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Damp Proofing Certificate
A clearance report from a qualified, registered contractor pertaining to a specific property, stating that any previous damp problems have been addressed and should not occur for at least a specified future period of time.

Debt Equity Ratio (of a Property)
A ratio expressing the borrower’s total mortgage debt in relation to the owner’s equity in the property.

Debt Financing
Obtaining finance through raising a loan (i.e. incurring debt) as opposed to raising finance through selling a part of ownership interest (equity f inancing). For example, a company would get a loan against a property as a form of debt financing as opposed to selling shares in the company which would constitute equity financing.

Debt Ratio
A ratio, expressed as a percentage, of a borrower’s total liabilities (debt) in relation to his/her total assets.

Declaration of Trust
A written acknowledgement by one holding legal title to propert y that the property is held in trust for the benefit of another.

Deed of Sale
Related Topic: Agreement of Sale, Contract.

Deed of Trust
A formal legal document that contains the terms and conditions for the establishment and operation of a trust.
Related Topic: Beneficiary, Inter Vivos Trust, Investment Trust, Trust, Trustee.

Deeds Office
A government department who is responsible for the registration and transfer of immovable property.

Deeds Office Registration Fees
Fees charged by the Deeds Office for registering the transfer of immovable property from one owner to another, as well as to record the existence of bonds over such property. The fees to attend to such registrations are payable by the buyer/purchaser.

Default
Failure to meet legal obligations in a binding, valid contract, including failure to make the required payments on a loan in terms of the loan agreement.
Related Topic: Breach of Contract.

Default Judgement
A judgement awarded by a court in favour of a creditor, where a summons is issued against a debtor for monies due to the creditor, and the debtor subsequently fails to defend such a summons, for instance, in a case where a debtor fails to appear incourt at the scheduled time.

Defect
A fault or flaw in the property. There are two types of defects – latent defects and patent defects. A patent defect is a fault or flaw that clearly visible and not hidden from view upon a reasonable inspection of a property. A latent defect is a fault or f law that is not immediately detectable, or is hidden from view, upon a reasonable inspection of the property. The ‘voetstoots’ clause is applicable - see ‘Voetstoots’.

Deflation
Deflation occurs when prices are declining over time. This is the opposite of inflation and could be catastrophic. When the inflation rate (by some measure) is negative for a period, the economy is in a deflationary period.
Related Topic: Disinflation.

Deposit
An amount, which is part of the purchase price of the property, which is paid in cash up front by the buyer.

Depreciation
Is the systematic decrease in the value of an asset due to ‘wear and tear’ and ‘obsolescence’.
Related Topic: Obsolescence.

Deseasonalized
Seasonal fluctuations have been removed. In the case of retail sales, this is essential in order to be able to compare sales pertaining to different months of the year, as opposed to comparing sales of one quarter or month with the same quarter or month a year earlier.

Developer
A person who develops residential or commercial premises on vacant land with the aim of selling or renting the property for future gain.

Development Rights
The legal ability to develop a parcel of land, usually as confirmed by the applicable town planning scheme.

Disbursements
Payments made, usually by the transferring attorneys in relation to the transfer, during the course of a transfer or at closing of a transfer of a property, for example, for the Deeds Office fees.

Discount Rate
The rate used to express an expected future cash stream in present value terms. In most instances, the discount rate is equal to the hurdle rate. Mathematically, the hurdle rate of a property is the sum of its market capitalization rate and the expected constant growth rate of its cash flow in perpetuity.
Related Topic: Hurdle Rate.

Disinflation
Disinflation occurs when the inflation rate is declining over time.
Related Topic: Deflation.

Diversification
In property, spreading ownership over a wide geographic area and holding a variety of property types to reduce overall risk.

Domicile
The legal term signifying a place where a person has his permanent home or residence and the delivery address for legal notices.

Domicilium Citandi Et Executandi
The physical or postal address to which legal documents and notices must be delivered. Documents or notices delivered to this address are deemed to be received, even if the addressee did not in fact receive it.

Due Diligence
A process undertaken by purchasers to confirm various financial, physical, technical and legal aspects of a property asset before a purchase.

 
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