Dictionary
D
- date of valuation
In appraisal, the date for which the value of the subject property is established, not to be confused with the date at which the appraisal takes place.
- debt coverage ratio
The number of times net operating income must cover the annual mortgage payments (principal and interest). For example, if the lender requires the borrower to earn $1,100 in net income to allow him $1,000 in annual mortgage payments, the ratio is 1.1:1. The lender usually states the ratio as a number exceeding one (i.e., 1.1) and the maximum allowable loan payment can then be calculated by dividing N.O.I. by the number supplied (i.e., $1,100 ÷ 1.1 = $1,000.) See also Ratio.
- debt financing
Incurring an obligation to repay a debt in order to invest or consume more than one currently owns.
- debt service
The making of mortgage payments by the borrower, as arranged with the lender.
- debtor
One who owes a debt. Contrast to Creditor.
- deceit
A fraudulent or deceptive misrepresentation used by one person to deceive or trick another person ignorant of the true facts.
- deed
A document used to transfer an interest in land from one party to another.
- demise
The legal term for the granting of a Lease.
- deposit
An amount deposited with the brokerage by the purchaser when an offer to purchase is made.
- depreciation
The amount by which the value of improvements has decreased over time as a result of wear and tear or changes in taste. Depreciation can be classified as physical or functional and curable or incurable. See also Depreciation Expense and compare to Capital Cost Allowance.
- depreciation expense
The periodic cost of owning depreciable assets which are subject to wear and tear, such as buildings and equipment. No depreciation expense can be taken on land. Depreciation expense is a method of accounting for the initial cost of an asset in its subsequent periods of use.
- disclosure statement (in development)
A document prepared by the developer of a subdivision to ensure that investors or purchasers have adequate information upon which to base a purchasing decision.
- disclosure statement (in mortgage brokerage)
A schedule showing the face value of the loan, all costs associated with issuing the loan to the borrower, and the effective annual rate as required by the B.C. Mortgage Brokers Act.
- discounting
The process of expressing expected future income in terms of a present value.
- distress
A legal term for a landlord's right to seize and sell a tenant's personal property in order to recover arrears of rent.
- diversification
The process of investing funds in more than one project or industry in order to reduce the risk of incurring unexpected losses. The opposite of "putting all your eggs in one basket."
- divided ownership syndicate
A real estate syndicate organization in which the investors are the individual owners of the (condominium) units.
- dividends
That part of a corporation's after-tax income that is distributed to the shareholders.
- dominant tenement
Land to which the benefit of a right (i.e., an easement or restrictive covenant) is attached.
- duress
A situation where a person is forced to enter into a contractual relationship against his will by the threat of imprisonment either to himself or his family, or the threat of actual physical force.