In times of depression, consumer confidence and investments decrease, causing the economy to shut down.
descent
Acquisition of an estate by inheritance in which an heir succeeds to the property by operation of law.
designated agent
A licensee authorized by a broker to act as the agent for a specific principal in a particular transaction. A designated agent is the only agent in the company who has a fiduciary responsibility toward the principal.
desk costs
The term “desk costs” reflect the fact that salespeople do, in fact, make use of support staff, have telephone calls, need desk space, and take up some of the time of colleagues and managers. Overhead is divided by the number of salespersons NOT desks.
Desktop Originator
Desktop Originator (DO) is a system developed by Fannie Mae aimed at streamlining the mortgage origination process for brokers and correspondents. It works in conjunction with Desktop Underwriter (DU), Fannie Mae’s automated underwriting system. DO allows mortgage originators to input loan application data, run it through DU for risk assessment, and receive immediate feedback on loan eligibility.
desktop publishing
A program that allows a user to manipulate text, graphics and images to create documents.
Desktop Underwriter
Desktop Underwriter (DU) is an automated system developed by Fannie Mae to help mortgage lenders evaluate mortgage loan applications. DU analyzes the credit report, employment, income, and assets of a borrower and provides an assessment of the credit risk posed by the borrower. The system also suggests mortgage loan terms that are appropriate based on the risk assessment. DU helps streamline the loan origination process, reduce the time and costs associated with underwriting, and increase the consistency and accuracy of loan evaluations. It does this by using complex algorithms to assess borrower information against predefined criteria and historical data. By providing a more standardized and objective approach to assessing mortgage applications, DU contributes to fair lending practices and helps ensure that loan decisions are based on the merits of the application rather than any subjective or potentially discriminatory factors.
destruction of premises
In many states, once the sales contract is signed by both parties, the buyer bears the risk of any damage to the property that may occur before closing. Of course, the contract may provide otherwise.
detached garage
A garage that is not attached to a home. Usually found in older homes. (See construction terms)
Developer (AZ Definition)
A person who offers real property in a development for sale, lease or use, either immediately or in the future, on the person’s own behalf or on behalf of another person, under any of the provisions of Arizona subdivision law. A person whose involvement with a development is limited to the listing of property within the development for sale, lease or use is not included in the definition of “development”.
developmental skills
Skills that can be developed through education and training, such as building self-esteem, motivation and goal-setting, and career planning.
deviation
The measure of how widely the individual varies from the general population.
devise
A transfer of real property under a will. The donor is the devisor, and the recipient is the devisee.
devisee
A devisee is the recipient of a property transferred under a will. (See devise, devisor)
devisible contract
A contract that consists of separate agreements that are not dependent on each other. The illegality of one part will not void the balance of the contract.
devisor
A devisor is the donor of property transferred under a will. (See devise, devisee)
dictatorial leadership
A leader or manager who operates like a dictator, making all the decisions about what, where, when, why, how things are done, and who will do them. Employees failing to following directions are usually disciplined.
diffusion index
A diffusion index indicates the percentage of items such as stocks, or characteristics in a given population that are rising or falling. This is a broad measure of the direction of change in economic activity.
digital storytelling
Tools of digital media to craft, record, share, and value the stories of individuals and communities, in ways that improve all our lives.
digital subscriber line (DSL)
DSL (digital subscriber line) uses existing copper telephone lines to connect users to the Internet. DSL users realize much higher transmission rates than when using normal dial-up Internet connections.
direct capitalization
Selection of a capitalization rate from a range of overall rates computed by analyzing sales of comparable properties and applying the following formula to each: Income / Value = Rate or I / V = R.
direct costs
The costs of erecting a new building involved with either site preparation or building construction, including fixtures.
direct endorsement
The ability of an FHA-approved lender to secure FHA single- and multifamily mortgage insurance by following FHA guidelines. Under a direct endorsement program, applications for many of FHA’s mortgage insurance programs can be underwritten by approved lenders who certify that the mortgage complies with applicable FHA requirements. (See mortgage insurance)
direct injection
Direct injection is a method of groundwater recharge where water is directly injected into an aquifer through wells. This technique is used to quickly and efficiently replenish groundwater levels, bypassing the natural infiltration process that occurs in recharge basins.
direct management costs
Expenses that can be attributed to the operation of a management firm or department. (See indirect management costs)
direct-mail campaigns
Mailing of resumes to many potential employers, usually major employers.
