Real Estate Terms

A covenant of right to convey is a promise in a deed that the grantor has the legal capacity to convey the title.

A covenant of seisin is a promise in a deed ensuring the grantee that the grantor has the title being conveyed.

A covenant of warranty is a promise in a deed that the grantor will defend the title against lawful claimants.

A credit score is a numerical rating provided on a credit report that establishes creditworthiness based upon a person’s past credit/payment history and their current credit standing.

The cubic-foot method is a means of estimating reproduction or replacement cost, using the volume of the structure.

Cumulative-use zoning is a type of zoning permitting a higher priority use even though it is different from the type of use designated for the area.

Curtesy is a husband’s interest upon the death of his wife in the real property of an estate that she either soley owned or inherited provided they bore a child…

Damages is the amount of financial loss incurred as a result of another’s action.

Debt Service is the cost of carrying a loan, usually through monthly payments, including the payment of interest and principal.

The debt-to-equity ratio, also referred to as the loan-to-value ratio, is a rule used by banks requiring that a borrower invest a minimum amount of equity cash (usually 10% to…

The debt-to-income ratio is the relationship of a borrower’s monthly payment obligation on long-term debts divided by gross monthly income, expressed as a percentage. It is also known as bottom…

Declaration is the master deed containing legal description of the condominium facility, a plat of the property, plans and specifications for the building and units, a description of the common…

Declaration of restrictions is the instrument used to record restrictive covenants on the public record.

Dedication is an appropriation of land or an easement therein by the owner to the public.

Dedication by deed is the deeding of a parcel of land to a municipality.

Deductible expenses are the costs of operating property held for use in business or as an investment. These expenses are subtracted from gross income to arrive at net income.

A deed is a written instrument transferring an interest in real property when delivered to the grantee.

Deed in lieu of foreclosure is the conveyance of title to the mortgagee by a mortgagor in default to avoid a record of foreclosure.

A deed restriction is a limitation on land use appearing in a deed.

An act performed by the buyer, seller, tenant or landlord that breaches the contract of sale or lease and permits a claim for damages.

A defeasance clause is a statement in a mortgage or deed of trust giving the borrower the right to redeem the title and have the mortgage lien released at any…

A defeasible fee is a title subject to being revoked if certain conditions occur.

Deficiency judgment is a court judgment obtained by a mortgagee for the amount of money a foreclosure sale proceed was deficient in fully satisfying the mortgage debt.

Delivery and acceptance occurs when the transfer of a title by deed is given by the grantor to the grantee.

Demise is to convey an estate for years (leasing or letting).

See U.S. Department of Housing and Urban Development.

Depreciation is the expensing of the original cost of an asset, plus any qualified improvements, over its scheduled life as defined by the IRS. Depreciation deductions are permitted only for…

Descent is the distribution of property to qualified heirs of one who has died intestate.

Description by monument is a legal description of multiple-acre tracts of land and may refer to permanent objects such as a stone wall, large trees or boulders.

Description by reference is a description on a deed that refers to a plat of subdivision or other legal document.

Devise is a gift of real property by will.

Disclosure and informed consent is a real estate agent explaining his position in the agency relationship and the verbal and written consent of the relationship by the client.

The disclosure statement is an accounting of all financial aspects of a mortgage loan required of lenders to borrowers in residential mortgage loan as regulated by the Federal Reserve Board.

Discount points are a one-time payment by the borrower to the lender at closing to obtain a lower interest rate on the mortgage loan. One point equals 1% of the…

A distribution box is part of a septic system that distributes the flow from the septic tank evenly to the absorption field or seepage pits.

Dominant tenement is land benefiting from an easement appurtenant.

A depreciation technique whereby the asset is divided by its useful life and this sum is doubled. Thereafter, in each succeeding year the accumulated depreciation is deducted from the original…

Dower is the part of or interest in the real estate of a deceased husband given by law to his widow during her life.

The down payment is the amount of money a buyer pays upfront in order to purchase a property. It is usually paid at the signing of the contract in the…

A dual agent is a broker or salesperson who represents both the buyer and seller in the same transaction.

Due diligence is the investigation and review of a property to determine any legal liability.

A duplex apartment consists of two levels.

Earnest money deposit is the deposit a buyer makes at the time of submitting an offer to demonstrate the true intent to purchase. It is also called a binder or…

An easement is a non-possessory right of the use of land.

Easement appurtenant is a right of use in the adjoining land of another that moves with the title to the property benefiting from the easement.

Easement by condemnation is exercising the right of eminent domain.

Easement by grant is created by the express written agreement of the landowners, usually in a deed.

Easement in gross is a right of use of the land of another without the requirement that the holder of the right own adjoining land.

The eave is the lowest part of the roof that projects beyond the walls of the structure.

Economic depreciation is the physical deterioration of property caused by normal use, damage caused by natural or other hazards, and failure to adequately maintain property.