Damages

The estimated monetary value of the injury a person suffers as a result of an unlawful act or negligent act of another person. Once proven, damages may be awarded by a Court.

Date Of Appraisal

The precise day, month and year upon which an assessment of the value of a property has been given.

Date Of Instrument

The specific day, month and year a legal document was signed or prepared.

Date Of Registration

The specific day, month and year upon which an instrument was registered on title to the property.

Dealer

Similar to a car dealer, a person who offers a collection of properties for sale to the public.

Debit

An entry on a financial statement which reflects payments or disbursements made on behalf of a party for which the party is responsible (opposite of "Credit").

Debt

1. An obligation to another person.
2. That obligation which is created by borrowing.
3. The total of all financial obligations of a person or corporation.

Debt Coverage Ratio (Dcr):

A comparison of the net income of a property with the cost of payments (principal and interest) on the mortgage on the property, used to assess the ability of the property to generate enough income to pay for itself.

Debt Equity Ratio

A comparison of the amount owing on a property with the equity (value of property minus amount owing).

Debt Financing

Paying for the purchase of a property with credit.

Debt Ratio

Also known as Debt-to-Income ratio. A comparison of the total monthly payments of all of the borrower's debts (including the mortgage) with the gross monthly income of the borrower, used to assess borrower's ability to pay mortgage.

Debt Service

The mortgage payment for a given period of time.

Debtor

A person who has borrowed and therefore owes (opposite of Creditor).

Declaration Of Restrictions

A Statement made by a developer of a new subdivision which sets out the restrictions of general application throughout the new development.

Declaration Of Trust

A signed statement by a trustee acknowledging that she holds legal title to property on behalf of someone else (the beneficiary of the trust).

Decree Of Foreclosure

An order of the Court setting out the amount outstanding on a delinquent mortgage and ordering the sale of the property to pay the mortgagee.

Dedication

Often required under subdivision or development agreements, the donation of parcels of land to the municipality for a public use, such as a street, a park or a school.

Deed

The instrument by which title to property is conveyed from one person to another.

Deed Of Reconveyance

A legal instrument which conveys title from a trustee back to the borrower under a mortgage once the mortgage has been paid out.

Deed Of Release

A legal instrument signed by lien claimants or mortgagees which gives up their claim to the property. See Discharge and Quit Claim Deed.

Deed Restriction

A clause in a deed which limits the use of the property in certain respects.

Default

Failure. In mortgages, the failure to make payments in full, on time or at all or to live up to any other obligations placed on the borrower by the loan agreement.

Default Judgment

A decision rendered by a Court when the defendant has failed to respond to the claim.

Defeasance Clause

A clause in a mortgage which ensures that, once the borrower has met all of her obligations under the terms of the mortgage and paid out the entire principle and interest borrowed, the lender's legal interest in the property is extinguished.

Defensible

Able to be revoked in the case of the occurrence (or non-occurrence) of a certain event or the performance (or failure) of a condition.

Defect Of Record

A registered claim on title which serves to interfere with the marketability of the owner's title to the property.

Defective Title

Ownership of property which is subject to some competing claim.

Deferred Interest

Interest which is not paid as it accumulates but which is added, instead, to the loan principle.

Deferred Interest Mortgage

A technique for reducing the amount of each periodic payment on a mortgage monthly by postponing the payment of a portion of the interest until a certain date in the future (or to when the property is sold), at which time the interest postponed is added to the principle owing.

Deficiency Judgment

A Court order against a borrower under a mortgage to pay to the lender an amount sufficient to make up for the difference between what the borrower owes under the mortgage and the amount the lender sold the property for under a mortgage remedy action.

Delinquency

The condition of being late on a payment but not yet in default.

Delivery

The act of turning over any legal document (including a Deed) to another party so as to make it legally operative and no longer revocable.

Demand Loan

A type of loan where the lender may require payment in full of the principal (and accumulated interest) at any time.

Demise

A conveyance of an interest in property for a set period of time (such as in a lease).

Density

A measure of the number of a certain thing within a defined space. Population density, for example, measures the number of people in a given area (a square-mile, an acre etc.)

Deposit

1. The money paid up-front by a purchaser as security for her completing the transaction. Also known as "good faith money" or "earnest money".
2. An instrument which is not registered on title but placed in the records for a given piece of land for information purposes.