Deed: A written document by which
title to real property is transferred from one owner
to another. The deed should contain an accurate description
of the property being conveyed, should be signed and
witnessed according to the laws of the State where
the property is located, and should be delivered to
the buyer at closing.
Deed of Trust: Used in many states
in lieu of a mortgage to secure the payment of a note.
In a deed of trust there are three parties - the borrower,
the trustee, and the lender, (or beneficiary). In
such a transaction, the borrower transfers the legal
title for the property to the trustee who holds the
property in trust as security for the payment of the
debt to the lender or beneficiary. If the borrower
pays the debt as agreed, the deed of trust becomes
void. If, however, he/she defaults in the payment
of the debt, the trustee may sell the property without
a court proceeding.
Deed Restriction: A clause in a deed
that limits the way a piece of land may be used.
Defective Title: Any recorded instrument
that would prevent a grantor/seller from giving a
clear title.
Deficiency Judgment: Claim against
the debtor when sale of foreclosed property does not
yield sufficient proceeds to pay off the legal fees,
mortgages, accrued interest, etc.
Depreciation: The decline in value of a house
or other property due to wear and tear, obsolescence,
changes in the neighborhood, or any of a variety of
reasons.
Discount Points: Fees paid to a lender
to reduce the interest rate. This is known as "paying
points"
Documentary Tax Stamps: Stamps which are
affixed to a deed showing the amount of the transfer
tax.
Dower: The rights of a widow or child
to part of a deceased person's property.
Downpayment: The amount paid for
the purchase of a property in addition to the mortgage,
but not including any closing costs.
Due on Sale Clause: A clause in
the Deed of Trust or Mortgage that states that the
entire loan is due upon the sale of the property.
Dragnet Clause: A provision in a
mortgage that pledges several properties as collateral.
A default in the mortgage could lead to foreclosure
proceedings on any of the properties in the dragnet.
