Real Estate Glossary Terms Beginning With – D

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Terms Beginning With - D

Property Development & Investment Glossary, Terms & Definitions


A file or files containing associated geometric and attribute data; a collection of related data.

Date of settlement

The day on which a vendor is required to deliver over a property to a buyer under the terms of the contract.


A reference system for measuring something else, such as horizontal or vertical position.

Days On Market

The number of days it takes to sell a property from initial listing.


A deadline that must be reached.


A person who purchases and sells real estate. One who buys and sells property interests for one's own account in real estate. Gains on dealer sales are recorded as regular income rather than capital gains.

Dealer Property

Real estate owned for the purpose of resale to others is taxable in the United States.


Bonds backed by the borrower's income.


A lender's responsibility to be repaid by a borrower.

Debt amortization

The practise of progressively paying off a debt by making periodic payments to the creditor.

Debt constant

The annual percentage of the loan's original principal amount that must be paid in order to fully repay interest and principal over the loan's term. The constant can be stated as a yearly or monthly percentage. A debt service constant is a term that is used sometimes.

Debt coverage ratio (DCR)

A lender's ratio represents the loan amount in terms of net operating income, often between 1.05 and 1.30. The link between a project's yearly net operating revenue and the requirement to repay borrowed cash in principle and interest. Debt coverage ratios are frequently used to assess a lender's margin of safety when it comes to mortgage loans. A measure of how much NOI may fall before it becomes unable to service the debt, defined as net operating income minus debt service.

Debt service

The monthly charge of repaying a mortgage loan, which includes interest on the outstanding balance as well as, in many circumstances, principle reduction. The principle, interest, and additional fees mentioned in the credit agreement, as well as the regular instalments on a loan. Payments made to a lender Debt service responsibilities may include payments of simply interest or payments of both principal and interest in order to completely or partially amortise a debt over a predetermined time.

Debt Service Coverage Ratio (DSCR)

The annual net cash flow created by an income-producing property divided by the annual debt service payments needed under the conditions of the mortgage loan or loans taken out to finance the property. This is a measure of a property's capacity to cover debt service payments and is usually represented as a multiple. If this ratio falls below 1.0, the property's cash flow will be insufficient to support debt payments.

Debt yield ratio

A mortgage underwriting ratio for loans secured by income-producing real estate. The ratio is calculated by dividing the property's net operating income by the amount of the mortgage debt. It denotes the cash flow rate to the loan amount if the lender becomes the owner.

Debt-to-equity ratio

The proportion of borrowed money to equity funds.


The decibel (dB) is a unit of measurement for the loudness of sound based on the pressure created in air by a noise.

Decision model

A methodical approach to discovering opportunities that have the potential to contribute significantly to defined investing goals.

Declaration of covenants

A document that is entered in the public records with a subdivision's plat map. It contains a list of the subdivision's restrictive covenants.

Declining balance depreciation

A technique of depreciation in which the depreciation deduction is calculated by applying a rate to the remaining balance.

Declining balance method

A technique of calculating yearly depreciation or cost recovery allowances that offers the largest allowance in the first year of ownership and gradually decreasing allowances in subsequent years.


A judgement of a court of equity requiring the terms of that judgement to be carried out.

Dedicate (dedication)

To transfer specific subdivision lands to the local government. The owner of a property gives it to the public for usage.

Dedicated (property)

Property is transferred from a private owner to the government for public use. Examples include the commitment of roadways, parks, or other places to local government during subdivision construction.


The seller signs a written document transferring title to a chunk of land. A legal instrument that transfers ownership of real estate from one party to another. The document must be signed, attested, presented, and accepted before it may be accepted. A type of written contract used to transmit a permanent ownership interest in real estate.

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 deed that transfers ownership of property from an owner to a trustee, who holds the property as collateral for a mortgage loan advanced by another. A trust deed or trust indenture is another name for a trust deed or trust indenture. In certain states, this instrument is used instead of a mortgage. The borrower transfers a trust deed to a trustee, who keeps the deed on behalf of both the borrower and the lender. The trustee delivers the deed to the borrower if the loan obligation is paid off in line with the terms of the note. If the borrower (trustor) fails to make payments, the trustee uses his power of sale to dispose of the property on behalf of the lender.

