Philippine Real Estate Glossary

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Damages
The indemnity recoverable by a person who has sustained an injury either in his person, property, or relative rights through the act or default of another.

Debt
An amount owed to another. See installment loan and revolving liability.

Deed
The legal document conveying title to a property. The deed is the document that transfers ownership from the seller to you. Only the seller signs the deed at closing, and you'll receive a copy of it. The closing agent will record the deed with you listed as the new property owner. Your name and the names of any other buyers appear on the deed, and it will be sent to you after it is recorded.

Deed-in-lieu
A deed given by a mortgagor to the mortgagee to satisfy a debt and avoid foreclosure. Also called a "voluntary conveyance."

Deed of Trust
The document used in some states instead of a mortgage; title is conveyed to a trustee. In some states, a "deed of trust" is used instead of a mortgage. When homeowners sign a deed of trust, they receive title to the property but convey title to a neutral third party -- called a trustee -- until the loan balance is paid in full.

Default
Failure to make mortgage payments on a timely basis or to comply with other requirements of a mortgage.

Defeasance
An instrument which defeats the force of some other instrument, such as mortgage, etc.

Defeasance Clause
The clause in a mortgage that gives the mortgagor the right to redeem his property upon the payment of his obligations to the mortgagee.

Deficiency
The difference between the sales price or market value of real estate and the amount of indebtedness being sued for in a foreclosure sale, where the debt is larger than the sales price.

Deficiency Judgement
A judgment given when the security pledge for a loan does not satisfy the debt upon its default.

Delinquency
Failure to make mortgage payments when mortgage payments are due.

Deposit
A sum of money given to bind the sale of real estate, or a sum of money given to ensure payment or an advance of funds in the processing of a loan. See earnest money deposit.

Depreciation
The loss of value in real property brought about by age, physical deterioration for functional or economic obsolescence. Broadly, a loss in value from any cause.

Divise
A gift of real estate by a will.

Devisor
One who receives a bequest made by a will.

Detached Single-Family Home
The most traditional type of single-family home is one that is "detached." This type of home stands separate from any other housing structure and serves as a place of residence for the occupants.

Directional Growth
The location or direction toward which the residential sections of a city are destined or determined to grow.

Discount Points
Discount points are often used to describe a type of fee that lenders charge. Discount points are additional funds you pay the lender at closing to get a lower interest rate on your mortgage. A point equals 1 percent of the loan amount. So, if you and your lender agree to a mortgage of $100,000, one point would equal $1,000. Typically, each point you pay for a 30-year loan lowers your interest rate by .125 of a percentage point. If the current interest rate on a 30-year mortgage is 7.75 percent, paying one point would lower the interest rate to 7.625. Ask your lender if you have the option of paying 1, 2, or 3 discount points -- or you can choose not to pay any discount points. It often makes more sense to pay discount points if you plan to stay in your home for a long time.

Dominant Estate
Land which does not have access to a public road which is given a right of way through an adjoining land.

Dower
The rights of a widow in the property of her husband at his death.

Down Payment
The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.Saving for a down payment is usually one of the most difficult parts of preparing to buy a home. If you believe you have the needed funds, you are in a better position to seek pre-qualification from a lender to get the mortgage that is right for you.Most homeowners rely on a mortgage from a financial institution, and most mortgage products require buyers to include a portion of their own funds towards the purchase of the home. This is called the down payment. Lenders feel more secure when buyers include a down payment, indicating they are less likely to walk away from their investment if their finances take a downturn.Historically, buyers usually made a down payment that totaled 20 percent of the home's purchase price. Under this scenario, a down payment for a $100,000 home is $20,000. But today, new mortgage products allow buyers to put down as little as 3 percent to 5 percent, provided private mortgage insurance is obtained. The down payment for a $100,000 home with 5 percent down payment is just $5,000.Sources for down payments may come from buyers' savings accounts, checking accounts, stocks and bonds, life insurance policies, and gifts.

Duplex
a two-family house each having two living ares side by side.

Due-on-sale Provision
A provision in a mortgage that allows the lender to demand repayment in full if the borrower sells the property that serves as security for the mortgage.

Due-on-transfer Provision
This terminology is usually used for second mortgages. See due-on-sale provision.