Glossary
D
Damages
The indemnity recoverable by a person who has sustained an injury, either to his/her person, property, or relative rights, through the act or default of another.
Debit
The amount charged as due or owing.
Debt Capital
Money borrowed for a particular business purpose.
Debt Service
Annual amount to be paid by a debtor on an obligation to repay borrowed money.
Decedent –
One who is dead.
Decree
Order issued by one in authority; an edict or law; a judicial decision.
Dedication
A grant and appropriation of land by its owner for some public use, accepted for such use, by an authorized public official on behalf of the public.
Deed
An instrument in writing duly executed and delivered, that conveys title to real property.
Deed Restriction
An imposed restriction in a deed for the purpose of limiting the use of the land such as:
1. A restriction against the sale of liquor thereon.
2. A restriction as to the size, type, value or placement of improvements that may be erected thereon.
Default
Failure to fulfill a duty or promise, or to discharge an obligation; omission or failure to perform any acts.
Defeasance Clause
The clause in a mortgage that permits the mortgagor to redeem his or her property upon the payment of the obligations to the mortgagee.
Deficiency Judgment
A judgment given when the security for a loan does not entirely satisfy the debt upon its default.
Delivery
The transfer of the possession of a thing from one person to another.
Demand Note
A note which is payable on demand of the holder.
Demising Clause
A clause found in a lease whereby the landlord (lessor) leases and the tenant (leasee) takes the property.
Depreciation
Loss of value in real property brought about by age, physical deterioration, or functional or economic obsolescence.
Descent
When an owner of real estate dies intestate, the owner’s property descends, by operation of law, to the owner’s distributees.
Devise
A gift of real estate by will or last testament.
Devisee
One who receives a bequest of real estate made by will.
Devisor
One who bequeaths real estate by will.
Dispossess Proceedings
Summary process by a landlord to oust tenant and regain possession of the premises for nonpayment of rent or other breach of conditions of the lease or occupancy.
Documentary Evidence
Evidence in the form of written or printed papers.
Dual Agency
Representing both principals (seller and buyer) to a transaction.
Duress
Unlawful constraint exercised upon a person whereby the person is forced to do some act against the person’s will.
E
Earnest Money
Down payment made by a purchaser of real estate as evidence of good faith.
Easement
A right that may be exercised by the public or individuals on, over or through the lands of others.
Economic Life
The period over which a property will yield the investor a return on the investment.
Economic Obsolescence
Lessened desirability or useful life arising from economic forces, such as changes in optimum land use, legislative enactments which restrict or impair property rights, and changes in supply-demand ratios.
Ejectment
A form of action to regain possession of real property, with damages for the unlawful retention; used when there is no relationship of landlord and tenant.
Eminent Domain
A right of the government to acquire property for necessary public use by condemnation; the owner must be fairly compensated.
Encroachment
A building, part of a building, or obstruction which intrudes upon or invades a highway or sidewalk or trespasses upon the property of another.
Encumbrance
Any right to or interest in the land interfering with its use or transfer, or subjecting it to an obligation. (Also Incumbrance)
Endorsement
An act of signing one’s name on the back of a check or note, with or without further qualifications.
Equity
The interest or value which the owner has in real estate over and above the liens against it.
Equity Loan
Junior loan based on a percentage of the equity.
Equity of Redemption
A right of the owner to reclaim property before it is sold through foreclosure proceedings, by the payment of the debt, interest and costs.
Erosion
The wearing away of land through processes of nature, as by water and winds.
Escheat
The reversion to the State of property in event the owner thereof abandons it or dies, without leaving a will and has no distributees to whom the property may pass by lawful descent.
Escrow
A written agreement between two or more parties providing that certain instruments or property be placed with a third party to be delivered to a designated person upon the fulfillment or performance of some act or condition.
(See Rule 175.1)
Estate
When an owner of real estate dies intestate, the owner’s property descends, by operation of law, to the owner’s distributees.
Estate in Reversion
The residue of an estate left for the grantor, to commence in possession after the termination of some particular estate granted by the grantor.
Estate at Will
The occupation of lands and tenements by a tenant for an indefinite period, terminable by one or both parties at will.
Estoppel Certificate
An instrument executed by the mortgagor setting forth the present status and the balance due on the mortgage as of the date of the execution of the certificate.
Eviction
A legal proceeding by a lessor landlord to recover possession of real property.
Eviction, Actual
Where one is either by force or by process of law, actually put out of possession.
Eviction, Constructive
Any disturbance of the tenant’s possession of the leased premises by the landlord whereby the premises are rendered unfit or unsuitable for the purpose for which they were leased.
Exclusive Agency
An agreement of employment of a broker to the exclusion of all other brokers; if sale is made by any other broker during term of employment, broker holding exclusive agency is entitled to commissions in addition to the commissions payable to the broker who effected the transaction.
(See Rule 175. 24)
Exclusive Right to Sell
An agreement of employment by a broker under which the exclusive right to sell for a specified period is granted to the broker; if a sale during the term of the agreement is made by the owner or by any other broker, the broker holding such exclusive right to sell is nevertheless entitled to compensation.
(See Rule 175.24)
Executor
A male person or a corporate entity or any other type of organization named or designed in a will to carry out its provisions as to the disposition of the estate of a deceased person.
Executrix
A woman appointed to perform the same duties as an executor.
Extension Agreement
An agreement which extends the life of a mortgage to a later date.
F
Fee; Fee Simple; Fee Absolute
Absolute ownership of real property; a person has this type of estate where the person is entitled to the entire property with unconditional power of disposition during the person’s life and descending to the person’s heirs or distributees.
Fiduciary
A right that may be exercised by the public or individuals on, over or through the lands of others.
Fixed Rate Mortgage
A fixed-rate mortgage is a home loan with an interest rate that remains the same for the entire term of the loan. This means the monthly principal and interest payments do not change, providing stability and predictability for borrowers.
Key Features of a Fixed-Rate Mortgage:
- Consistent Payments: The interest rate and monthly payments remain constant throughout the loan term.
- Loan Terms: Common terms are 15, 20, or 30 years, with 30-year mortgages being the most popular.
- Higher Initial Rates: Fixed-rate mortgages usually have higher starting interest rates compared to adjustable-rate mortgages (ARMs).
- Protection from Market Fluctuations: Borrowers are not affected by interest rate increases in the market.
A fixed-rate mortgage is ideal for those who plan to stay in their home long-term and want predictable payments. Would you like a comparison between fixed and adjustable-rate mortgages?
Fixtures
Personal property so attached to the land or improvements as to become part of the real property.
Forbearance
Mortgage Forbearance is a temporary agreement between a borrower and their lender that allows the borrower to pause or reduce mortgage payments for a specified period of time due to financial hardship. During forbearance, the borrower is not required to make full monthly payments, but the missed or reduced payments are not forgiven and must be repaid later, often through a repayment plan, loan modification, or by extending the loan term.
Foreclosure
A procedure whereby property pledged as security for a debt is sold to pay the debt in the event of default in payments or terms.
Freehold
An interest in real estate, not less than an estate for life.
(Use of this term discontinued Sept. 1, 1967.)
