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Damper: A mechanical device installed in heating, ventilation, and air conditioning (HVAC) systems to regulate and control the flow of air. It helps to adjust temperature, airflow, and pressure in different areas of a building for optimal comfort and energy efficiency.
Days on Market (DOM): A metric used in the real estate industry to measure how long a property has been listed for sale. DOM is typically calculated as the number of days from the date that the property was first listed to the date that it is either sold or removed from the market. A property with a low DOM may be considered more desirable, as it suggests that it is in high demand and may be sold quickly.
Debt Coverage Ratio (DCR): A financial metric used to assess the ability of a property to generate sufficient income to cover its debt obligations. It is calculated by dividing the property's net operating income by its total debt service, and a higher DCR indicates better financial stability and a lower risk for lenders.
Debt-to-Income Ratio: A ratio that compares a borrower's total monthly debt payments to their gross monthly income, used by lenders to assess their ability to repay a loan.
Debt Service: The amount of money required to cover the principal and interest payments on a loan.
Deed: A legal document that transfers ownership of a property from one party to another.
Deed of Trust: A legal document used in real estate transactions that serves as security for a loan. It transfers the title of the property to a trustee until the borrower repays the loan in full, upon which the trustee reconveys the title to the borrower.
Default: The failure to meet the obligations or terms of a loan or contract.
Deferred Maintenance: Refers to the postponement of necessary repairs and upkeep on a property. It occurs when routine maintenance tasks, such as painting, replacing worn-out fixtures, or repairing structural issues, are neglected over time. Delaying maintenance can lead to more significant problems and decreased property value if left unaddressed.
Delinquency: The failure to make timely payments on a loan or debt.
Demand: The desire and ability of buyers to purchase real estate in a specific market.
Density Test: A construction and engineering procedure to measure the density of soil or materials. It assesses compaction and quality, ensuring they meet stability and load-bearing standards.
Deposit: A sum of money provided by a buyer or tenant as a sign of commitment and to secure a property or rental agreement. The deposit is typically held by the seller, landlord, or a designated third party until the transaction is completed or the tenancy ends, and it may be refundable, subject to certain conditions, such as property inspection or contract fulfillment.
Depreciation: The decrease in the value of a property over time, usually due to factors such as wear and tear or changes in market conditions.
Depreciation Schedule: A timetable that outlines the estimated decrease in value of an asset over its useful life.
Development: The process of improving or constructing structures on a property, often involving land subdivision and building construction.
Disclosure: The act of providing information about a property or transaction to parties involved. In real estate, disclosure refers to providing potential buyers or tenants with accurate and comprehensive details about the property, such as its physical condition, any known defects, previous repairs, environmental hazards, or legal issues.
Down Payment: The initial payment made by the buyer toward the purchase price of a property, usually a percentage of the total price.
Draw: An advance payment made to a contractor or builder during the construction or renovation process. It allows the contractor to cover the costs of materials, labor, and other expenses necessary to complete specific stages or milestones of the project.
Dual Agency: A situation where a real estate agent represents both the buyer and the seller in a transaction, which may present a conflict of interest.
Due on Sale: A clause commonly found in mortgage agreements that requires the borrower to repay the outstanding loan balance in full upon the sale or transfer of the property. If the property is sold or ownership is transferred without paying off the loan, the lender may exercise their right to demand immediate payment. The due on sale clause is designed to protect the lender's interests and ensure the loan is repaid according to the agreed terms.
Due Diligence: The investigation and research conducted by a buyer or investor to assess the condition and potential risks of a property before making a purchase.
Duplex: A property that contains two separate residential units, typically with one unit above the other.
Dwelling: A place of residence or habitation, such as a house, apartment, or condo.