director
The director is the director of the Financial Institutions Division of the Regulation and Licensing Department.
disability
A physical or mental impairment that substantially limits one or more major life activities, such as walking, seeing, learning and working. Disability includes a record of such impairment or the fact of being regarded as having such impairment. The Americans with Disabilities Act (ADA) protects individuals with disabilities from various forms of discrimination in employment, public services, transportation, public accommodations and telecommunication services. A person abusing illegal drugs or alcohol is not covered, but a person who is rehabilitated in these areas may be protected under ADA. (See handicap)
discharge
The release of any waste into the environment from a point source. Usually refers to the release of a liquid waste into a body of water through an outlet such as a pipe, but also refers to air emissions.
discharged contract
A contract is discharged when the agreement is terminated. Obviously, the most desirable case is when a contract terminates because it has been completely performed, with all its terms carried out. However, a contract may be terminated for other reasons, such as a party’s breach or default.
disciplinary hearing
A hearing at which the conduct of a member of an organization or profession is examined and a punishment may be handed down.
disclaimer
A statement denying legal responsibility, frequently found in the form of the statement, “There are no promises, representations, oral understandings or agreements except as contained herein.” Such a statement, however, would not relieve the maker of any liabilities for fraudulent acts or misrepresentations. (See hold-harmless clause)
disclosed dual agency
Real estate licensing laws may permit dual agency only if the buyer and seller are informed and consent to the broker’s representation of both in the same transaction. Although the possibility of conflict of interest still exists, disclosure is intended to minimize the risk for the broker by ensuring that both principals are aware of the effect of dual agency on their respective interests. The disclosure alerts the principals that they may have to assume greater responsibility for protecting their interests than they would if they had independent representation. The broker must reconcile how, as agent, he or she will discharge the fiduciary duties on behalf of both principals, particularly providing loyalty and protecting confidential information.
disclosure
It is the duty of an agent to keep a principal informed of all facts or information that could affect a transaction. The duty includes disclosure of all relevant information or material facts that the agent knows or should have known.
Disclosure documentation
In conjunction with the LI-214/244 form (the disciplinary actions disclosure form), on which the candidate must disclose past convictions or criminal history, the disclosure documentation is all supporting documents associated with any criminal convictions that are disclosed on the LI-214/244. Disclosure Document Checklist
discount
To sell at a reduced value; the difference between face value and cash value.
discount points
An added loan fee charged by a lender to make the yield on a lower-than-market-interest VA or FHA loan competitive with higher-interest conventional loans. The price of one discount point is equal to 1 percent of the loan amount, or 100 basis points.
discount rate
1. An annual competitive rate of return on total invested capital necessary to compensate the investor for the risks inherent in a particular investment. 2. The interest rate at which Federal Reserve banks lend money to eligible banks. These are short-term loans to fulfill immediate cash needs, not supplement the bank’s capital. Thus, the discount rate is not a cost of funds indicator but more of a signal to the banking community. (See Federal Reserve System)
discount rate
The discount rate is the interest rate charged by the Federal Reserve Bank for loans to commercial banks and other depository institutions. The discount rate also refers to the interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows. A third meaning of the term is the rate used by pension plans and insurance companies for discounting their liabilities. (See discounted cash flow, Federal Reserve)
discounted cash flow
Used in measuring the return from a real estate investment, the present value of a future income stream as determined by a given discount rate. (See present worth, return on investment)
discounted cash flow (DCF)
A valuation method used to estimate the attractiveness of an investment opportunity. DCF analysis uses future cash flow projections and discounts them to arrive at a present value estimate, which is used to evaluate the potential for investment. If the value arrived at through DCF analysis is higher than the current cost of the investment, the opportunity may be a good one.
discounted initial rate
In an ARM with a discounted initial rate, the lender offers a lower rate and lower payments for part of the mortgage term. Also known as a start rate or teaser rate.
discounting
To sell at a reduced value; the difference between face value and cash value. Some companies specialize in buying mortgages and real estate contracts (often referred to as paper) at a discount. Often the original lender, wanting to cash out on the loan, will thus sell the mortgage at the current published mortgage discount rate. If the discount rate is 12 percent, for example, the lender could sell a $100,000 mortgage at 88 percent of its worth ($88,000 or 12 percent below par).
discover
Brokers must observe the:
- duty to disclose reasonably obtainable material information, which may require the agent to investigate facts not known to the agent;
- duty to discover and disclose material defects in property;
- duty, when transmitting material information from the seller (or others) to the buyer, the buyer’s broker must either verify the accuracy of the information or disclose to the buyer that the information has not been verified.