Deed restrictions

A provision in a deed that restricts the use of the property conveyed. Clauses in a deed place restrictions on the usage of land and constructions.

Deeds in lieu of foreclosure

A legal instrument created by failing debtors that conveys to the lender all rights to a property. This may not always imply a clean title. Only the defaulting borrower's interest at the time of transfer is considered.


Failure to fulfil a contract's agreed-upon obligations. Failure of a mortgagor to meet any of the agreed-upon requirements in a security arrangement. The failure of a borrower to satisfy the terms and conditions of a note as a result of continuous delinquency.


The process of laying away cash or a portfolio of high-quality assets to pay off a debt's remaining interest and principal instalments.

Defeasance clause

A provision that allows the mortgagor to redeem the property after paying the mortgagee his debt. Mortgage clauses designed to render a nominal transfer void upon fulfilment of the mortgagor's obligation. A condition that may be included in commercial mortgages to protect lenders from prepayments during a period of dropping interest rates. Defeasance requires a borrower who prepays to acquire for the lender a set of US Treasury securities with coupon payments that perfectly mirror the cash flows the lender would lose as a result of the mortgage prepayment.

Defect in title

Any document that inhibits a seller from transferring clear title to an asset.

Deferral benefits

The taxpayer's benefit by deferring payment of income taxes until the property is sold. The yearly depreciation deduction generates this advantage.

Deferred income

Potential rent hikes as a result of a lease.

Deferred maintenance

The lack of routine maintenance will have a detrimental impact on the property's usage and value. When an issue is found, routine maintenance is not done.

Deferred payment

Taking a promise to pay to pay a debt that will be reimbursed over time.

Deficiency judgment

The borrower still gives the money on a defaulted debt, according to a court ruling. A judgement obtained on a debtor's personal assets in addition to those held on a defaulted debt instrument. Lenders have the legal authority to sue debtors if the profits of a foreclosure sale do not fully pay off an existing loan, as well as any late fines and penalties.

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. Failure to meet a debt obligation by the due date indicated.


Any quantifiable, tangible, verifiable product, outcome, or item required to finish a project or component of a project. This might also contain process documentation (deliverables).


Property is transferred from one person to another. The legal process of transferring real estate ownership. An observable, demonstrable intent that the grantor will transmit the deed to the grantee.

DEM (Digital Elevation Model)

A topographic surface represented in a data file as a series of uniformly spaced x, y, and z coordinates, with z representing elevation.


An economic word that refers to the complete spectrum of price-quantity interactions.

Demand clause

A right that allows the lender to demand debt payments.

Demand curve

A graphical representation of the relationship between price and quantity of a commodity or service that purchasers will purchase from the market. Also known as a demand function.

Demand schedule

A table that compares the quantity demanded to the price of a good or service at all relevant prices.

Demand to purchase

An increase in a market participant's inventory of a product at a certain price that is desired.

Demised premises

Premises or portions of real estate in which a temporary interest or estate has been transferred, such as a leasehold interest.

Demising clause

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 population's size, composition, growth, dispersion, and change are all factors to consider.

Demolition clause

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.

Dependency exemption

Amount of adjusted income that taxpayers can deduct from their taxable income for each person who is financially dependent on them.

Dependent variable

A variable in regression or correlation analysis whose value is assumed to be influenced by the values of other variables (independent variables) included in the study. In a regression equation, the variable that is "explained."


Money given in good conscience to ensure contract fulfilment. Before contracts are written and exchanged, an initial payment is made to secure the lease or purchase of a property.

Deposit insurance

A scheme that protects depositors against losses caused by bank failures.

Depreciable basis

In general, the value of the purchased property less the value of the land (also known as the original cost basis).

Depreciable life

The amount of years that an asset can be depreciated for tax reasons.

