Real Estate Definitions
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Days on the Market The period of time between listing a property and its sale or it being taken off the market. Debit The withdrawal of funds from your account. In accounting, a debit is an item of debt as recorded in an account. Debit Bureau A service used by banks that eventually tracks account opening and closing information, cheque order history, cheque writing history, any history of collection activity on unpaid accounts, frequency of debit and ATM card use and household demographics. Under the system, when a consumer gives a cheque to a participating retailer, the individual's account is identified by punching a code into a computer or swiping a card containing a magnetic strip or microchip through an electronic reader, which tells the retailer whether to accept or reject the transaction. Debit Card A payment card that is linked directly to a customer's bank account. Some cards require a personal identification number (PIN) while other cards require the customer's signature. A PIN-based or direct debit card removes a purchase amount from a customer's bank account almost immediately. A signature-based or deferred debit card has a Visa or MasterCard logo and removes the purchase amount from a customer's bank account in two or three days. Debt An obligation or liability to pay or render something to another person or a firm. Debt Consolidation The act of replacing more than one loan with a single loan, often with a lower monthly payment and a longer repayment period. Also called a consolidation loan. CanEquity has access to Canada's best debt consolidation products, for more info about debt consolidation see our debt consolidation page. Debt/Equity Ratio A comparison of debt and equity used to measure the livelihood of a business. Debt Issues The issuance of bonds or other forms of debt on the public markets. Debtor 1. A person who has filed a petition for relief under the bankruptcy laws. 2. Anyone who owes money to a creditor. Deductions Expenses the government allows you to subtract from your taxable income. If you have taxable income of $31,000 and deductions of $4,000, then you would figure how much tax you owe on the difference -- $27,000. Deed A document that provides title to property and is filed with a country recorder. Default When a borrower fails to fulfill the obligations of a loan or lease. Deflation An actual decline in the general level of prices in the economy. Delinquency A debt or other financial obligation on which payment is overdue, such as a failure to make mortgage payments when they are due. Delinquent Mortgage A mortgage loan where the borrower fails to make payments as specified in the loan agreement. Demand Loan A loan that must be repaid in full, on demand. Demographics The characteristics of human populations and population segments that influence the consumption of products and services. They include age, sex, race, family size, education level, occupation, income, and location of residence. Dependent A person, often a child or spouse, who relies on someone else for financial support. Dependents can be claimed as exemptions which reduces the amount of your income that is taxed. Deposit Money that is put towards a given transaction, such as a property purchase, to prove the buyer is serious about making the transaction. Deposit Insurance The Canada Deposit Insurance Corporation insures depositors' funds to a maximum of $60,000 per depositor, per institution, with some exceptions, in the event of the failure of a federal financial institution. Deposits in some provincial financial institutions are also covered. Depreciation A decrease or gradual loss in value because of age, natural wear, or market conditions. Depression 1. In economics, a period of drastic decline in a national or international economy, characterized by decreasing business activity, falling prices, and unemployment. 2. An area that is sunk below its surroundings. Derivatives Financial contracts whose value is derived from the value of some underlying asset, rate or index. Derivatives are used as risk-management tools by governments and corporations to reduce exposure to risk, mainly related to fluctuations in foreign-exchange and interest rates. Derivative instruments include swaps, options, futures and forward contracts and are used by banks in two principal activities: sales/trading and asset/liability management. Destination Charge A fee charged for transporting a vehicle to the dealer from the manufacturer or port of entry. This charge is passed on to the buyer without any mark-up. Dimension Plans Diagrams showing the location of building outlines and other improvements on a lot. However, these diagrams are not as detailed as blueprints. Direct Cheque Printers Printing companies that offer cheque printing services at lower prices (than most banks) to customers who use chequing accounts. Many of these printers are also printing cheques for banks that use outside printers. Customers must supply these companies with a voided cheque or a reorder form from a current batch of cheques and a deposit slip. Names and addresses must match with information on file at the account holder's bank. Direct Debit The authorization by an account holder which allows recurring payments, such as mortgage payments or insurance premiums, to be withdrawn from their account usually on a monthly basis. Direct Deposit The automatic deposit of funds, such as wages, benefits or tax refunds, to a person's bank account. Direct Deposit/Direct Fund Transfers (DFT) A means of authorizing payment made by governments or companies to be deposited directly into a recipient's bank account. It is used mainly for deposits of a recurring nature such as salary, pensions and interest payments. Direct Financing When a buyer obtains financing through an outside financial institution rather than through the dealer. Direct Tax Tax that is paid directly such as income or property tax, as opposed to indirect taxes. Indirect taxes include tariffs and business taxes. See also "Indirect Tax." Disclosure 1. A statement listing defects to a property, such as the existence of lead paint or ground contamination. 2. A statement that requires the creditor to tell the debtor the annual percentage rate, finance charges, and other terms of a loan. Such statements are compulsory in most provinces. Discount Point The sum a borrower pays to a lender to decrease the interest rate for a mortgage. A point equals 1 percent of the loan amount. Disinflation A reduction in the inflation rate as a result of either government policy or a decline in economic activity. Disposition Fee A fee charged by some lessors at the end of a lease where the customer pays for the privilege of returning the vehicle. Distress The right of one party to sell real or personal property belonging to another party to pay unpaid or overdue debt. Distressed Property 1. Property that is in poor physical condition. 2. Property owned by an individual who is in poor financial condition. Dividend The distribution of earnings to shareholders. In credit unions, it is the money paid to members for deposits, similar to the interest banks pay to their customers for deposits. Document Needs List An inventory of documents that a lender needs to underwrite a loan, usually including pay-cheque stubs, bank statements, and tax returns. Documentary Credit Written undertaking by a bank on behalf of an importer authorizing an exporter to draw drafts on the bank up to a specified amount under specific terms and conditions. They are used to facilitate international trade. In the United States, these instruments are called commercial letters of credit. Domestic Banks Banks that are owned by Canadians. Canada has nine domestic banks, of which seven are Schedule I banks. Domicile A person's legal or permanent residence. Down Payment A partial payment made at the time of purchase or when a loan originates with the balance to be paid later. First-time home buyers are allowed to put as little as 5% down when purchasing a property. Draw Mortgage A periodic payment made to a construction contractor or subcontractor as work progresses. A draw is part of a construction mortgage. Draw Period On a line of credit, the draw period is the fixed time when a borrower can make withdrawals from the account. After the draw period expires, the borrower can renew the credit line or may be required to pay the outstanding balance in full, or over time. Dry Rot A fungous disease that causes lumber to become brittle and crumble. Drywall Panels of gypsum plaster wrapped in thin cardboard and attached to the house framing to create interior walls. Dual Agency When a real-estate agent or broker represents both parties in a transaction. Due-on-sale Clause A mortgage condition or clause that states the loan must be paid in full when the property is sold. Commonly used in reverse mortgage lending. Duplex A building that is divided into two living units or residences, usually having separate entrances. |
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