Dealer: An individual or legal entity that invests-to-sell, and is involved
on a regular basis in the development, improvement, and advertisement of real estate
for sale. The amount of taxes paid and planning options available often depends
on the distinction between being an Investor and a Dealer in real estate.
Debt: An amount owed to another. See installment
loan and revolving liability.
Deduction: Any allowable item or expenditure that can be subtracted from
gross income in order to reduce the amount of income which is subject to taxation.
Deed: A written document that conveys legal title to real property. Common
types of deeds include a general warranty deed, quit claim deed and special warranty
Deed-in-lieu: A deed given by a mortgagor to the mortgagee to satisfy a debt
and avoid foreclosure. Also called a "voluntary conveyance."
Deed of trust: A security interest used in many states in lieu of a mortgage.
The deed of trust is recorded with the county clerk and recorder of the appropriate
county as public evidence of the lender’s security interest in the property.
Default: Failure to make mortgage payments on a timely basis or to comply
with other requirements of a mortgage.
Deferred exchange or deferred gain: A gain that is realized but not recognized
as taxable income until a later time.
Delinquency: Failure to make mortgage payments when mortgage payments are
Deposit: A sum of money given to bind the sale of real estate, or a sum of
money given to ensure payment or an advance of funds in the processing of a loan.
See earnest money deposit.
Depreciation: A decrease in a property’s value over the time it is being
used. This term can refer to an annual tax deduction for wear and tear and loss
of utility of property. You can recover the cost of certain property by taking annual
deductions for depreciation.
Depreciation recapture: Tax rules that require you to include all or part
of the Depreciation deducted in previous years in the current year’s taxable income.
When you sell depreciable property, you may be required to report as income all
or part of the gain that is attributable to Depreciation.
Discount points: See Points.
Dower: The rights of a widow in the property of her husband at his death.
Down payment: The part of the purchase price of a property that the buyer
pays in cash and does not finance with a mortgage.
Due-on-sale provision: A provision in a mortgage that allows the lender to
demand repayment in full if the borrower sells the property that serves as security
for the mortgage.
Due-on-transfer provision: This terminology is usually used for second mortgages.
See due-on-sale provision.
Durable power-of-attorney: A legal document that enables an individual to
designate another person, called the Attorney-in-Fact, to act on his or her behalf,
in the event the individual becomes disabled or incapacitated.