Depreciable property

Property that is eligible for a tax-deductible depreciation allowance.


An expenditure that reflects the depreciation of real estate improvements. The deterioration of an asset's value as it matures. The loss of an asset's value or usable life as a result of wear and tear, the action of the elements, or obsolescence. An annual deduction that allows investors to lower the amount of taxable income they report by an amount calculated to represent the wear and tear on the property over time. The deterioration of an asset's value over time. A decrease in the value of a property as a result of time, decay, or changes in the neighbourhood. The amount you can claim for tax reasons for the replacement of an asset is known as "book depreciation."

Depreciation allowance

A tax-deductible allowance for the loss of value or usable life of an asset as a result of wear, tear, obsolescence, or the action of the elements.

Depreciation recapture

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. The total amount of depreciation absorbed since the property was brought into use. When/if the property is sold, this sum is normally taxed at the depreciation recapture tax rate.

Depreciation recapture rate

When/if the property is sold, the tax rate that is applied to the depreciation recapture part of the gain on sale.

Derived demand

Demand for a good or service that results from its usage in the creation of something else.


A formal representation of a property's measurements and location.

Descriptive statistics

A statistical application that uses numerical expressions to describe the characteristics of a sample or the underlying population.


When an heir dies without leaving a will, the act of gaining property is known as intestate succession.

Design development

The procedure through which the architect develops the building's blueprints and specifications after receiving approval of the conceptual design.

Design Stonn

A downpour of a certain strength and frequency of occurrence that serves as the foundation for stormwater management.


A method of constructing massive constructions in which the roles of architect and general contractor are combined.

Designated agent

When a brokerage business acts as an agent for both a selling and a buyer, the firm may assign one salesperson to service the buyer and another to assist the seller. The two salespeople are supposed to respect the privacy of the party they represent and to act in the best interests of that party.


A stormwater management approach in which runoff is retained on-site and released later at a predetermined pace.

Deteriorating Neighbourhood

A neighbourhood where the properties have been neglected and are in poor condition.


A person who transforms undeveloped land into valuable real estate. A person who acquires land and increases its worth by upgrading it (for example, by subdivision or development).

Developing Neighbourhood

An region that is rapidly expanding because to the recent construction of new homes.


A real estate activity including the addition of improvements such as buildings.

Development contract

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.

Development Density

A measure of the intensity of development or land use, as defined by the area covered by housing units, impervious surfaces, or building floor area, for example.

Development loan

A loan used to make renovations to real estate.


A bequest of real estate.


Conveyance or distribution of a decedent's real estate by will.


A person who receives property as a result of a will.

Differentiated product

Products that differ sufficiently from competitors to lower the degree of substitutability. Producers of distinct items have some pricing control.


The process of turning a picture, map, or other visual into numerical format.

Diminishing marginal utility

The economic notion that when more units of an item are owned or used per unit of time, the increased (marginal) utility of each subsequent unit is less than that of the preceding one.

Direct capitalization

The procedure of calculating a property's worth by dividing its yearly net operational revenue by an overall capitalization rate.

Direct costs

Site expenses (acquisition price plus legal fees plus commission), plus improvement expenses (plans and permits plus professional fees plus construction).

Direct market extraction

Estimation of the appropriate capitalization rate based on comparable property transactions.

Direct participation program (DPP)

A programme that allows investors to directly participate in an investment's cash flow and tax benefits.


The volume of water travelling through a cross section of a stream or swale per unit of time, generally expressed in cubic feet (or metres) per second, that flows through a stream channel or from a location.

Discharge Zone

A region with a high concentration of groundwater seepage and springs.


The public disclosure of all relevant data, both good and negative, required to make an investment choice.

Discount points

The amount a borrower must pay to a lender in order to get a mortgage with a specified interest rate. A decrease in net loan revenues to bring the effective interest rate up to par with the current market rate. Lenders impose upfront financing fees in order to improve the yield on a loan.

Discount rate

The present value of a future cash flow is calculated using a percentage rate. A rate that evaluates the return on investment after the capital invested has been recovered.

