Valley Real Estate
Phone: (330) 629 - 9200
- An amount owed to another. The party owing the money is called a debtor.
- See ► installment loan and revolving liability.
- debt-to-income ratio ( DTI )
- The percentage of a consumer's monthly gross income that goes toward paying debts. DTIs often cover more than just debts; they can include certain taxes, fees, insurance premiums, and association fee payments (often referred to as PITIA) as well. Lenders often refer to DTI's as 'Front' or 'Back' end.
Front-End DTI Ratio is calculated as follows:
[monthly house payment (principle and interest)] + [property taxes] + [homeowner's hazard insurance] + [condo or association fees if any]
÷ [gross monthly household income]
Back-end DTI Ratio is calculated as follows:
[monthly house payment (PITIA or the front end DTI as discussed above)] + [second mortgage, home-equity loans or home-equity lines of credit payments if any] + [credit card payments] + [auto loan or lease payments] + [alimony] + [any other payments on credit accounts or loans]
÷ [total gross monthly household income]
- The legal document conveying title to real property.
- A deed given by a mortgagor to the mortgagee to satisfy a debt and avoid foreclosure. Also called a "voluntary conveyance." Contrast with Short Sale.
See also ►
- Real Estate Guide:
- Real Estate Guide:
- deed of trust
- The document used in some states instead of a mortgage; title is conveyed to a trustee.
- deed restrictions
- Restrictions placed within a deed that control the use of the property. Restrictions travel with the deed, and cannot generally be removed by new owners.
- Failure to make mortgage payments on a timely basis or to comply with other requirements of a mortgage.
- deferred payments
- Payments the lender agrees to postpone as part of the workout process when facing foreclosure.
- deficiency judgment
- A judgment lien against a debtor or borrower whose foreclosure sale did not produce sufficient funds to pay the mortgage in full.
- See ► Short Sale
- Failure to make mortgage payments when mortgage payments are due. Although most mortgages have language specifying that foreclosure can be enacted after just one missed payment the usual practice is to start the process after three missed payments.
- Department of Veterans Affairs (VA)
- See ► VA - Department of Veteran Affairs.
- A sum of money given to bind the sale of real estate, or a sum of money given to ensure payment or an advance of funds in the processing of a loan. See earnest money deposit.
- A decline in the value of property; the opposite of appreciation.
- See ► .
- Acquisition of an estate by inheritance in which an heir succeeds to the property by operation of law.
- See ► Intestate Succession.
- disclosed dual agent
- Dual agency is a relationship in which the brokerage firm represents both the buyer and the seller in the same real estate transaction. Dual agency relationships do not carry with them all of the traditional fiduciary duties to clients. Instead, dual agents owe limited fiduciary duties. Because of the potential for conflicts of interest in a dual-agency relationship, it's vital that all parties give their informed consent. In many states, this consent must be in writing. Disclosed dual agency, in which both the buyer and the seller are told that the agent is representing both of them, is legal in most states.
- Contrast with ► Seller's Agent, Buyer's Agent, Subagent, and Designated Agent.
- disclosure laws
- Disclosure laws vary by state, but in Ohio, the law requires the seller to complete a . that is presented to the buyer before he makes an offer.
See also ►
- Real Estate Guide: Buyers -
- Real Estate Guide: Sellers/Disclosure -
- discount points
- See ► points.
- designated agent (aka appointed agent)
- This is a brokerage practice that allows the managing broker to designate which licensees in the brokerage will act as an agent of the seller and which will act as an agent of the buyer. Designated agency avoids the problem of creating a dual-agency relationship for licensees at the brokerage. The designated agents give their clients full representation, with all of the attendant fiduciary duties. The broker still has the responsibility of supervising both groups of licensees.
- Contrast with ► Seller's Agent, Buyer's Agent, Dual Agent, and Subagent
- The rights of a widow in the property of her husband at his death.
- down payment
- The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.
- Board of varying thickness, made of gypsum, and used as the primary wall covering in most houses built since 1970.
- due-on-sale provision
- A provision in a mortgage that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage.
- due-on-transfer provision
- This terminology is usually used for second mortgages.
- See ► due-on-sale provision.
- duty of care
Duty of care is a legal obligation imposed on an individual requiring that they adhere to a standard of reasonable care while performing any acts that could possibly harm others. In real estate the definition is often applied to the honest and ethically fair care that must be given to the third party in a transaction, as opposed the the higher and stricter fiduciary duty a ® owes to the principal of the transaction.
See ► agency and fiduciary duty.