California License Real Estate Terms Glossary

| A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |

DAMAGES

The indemnity recoverable by a person who has sustained an injury to either his or her person, property,or rights through the act or default of another. Compensation ordered by the courts for the loss of or injury to one's person or property.

DEALER

A person who holds property primarily for sale to his or her customers in the ordinary course of his or her business.

DEBT SERVICE

The sum of money needed each payment period to amortize the loan or loans.

DEBTOR

1. A party who "owns" the property that is subject to a security interest.
2. A person who owes a debt

DECK

Usually an open porch on the roof or another part of the structure.

DECLARATORY RELIEF

A court's decision on the rights of the parties in a question of law, without ordering anything to be done.

DEDICATION

An appropriation of land by its owner for some public use and accepted for such use by authorized public officials on behalf of the public. A gift of privately owned land to the public or for public use. It may be voluntary or involuntary.

DEED

A written instrument that when properly executed and delivered conveys title.

DEED OF TRUST

A security instrument transferring title to property to a third?person (trustee) as security for a debt or other obligation.

DEFAULT

1. Failure to fulfill a duty or promise or to discharge an obligation.
2. Omission or failure to perform any act. Failure to perform a legal duty or to discharge a promise

DEFAULT JUDGMENT

A judgment obtained because the defendant failed to appear and defend his case.

DEFEASANCE CLAUSE

The clause in a mortgage or deed of trust that gives the borrower the right to redeem his or her property upon the payment of his or her property upon the payment of his or her obligations to the lender.

DEFEASIBLE

Capable of being defeated. A defeasible estate is one that has a condition attached to the title, which if broken causes the termination of that estate.

DEFENDANT

The party being sued in a lawsuit; the party against whom an action is filed.

DEFERRED MAINTENANCE

Maintenance and accumulated repairs that have been postponed.

DEFICIENCY JUDGEMENT

A judgment given for the unpaid balance of a debt remaining after the surety is sold. A court decree holding a debtor personally liable for the shortage or insufficiency realized on the sale of secured property. The debtor owes the difference between the sale price of the property and the amount of the secured debt.

DELIVERY (OF A DEED)

The unconditional, irrevocable intent of a grantor immediately to divest (give up) an interest in real estate by a deed or other instrument.

DEPOSIT

Money given to another as security to ensure the performance of a contract. The money is usually intended to be applied toward the puchase price of property, or forfeited on failure to complete the contract.

DEPOSIT RECEIPT

A contract used in the he real estate business that includes the terms of the contract and acts as a receipt for "earnest money" to bind an offer for property by the prospective purchaser. The name given to most real estate contracts containing the terms of the sale of real estate, and receipt for earnest money (deposited).

DEPRECIATION

A loss in value from any cause. This loss in value to real property may be caused by age or physical deterioration, or by functional or economic obsolescence.

DESIST AND REFRAIN ORDER

An order that the Real Estate Commissioner is empowered by law and refrain from committing an act in violation of the Real Estate Law.

DETERIORATION

The process of gradual worsening or depreciation.

DEVISE

A gift of real property by deed.

DEVISEE

One who receives real property under a will.

DICTUM

A written observation, remark, or opinion by a judge to?illustrate or suggest an argument or rule of law not incidental to the case at hand, and which, therefore, although persuasive, is not binding on the judge.

DIRECTIONAL GROWTH

The direction in which the residential sections of a city seem destined or determined to grow.

DISCLOSURE STATEMENT

A statement that the Truth-in-Lending Law requires a creditor to give a debtor showing the finance charge, annual percentage rate, and other required information.

DISCOUNT

To sell a promissory note before maturity at a price less than the outstanding principal balance of the note at the time of sale. It may also be the amount deducted in advance by the lender from the face of the note.

DISCOUNT POINTS

A fee charged by the lender when making an FHA or VA loan to offset the lower interest rate the lender will receive compared with conventional loan interest rates. One point is equal to 1 percent.

DISCOUNT RATE

The interest rate that is charged on money borrowed by banks from the Federal Reserve System.

DISCOUNTED TRUST DEED

An investment in this kind of deed can be a perfect investment.

DISCRIMINATORY CONDUCT

The DRE Regulations state that discriminatory conduct is a basis for disciplinary action.

DISSOLUTION OF MARRIAGE

A divorce.

DISTRICT COURT

The main trial court in the federal court system and the lowest federal court. It has jurisdiction in civil cases where the plaintiffs and defendants are from different states (diversity of citizenship) and the amount in controversy is over $10,000, and in cases involving a federal question.

DIVESTMENT

The elimination or removal of a right or title, usually applied to the cancellation of an estate in land.

DOMICILE

A person's permanent residence.

DOMINANT TENEMENT

The tenement obtaining the benefit of an easement appurtenant.?That parcel of land that benefits from an easement across another parcel of property (servient tenement).

DONEE

The person to whom a gift is made.

DONOR

The person who makes a gift.

DOUBLE ESCROW

An escrow that will close only upon the condition that a prior escrow is consummated. The second escrow is contingent upon and tied to the first escrow. While double escrow is not illegal, unless there is full and fair disclosure of the second escrow, there may be a possibility of fraud or other actionable conduct by the parties.

DOWER

The right that a wife has in her husband's estate at his death. Dower has been abolished in California.

DUE PROCESS OF LAW

A constitutional guarantee that the government will not interfere with a person's private property rights without following procedural safeguards prescribed by law.

DUE-ON-ENCUMBRANCE CLAUSE

A clause in a deed of trust or mortgage that provides that upon the execrtion of additonal deeds of trust or other encumbrances against a secured parcel of property, the lender may declare the entire unpaid balance of principal and interest due and owing.

DUE-ON-SALE CLAUSE

An acceleration clause that grants the lender the right to demand full payment of the mortgage or deed of trust upon sale of the property. A clause in a deed of trust or mortgage that provides that if the secured property is sold or transferred, the lender may declare the entire unpaid balance immediately due and payable. Its use has been severely limited by recent court decisions. Also called an alienation clause.

DURESS

Unlawful constraint by force or fear. E.I.R. Abbreviation for Environmental Impact Report.