DAMAGESCompensation or indemnity for loss owing to breach of contract.
DATE OF COMPLETIONThe date specified by an agreement of purchase and sale, when the purchaser is to deliver the balance of money due and the vendor to deliver a duly executed deed.
DEBT SERVICEThe amount of principal and interest payments made under a mortgage.
DEBT-SERVICE RATIOMeasurement of debt payments to gross household income.
DEEDA document signed by the seller and purchaser transferring ownership. This document is then registered against the property.
DEED RESTRICTIONA restriction in a deed to limit or govern the use of the land.
DEFAULTFailure to abide by the terms of a mortgage loan agreement; failure to make mortgage payments (defaulting) may give cause to the mortgagor to take legal action to possess (foreclose) the mortgaged property.
DEFERRED INCOMEAn accounting method of dealing with income that is received but not included in a statement of earnings as normal earnings.
DEFICIENCYAn insufficient payment, often relating to an amount recovered under a power of sale or foreclosure action.
DEFLATIONA decline in the general level of prices; or, an increase in the value of money; or an increase in the amount of money in circulation.
DELAYED PARTICIPATION LOANWhere a lender disposes of a loan to several other participants putting up their respective shares later.
DEMAND NOTEPayment is made on demand, usually within a few days notice to the borrower.
DEPOSITPayment of money or other valuable consideration as a pledge for fulfillment of contract. Money placed in trust by the purchaser when an offer to purchase is made; the sum is held by the real estate representative or lawyer until the sale is closed, then paid to the vendor.
DEPRECIATIONA loss in value due to any cause.
DEPRECIATED REPRODUCTION COSTAppraisal method by which the cost of replacing a structure, minus depreciation, gives the depreciation reproduction costs.
DISCHARGE OF MORTGAGEA document executed by the mortgagee, and given to the mortgagor when a mortgage loan has been repaid in full before, at, or after the maturity date.
DISCLOSURE STATEMENTA statement contained in a consumer credit transaction in order to disclose complete credit terms and interest rates.
DISCOUNTReduction in product price or cost of a service. A discount is the difference between the nominal face value of a loan and actual cash received by the borrower because interest is paid at the beginning of a loan based on the sum to be repaid at maturity.
DISCOUNTED CASHFLOW ANALYSISThis is a method of analysis that calculates the true value of an investment in terms of the present value, i.e. what the investment is worth now, although it is spread over a number of years. To compensate for future earnings a discount factor is added in so that a real comparison can be made between an investment with quick return and one that is placed over a number of years.
DISCOUNTED LOANThe face value of the loan minus the interest or discount charged by the lender is the amount actually advanced to a borrower.
DOMINANT TENEMENTThe estate which derives benefit from an easement over a subservient estate, as in a Right-of-Way.
DOWER INTERESTA wife’s interest in the lands of her husband accruing to her by virtue of the marriage.
DOWN PAYMENTThe portion of the house price the buyer must pay up front from personal resources, before securing a mortgage; it usually ranges from 5-25% of the purchase price.
DOWNSIDE LEVERAGEOccurs where the debt service on a mortgage exceeds the yield on an investor’s property, thereby reducing cash flow.
DRAWEEThe person, bank, or corporation on whom a bill, note or cheque is drawn from and from whom payment is expected by the payee or his assignee.
DRAWERThe person or corporation who writes a cheque or note for payment to a third party. In the case of a bill of exchange, the drawer is the creditor and is usually the payee.
DUAL AGENTA real estate broker/agent who acts as agent for both buyer and seller in the same transaction
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