Brokers also have certain duties with respect to a prospective buyer and the inspection and disclosure of the condition of the property. Brokers have an affirmative obligation to conduct a “reasonably competent and diligent inspection” of residential property listed for sale and to “disclose to prospective purchasers all facts materially affecting the value or desirability of the property that such an investigation would reveal.”The duty is to first, to conduct a “reasonably competent and diligent visual inspection of the property”; and second, to “disclose to . . . prospective purchaser[s] all facts materially affecting the value or desirability of the property that an investigation would reveal.”
discover (AZ definition)
Brokers must observe the:
- duty to disclose reasonably obtainable material information, which may require the agent to investigate facts not known to the agent;
- duty to discover and disclose material defects in property;
- duty, when transmitting material information from the seller (or others) to the buyer, the buyer’s broker must either verify the accuracy of the information or disclose to the buyer that the information has not been verified.
Brokers also have certain duties with respect to a prospective buyer and the inspection and disclosure of the condition of the property. Brokers have an affirmative obligation to conduct a “reasonably competent and diligent inspection” of residential property listed for sale and to “disclose to prospective purchasers all facts materially affecting the value or desirability of the property that such an investigation would reveal.”The duty is to first, to conduct a “reasonably competent and diligent visual inspection of the property”; and second, to “disclose to . . . prospective purchaser[s] all facts materially affecting the value or desirability of the property that an investigation would reveal.”
discovery (Arizona Fair Housing Act)
The pre-trial phase in a lawsuit in which each party through the law of civil procedure can request documents and other evidence from other parties or can compel the production of evidence by using a subpoena or through other discovery devices, such as requests for production of documents, and depositions.
discretionary income
Income left over for investment after allocations for bills and savings.
discrimination
Discrimination as defined by the Fair Housing Act is the unfair treatment of individuals based race, color, religion, sex, national origin, handicap, or familial status.
disintermediation
The process of individuals investing their funds directly instead of placing their savings with banks, savings and loan associations and similar institutions for investment by such institutions. This bypassing of financial institutions occurs when proportionately higher yields are available on secure investments (such as high-grade corporate bonds, money market funds and government securities) than can be obtained on savings deposits.
Disk Operating System (DOS)
The first operating system designed for personal computers, developed by Microsoft Corporation. (See operating system)
Disparate impact
A legal doctrine declaring that a policy is discriminatory if it has a disproportionate adverse impact on members of a group based on the group’s race, color, religion, or sex.
display ads
Newspaper and magazine advertisements sold by the column inch. More elaborate than classified ads, display ads often include more extensive text, graphics and photographs. (See classified ads)
disposal
The discharge, deposit, injection, dumping, spilling, leaking, or placing of any solid waste or hazardous waste into the environment (land, surface water, ground water, and air).
dissecting a GFE
This is the process of pulling the relevant numbers off a good faith estimate (or initial cost estimates worksheet) from multiple lenders’ bids and trying to determine who is offering the fairest “price” on a loan for the lender costs they are charging – only the lender costs are relevant.
Dissimilarity index
Measures the segregation between two groups, reflecting their relative distributions across neighborhoods within the same area.
distressed home loan
A distressed home loan is a home loan that is in danger of being foreclosed because the homeowner has one or more defaults under the mortgage that entitle the lender to accelerate full payment of the mortgage and repossess the property, or a home loan in which the lender has commenced a foreclosure action.
distressed property
Distressed property is a property for which the current owner may have lost the ability to pay the mortgage, that may be in a state of foreclosure, or that an owner can’t sell because the value of the liens on the property exceeds the current value.
distressed property consultant
A distressed property consultant or consultant is an individual or a corporation, partnership, limited liability company, or other business entity that solicits or undertakes employment to provide consulting services to a homeowner for compensation, or promise of compensation, with respect to a distressed home loan or a potential loss of the home for nonpayment of taxes.
distribution
Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries.
diversity
The state of having people of different races and/or cultures in the same group or organization.
divided agency
Acting for more than one party in a transaction without the knowledge and consent of all parties thereto. This situation is considered unlawful and may be grounds for revocation or suspension of license under Section 10176(d) of the Business and Professions Code. (See dual agency)
division
The division is the Financial Institutions Division of the Regulation and Licensing Department of New Mexico.
