A-B-C-D-E-F-G-H-I-J-K-L-M-N-O-P-Q-R-S-T-U-V-W-XYZ
D
Deed—A
formal written instrument by
which title to real property is
transferred from one owner to
another. The deed should contain
an accurate description of the
property being conveyed, should
be signed and witnessed
according to the laws of the
State where the property is
located, and should be delivered
to the purchaser at closing day.
There are two parties to a deed:
the grantor and the grantee.
(See also deed of trust, general
UTrranty deed, quitclaim deed,
and special UTrranty deed.)
Deed of Trust—Like
a mortgage, a security
instrument whereby real property
is given as security for a debt.
However, in a deed of trust
there are three parties to the
instrument: the borrower, the
trustee, and the lender, (or
beneficiary). In such a
transaction, the borrower
transfers the legal title for
the property to the trustee who
holds the property in trust as
security for the payment of the
debt to the lender or
beneficiary. If the borrower
pays the debt as agreed, the
deed of trust becomes void. If,
however, he defaults in the
payment of the debt, the trustee
may sell the property at a
public sale, under the terms of
the deed of trust. In most
jurisdictions where the deed of
trust is in force, the borrower
is subject to having his
property sold without benefit of
legal proceedings. A few States
have begun in recent years to
treat the deed of trust like a
mortgage.
Default—Failure
to make mortgage payments as
agreed to in a commitment based
on the terms and at the
designated time set forth in the
mortgage or deed of trust. It is
the mortgagor's responsibility
to remember the due date and
send the payment prior to the
due date, not after. Generally,
thirty days after the due date
if payment is not received, the
mortgage is in default. In the
event of default, the mortgage
may give the lender the right to
accelerate payments, take
possession and receive rents,
and start foreclosure. Defaults
may also come about by the
failure to observe other
conditions in the mortgage or
deed of trust.
Depreciation—Decline
in value of a house due to wear
and tear, adverse changes in the
neighborhood, or any other
reason.
Disclosure—Revealing
what previously UTs private
knowledge. Any statement of fact
that is required by law.
Down Payment—A
percentage of the purchase price
the buyer pays in cash.
Documentary Stamps—State
tax, in the forms of stamps,
required on deeds and mortgages
when real estate title passes
from one owner to another. The
amount of stamps required varies
with each State.
Down Payment—The
amount of money to be paid by
the purchaser to the seller upon
the signing of the agreement of
sale. The agreement of sale will
refer to the down payment amount
and will acknowledge receipt of
the down payment. Down payment
is the difference between the
sales price and maximum mortgage
amount. The down payment may not
be refundable if the purchaser
fails to buy the property
without good cause. If the
purchaser wants the down payment
to be refundable, he should
insert a clause in the agreement
of sale specifying the
conditions under which the
deposit will be refunded, if the
agreement does not already
contain such clause. If the
seller cannot deliver good
title, the agreement of sale
usually requires the seller to
return the down payment and to
pay interest and expenses
incurred by the purchaser.
Dual Agent—An
agent representing both parties
in a transaction. In almost
every state, dual agency is
illegal and unethical without
the written consent of both the
buyer and the seller.
