Terms starting with the letter D

Declaration
Any recorded instrument however denominated that defines boundaries and the general common elements and limited common elements and establishes the basic rights and obligations of the owners.  In addition, it provides for the creation of an owners association including the board of directors that has the authority to collect common expenses and otherwise act for the benefit of all owners.

Debt Consolidation Loan
A type of loan that allows the borrower to payoff all or a portion of existing debt (including the existing mortgage loan) from loan proceeds.

Debt ratio or Debt-to-Income Ratio
The ratio, expressed as a percentage, is calculated by dividing the monthly payment of long-term debts by gross monthly income.

Dedication
An appropriation of land to some public use, made by the owner, and accepted for such use by or on behalf of the public, as streets in a platted subdivision.

Deed
A legal instrument in writing, duly executed and delivered, whereby the owner of real property (grantor) conveys to another (grantee) some right, title or interest in or to real estate.

Deed of Trust
An instrument used in many states in place of a mortgage.  The property is transferred to a trustee by the borrower (trustor), in favor of the lender (beneficiary) and re-conveyed upon payment in full.

Deed Restriction
A provision in a deed controlling or limiting the use of the land.

Default
he non-performance of a duty; the omission or failure to perform a legal duty; failure to meet an obligation when due (payments on a mortgage).

Defeasible Fee
Sometimes called a base fee or qualified fee; a fee interest in land that is capable of being defeated or terminated upon the happening of a specified event.

Deferred Interest
When a mortgage is written with a monthly payment that is less than required to satisfy the note rate, the unpaid interest is deferred by adding it to the loan balance.  See Negative Amortization

Deficiency Judgment
The difference between the indebtedness sued upon and the sale price of the mortgaged property at foreclosure, where the sale price is less than the indebtedness.

Delinquency
Failure to make payments on time. This can lead to foreclosure.

Delivery
The final, unconditional and absolute transfer of a Deed to the Grantee so that the Grantor may not revoke it.  A Deed, signed but held by the Grantor, does not pass title.

Department of Housing and Urban Development (HUD)
Regulates Fannie Mae, Freddie Mac, and Ginny Mae.

Department of Veterans Affairs (VA) - See VA Loan
The Department of Veterans Affairs (VA) was established on March 15, 1989, succeeding the Veterans Administration.  It is responsible for providing federal benefits to veterans and their dependents.  Headed by the Secretary of Veterans Affairs, VA is the second largest of the 15 Cabinet departments and operates nationwide programs for health care, financial assistance, and burial benefits, as of March 2003.

Deposit - See Earnest Money

Depreciation
The loss in value due to deterioration through ordinary wear and tear, action of the elements, functional or economic obsolescence.  (opposite of "appreciation")

Devise
A gift of real property by the last will and testament of the donor.

Direct Endorsement (DE)
A HUD program that enables an eligible single-family lender to conduct the processing and closing of FHA single family loan applications without HUD's prior review.

Discount Points - See Points
An amount payable to the lender paid by the borrower or seller to increase the lender's effective yield and reduce the interest rate.  also known as discount fee

Diversion
Illegal or unauthorized use of entrusted funds.

Documentary Fee
A Colorado state law requiring a fee of one cent for each one hundred dollars of consideration paid by the person recording an instrument of conveyance to the county clerk and recorder.

Dower
A spouse's interest in the property of a deceased spouse.

Down Payment
Money deposited towards the purchase of a home paid to make up the difference between the purchase price and the mortgage amount not finance with a mortgage.  The larger the down payment, the less you need to borrow.  Most lenders require the down payment to be paid from the buyer's own funds.  Gifts from related parties are sometimes acceptable, and must be disclosed to the lender.  However, FHA allows gifts from any source.

Dual agent
A broker or salesperson who, with the written informed consent of all parties to a contemplated real estate transaction, is engaged as a limited agent for both the seller and buyer or both the landlord and tenant.

Due-On-Sale Clause
A provision in a mortgage or trust deed which allows the lender to call a promissory note immediately due and payable in full upon the sale or transfer of a secured property. Allows the lender to raise the interest rate or demand other changes in terms upon assumption of the loan.

Duress
Forcing action or inaction against a person's will.