Sunday, August 14, 2011
Real Estate Vocabulary - D
Here are some more important real estate key words to help you in your home search or sale!
Debt-To-Equity Ratio - The relationship of the loan and equity components which, for example if the debt is $80,000 and the equity is $20,000, there would be a debt ratio of 4:1 or the equivalent to an 80% loan to value ratio.
Declaration of Homestead- A recorded document that protects a homeowner from foreclosure by certain judgment creditors.
Delinquent Mortgage - A mortgage that involves a borrower who is behind on payments. If the borrower cannot bring the payments up to date within a specified number of days, the lender may begin foreclosure proceedings.
Down Payment - The upfront cash commitment paid by the buyer. It makes up the difference between the sales price of a property and the loan amount obtainable.
Dual Agent - An agent who represents both parties in a transaction.
Due Diligence - The making of every reasonable effort to perform one's contractual obligations. Example - A prospective home-buyer signed a sales contract contingent on the sale of her present residence.
Due-On-Sale Clause - Provision in a mortgage or deed of trust calling for the total payoff of the loan balance within the event of a sale or transfer of title to the secured real property. A contract provision which authorizes the lender at its option to declare immediately due and payable sums secured by the lender's security instrument upon a sale of transfer of all or any part of the real property securing the loan without the lender's prior written consent.
Dwelling - A place where people live such as apartments, hotels, mobile homes, nursing homes, and single-family houses.
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