United Country Guardian Real Estate - Dillon, Beaverhead Madison County Southwest Montana Real Estate for sale

Dictionary / Glossary / Directory
of Real Estate Terminology
Definitions & Commonly Used
Real Estate Terms

Confused & overwhelmed by the overwhelming number of real estate terms and words? Every person working in real estate or planning to buy or sell real estate can benefit by using this dictionary directory glossary of real estate terminology, definitions and commonly used terms.

Real Estate Terminology Definitions & Commonly Used Terms
In Alphabetical Order

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

    Debt Service:

  • The annual payment agreed to be made on a mortgage loan, including principal and interest, and sometimes taxes and insurance often referred to as "PITI".
    • Declaration of Homestead:

    • A document recorded by a homeowner to protect a prescribed amount of equity in his or her home from creditor’s claims.
      • Dedication:

      • The process by which a property owner gives an interest in real property to a public body, such as a city or county. The motivation is often not charitable but rather an agreed-on condition for development. For example, a condition of annexation or zoning may be that a park site be donated (by dedication) to the city for the benefit of the public. A fee simple, or merely an easement, may be dedicated.
        • Deed:

        • A document used to convey an interest, such as an easement, or a fee simple, in real property from one person (called the grantor) to anther person (called the grantee). Although all deeds serve this function, there are a variety of specialized deeds used for particular situations or circumstances. Regardless of the particular transaction for which these various deeds are designed, all share certain basic requirements:
          1. The grantor and grantee must be named
          2. The grantor must sign
          3. The real property and interest being transferred must be adequately described
          4. One of several possible words, such as grant, convey, transfer, or assign must appear to ensure there is an intent to transfer ownership
        • The deed must be delivered to and accepted by the grantee A deed with a Notary Seal, like any other document affecting real property, is recorded by delivering it and applicable feee to a county clerk, recorder or official, who officially "Records" the document.

            Deed In Lieu of Foreclosure:

          • A deed given by a defaulting owner to his creditor so that the lender does not have to proceed with foreclosure. Following a deed in lieu, the creditor may not be able to sue for a deficiency judgment. On the other hand, the debtor may preserve his credit reputation. Because foreclosure is averted in a deed-in-lieu situation, the lender may be well-advised to proceed carefully. Foreclosure eliminates all subordinate claims to the property; they are not eliminated if a deed-in-lieu is accepted.
            • Deed of Reconveyance:

            • A Deed. Under a Deed of Trust, the debtor is called the trustor and the lender is called the beneficiary. The effect of the deed of trust is to transfer legal title to real estate to a third party (called the trustee) who holds title until the debt is paid. Once the debt is paid, the trustee returns title to the debtor by recording a deed of reconveyance. The record title is then clear of that former debt. It is a criminal offense if a trustee wrongfully refuses to reconvey.
              • Deed of Trust:

                Synonym: Trust Deed, Trust Indenture, Mortgage
              • A deed used to guarantee repayment of a debt. For practical intents and purposes, a deed of trust is synonymous with a mortgage. Most deeds are used to transfer both ownership and possession. However, in many instances ownership (title) is separated from possession of real property. A lease is an example where possession is transferred to another, the tenant. A deed of trust is the opposite. The owner retains possession but transfers the title to another as security for repayment of his debt. Or, as lawyers say, the grantor (called the trustor) retains the equitable title & ownership (possession) and transfers legal ownership (title).
                • Deed Restrictions:

                • Limitations that are included within a grant deed that restrict various future uses of the land. These private restrictions may pertain to uses (such as residential only).
                  • Default:

                  • The breach or failure to meet a contractual obligation in a note, or mortgage, such as failure to make the monthly payments on a note, or failure to keep property taxes current.
                    • Default Judgement:

                    • Court-awarded judgment based on the defendant’s failure to answer the summons and complaint or to appear at the trial to contest the claim of the plaintiff.
                      • Deferred Maintenance:

                      • The maintenance and repairs that, although needed, are not done. Deferred maintenance is one of the early signs of blight in a neighborhood. Sometimes maintenance is deferred when a replacement or improvement would be more affordable the following year. Or, it may be the result of poor management.
                        • Deferred Maintenance:

                        • The maintenance and repairs that, although needed, are not done. Deferred maintenance is one of the early signs of blight in a neighborhood. Sometimes maintenance is deferred when a replacement or improvement would be more affordable the following year. Or, it may be the result of poor management.
                          • Delinquency Date:

                          • Any date following which a penalty is automatically accrued for nonpayment of an obligation. Promissory notes contain both a due date and a delinquency date. The period of time between these dates is the grace period. Some lenders put “due” dates on their monthly loan statements that are far in advance of the actual “delinquency” date when the payment is actually due. This antic may promote early payment by borrowers providing lenders with a cash windfall.
                            • Delivery and Acceptance:

                            • The conveyance of an interest in real property requires both the delivery of the title and its acceptance. Delivery and acceptance are usually implied from the circumstances surrounding the sales transaction, such as instructions by the buyer to record the deed. Formal acceptance of a conveyance is usually required when a property interest is dedicated to a public entity. Acceptance under such circumstances occurs by official resolution and written memorandums.
                              • Depreciation:

                              • Both a decrease in value of real estate and an income tax benefit, depending upon its usage. In taxation a "depreciation" deduction from ordinary income is allowed the owner of certain improved real property whether or not it has declined in value during the year. Tax depreciation is also called "cost recovery" and "write-off." In appraisal, depreciation means a loss in market value. It may arise from physical deterioration (wearing out) or functional obsolescence (not suitable for current/modern uses).
                                • Discount Points:

                                • 1 discount point is 1% of a loan. The borrower is charged discount points to equalize the interest rate specified in the loan (called the contract rate) with the market interest rate, or simply to produce a profit for the lender. 5 points on a $150,000 loan equals a one time charge of $7,500.
                                  • Distressed Property:

                                  • Any real property that suffers from a decreasing value in the marketplace. Lower inflation rates, lower relative interest rates, or overbuilding can create distressed properties. Any commercial property that does not produce a positive cash flow is, in a sense, distressed. Any real estate, especially residential property, also may be distressed and suffer a lower price from appearance or excessive deferred maintenance. Surrounding blight also can contribute to the troubles of a distressed property. Specialized investors seek out distressed properties hoping to purchase it at bargain basement prices and then reap large capital gains following a turn-around in market conditions.
                                    • Double Escrow:

                                    • A procedure in which the closing of one escrow is dependent on the closing of another. The procedure is commonly used in exchanges of property as well as in instances where a buyer acquires purchase funds from the sale of the same or another property. The seller of real estate may be unaware that his property is being resold immediately to another buyer through a double escrow transaction.
                                      • Down Payment:

                                      • The unfinanced part of the purchase price a buyer pays at closing for property. By custom, earnest money deposites previously paid is applied (credited) toward the cash down payment.
                                        • Dual Agency:

                                        • A relationship created where 1 agent simultaneously represents 2 principals (Buyer & Seller) in a single transaction. State laws, rules and regulations mandate if dual agency is allowed, and if so, the agency disclosure statements specifying the duties owed to each principal under a dual agency relationship. Agency disclosure statements must be supplied and accepted by sellers and buyers for dual agency relationships.
                                          • Due on Sale Clause:

                                          • An acceleration clause found in a note or deed of trust, requiring the entire unpaid balance of the mortgage or note, together with accrued interest, be paid in full at the time Title to a secured property is sold or title is transferred to another party.

                                          • Real Estate Terminology Definitions & Commonly Used Terms
                                            In Alphabetical Order

                                            A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

                                            While great care has been undertaken to provide accurate explanations and definitions for real estate terms and words in our real estate terms dictionary glossary dirctory, no real estate vocabulary dictionary cannot be completely accurate in all jurisdictions. Any / all definitions are for general purposes only and should not be used for any legal purpose. By use of this dictionary glossary directory of real estate terms, you agree to hold United Country - Guardian Real Estate harmless for any responsibility for any liability, loss or risk that may be claimed or incurred as a consequence of using this information.