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Debt-to-Income Ratio


The ratio established by dividing a borrower's fixed monthly debt obligations by his monthly income.


Default

The failure of a party to meet the terms or conditions of an agreed upon contract is considered a default.

 


Deed

A dcoument that conveys title is generally called a deed.  Deeds must provide a description of the property conveyed.

 


Deficiency Judgement or Deficiency

State statute often provides that a judgment against the borrower or mortgagee be given to the lender in the event that insufficient funds are received from the sale of the property assets to cover the mortgage balance.

 


Depreciation

The loss in value associated with physical aging of improvements, the functional obsolescence of the building or its parts (usually due to design) and / or a loss due to external obsolescence from the area, neighborhood or adjoining properties.

 


Designation


Specialization is a trend in the real estate brokerage and real estate appraisal business and a designation normally evidences a superior level of education and /or experience attainment in a particular area. Designations, like degrees, do not guarantee competence or superior performance.

 


Discount Brokerage

Real estate firms that routinely offer their services for commission rates below those of their competitors are called discount brokerage firms. The services of discount firms are often reduced, and sellers should make themselves aware of the level of service being offered by such firms. Discount brokerage firms also generally pay less compensation to agents that participate in multiple listing service organizations. An economic disincentive is created for agents, and the marketing time of a property listed with such a firm may be longer that normal.

 


Discount Points

An adjustment paid to a mortgage lender by a borrower that increases the lenders return on a loan. The net effect of discount points is raising the interest rate or yield on a loan. One point is equal to 1.0% of the loan amount.


Disclosure

The providing of information on a pertinent fact. Agents are often required by law to disclose the fact that they hold real estate licenses when they buy and sell real estate.

Seller disclosure forms that indicate condition and defects are being adopted by many states to protect consumers.

A disclosure by an agent of a dual agency, where the agent is representing both the buyer and the seller in the same transaction, is required by law.

 


Dispute Resolution

Typically, disagreements between buyers and sellers of real estate are resolved either in court or through the use of arbitration.

 


Dual Agency

Not unlike a "double agent" in the movies a double agency in real estate is created when a broker represents two parties in a transaction. When the prior knowledge and consent of all of the parties has been given this type of agency relationship can be established. It is, however, difficult conceptually and difficult in the real world to represent opposing parties in a transaction.

 


Due-on-Sale Clause

Many mortgages contain a provision that calls for the full payment of a mortgage if the property is sold by the Mortgagee (owner). VA and FHA mortgages normally allow for assumption by a third party who meets certain criteria and approval by the VA or FHA.

The American Arbitration Association (AAA) has developed dispute resolution systems for real estate. Arbitration is often being offered to buyers and sellers of real estate as an alternate forum for the resolution of their problems to litigation.

 


 



Copyright 2007 Horizon Village Realty & Appraisal

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.