Terms Beginning With - D
Property Development & Investment Glossary, Terms & Definitions
A person who purchases and sells real estate.
A lender's responsibility to be repaid by a borrower.
Debt coverage ratio
A lender's ratio that represents the loan amount in terms of net operating income, often between 1.05 and 1.30.
The monthly charge of repaying a mortgage loan, which includes interest on the outstanding balance as well as, in many circumstances, principle reduction.
Declining balance depreciation
A technique of depreciation in which the depreciation deduction is calculated by applying a rate to the remaining balance.
The owner of a property gives it to the public for usage.
The seller signs a written document transferring title to a chunk of land.
Deed in lieu of foreclosure
A deed provided to a lender in lieu of foreclosure by the owner.
Deed of trust
A mortgage that transfers real estate to a third party by holding the deed in trust until the loan is paid off.
A provision in a deed that restricts the use of the property conveyed.
Failure to fulfil a contract's agreed-upon obligations.
A provision that allows the mortgagor to redeem the property after paying the mortgagee his debt.
Defect in title
Any document that inhibits a seller from transferring clear title to an asset.
The lack of routine maintenance will have a detrimental impact on the property's usage and value.
Taking a promise to pay to pay a debt that will be reimbursed over time.
The borrower still gives the money on a defaulted debt, according to a court ruling.
Degree of operating leverage (DOL)
The percentage growth in operating profit from a change in occupancy level, at any occupancy level.
Failure to pay an obligation when it is due.
A property is transferred from one person to another.
Premises or portions of real estate in which a temporary interest or estate has been transferred, such as a leasehold interest.
A provision in a lease in which the landlord rents the property and the tenant takes possession.
Information on a region's population based on statistics.
A provision in a lease that states that if or when the ground lease expires, the building shall be destroyed according to the terms of the contract. Before invoking this provision, the landlord must notify the renter within a certain time frame.
In a particular space, the average number of people or units.
Money given in good conscience to ensure contract fulfilment.
The amount of years that an asset can be depreciated for tax reasons.
An expenditure that reflects the depreciation of real estate improvements.
The amount of cumulative depreciation incurred on a property up until the resale period is restricted to the excess of the sales revenues over the initial cost.
A formal representation of a property's measurements and location.
When an heir dies without leaving a will, the act of gaining property is known as intestate succession.
The procedure through which the architect develops the building's blueprints and specifications after receiving approval of the conceptual design.
A neighbourhood where the properties have been neglected and are in poor condition.
A person who transforms undeveloped land into valuable real estate.
An region that is rapidly expanding because to the recent construction of new homes.
A contract between a developer and a buyer under which the developer will build a specific sort of property and the buyer will acquire it within a certain time frame.
A loan used to make renovations to real estate.
A bequest of real estate.
A person who receives property as a result of a will.
Direct participation program (DPP)
A programme that allows investors to directly participate in an investment's cash flow and tax benefits.
The public disclosure of all relevant data, both good and negative, required to make an investment choice.
Discounted cash flow
The present value of a projected future cash flow, lowered by an estimated discount rate that reflects the difference between the current value of money and the value of money received at a later time period.
The amount a borrower must pay to a lender in order to get a mortgage with a specified interest rate.
The present value of a future cash flow is calculated using a percentage rate.
A landlord's legal right to confiscate a tenant's personal property in order to collect unpaid rent.
Due to inadequate financial flow, a property is going to be foreclosed on or has already been foreclosed on.
Investing in a variety of sectors so that the overall investment program's success is not jeopardised by average outcomes.
The person who receives a gift.
The person who gives a present.
Double-declining-balance depreciation method
An accelerated depreciation technique that takes twice the yearly straight line depreciation.
A wife's stake in her husband's property is protected by a legal life estate.
At the time of closing, the first equity paid on a piece of property.
Rezoning a property to allow for a less intense use.
A mortgage provision in which numerous properties are pledged as collateral, and a default on one property results in a default on the others.
A nonrecourse loan is one that does not need repayment.
The practise of giving two contracts for the same transaction, which is prohibited.
The examination of all relevant information about a possible investment.
A mortgage provision demanding full payment of the mortgage at the time of selling. A new buyer will not be able to take on this form of financing.
Under one roof, there are two residential units.
The term "residence" refers to a location where people can live.