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- Debt Coverage Ratio
- The ratio between the net income of an investment and the amount of debt service of the investment: expressed as (NOI / DS = DCR).
- Debt Service
- The periodic payments of interest and/or principal on a property's indebtedness.
- Deed
- The legal document that transfers ownership of a piece of property.
- Deed of trust
- A document that gives a lender the right to foreclose on a piece of property if the borrower defaults on the loan.
- Default
- The failure to fulfill a duty or promise or discharge an obligation, such as making monthly mortgage payments.
- Deferred maintenance
- Any repair or maintenance of a piece of property that has been postponed, resulting in a decline in property value.
- Delinquent mortgage
- A mortgage that involves a borrower who is behind on payments. If the borrower cannot bring the payments up to date within a specified number of days, the lender may begin foreclosure proceedings.
- Density test
- An analysis of soil to determine if the surface can support the foundation of a property.
- Deposit
- Money given by the buyer with an offer to purchase property. Also known as earnest money.
- Depreciation
- The decline in value of a piece of property.
- Discount points
- Fees that a borrower pays at the time the lender makes the loan. One point equals 1 percent of the total loan amount.
- Discount rate
- The percentage rate at which money or cash flows are discounted. The discount rate reflects both the market risk-free rate of interest and a risk premium. See opportunity cost.
- Discounting
- The process of reducing the value of money received in the future to reflect the opportunity cost of waiting to receive the money.
- Distressed property
- Property that is in poor physical or financial condition.
- Down spouts
- A vertical gutter that empties water from the roof to the ground.
- Dry rot
- A fungal decay that causes wood to become brittle and crumble.
- Dual agency
- A relationship in which a real estate agent or broker represents both parties in a transaction.
- Due-on-sale clause
- Standard language in a mortgage which states that the loan must be paid when the property is sold.
- Duplex
- A structure that consists of two separate family units.
Some definitions come from the Certified Commercial Investment Member Institute (CCIM).