Division of Housing and Community Renewal (DHCR)
The Division of Housing and Community Renewal (DHCR) was created in 1926 within New York’s Department of State. It was originally an arm of the State Board of Housing that administered a Limited Dividend Program, the first of its kind in the nation. Under this program, private developers were granted special incentives to build affordable housing. From that beginning, the Division of Housing and Community Renewal has evolved into a housing agency, a community development agency, and a regulatory agency all rolled into one.
doctrine of prior appropriation
In states where water is scarce, ownership and use of water are often determined by the doctrine of prior appropriation. Under this doctrine, the right to use any water; with the exception of limited domestic use, is controlled by the state rather than by the landowner adjacent to the water.
documentary transfer tax
Tax applicable to property transfers and affixed to the grant deed; varies from county to county, city to city.
Dodd-Frank Wall Street Reform and Consumer Protection Act
Dodd-Frank Wall Street Reform and Consumer Protection Act (H.R.4173) was enacted to provide for financial regulatory reform, to protect consumers and investors, to enhance Federal understanding of insurance issues, and to regulate the over-the-counter derivatives markets. This legislation overhauls regulations in the financial sector. It established a new Consumer Financial Protection Agency to regulate products like home mortgages, car loans and credit cards, and gave the Treasury Department new authority to place non-bank financial firms, like insurance companies into receivership, regulate the over-the-counter derivatives market, and more.
dollar adjustment
The difference in value between property being appraised and a comparable property, measured by the net effect on market value of property features present in one and not the other, positively or negatively.
domain
A network of computers sharing a common IP address. (See domain name, domain host, domain name server)
domain host
A company that provides computer servers on which a domain name is made available to the Internet. (See domain, domain name, domain name server)
domain name
The name that corresponds to the numeric IP address of a computer on the Internet; the address or URL of a particular website. (See domain, domain host, domain name server)
domain name servers (DNS)
The servers where domain names are located on the Internet. (See domain, domain name, domain host)
domicile
From domus, Latin for “house.” The state where an individual has his or her true, fixed permanent home and principal business establishment and where that person has the intention of returning whenever he or she is absent from it. Once established a domicile is never lost until there is a concurrence of specific intent to abandon the old domicile, intent to acquire a specific new domicile and actual physical presence in the new domicile.
Though a person may have residences in different states and reside there at different times of the year, it is possible to have only one domicile. Because domicile consists of physical presence plus an intention to make the state one’s permanent abode, such factors as local registration of autos, driver’s license, voting, paying taxes, membership in local organizations, local bank accounts and local business interest are all important in establishing the requisite intent.
dominant tenement
The estate that is said to attach to and derive benefit from the servient estate in reference to an easement appurtenant. For example, an easement road crosses an owner’s land (servient tenement) to give access to an adjacent parcel (dominant tenement). The dominant tenement usually adjoins the servient tenement. (See easement, servient tenement)
donee
One who receives a gift.
donor
One who makes a gift.
DORA (Department of Regulatory Agencies)
DORA is the Department of Regulatory Agencies, which is one of 22 executive branch agencies directly overseen by the governor of Colorado.
double entry accounting
Double entry is the fundamental concept underlying present-day bookkeeping and accounting. Double entry accounting is based on the fact that every financial transaction has equal and opposite effects in at least two different accounts. It is used to satisfy the equation Assets = Liabilities + Equity, whereby each entry is recorded so as to maintain the relationship.
double taxation
One of the main disadvantages of corporate ownership of income property is that the profits are subject to double taxation. As a legal entity, a corporation must file an income tax return and pay tax on its profits. The portion of the remaining profits distributed to shareholders as dividends is taxed again as part of the shareholders’ individual incomes.
Dow Jones Industrial Average (DJIA)
The Dow Jones Industrial Average, invented by Charles Dow back in 1896, is a price-weighted average of 30 representative stocks traded on the New York Stock Exchange and the Nasdaq. DJIA is often used as an economic indicator for the United States economy.
dower
The legal right or interest, recognized in some states, that a wife acquires in the property her husband held or acquired during their marriage. During the husband’s lifetime the right is only a possibility of an interest; upon his death it can become an interest in land.
down payment
The portion of a home’s purchase price that is paid in cash and is not part of the mortgage loan. This amount varies based on the loan type, but is determined by taking the difference of the sale price and the actual mortgage loan amount. Mortgage insurance is required when a down payment less than 20 percent is made.
