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21 NC RE Pre-lic D's
2021 North Carolina Real Estate Pre-Licensing Terms D's
| Term | Definition |
|---|---|
| Dangling Commission | Compensation that licensees may accept from a broker with whom they are no longer associated, assuming they were licensed with that broker at the time the commission was earned and the right to any commission under such circumstances is spelled out in the |
| Days on Market (DOM) | The time period between listing a property and either selling or removing it from the market. |
| DD-214 | A Certificate of Release or Discharge from Active Duty, or DD-214, issued by the Department of Defense. The DD-214 identifies the character of service and reason for discharge (honorable, dishonorable, etc.). |
| Debit | A sum of money that is owed; a charge. |
| Debt | The amount of money owed on a note or other promise to pay. |
| Debt Service | The amount of money paid at regular intervals toward reducing the principal and interest owed on a debt. |
| Debt-to-Income Ratio | The relationship of a borrower's total monthly debt to gross monthly income, expressed as a percentage (Total Debt / Income = Ratio %). Debt obligations include housing and long- term debts with more than 10 payments remaining. Also called Total Debt Serv |
| Dedication | The donation of real property by a private owner to the public. |
| Deductible | Usually a dollar amount the insured must pay on each loss to which the deductible applies. The insurance company pays the remainder of each covered loss up to the policy limits. |
| Deed | A written instrument transferring the grantor's ownership of, or interest in, real property. |
| Deed in Lieu of Foreclosure | Process by which the deed to a property is given by a borrower to the lender to avoid foreclosure. |
| Deed of Trust | A security instrument placing into the hands of a disinterested third party (a trustee) a specific financial interest in the title to real property as security for the payment of a note, making the lender the beneficiary. Also called Trust Deed. |
| Deed Restriction | Limitations placed in a deed by a grantor that restrict the way in which the land may be used, improved, or maintained. |
| Default | Failure to fulfill an obligation, duty, or promise, as when a borrower fails to make payments, a tenant fails to pay rent, or a party fails to perform a contract. A mortgage, note, or other document will define what constitutes default. |
| Defeasance Clause | A clause used to defeat or cancel a certain right upon the occurrence of a specific event. |
| Defeasible Fee | A type of freehold estate conveying ownership interest that comes with a condition. Also called Qualified Fee. |
| Deficiency Judgment | The debt that remains due and payable by the borrower after a sheriff's sale of property. |
| Delivery and Acceptance | A requirement for the legal transfer of property through a deed. Delivery refers to the grantor’s intention to transfer the property’s title and signing a deed; acceptance refers to the grantee’s receiving the deed while the grantor is alive. |
| Depreciation | A loss in value of a piece of property over the time it is expected to be useful for any reason. |
| Derogatory Credit | Credit history showing previous problems in meeting financial obligations. |
| Descent | An operation of law when real property is transferred to an heir after the death of the owner who leaves no will (intestate). |
| Designated Agency | A contractual relationship between a broker and a client in which one or more licensees associated with the broker are appointed to represent the client in an in-house transaction. Also called Split Agency. |
| Designated Agent | A licensee appointed by a broker as the legal agent of a client. Also called Split Agent. |
| Devise | To transfer real property by will; real property transferred in a will. |
| Direct Capitalization Rate | A rate of return, stated as a percent, used to derive a value opinion from the anticipated net operating income a property could generate. It is used for direct capitalization in the income approach. Also called Cap Rate or Rate. |
| Direct Loss | Financial loss as a result of a direct loss to property. |
| Direct Writing Companies | An insurance company that sells its policies through salaried employees. |
| Disability | A physical or mental impairment that substantially limits or curtails one or more major life activities. |
| Discharge of Mortgage | Required once a borrower’s loan is paid off. The lender issues the discharge of contract, and the borrower should record this document. Also called Release of Lien or Satisfaction of Mortgage. |
| Disclosure | A real estate licensee’s fiduciary obligation to reveal material facts or defects. |
| Discount Point | A form of pre-paid interest that a lender charges to increase the yield on a lower-than- market interest rate loan. One point equals 1% of the loan amount; one discount point equals approximately 1/8 of a percent. |
| Discount Rate | The interest rate charged by Federal Reserve Banks on loans to member commercial banks. |
| Discrimination | Treating people unequally because of their race, religion, sex, national origin, age, or some other characteristic of a protected class, in violation of civil rights laws. |
| Disintermediation | The movement of money out of savings accounts and into higher yield investments, such as corporate securities or government instruments. |
| Disparate Impact | When a law that isn’t discriminatory on the face of it has a greater impact on a minority group than it has on other groups. Also called Disparate Effect. |
| Disparate Intent | An intentional decision to treat some people differently than others in a similar situation. Also called Disparate Treatment. |
| Distress Code | A pre-defined signal, word, or phrase used by someone in a vulnerable or unsafe situation to communicate to others that they are in danger. |
| Doctrine of Emblements | A rule that allows a tenant farmer to re-enter the land to harvest crops that were planted by the tenant farmer even after the land has been sold to a new owner. |
| Doctrine of Part Performance | A legal doctrine that allows a court to enforce an oral agreement that should have been in writing, when one party has taken irrevocable steps to perform his or her side of the bargain, and failure to enforce the contract would result in an unjust benefit |
| Dominant Tenant | A person with easement rights on another's property; either the owner of a dominant tenement or someone who has an easement in gross. |
| Dominant Tenement | Property that receives the benefit of an appurtenant easement. |
| Double Net Lease | A lease in which the tenant pays two of the expenses associated with property ownership, in addition to paying the rent. Also called Net-Net. |
| Dower | The interest held by a married person in the real property owned by a spouse; generally refers to a wife’s interest in her husband’s property. Not recognized in all states. |
| Down Payment | The amount of money a buyer pays to obtain a property, in addition to the money that the buyer borrows. |
| Dual Agency | An agency relationship in which a licensee represents both buyer and seller (or both landlord and tenant) in the same transaction. Requires the informed written consent from both parties. |
| Dual Agent | A licensee who represents both the buyer and the seller (or both landlord and tenant) in a single real estate transaction. |
| Due Diligence | The buyer’s opportunity to investigate and inspect the property and the transaction. |
| Due Diligence Fee | The non-refundable agreed-upon amount that the buyer pays the seller for the right to terminate the contract for any reason or for no reason during the due diligence period; this is not the same as earnest money. |
| Due Diligence Period | The period beginning on the effective date and extending through 5:00 p.m. on [date], TIME BEING OF THE ESSENCE. |
| Dwelling Policy | An insurance policy that covers direct and indirect losses, but provides no theft or liability coverage. This coverage may be added by a separate endorsement. The customer can specify what and how much they wish to be insured. |
Created by:
Sandi S