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.

Discounted cash-flow approach

An investment assessment strategy that combines adjustments for both the amount and timing of expected future cash flows and is often regarded as the best way to evaluate possibilities.


Using present-worth equivalents to express anticipated future cash flows. The process of converting the value of future benefits from a real estate investment to a current (now) value.

Discrete probability distribution

A probability distribution with a finite number of outcomes.

Discrimination in housing

Housing discrimination on the basis of race, colour, religion, national origin, sex, family status, or handicap is illegal under federal and state law.


People who, in search of higher returns, remove their funds from big institutional lenders and invest directly in financial markets. The emergence of situations in which the growth of deposits in banks and savings organisations turns negative as a result of alternative, more appealing direct investment options.


A landlord's legal right to confiscate a tenant's personal property in order to collect unpaid rent.

Distressed property

Due to inadequate financial flow, a property is going to be foreclosed on or has already been foreclosed on.

District business centre

The hub of a large shopping centre in a suburb


A physical or biological alteration that has an influence on the environment, such as forest clearance.

Diversifiable risk

Unsystematic risk that can be reduced in a portfolio by having securities and other assets with returns that are not completely connected.


Investing in a variety of sectors so that the overall investment program's success is not jeopardised by average outcomes. Total risk is reduced by owning a variety of property types and spreading ownership across a large geographic area. Allocating portfolio resources across various assets in order to lessen the risk of portfolio returns.

DLG (Digital Line Graph)

A digital representation of cartographic information; digital vectors derived from maps and other sources.'

Doctrine of constructive notice

A common law tradition that states that if a person is aware of a claim or regulation, he or she can be bound by it.

Dominant parcel

An easement appurtenant property that benefits from a servient tract.

Dominant tenement

Land that benefits from an easement.


The person who receives a gift.


The person who gives a present.

DOQ (Digital Orthophoto quadrangle )

A digital picture having orthographic projection qualities; produced from a digitised vertical aerial shot with image displacement due by camera tilt and relief of terrain removed or corrected. Orthophotos combine the photographic picture features with the geometric elements of a map.

Double-declining-balance depreciation method

An accelerated depreciation technique that takes twice the yearly straight line depreciation.


The interest of a wife in her husband's property. A common law clause that awards a woman a one-third life estate in all of a dead husband's real property.

Dower rights

A wife's stake in her husband's property is protected by a legal life estate.

Down payment

At the time of closing, the first equity paid on a piece of property.

Down zoning

Rezoning a property to allow for a less intense use.

Dragnet clause

A mortgage provision in which numerous properties are pledged as collateral, and a default on one property results in a default on the others.

Drainage Basin

The land area that contributes to runoff in a stream, river, or lake.

Drainage Network

A network of stream channels that are often linked in a hierarchical form.

Dram shop insurance

Liability insurance for incidents involving the consumption of alcoholic beverages.

Drawdown Profile

The amount of time that funds is taken from investors to invest in deals.

Dry mortgage

A nonrecourse loan is one that does not need repayment.

Dual agency

A circumstance in which a person or corporation has an agency and fiduciary connection with both parties to a transaction - the seller and buyer.

Dual contract

The practise of giving two contracts for the same transaction, which is prohibited.

Due diligence

The examination of all relevant information about a possible investment. A potential purchaser's study and fact-finding procedure that allows them to make a more educated decision about whether to buy or invest. Under legal words, this is the level of caution that a reasonable and sensible person would use in the conditions of the transaction. After a buyer and seller reach an agreement on a purchase price, the buyer is given time to check the information provided by the seller. The buyer, for example, will want to confirm the scale of specific running expenditures, the current rent charged to renters, the absence of environmental hazards, and so on. The due-diligence procedure is the process of "kicking the tyres" before the final closing.

Due-on-sale clause

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. The provision in a mortgage contract that mandates the borrower to repay the loan in full if the property used as security for the loan is sold.


Under one roof, there are two residential units.


The time it takes to perform a project activity.


The term "residence" refers to a location where people can live.

Glossary Index

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