| Term | Definition |
|---|
| discount points (or points) | The amount paid either to maintain or lower the interest rate charged. Each point is equal to one percent (1%) of the loan amount (i.e., two points on a $100,000 mortgage would equal $2,000). |
| discount rate | (1) The rate charged member banks who borrow from the Federal Reserve System. (2) The rate used to convert future income into present value. |
| dispossess | To oust from land by legal process. |
| dominant tenement | Property that carries a right to use a portion of a neighboring property. For example, property that benefits from a beach access trail across another property is the dominant tenement. |
| down payment | An amount of money the buyer pays which is the difference between the purchase price and the mortgage amount. |
| dual agency | Representing the buyer and the seller in the same transaction by the same agent. Since there is an inherent conflict in fiduciary obligations to two different principals, dual agency, at best, is a risky undertaking. TRELA requires that all parties to a dual agency have full knowledge and consent (Disclosed Dual Agency). Contrast with intermediary. |
| due on sale | A clause in a mortgage agreement providing that, if the mortgagor (the borrower) sells, transfers, or, in some instances, encumbers the property, the mortgagee (the lender) has the right to demand the outstanding balance in full. |
| duress | Forcing action or inaction against a person's will. |
| earnest money | A deposit made by the buyer as evidence of good faith in offering to purchase real estate and to secure performance of the contract. Earnest money is typically held by a title company, in an escrow account, during the period between acceptance of the contract and the closing. |
| earnest money contract (EMC) | A contract for the sale or purchase of real estate in which the purchaser is required to tender earnest money to evidence good faith in completing the contractual obligations. Also see sales contract and promulgated contracts. |