Down payment assistance loan
Down payment assistance loans allow State of New York Mortgage Agency (SONYMA) borrowers to secure down payment assistance through a second mortgage that can be used in combination with any currently available SONYMA program. DPALs have no interest rate and no monthly payments and will be forgiven after ten years as long as borrowers stay in their homes.
download
To transfer a file from one computer to another over the Internet.
downsizing
To reduce in number or size a company’s workforce in response to a poor economy. To dismiss or lay off from work.
downspout
A downspout is a drain pipe or similar conduit to allow water to flow from the rain gutter at the edge of the roof to the ground. (See construction terms)
downzoning
A change in zoning from a higher to a lower classification or from a more active to less active classification, such as from residential to conservation, or multifamily to single-family use. In these cases, there is no taking under eminent domain and thus no compensation paid to the affected landowner who helplessly sees the property reduce in value. (See zoning)
DPI
Dots per inch; used to measure printer resolution
draws
Periodic advances of funds under a construction loan agreement.
drive-by appraisal
A drive-by appraisal, also known as a “curbside appraisal” or “exterior-only appraisal,” is a type of property valuation typically conducted by a real estate appraiser. In a drive-by appraisal, the appraiser only assesses the exterior of the property and does not enter the premises. Drive-by appraisals are often used when a quick estimate of a property’s value is needed or when access to the interior of the property is restricted. They are commonly employed for refinancing purposes or for properties that are easily observable from the street.
drywall
A construction material used as a basis for interior walls in a home. Drywall is composed of an inner core of chalk with a paper facing on each side. (See construction terms)
dual agency
An agency relationship in which the agent acts concurrently for both principals (the buyer and the seller) in a real estate transaction. (See agency, agent, fiduciary)
dual tracking
Some borrowers who are in default on their mortgages work with their lenders to save their homes through loan modification. Some lenders continue to pursue foreclosure against these homeowners while the loan modification approval process is underway. While lenders defend this “dual tracking” method as a way to protect their investments, consumer advocates and regulators feel it misleads homeowners during a confusing and frustrating time.
due diligence
Generally, due diligence refers to the care a reasonable person should take before entering into an agreement or a transaction with another party.
due-on-sale-clause
A form of acceleration clause found in some mortgages, especially savings and loan mortgages, requiring the mortgagor to pay off the mortgage debt when the property is sold, resulting in automatic maturity of the note as the lender’s option. This clause effectively eliminates the possibility of the new buyer’s assuming the mortgage unless the mortgagee permits the assumption, in which case the mortgagee might increase the interest rate or charge as assumption fee.
dump
A land site where wastes are discarded in a disorderly or haphazard fashion without regard to protecting the environment. Uncontrolled dumping is an indiscriminate and illegal form of waste disposal. Problems associated with dumps include multiplication of disease-carrying organisms and pests, fires, air and water pollution, unsightliness, loss of habitat, and personal injury.
duplex
A structure that provides housing accommodations for two families and supplies each with separate entrances, kitchens, bedrooms, living rooms and bathrooms. A two-family dwelling with the units either side by side or one above the other.
duration
Continuance in time; the time during which something exists or lasts.
duress
Unlawful constraint or action exercised upon a person whereby the person is forced to perform an act against his or her will. A contract entered into under duress is voidable.
duties of agency
The common law duties of agency are
care – The obligation to do diligent research.
obedience – Obey all lawful instructions from the client.
accounting – account for all funds entrusted to you.
loyalty – do not disclose non-material facts.
disclosure – disclose in writing, all material facts to all parties to the transaction.
duty of care
Refers to the obligations placed on individuals to act towards others in a certain way, in accordance with certain standards. A principal owes certain contractual duties to his/her agent including compensating the agent as agreed and indemnifying and protecting the agent against claims, liabilities, and expenses incurred while correctly discharging the duties assigned the agent by the principal. Duty of care requires an agent to act with the level of care, skill, and diligence that a reasonable and competent agent would use in similar circumstances.
dwelling
Any building, structure or part thereof used and occupied for human habitation or intended to be so used, including any appurtenances. Many municipalities have adopted ordinances relating to the repair, closing and demolition of dwellings unfit for human habitation.
dwelling or building coverage
A category of insurance coverage of the structure of a building, flooring, cabinets, roof, and mechanical equipment.
dynamic
A force that stimulates change or progress within a system.
dynamic random access memory (DRAM)
A dynamic computer memory that must be refreshed. (See RAM, ROM, SRAM, SDRAM)